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Main Dictionary E

Export

The term export reflects economic activity of a state that is aimed at taking part in trade of goods and services internationally.

Export explained

Trade relations with foreign partners are an important part of foreign economic activity. In particular, export contributes to the implementation of transactions for the purchase and sale of a variety of services and goods. The export of products outside the country amounts to thousands of tons annually.

The volume of exports affects the trade balance of the country. If it exceeds imports, it has a positive trade balance, if less - negative.

Developed countries export mostly industrial products, including equipment, automobiles, electronics, etc. For example, Japan exports more than 60% of machinery and transport equipment, about 25% of other manufactured goods and finished goods, and more than 9% of chemical products.

Export types

Export of goods is a kind that includes international trade of material goods. 

Export of services. This term refers to the process of reimbursable provision of services to partners from foreign countries. 

Export of capital —  investment of capital outside the country in order to obtain a higher rate of return or to acquire property in other countries.

The main reason for export expansion and success is the international division of labor, the material basis of export is earnings. These earnings facilitate in providing the home country with necessary goods and services that are not produced there locally. 

Export performance of various countries

In the United States, manufacturing exports also dominate - over 85% of the total. Agriculture accounts for about 6 percent, and only 1.6 percent for the extractive industry.

Russian exports, according to the State Customs Committee, are more than 60% energy products, primarily oil and gas. About 10.5% in the structure of sales are rolled metal and metal products, 5.5% - chemical industry.

The volume of exports has a significant impact on the current exchange rate of the national currency, as the funds received sooner or later come back to the exporting country. The impact of the structure of exports on the economy is no less obvious. Thus, the dependence on certain components makes investments in government securities more risky because budget revenues depend on sales taxes. 

The composition of exports should be taken into account when deciding whether to invest in securities of the corporate sector as well, since companies are no less dependent on economic stability in the region.

States tend to encourage exports by, for example, exempting exported products from value-added taxes.

It should be noted that exports can be not only goods, but also services, such as tourism for foreign citizens and even banking services.

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