So my question is simple but what I would like to know is if my method of calculating something like that plausible or not. So it goes like this : the formula we took at lecture for calculating is
GDP = C + I + G + (X-Z)
C= consumption , I = investment, G = government spending (army defense, etc...), X = exportations, Z = importations
If a TTIP is put in place between Europe and USA, creating a free trade zone following theory exportations will rise causing the economic growth of European countrys, this will also cause our consumption (C) to grow, I will not explain why to not have to go into any details but this will cause our importations (z) to also grow. So my question lies here, can I assume that exportations and importations are going to grow by the same quantity thus creating a balance and that the GDP will rise because of the rise in consumption or would that be an invalid theory? Will exportations and importations meet a certain equivalence at some point?
Sorry for my English I am studying in french so it is kind of hard to explain.