Final answer:
An import is a good that is consumed within a country but is produced in a different country. Such goods are subtracted from the home country's exports when calculating its net export component and GDP, which reflects the country's trade balance.
Step-by-step explanation:
An import is defined as a good consumed domestically but produced overseas. When calculating a country's Gross Domestic Product (GDP), it is essential to include spending on exports, which are domestically produced goods sold abroad, and to subtract spending on imports, which are goods produced in other countries and purchased by residents of the home country.
The component of GDP that takes this into account is called the net export component, represented by the formula (X – M), where X stands for exports and M stands for imports. This calculation reflects the trade balance of a country; a positive net export means a country has a trade surplus, and a negative one indicates a trade deficit.