Exports and imports are tricky but very important to take into account here because they have two important properties:
* They are “subtracted off” the GDP numbers in my explanation above (e.g. if you import a natural resource, then that would be considered part of the GDP of the other country, not your country)
* They determine the currency exchange rates (since the exchange rate must equal the ratio of imports to exports, assuming savings and bonds are negligible or otherwise appropriately accounted for) and thereby the GDP comparisons across different countries at any given time
Exports and imports are tricky but very important to take into account here because they have two important properties:
* They are “subtracted off” the GDP numbers in my explanation above (e.g. if you import a natural resource, then that would be considered part of the GDP of the other country, not your country)
* They determine the currency exchange rates (since the exchange rate must equal the ratio of imports to exports, assuming savings and bonds are negligible or otherwise appropriately accounted for) and thereby the GDP comparisons across different countries at any given time