Export is a key area of the modern economy

The volume of export operations is one of the indicators of the country's economic development. Strong position of the state on the international market testifies not only to production advantages, but also characterizes the competitiveness of products.

What is Export?

Export is the export from the country of different goods and material goods for the purpose of their implementation on the international market. In modern economic conditions, in addition to the material goods, most states increasingly offer such intangible products as capital and services on the foreign market. That is, to export means to provide the foreign partner with various material and intellectual services for a fee.

Export is considered the result of an international division of labor. It is also a material prerequisite for importing by other states. The funds received from the export of products are the main source of payment for imports.

The fact is that each state has its own resource capabilities, allowing to produce raw materials or finished goods with the least costs, which it is profitable to export. It is necessary to import such a country with material benefits, which it lacks. Thus, all export-import operations are closely interrelated and form international relations.

International trade turnover

International trade operations include exports and imports of all countries of the world, and their total value denotes foreign trade turnover. The volume of the whole world trade is calculated by summing up all the incomes that only the exported goods bring.

When calculating the indicators of export-import transactions, economists necessarily calculate the balance of external turnover. If the export volume exceeds the import index, 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 purchases more products abroad and exports little.

Export requirements

There are certain requirements, according to which the country is allowed to export. This is a set of rules and conditions specified in international regulations and the laws of each country. First, during export for the exported goods you need to pay customs duties and duties. Secondly, all parties to the transaction are required to comply with financial and economic measures provided for by customs laws of the countries involved in international trade .

In addition to different duties, the export of goods is often regulated by licensing and quoting. This means that additional documents are required in order to export. These are special permits and licenses that are issued by the authorized body and have legal force. For example, you can export a subject of culture only with a special certificate issued by the service for the preservation of the cultural values of the country.

A very important condition for all foreign trade trades is that the exported products must enter the buyer country in the state 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 natural wear and tear, the purchaser has the right to refuse the transaction.

Methods of stimulating exports

Each country, regardless of the level of development, seeks to export as much as possible. This provides the country with revenue, in the amount of which the government will be able to import. In order to increase the export potential, many countries use economic instruments to stimulate foreign trade. So, rather favorable for the sale of goods affects the provision of favorable loans and loans with low interest to exporters and foreign counterparties. Also, the promotion of exports is well influenced by quality advertising of products abroad, which provides the world market with information about the proposed product.

Many states offer domestic firms, depending on the type of products and production volumes, tax incentives. Basically, such subsidies are insignificant, but in some cases they reach large sizes.

An important tool to stimulate exports is public lending. The state offers exporters loans with a lower interest rate and longer maturities. To this end, most countries create special banks and financial institutions that are engaged in this type of lending.

The volume of export operations is significantly influenced by domestic currency regulation. Stability of the national currency exchange rate allows participants in transactions to plan sales volumes and forecast revenues in the long term.