Why A Country Do Export?

Export and import activities are carried out based on conditions where no country is truly independent because they need each other. Each country has different characteristics. Starting from geography, climate, natural resources, demography, economic structure to social structure. These differences, result in differences of commodities produced, the composition of the costs required and the quality and quantity of the product. Each country has certain resources. At the same time, a country may lack other resources to develop and improve its economy. For example, some countries are rich in minerals and precious metals or fossil fuels, others experience shortages of these resources.

Some countries have highly developed educational systems or infrastructure, while others do not. It is necessary to exchange goods and or services between countries in trade relationship to meet the needs of each countries. Once a country starts exporting commodities, as well as importing goods that are lacking, that country’s economy begins to develop. Importing and exporting goods is not only important for businesses (importers and exporters) but also important for individual consumers. Consumers may benefit from certain products or components that are not produced locally, as they are available for purchase online from overseas.

The following are the benefits of exports: Increase the country’s foreign exchange. Introducing domestic products. Increase employment. Establish cooperation between countries. Improve people’s welfare. Expand production.


Post Author: admin

Leave a Reply

Your email address will not be published. Required fields are marked *