Exports are the
goods and services produced in one country and purchased by citizens of another
country. It doesn't matter what the good or service is. It doesn't matter how
it is sent. It can be shipped, sent by email, or carried in personal luggage on
a plane. If it is produced domestically and sold to someone from a foreign
country, it is an export.
Most countries want
to increase their exports. Their companies want to sell more. If they've sold
all they can to their own country's population, then they want to sell overseas
as well. The more they export, the greater their competitive advantage.
That's because they gain expertise in producing the goods and services. They
also gain knowledge about how to sell to foreign markets.
Governments encourage exports. That's because it increases jobs, brings in higher wages and raises the standard of living for residents. They become happier and more likely to support their national leaders.
Governments encourage exports. That's because it increases jobs, brings in higher wages and raises the standard of living for residents. They become happier and more likely to support their national leaders.
Exports also
increase the foreign exchange reserves held in the nation's central bank.
That's because
foreigners pay for exports either in their own currency or the U.S. dollar. A
country with large reserves can use it to manage their own currency's value.
They have enough foreign currency to flood the market with their own currency.
That lowers the cost of their exports in other countries.
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