Two opposing mechanisms - export and import - operate in the global economy and make up all international trade. All modern countries act as exporters and importers. So what is the essence of these processes?
The essence of export and import
Export and import are the two main mechanisms of the external and internal economies of any country. These are two opposing areas of international trade, allowing to judge the level of economic development of the country.
Import refers to the import into the country of goods from other states, and export, on the contrary, means the export of goods produced in the country and their sale on the territory of other states. A commodity can be not only industrial products, but also raw materials, various services - all that is in demand in the global economy.
The country exporting products and selling them in other countries is called the exporter. A country that accepts foreign or imported goods in its market is called the importer. Domestic products are called national goods.
Features of export and import, or what is the "balance"?
All countries, without exception, are importers. In some states, imports prevail over exports, and in some, on the contrary. Counting imports and exports is carried out by summing up all goods exported abroad and imported into the country. The difference between the amounts received in economic science is indicated by the concept of "balance".
To find out the positive (active) or negative (passive) foreign trade balance of a country, it is necessary to subtract from the sum of prices of exported goods the sum of prices of goods of import. If more is exported from the country than imported, then the balance will be active or positive, if more is imported, then the foreign trade balance will be passive and the difference obtained in the calculations will be negative.
