Georgia Assessments for the Certification of Educators GACE Practice Test

A country is a net exporter if:

1. It exports consumer products

2. The value of exported goods exceeds the value of imported goods

3. The value of imported goods exceeds the value of exported goods

4. It has high tariffs

The correct answer is: The value of exported goods exceeds the value of imported goods

A country is classified as a net exporter when the value of its exported goods surpasses the value of its imported goods. This indicates that the country is selling more products to other countries than it is buying from them. This situation implies a favorable trade balance, often leading to positive impacts on the country's economy, such as increased production and employment opportunities. In contrast, exporting consumer products alone does not define net exporting status, as it ignores the balance of trade. A country could export substantial quantities of consumer goods but still be a net importer if it imports even more. Similarly, if the value of imported goods exceeds that of exported goods, that situation would characterize the country as a net importer, not a net exporter. Finally, the presence of high tariffs does not directly indicate whether a country is a net exporter; tariffs are a tool that can be used by a country to regulate trade but do not define its export-import balance in themselves.