EXPORTS AND IMPORTS AROUND THE WORLD

1. OBJECTIVE (page 1)
Through this report, I strive to convey the meaning and types of exports and imports
, how to facilitate them and how it effects the world . Alongside we will look into the
barriers of exports and imports and the organizations governing it. At the end is a
survey and my own understanding on what the world thinks about exports and
imports around the world!!!!!
2. Meaning (page 2)
EXPORTS?
Exports are goods and services that are produced in one country and sold to buyers
in another. Exports, along with imports make up international trade. Instead of
confining themselves within their geographical borders, countries often intentionally
seek external markets around the world for commerce, achieving greater revenue
and transactional opportunities.

MERITS
1. Increased sales and profit
2. Market diversification
3. Spreading business risk
4. Increased lifeline of a product
5. Economics of sales
DEMERIT
1. High costs of exporting
2. Risk of non payment
3. Cultural and language barrier
4. Political and legal risks
5. Supply chain disruption

TYPES OF EXPORTS
1. Direct exporting:- refers to selling the goods directly to the foreign
customer or distributor.example :-when a producer in india sells its cotton
to a buyer in france .
2. Indirect exporting :- refers to selling products to a domestic company that
resell those products in foreign markets . this approach involves working
with an intermediary , such as a distributor or trading company , to reach
international markets

IMPORTS ? (page2)
An import is a good or service bought in one country that was produced in another.
Imports and exports are the components of international trade. If the value of a
country's imports exceeds the value of its exports, the country has a
negative balance of trade, also known as a trade deficit.
 MERIT:-
1. More quality products
2. Cut down manufacturing costs
3. Deal with emergency
4. A good strategic decision
5. Better profit
DEMERIT:-
1. Currency risk
2. Domestic resources get a bad hit
3. Too much economic dependence
4. Invasion of culture
5. Rivalry among nations

TYPES OF IMPORTS
1. Industrial and consumer goods:- are materials that are used
to produce consumer goods , which are the finishes
products sold to and used by consumers .
2. Intermediate goods and services :- Intermediate goods,
producer goods or semi-finished products are goods, such
as partly finished goods, used as inputs in the production of
other goods including final goods. A firm may make and then
use intermediate goods, or make and then sell, or buy then
use them
BALANCE OF TRADE
Balance of trade is the difference between the monetary value of a
nation's exports and imports over a certain time period. Sometimes a
distinction is made between a balance of trade for goods versus one for
services. The balance of trade measures a flow variable of exports and
imports over a given period of time. . A numerically positive balance of
trade, also known as a trade surplus, occurs when a country exports
more goods than it imports.
Overall trade deficit for FY 2023-24 (April-March)* is estimated at USD 78.12 Billion as
compared to the deficit of USD 121.62 Billion during FY 2022-23 (April-March), registering a
decline of (-) 35.77 percent.15 Apr 2024
IMPACT OF EXPORTS AND IMPORTS ON ECONOMY
1. GDP
trade surplus contributes to economic growth in a country. When there are more
exports, it means that there is a high level of output from a country's factories and
industrial facilities, as well as a greater number of people that are being employed in
order to keep these factories in operation. When a company is exporting a high level
 of goods, this also equates to a flow of funds into the country, which
stimulates consumer spending and contributes to economic growth.
When a country is importing goods, this represents an outflow of funds from that
country. Local companies are the importers and they make payments to overseas
entities, or the exporters. A high level of imports indicates robust domestic demand and
a growing economy. If these imports are mainly productive assets, such as machinery
and equipment, this is even more favorable for a country since productive assets will
improve the economy's productivity over the long run.

2. EXCHANGE RATES

The relationship between a nation’s imports and exports and its exchange rate is
complicated because there is a constant feedback loop between international trade
and the way a country's currency is valued. The exchange rate has an effect on the
trade surplus or deficit, which in turn affects the exchange rate, and so on. In
general, however, a weaker domestic currency stimulates exports and makes
imports more expensive. Conversely, a strong domestic currency hampers exports
and makes imports cheaper.

3. INFLATION AND INTEREST RATES

Inflation and interest rates affect imports and exports primarily through their
influence on the exchange rate. Higher inflation typically leads to higher interest
rates.4 Whether or not this results in a stronger currency or a weaker currency is not
clear.

A stronger domestic currency can have an adverse effect on exports and on the
trade balance. Higher inflation can also impact exports by having a direct impact on
input costs such as materials and labor. These higher costs can have a substantial
impact on the competitiveness of exports in the international trade environment.

WTO(WORLD TRADE ORGANISATION )

Who we are
The overall objective of the WTO is to help its members use trade as a means to
raise living standards, create jobs and improve people’s lives. The WTO operates
the global system of trade rules and helps developing countries build their trade
capacity. It also provides a forum for its members to negotiate trade agreements
and to resolve the trade problems they face with each other.

Improving people’s lives

The fundamental goal of the WTO is to improve the welfare of people around the world. The WTO’s
founding Marrakesh agreement recognizes that trade should be conducted with a view to raising
standards of living, ensuring full employment, increasing real income and expanding global trade in
goods and services while allowing for the optimal use of the world’s resources.

Negotiating trade rules

The WTO was born out of five decades of negotiations aimed at progressively reducing obstacles to
trade. Where countries have faced trade barriers and wanted them lowered, the negotiations have
helped to open markets for trade. Conversely, in some circumstances, WTO rules support maintaining
trade barriers – for example, to protect consumers or the environment.
Overseeing WTO agreements
At its heart are the WTO agreements, negotiated and signed by the bulk of the world’s trading nations.
Essentially contracts, these documents provide the rules for international commerce and bind
governments to keep their trade policies within agreed limits. Their goal is to help producers of goods
and services, exporters and importers conduct their business, with a view to raising standards of living,
while allowing governments to meet social and environmental objectives.

Maintaining open trade

The system’s overriding purpose is to help trade flow as freely as possible – provided there are no
undesirable side effects – because this stimulates economic growth and employment and supports the
integration of developing countries into the international trading system. Its rules have to be transparent
and predictable, to ensure that individuals, companies and governments know what the trade rules are
around the world, and to assure them that there will be no sudden changes of policy.

Settling disputes
Trade relations often involve conflicting interests. Agreements, including those painstakingly negotiated
in the WTO, often need interpreting. The most harmonious way to settle these differences is through a
neutral procedure based on an agreed legal foundation. That is the purpose behind the dispute
settlement process written into the WTO agreements.

SURVEY
Survey on Imports and Exports:
1. Do you actively purchase imported goods?
 Yes: 75%
 No: 25%
2. How often do you consider the country of origin when making a purchase?
 Always: 45%
 Sometimes: 35%
 Rarely: 15%
 Never: 5%
3. Are you aware of the impact of imports on the domestic economy?
 Yes: 80%
 No: 20%
4. Do you believe that imports have a positive or negative effect on local
industries?
 Positive effect: 40%
 Negative effect: 30%
 Both positive and negative effects: 25%
 Not sure: 5%
5. What are the main factors influencing your decision to buy imported
products?
 Price: 50%
 Quality: 30%
 Variety/Choice: 15%
 Brand Reputation: 5%
6. Are you involved in any business that relies on exporting goods or
services?
 Yes: 25%
 No: 75%
7. How important do you think exports are for the overall economic growth of
a country?
 Very important: 60%
 Somewhat important: 30%
  Not very important: 5%
 Not sure: 5%
8. Do you think the government should provide more support to promote
exports?
 Yes: 70%
 No: 10%
 Not sure: 20%
9. What challenges do you perceive in the import/export industry?
 Trade barriers/tariffs: 35%
 Competition from other countries: 25%
 Logistics and transportation: 20%
 Currency exchange rates: 15%
 Government regulations: 5%
10.Have you ever encountered any trade barriers or restrictions while dealing
with imports/exports?
 Yes: 45%
 No: 55%
MY UNDERSTANDING :-
After surveying 20 individuals on the topic of imports and exports, it is clear that
imported goods are actively purchased by a majority of respondents. The
consideration of the country of origin varies among participants. While a
significant number are aware of the impact of imports on the domestic economy,
opinions on the effects on local industries are mixed. Price, quality, variety, and
brand reputation are the main factors influencing the decision to buy imported
products. A quarter of respondents are involved in businesses reliant on
exporting goods or services, and most recognize the importance of exports for
economic growth. There is a consensus among respondents that governments
should provide more support to promote exports. Trade barriers, competition,
logistics, and government regulations are seen as challenges in the
import/export industry. A notable percentage of participants have encountered
trade barriers or restrictions in their import/export activities. These survey
results highlight the complex dynamics and considerations surrounding imports
and exports in today's global economy.
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