net trade

• net trade refers to the spending by people and firms overseas as well as domestic spending abroad on both goods and services
• not all exports and imports are tangible, services and tourism are called Invisibles
• Exports will go up if they are more competitive than their foreign counterparts. this can be affected by price and non-price factors
• price factors include: exchange rates, relative inflation, and costs of production
• non-price factors include: quality, fashion, branding, after-sales service, appearance,