The volume of export operations is one of the indicators of the country's economic development. The strong position of the state in the international market testifies not only to production advantages, but also characterizes the competitiveness of products.
What is export
Export is the export of various goods and material goods outside the country with a view to their implementation on the international market. In modern economic conditions, in addition to tangible goods, most states are increasingly offering foreign markets such intangible products as capital and services. That is, exporting - this means providing a foreign partner with various material and intellectual services for a fee.
Export is considered the result of the international division of labor. It is also a material prerequisite for importing by other states. Funds received from export of products are the main source of payment for imports.
The fact is that each state has its own resource capabilities that allow it to produce raw materials or finished goods at the lowest cost, which is profitable to export. Such a country has to import material goods, which it lacks. Thus, all export-import operations are closely interconnected and form international relations.
International trade
International trade operations include export and import of all countries of the world, and their total value denotes foreign trade turnover. The volume of all world trade is calculated by summing up all the revenues that only exported goods bring.
When calculating the indicators of export-import operations, economists must calculate the balance of foreign turnover. If the volume of exports exceeds the rate of imports, then 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 buys more products abroad and exports little.
Export requirements
There are certain requirements according to which a country is allowed to export. This is a set of rules and conditions specified in international regulations and legislation of each country. First, during export, you need to pay customs fees and duties. Secondly, all parties to the transaction are required to comply with the financial and economic measures provided for by the customs legislative acts of countries involved in international trade.
In addition to various duties, the export of goods is often regulated by licensing and quotas. This means that additional documents are required in order to export. These are special permits and licenses that are issued by an authorized body and are legally binding. For example, you can export a cultural object only with a special certificate issued by the preservation of cultural property of the country.
A very important condition for all foreign trade is that exported products must enter the country of purchase in the condition in which they were at the time of the preparation of the customs declaration. If the goods are poorly preserved, were damaged during transportation or changed as a result of normal wear and tear, the buyer has the right to refuse the transaction.
Export Promotion Methods
Each country, regardless of 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 export potential, many countries use economic instruments to stimulate foreign trade. So, the provision of exporters and foreign counterparties with advantageous loans and loans with low interest rates has a rather positive effect on the sale of goods. Also, export promotion 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 product and production volume, tax incentives. Basically, such subsidies are insignificant, but in some cases they reach large sizes.
An important tool for stimulating exports is government lending. The state offers exporters loans with a reduced interest rate and long terms. To this end, most countries create special banks and financial organizations that deal with this type of lending.
The volume of export operations is significantly affected by domestic foreign exchange regulation. The stability of the national currency allows transaction participants to plan sales volumes and forecast revenue in the long term.