Net exports are -$114 billion and exports are $857 billion. What are imports?that is, in fact, negetive 114 in this example.
The imports have to be $114 billion more than the exports. So, since exports are $857 billion, then imports are $971 billion.
Here's why this is. The way to figure net exports is to take your exports and subtract your imports from them. What you are trying to do is to figure out how much more your exports are worth compared to your imports. If you export more than you import, net exports are positive. In this case, you import more than you export (as the United States does) so net exports are negative.
Net exports means the the amount by which the total exports of a country in an accounting period exceed its imports during the same period. Thus net exports are calculated as:
Net Exports = Total Exports - Total Imports
Or we can we can rearrange the terms of the above equation to give the following equation for Total Imports.
Total Imports = Total Exports - Net Exports
It is given that net exports are -$114 billion and total exports are $857 billion. The negative figure for net exports indicates that total exports are less than total imports.
Substituting the given values of total and net exports in the above equation for total imports we get:
Total Imports = 857 - (-114) = 857 + 114 = 971
Total imports are $971 billion.
The value of net exports N, the value of actual exports E and the value of imports I bear the relation
N = E - I.
Since N = -$114 billionand E = $857 billion, substituting these values in the above relation, we get:
-$114 billion = $857 I billion - ITherefore,
I= $(857+114) = $971billion is the actual value of the import.