Chief Exports
Exports, or products made in the country of Spain and sold to other nations have a large role in their economy. Some chief exports from Spain include: Cars, Medicament, and Refined Petroleum Oils. They mainly export their products to France, Germany and Portugal.
This relates to exports, as well as Gross Domestic Product (GDP). Exports play a large role in a nation's economy. A nation wants to maximize their exports. If a nation exports more than they import, the nation's GDP will increase. Exports play a large role in the GDP equation/formula. A nation's GDP is very dependent on its imports and exports because of the 'X-M' (where X=the total value of exports and M=the total value of imports) portion of the equation.
This relates to exports, as well as Gross Domestic Product (GDP). Exports play a large role in a nation's economy. A nation wants to maximize their exports. If a nation exports more than they import, the nation's GDP will increase. Exports play a large role in the GDP equation/formula. A nation's GDP is very dependent on its imports and exports because of the 'X-M' (where X=the total value of exports and M=the total value of imports) portion of the equation.
CHIEF IMPORTS
Imports, or products made outside of Spain, and brought into the country also play a large role in Spain's economy. Their chief imports include: Cars, Non-Assembled Car Parts, and Medicament. They mostly import products from Germany, France, and China.
This relates to imports, as well as GDP. Imports also play a large role in a nation's economy. To maintain a high GDP, a nation should try to limit its imports. If a nation spends more on imports than it collects from exports, the nation's GDP will decrease. In the GDP equation, imports are represented as 'M'. The value of imports are subtracted from the value of exports. This is why a nation should try to minimize its spending on imports.
This relates to imports, as well as GDP. Imports also play a large role in a nation's economy. To maintain a high GDP, a nation should try to limit its imports. If a nation spends more on imports than it collects from exports, the nation's GDP will decrease. In the GDP equation, imports are represented as 'M'. The value of imports are subtracted from the value of exports. This is why a nation should try to minimize its spending on imports.
BALANCE OF TRADE
The nation of Spain has a good balance between its imports and exports. In 2007, Spain imported products worth a total of $289.8 billion and exported products worth $248.7 billion. The exported products increased the Gross Domestic Product. Ideally, a country would want to export more products than it imports.
Balance of trade relates to profit and revenue and the GDP equation. Similar to a company or firm, a nation can also be seen as a firm. The money a nation earns from exporting, is similar to a company's revenue. The money left after subtracting imports from exports can be seen as the nation's profit. A way to visualize the difference between a nation's profit and revenue is through part of the GDP equation. The last part of the GDP equation is 'X-M' or Exports minus Imports. The value of 'X'=nation's revenue. The value of 'X-M'=nation's profit. This "profit" is added on to the rest of the GDP equation.
Balance of trade relates to profit and revenue and the GDP equation. Similar to a company or firm, a nation can also be seen as a firm. The money a nation earns from exporting, is similar to a company's revenue. The money left after subtracting imports from exports can be seen as the nation's profit. A way to visualize the difference between a nation's profit and revenue is through part of the GDP equation. The last part of the GDP equation is 'X-M' or Exports minus Imports. The value of 'X'=nation's revenue. The value of 'X-M'=nation's profit. This "profit" is added on to the rest of the GDP equation.