What is import and export? Export and import countries such as India, China, Russia and Japan

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

International trade can rightly be called a powerful stimulus for the economic and social development of countries. It helps to focus the specialization of states on the most profitable industries and agriculture for them, based on their technologies, investment, human and natural resources. Its theoretical basis is the theory of comparative advantage, developed back in the 18th century by the English economist David Riccardo in his work An Inquiry into the Nature and Causes of the We alth of Nations.

The world economy allows developing the specialization of states in the production of cost-effective and subsequently exportable goods and services. In this case, we are talking about the relative advantages of countries that allow the production of certain types of marketable products in greater quantity and better quality.

Having foreign exchange earnings from exports, such countries are able to replace their most costly production with imports from other countries. As a result, the total cost of production in the world economy is reduced. This is where the positive constructive role of the internation altrade for the dynamic development of the world economy. The country's exports and imports thus serve the country's more harmonious and rapid development.

Theoretically, a state can have either a closed economy, where the entire national economic complex serves only the domestic market, and there are no imports and exports, or an open one. As far as you understand, such an economy in the modern world can exist purely in theory. The real economy of the states has an open character, active international trade takes place in it. This enables the world economy to better take advantage of the international division of labor, contributing to its efficiency. Foreign economic activity is regulated by the state and determines such volumes of exports and imports that stimulate the growth of national income and accelerate scientific and technological progress.

Economy closed and open

Among the largest exporting countries, three stand out: the USA, Germany and China. Their share in international trade is impressive. It is, respectively, 14.2%, 7.5%, 6.7%.

Speaking about the prospects for the development of international trade, we should note the prospect of its slowdown in developed countries. But at the same time, there will be an increase in the activity of developing countries. So far, their share in world trade is 34%, but their share is expected to grow by 10%. Moreover, the role of the CIS countries will be tangible in the activation of developing countries in the field of international trade.

How are exports and imports related?

Export is called salegoods and services to foreign contractors for their use abroad. Accordingly, import is the delivery of goods and services from abroad from foreign contractors. Foreign economic activity, namely, import and export, is carried out both by the state itself and by its economic entities.

Indicators of the degree of state participation in foreign trade activities are export and import quotas. The export quota is the ratio of exports of goods and services to GDP. Its economic meaning is obvious: what part of the GDP is exported. Similarly, the import quota is defined as the ratio of imports of goods and services to GDP. Its meaning is to show the share of imported goods in domestic consumption.

Thus, the above-mentioned quotas demonstrate the relative weight of a country's exports and imports in its economic activity.

Besides their absolute value, the predominant donor or recipient nature of state foreign economic activity characterizes another indicator - the balance of foreign trade turnover. It is the difference between a country's total exports and imports. The structure of a country's imports indicates a lack of advantages in the production of goods and services. Export, on the other hand, indicates the opposite situation, when the production of goods and services included in it is profitable and promising.

If the difference between exports and imports is positive, then they speak of a positive balance of foreign trade, otherwise - a negative one. Dynamic productionthe potential of the state reflects the positive balance of foreign trade turnover. As we can see, the balance of imports and exports of a country is an important indicator of the direction of its economic development.

Government export promotion

Often, the state bears the cost of promoting its exports. Many countries practice tax incentives for exporting enterprises, for example, VAT refunds. Traditionally, export subsidies for agricultural products are the most significant. Developed countries not only help their farmers by providing a guaranteed purchase of all agricultural products. Its further export is already a problem for the state.

Moreover, the stimulation of exports invariably also leads to the activation of imports. The intermediate instrument here is the exchange rate. Export subsidies increase the exchange rate of the national currency, respectively, it becomes more profitable to buy imports.

What exports and imports do not include?

It is worth noting that the flow of goods and services sent abroad or from abroad is not counted "in full", but with the exception of certain categories:

- goods in transit;

- temporary export and import;

- bought by non-residents in the country or sold to residents abroad;

- sale or purchase of land by residents with non-residents;

- property of tourists.

Protectionism and world trade

Is the principle of free trade paramount for states:Is it necessary to produce this or that product where the cost of production is minimal? On the one hand, this approach really ensures the optimal allocation of resources. In addition, competition forces manufacturers to dynamically improve their technologies.

However, on the other hand, free trade does not always form a balanced national economic complex of each individual country. Any state tries to harmoniously develop its industry, overcoming the "unprofitability" of the production of certain goods. The relevance of our own industrial support for the defense complex, the development of new industries, and employment is obvious. Therefore, we can say that the structure of exports and imports is always regulated by the state.

There is a protectionist mechanism of "opportunity costs" in the form of the artificial introduction of quotas and duties that make cheaper and more profitable imports more expensive. In view of the fact that quotas and increased protectionist duties impede the harmonious development of the world economy, one should not get carried away with them.

However, the practice of "trade wars" points to yet another, non-tariff way to reduce imports: bureaucratic bans, presentation of biased quality standards, and, finally, an administratively regulated licensing system.

Country trade policy

Depending on the average level of import duties and quantitative restrictions, there are four types of trade policy of the country.

Open trade policy is characterized by the level of tradeduties not exceeding 10% in the absence of explicit restrictions on the number of imported products. Moderate trade policy corresponds to the level of trade duties of 10-25%, as well as non-tariff restrictions on 10-25% of the imported commodity mass. The restrictive policy is distinguished by more substantial non-tariff frameworks and trade duties - at the level of 25-40%. If the state fundamentally seeks to ban the import of a particular product, then in this case the rates exceed 40%.

The generic sign of the trade policy of most developed countries is the growing in its share and government-stimulated exports and imports of services.

What kind of international trade does Russia show?

The Russian economy is specialized in nature, focused on the production and export of oil and gas. This is due to the demand of Western countries mainly for products of the extractive industry. The current structure of Russia's exports and imports, of course, is not final for the country, it is forced - in the era of the international economic crisis. Each country in such conditions is in search of increasing its international competitiveness.

Russia's trump card at this stage is precisely oil and gas. It should be recognized that this is also the case because of the discriminatory barriers "built" by Western countries for the export of engineering products. This results in an export structure of the kind as if it were a backward country.

At the same time, Russia has significant landresources, minerals, forestry, conditions for the development of agriculture. The military-industrial complex creates weapons and military equipment that are competitive on the international market. At present, Russia is using the mechanism of protectionism to diversify its industry and reduce its dependence on world trade conditions. RF export and import will therefore need to change its configuration.

On August 22, 2012, Russia became a member of the WTO. In the future, this will bring additional preferences in the form of changes in customs duty rates and tariff quotas. Russian foreign trade turnover in January-June 2013 amounted to 404.6 billion dollars (for the same period in 2012 - 406.8 billion dollars). Imports amounted to $150.5 billion and exports to $253.9 billion.

If we take into account the information for the whole of 2013, the second half of the year turned out to be significantly less productive for Russian foreign trade than the first. The latter fact was reflected in the decrease in the balance of foreign trade turnover by as much as 10.5%.

Russian exports

Fuel and energy resources account for about 74.9% of Russia's total exports. The reason for the decline in exports last year is due to several factors. Russia is a major exporter of oil and gas. As you know, 75% of the produced oil is exported, and only 25% is provided by the national economic complex. Oil and gas are commodities whose prices are subject to market fluctuations. Not only is the exported by RussiaUrals oil in 2013 reduced its price compared to 2012 by 2.39%, the total volume of exported oil decreased by 1.7%. The crisis of the Eurozone countries and the restrictive mechanisms of the WTO also affected. The trend of the overall decline in foreign trade turnover last year was accompanied by a decrease in Russian GDP growth rates from 3.4% in 2012 to 1.3% in 2013. By the way, in the structure of Russia's GDP, extracted oil and gas account for 32-33%.

The share of machinery and equipment in Russia's exports is only 4.5%, which does not correspond to either the potential of the industry or the level of the scientific base. At the same time, the share of this segment in world trade by developed countries is about 40%.

Import Russia

At this historical stage, Russia is forced to import mainly finished products due to the deformed economy (as described above).

The share of Russian imports of machinery and equipment to the CIS countries is 36.1%. In this way, their deficit of their own production is compensated (the share of machinery and equipment in Russia's GDP in 2013 is 3.5%). The share of imported metals, as well as products made from them, is 16.8%, food products and ingredients for their production - 12.5%, fuel - 7%, textiles and footwear - 7.2%, chemical products - 7.5%.

Thus, after analyzing Russia's imports and exports, we come to the conclusion about the artificial slowdown in the pace of its industrial and social development. It is obvious that the source of such a situation is the circle of subjectiveinterests of certain individuals.

Japan's foreign trade

The economy of the Land of the Rising Sun is one of the most developed and dynamic in the world. Japan's exports and imports are structured and driven by a powerful economy. This state in terms of its industrial power today ranks third in the world after the United States and China. A feature of the country's resource base is an exceptionally organized and efficient workforce and the virtual absence of minerals in the country. The relief and natural conditions limit the possibility of providing the country with agricultural products at the level of 55% of its needs.

The country is at the forefront of the development of robotics and electronics, automotive and mechanical engineering. Japan has the largest fishing fleet in the world.

Let's take a quick look at Japan's exports and imports. Imported, as we have already mentioned, are foodstuffs, minerals, metals, fuel, chemical products. Electronics, electrical engineering, cars, various vehicles, robotics are exported.

China as a participant in international trade

Currently, China is demonstrating an enviable development momentum. Today it is the second economy in the world. According to analysts' forecasts, in the period from 2015 to 2020, China should overtake the United States, and by 2040 become three times more powerful than its closest opponent. The resources driving the Chinese economy today are an abundance of labor (including skilled labor), the availability of minerals, land andothers

China's exports and imports are determined today by the country's industrial policy. This country today is the absolute leader in the field of industrial production of metals (steel, cast iron, zinc, nickel, molybdenum, vanadium), household appliances (PCs, TVs, washing and sewing machines, microwaves, refrigerators, cameras, watches). In addition, in the production of automotive vehicles today, China has overtaken the United States and Japan combined. Near Beijing, in the Haidian area, even built its own "Silicon Valley".

What does China import? Technologies, educational services, specialists supplied by developed countries, new materials, software, biotechnologies. An analysis of China's exports and imports convinces of the prospects and deep meaningfulness of its economic strategy. The export and import volumes of this country have the most convincing growth dynamics today.

Australian exports and imports

Export and import of Australia has its own specifics. The fifth continent, which is a single unitary state, has a powerful land and agricultural resource that makes it possible to produce meat, grain, and wool. But at the same time, the market of this country is experiencing a shortage of labor and investment.

At the same time, Australia acts as an active exporter on the international market. According to recent statistics, about 25% of the country's GDP is sold as exports of goods and services. Australia exports agricultural products (50%) and mining products (25%).

The largest exporterAustralia is Japan and the largest importer is the US.

The Australian economy is considered highly dependent on imports. What is imported to the Fifth Continent? 60% - machinery and equipment, minerals, food products.

Historically, Australia has a negative trade balance, although it is gradually decreasing. Imports and exports of this country are developing consistently and in ascending order.

Export and import of India

India has significant political and economic influence in South Asia. The country conducts active foreign trade activities in the world market. GDP in 2012 here amounted to 4761 billion dollars, and this is the 4th place in the world! The volume of India's foreign trade is impressive: if in the 90s it was about 16% of the country's GDP, now it is more than 40%! India's imports and exports are growing dynamically. The advantages of the state in the international division of labor are significant labor resources, a vast territory. More than half of the country's able-bodied population is employed in agriculture, thirty percent in the service sector, and 14% in industry.

Indian agriculture is a source of exports of rice and wheat, tea (200 million tons), coffee, spices (120 thousand tons). However, if we evaluate the grain production of the entire world agriculture and compare it with the Indian harvest, it turns out that the productivity of the Indian agricultural sector is two times lower. It should be emphasized that it is food products that bring this country the largest export income.

India is the largestimporter of cotton, silk, sugarcane, peanuts.

Interesting features of Indian exports of meat products. The influence of the national mentality is felt. India has the largest number of livestock in the world, but the smallest consumption of meat in the world, because here the cow is considered a sacred animal.

The textile industry employs 20 million people in India. India exports, in addition to textiles, oil products, precious stones, iron and steel, transport, chemical industry products. Imports crude oil, precious stones, fertilizers, machinery.

Knowledge of English allowed the educated people of this country to find their niche in the IT field and programming. Now exports and imports of services in this sector of the economy are significant and account for more than 20% of India's total GDP.

The largest exporters for India are the USA, the United Arab Emirates, China. The United Arab Emirates, China, Saudi Arabia import goods from India.

In addition, this country has a significant military-industrial complex, having had nuclear weapons since 1974. The defeat of peace-loving India in the border conflict with China in 1962 and with Pakistan in 1965 forced this country to first actively import weapons, and then manufacture its own. As a result, in 1971, a convincing victory over Pakistan took place. India has been pursuing a great power policy since the mid-1990s.

Conclusion

As we can see from this article, different states choose their respectiveresources and productive potential composition of exports and imports.

It should be noted that today the harmonious scheme of free international trade imputed by Keynes is often deformed by states. The governments of various countries at the level of their economic policy are actively promoting domestic exports. And often this competition in terms of intensity and thoughtful tactics resembles a duel. Who wins in it? A country that produces large volumes of industrial products. Therefore, economists are now talking about a remake of industrial policy.

To the question: "What is the preferred strategy for the country in our time?" The following macroeconomic situation will be relevant: saving its foreign exchange reserves, the country seeks to maximize exports, limiting its imports within the limits of export earnings. To do this, it tries to neutralize the factors that carry the risk of a decrease in foreign exchange earnings in the future. What are these factors? Exchange rates, oil and gas sales rates, overly elastic demand. The beginning of the 21st century left its mark on the very object of world international trade. In the total volume of export-import operations, a significant share (more than 30%) is occupied by trade in services.