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2018-01-21 14:08

 Introduction Export

The exchange of goods and services across the border is called export. One can define export as sale of goods from one country to another country. Export trade involves outflow of goods and inflow of foreign exchange. The goods may be tangible goods (physical goods) or intangible goods (services).

Export trade arises because the border countries differ in the demand for goods and services and in their capacity to supply them. Each country's resources like land, minerals, skills and machinery etc, enable it to produce certain goods and services more efficiently then other. For differences in the relative supplies of the different productivity resources within a country will mean differences in their relative prices, therefore, differences in the cost of production of various goods and services. The differences in commodity prices are the basic cause of export trade between the countries. The country would specialize and export these products, which it can produce comparatively cheaply.

The international trade encourages country's economic growth in two ways, by providing opportunities for international specialization and diffusing between countries the benefit of modern industry technology. Specialization implies trade and can not occur with out it, and specialization and division of labor is the major caused of increased productivity and rising real per capital incomes

Export because, like any other business activities is directly influenced by entrepreneur should, therefore, understand the policy framework relative to export before taking decision to start export business. Infect that is pre requisite for export planning.