2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16
The volume of export operations is one of the indicators of the country's economic development. The strong position of the state in the international market testifies not only to production advantages, but also characterizes the competitiveness of products.
What is export
Export is the export of various goods and material goods outside the country in order to sell them on the international market. In modern economic conditions, in addition to material goods, most states are increasingly offering intangible products such as capital and services on the foreign market. That is, to export means to provide a foreign partner with various material and intellectual services for a fee.
Export is considered the result of the international division of labor. It is also a material prerequisite for imports by other states. Funds received from the export of products serve as the main source of payment for imports.
The fact is that each state has its own resource capabilities that allow to produceraw materials or finished goods with the lowest costs, which are profitable to export. Such a country has to import material goods, which it lacks. Thus, all export-import operations are closely interconnected and form international relations.
International trade volumes
International trade transactions include exports and imports of all countries in the world, and their total value indicates foreign trade turnover. The volume of all world trade is calculated by summing up all the income that only exported goods bring.
When calculating the indicators of export-import operations, economists necessarily calculate the balance of external turnover. If the volume of exports exceeds the rate of imports, then the balance is positive. This indicates a large volume of production of the national product. In the case of a negative balance, it can be argued that the country buys more products from abroad and exports little.
Export requirements
There are certain requirements under which a country is allowed to export. This is a set of rules and conditions specified in the international regulations and legislation of each country. Firstly, during export, customs duties and taxes must be paid for the exported goods. Secondly, all participants in the transaction are required to comply with the financial and economic measures provided for by the customs legislation of the countries involved in international trade.
In addition to various duties, the export of goods is often regulatedlicensing and quotas. This means that additional documents are required in order to export. These are special permits and licenses that are issued by an authorized body and have legal force. For example, you can only export a cultural object with a special certificate issued by the country's cultural preservation service.
A very important condition for all foreign economic trades is that the exported products must reach the buyer's country in the same condition in which it was at the time of the customs declaration. If the goods are poorly preserved, damaged during transportation or changed as a result of normal wear and tear, the buyer has the right to refuse the transaction.
Export promotion methods
Every country, regardless of the level of development, strives to export as much as possible. This provides the country with revenue, in the amount of which the government can import. In order to increase the export potential, many countries use economic instruments to stimulate foreign trade. Thus, the provision of favorable loans and loans with low interest rates to exporters and foreign counterparties has a rather positive effect on the sale of goods. Also, export promotion is well influenced by high-quality advertising of products abroad, which provides the world market with information about the product offered.
Many states offer domestic firms, depending on the typeproducts and production volumes, tax incentives. In general, such subsidies are insignificant, but in some cases they reach large amounts.
An important tool for stimulating exports is government lending. The state offers exporters loans with a reduced interest rate and long terms. To this end, most countries create special banks and financial institutions that deal with this type of lending.
The volume of export operations is significantly affected by internal currency regulation. The stability of the national currency exchange rate allows participants in transactions to plan sales volumes and forecast revenue in the long term.
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