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Imports and exports form part of a countries' international trade, and international trade is an important means by which countries build up its reserves of foreign currency.
Generally speaking, countries import goods primarily to satisfy a demand for the good that is not produced within itself. For example, an industrialised country may import agricultural products, while an industrializing country may import high-value consumer electronics. Countries may also import goods in order to provide consumers with greater variety, and increase competition in the local market.
From an economic standpoint, increased competition is usually favourable as it tends to improve the quality of goods and services, while lowering its market price.
A country's exports allow the goods produced in the country to be delivered to a larger market. The ability to tap into greater demands allows for expansion of the scale of production. A larger scale of production then allows the suppliers to tap in favourable economies of scale that lowers the per unit cost of production, lowering market prices, ceteris paribus.
Additionally, the sale of exported goods is often an important source of national income for the exporting country.
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What are imports and exports and why are they important?
How economy relies on this section. America needs other countries to by our goods just as other countries need sus to by there goods. The Imports exports is an important econoic indicator that the world ecomy is doing good. If everyone's buying each others stuff then the economy is doing good.
Did England have to export more goods then import to make more money?
Exports are sales. Imports are buys. You need to export more to make money.
What are causes of adverse balance of payment?
Causes of DisequilibriumVarious causes of disequilibrium in the balance of payments or adverse balance of payments are as follows: 1. Development Schemes:The main reason for adverse balance of payments in the developing countries is the huge investment in development schemes in these countries. The propensity to import of the developing countries increases for want of capital for industrialization. The exports, on the other hand, may not increase because these countries are traditionally primary producing countries. Moreover the volume of exports may fall because newly created domestic industries may need them. All this leads to structural changes in the balance of payment resulting in structural disequilibrium.2. Price-Cost Structure:Changes in price-cost structure of export industries affect the volume of exports and create disequilibrium in the balance of payments. Increase in prices due to higher wages, higher cost of raw materials, etc. reduces exports and makes the balance of payments unfavorable.3. Changes in Foreign Exchange Rates:Changes in the rate of exchange is another cause of disequilibrium in the balance of payments. An increase in the external value of money makes imports cheaper and exports dearer; thus, imports increase and exports fall and balance of payments become unfavourable. Similarly, a reduction in the external value of money leads to a reduction in imports and an increase in exports.4. Fall in Export Demand:There has been a considerable decline in (he export demand for the primary goods of the underdeveloped countries as a result of the large increase in the domestic production of foodstuffs raw materials and substitutes in the rich countries. Similarly, the advanced countries also find a fall in their export demand because of loss of colonial markets. However, the deficit in the balance of payment due to the fall in export demand is more persistent in the underdeveloped countries than in the advanced countries.5. Demonstration Effect:According to Nurkse, the people in the less developed countries tend to follow the consumption patterns of the developed countries. As a result of this demonstration effect, the imports of the less developed countries will increase and create disequilibrium in the balance of payments.6. International Borrowing and Lending:International borrowing and lending is another reason for the disequilibrium in the balance of payments. The borrowing country tends to have unfavourable balance of payments, while the lending country tends to have favourable balance of payments.7. Cyclical Fluctuations:Cyclical fluctuations cause cyclical disequilibrium in the balance of payments. During depression, the incomes of the people in foreign countries fall. As a result, the exports of these countries tend to decline which, in turn, produces disequilibrium in the home country's balance of payment.8. Newly Independent Countries:The newly independent countries, in order to develop international relations, incur huge amounts of expenditure on the establishment of embassies, missions, etc. in other countries. This adversely affects the balance of payments position.9. Population Explosion:Another important reason for adverse balance of payments in the poor countries is population explosion. Rapid growth of population in countries like India increases imports and decreases the capacity to export.10. Natural factors:Natural calamities, such as droughts, floods, etc., adversely affect the production in the country. As a result, the exports fall, the imports increase and the country experiences deficit in its balance of payments.
Why are many latin American countries trying to diversify their economies?
Because many of them have historically depended on one or two exports for international commerce. For example, 90% of Chile's exports are made of copper or copper-refined products; Venezuela's exports are overwhelmingly comprised of oil and its refined products; most Central American countries (Panama, Honduras, Guatemala) exported until very recently only fruits and vegetables -- hence the name "banana republic". This of course, means these countries are subject to the volatility of commodity markets thus they need to switch to manufacturing goods or financial services.
Why countries import goods?
Answercountries import goods, because one country can't make everything that is needed to support its people.Countries import goods because they are harder, more expensive or impossible to make inside their country.Japan imports oil, as an example, because they do not have any inside their country. The U.S.A. imports semiconductors because our laws make semiconductor manufacture very expensive.AnswerImports, along with exports, form the basis of international trade. A country has demand for an import when domestic quantity demanded exceeds domestic quantity supplied, or when the price of the good (or service) on the world market is less than the price on the domestic market.
What are imports and exports and why are they important?
How economy relies on this section. America needs other countries to by our goods just as other countries need sus to by there goods. The Imports exports is an important econoic indicator that the world ecomy is doing good. If everyone's buying each others stuff then the economy is doing good.
What are the advantages and disadvantages of exports and imports?
disadvantages - 1. You need Import, Export license for this. 2. You have to cleared shipment with customs,
Why does Singapore need to build relations with other countries?
Singapore is a country weak on its own. It lacks natural resources and trade is also one of the reasons why Singapore is how it is today. Building relations with other countries can allow Singapore to gain from the other countries like imports and exports as well as defenses \
What do Latin American countries depend on to obtain goods and foods they cannot produce?
In order to get imports -- which are paid in foreign, "hard" currency such as US dollars or European euros -- Latin American countries need to export resources or other goods to attain such foreign currency. For example, to pay for motor vehicles, Chile exports raw copper; to pay for computers, Brazil exports soybeans, and do on.
Did England have to export more goods then import to make more money?
Exports are sales. Imports are buys. You need to export more to make money.
What are the major imports and exports of Europe?
From India wooden toys for commercial purpose not duty draw back purpose 8kg for France what paper work need to smooth clarance
What are causes of adverse balance of payment?
Causes of DisequilibriumVarious causes of disequilibrium in the balance of payments or adverse balance of payments are as follows: 1. Development Schemes:The main reason for adverse balance of payments in the developing countries is the huge investment in development schemes in these countries. The propensity to import of the developing countries increases for want of capital for industrialization. The exports, on the other hand, may not increase because these countries are traditionally primary producing countries. Moreover the volume of exports may fall because newly created domestic industries may need them. All this leads to structural changes in the balance of payment resulting in structural disequilibrium.2. Price-Cost Structure:Changes in price-cost structure of export industries affect the volume of exports and create disequilibrium in the balance of payments. Increase in prices due to higher wages, higher cost of raw materials, etc. reduces exports and makes the balance of payments unfavorable.3. Changes in Foreign Exchange Rates:Changes in the rate of exchange is another cause of disequilibrium in the balance of payments. An increase in the external value of money makes imports cheaper and exports dearer; thus, imports increase and exports fall and balance of payments become unfavourable. Similarly, a reduction in the external value of money leads to a reduction in imports and an increase in exports.4. Fall in Export Demand:There has been a considerable decline in (he export demand for the primary goods of the underdeveloped countries as a result of the large increase in the domestic production of foodstuffs raw materials and substitutes in the rich countries. Similarly, the advanced countries also find a fall in their export demand because of loss of colonial markets. However, the deficit in the balance of payment due to the fall in export demand is more persistent in the underdeveloped countries than in the advanced countries.5. Demonstration Effect:According to Nurkse, the people in the less developed countries tend to follow the consumption patterns of the developed countries. As a result of this demonstration effect, the imports of the less developed countries will increase and create disequilibrium in the balance of payments.6. International Borrowing and Lending:International borrowing and lending is another reason for the disequilibrium in the balance of payments. The borrowing country tends to have unfavourable balance of payments, while the lending country tends to have favourable balance of payments.7. Cyclical Fluctuations:Cyclical fluctuations cause cyclical disequilibrium in the balance of payments. During depression, the incomes of the people in foreign countries fall. As a result, the exports of these countries tend to decline which, in turn, produces disequilibrium in the home country's balance of payment.8. Newly Independent Countries:The newly independent countries, in order to develop international relations, incur huge amounts of expenditure on the establishment of embassies, missions, etc. in other countries. This adversely affects the balance of payments position.9. Population Explosion:Another important reason for adverse balance of payments in the poor countries is population explosion. Rapid growth of population in countries like India increases imports and decreases the capacity to export.10. Natural factors:Natural calamities, such as droughts, floods, etc., adversely affect the production in the country. As a result, the exports fall, the imports increase and the country experiences deficit in its balance of payments.
What do you call duty paid on exports and imports is?
this site has all the wrong answers. do not trust it. go to ask.com for better examples and answers. and if you need answers for a school essay or any book reports, go to sparknote.com
Why do you need Ocean Marine Insurance?
In my case, to protect the goods that my company Imports and Exports via ocean. In other words, in case the goods suffer damages my insurance policy will cover the damages according to the policy coverage.
What are Saudi Arabia's major imports?
Saudi Arabia Exports oil. It produces more than enough to cover local demand so it doesn't need to import any more. As far as I am aware its imports include foodstuff, textiles, clothes, pharmaceuticals, chemical products, wood, jewelry, base metals, electronics and cars
Why does Australia export?
many countries export so they have money in the international community to import what they need, that they can not provide themselves, the more exports the more money that country will end up with. It helps the local and countries economy.
If the nation's of the world stopped trading with the U.S. what would the U.S. have to do without?
We would have to do without most textiles, militaryequipment, electronic; including communications. Most of the items we use everyday would become scarce. It would be a hardship, but not insurmountable. Just like during WWII the country had rationing and many things were in short supply. We would need to start to manufacture our own products again. Below shows the exports of $143.2 billion and imports of 180.0 billion. The imported products would need to be manufactured in the U.S. and the exports would need to be redistributed to U.S. customers.U.S. Census Bureau & U.S. Bureau of Economic Analysis NEWS U.S. Department of Commerce U.S. INTERNATIONAL TRADE IN GOODS AND SERVICES January 2010Goods and ServicesThe U.S. Census Bureau and the U.S. Bureau of Economic Analysis, through the Department of Commerce, announced today that total January exports of $142.7 billion and imports of $180.0 billion resulted in a goods and services deficit of $37.3 billion, down from $39.9 billion in December, revised. January exports were $0.5 billion less than December exportsof $143.2 billion. January imports were $3.1 billion less than December imports of $183.1billion.
