If Ford sells 200 Explorers for a total of $400,000 to Germany, while the United States imports 100 BMWs for a total of $500,000 from Germany,

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Quizplus · Accepted Answer

Net exports are calculated as exports minus imports. In this case, the U.S. exported $400,000 worth of Explorers to Germany, while importing $500,000 worth of BMWs from Germany. This means that the U.S. has a negative net export balance, which decreases its GDP. Germany's GDP is not affected by this transaction.

If Ford Sells 200 Explorers for a Total of $400,000