The EzyEducation website uses cookies to help ensure we give you the best experience.
If you continue without changing your settings, we assume that you are happy to receive all cookies on the EzyEducation website.
Please refer to our Privacy and Cookies Statement to

find out more.

Continue

Exports

UK goods that are sold to other countries - any transaction that generates a positive monetary flow into the UK e.g. Land Rover cars sold abroad or foreign money flowing into the UK financial services industry.

Below is a diagram to show that exports represent an injection into a country's circular flow of income as it is money from other countries being spent on domestically produced goods.

Therefore exports contribute to the aggregate demand curve and if exports increase due to a weaker pound sterling then it will cause the AD curve to shift outwards as shown in the diagram below.

Forgot your password?