Export – When goods are sent from one country to another then it is called export. Import – When goods are purchased from other countries then it is called import. When the Export value is more than import value then foreign trade will be favourable to a country.

Why a country would import goods?

A key reason that companies all over the world choose to import goods is to extend their profit margin. High taxes, wage minimums, and material costs in certain countries make it more useful to import products from a country where fees, wages, and material costs are considerably lower.

When a country exports goods What is it doing?

When a country exports goods, it sells them to a foreign market, that is, to consumers, businesses, or governments in another country. Those exports bring money into the country, which increases the exporting nation’s GDP. When a country imports goods, it buys them from foreign producers.

How are goods and services produced in a country measured?

The value of goods and services produced within the country includes their import content. Imports yields incomes to owners of resources in other countries. They are part of the domestic products of other countries. Hence, they must be deducted from the GNP. Exports yield income to the domestic factors.

What do you call list of goods that can be imported?

The Government issues from time to time a list of commodities and products which can be imported by obtaining a general permission only. This is called as O.G.L. or Open General Licence list.

How are goods sent / taken out of India for?

Various representations have been received from the trade and industry regarding procedure to be followed in respect of goods sent / taken out of India for exhibition or on consignment basis for export promotion.

How to calculate the national product of a country?

To obtain national product figure of a country, we aggregate the money value of all final goods and services produced in a country in a year. The figure that we obtain is called GNP or GDP. [For the moment, we won’t make any distinction between these two concepts. We will use them interchangeably.]