Answer:
To find the value of Net Exports (NX), exports in goods and services are summed, imports are subtracted, and the net income from abroad is factored in. The calculated NX in this scenario is -$289. This figure does not include Net Factor Payments or Unilateral transfers that are part of the broader Current Account balance.
Step-by-step explanation:
To calculate the value of Net Exports 'NX', we need to evaluate the trade flows of goods and services, along with net income payments and unilateral transfers. The Net Exports is found by taking the total exports of goods and services and then subtracting the imports of goods and services, income payments to foreigners, and adding the incomes received from abroad.
Step 1. Focus on goods and services first. The total exports of goods and services is the sum of exports in goods ($1,046) and services ($509), which equals $1,555.
Step 2. Enter imports of goods and services, which is the sum of imports in goods ($1,562) and services ($371), resulting in $1,933.
Step 3. For the Income payments row under the Export column, add the financial flows of money coming back to the United States, which includes income received by U.S. investors on foreign stocks and bonds ($561), and subtract the income received by foreign investors on U.S. assets ($472).
Now, using the provided data, we can calculate NX as follows: NX = Exports - Imports + (Income Received from Abroad - Income Paid to Foreigners) NX = $1,555 - $1,933 + ($561 - $472) NX = $1,555 - $1,933 + $89 NX = -$378 + $89 NX = -$289
The Net Factor Payments from abroad (NFP) and Unilateral transfers are not typically included in the calculation for NX but could be included as part of the Current Account when looking at broader economic indicators.