Estimating U S Metropolitan Area Export and Import Competition Qa Chicagofed Form

Instructions and help about Estimating U S Metropolitan Area Export And Import Competition Qa Chicagofed

[Music] remember that exports are goods and services produced domestically but sold abroad and imports are goods and services produced abroad but sold here because imports are produced elsewhere those goods are counted in that country's gdp so a cell phone produced in china is counted in china's gdp they can't be counted twice that is they can't be counted in our gdp let's go back to our equation gdp equals c plus i plus g plus the sum of x minus m now let's focus on the last part of the equation x minus m this part is known as net exports because it is the result of subtracting imports from exports you'll notice in our equation that all the numbers are added to form gdp except m imports the m variable is subtracted from gdp because gdp measures domestic production in fact domestic which means it was produced inside a particular country is in the name imports aren't produced domestically so subtracting them is necessary but does buying an import actually subtract from domestic producti