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Exports are a product that a country produces more than it can consume in order to ship to other countries for a profit. An Import is product that a country gets from another country because it has a lower price than if they were to produce it themselves. So in general terms exports means a country sells it domestic produced products to a foreign country and imports means a country buying goods and services from a foreign country to consume. When a country have goods produced more than consume it normally exports and when a country lacks in resources to produces enough goods it normally in imports.
An export of a good occurs when there is a change of ownership from a resident to a non-resident; this does not necessarily imply that the good in question physically crosses the frontier. However, in specific cases national accounts impute changes of ownership even though in legal terms no change of ownership takes place. Also smuggled goods must be included in the export measurement.
Ways of exporting
The company can decide to export directly or indirectly to a foreign country.
Direct selling involves sales representatives, distributors, or retailers who are located outside the exporter's home country. Direct exports are goods and services that are sold to an independent party outside of the exporter’s home country. Mainly the companies are pushed by core competencies and improving their performance of value chain.
Indirect exports, is simply selling goods to or through an independent domestic intermediary in their own home county. Then intermediaries export the products to customers foreign markets.
An import of a good occurs when there is a change of ownership from a non-resident to a resident; this does not necessarily imply that the good in question physically crosses the frontier. However, in specific cases national accounts impute changes of ownership even though in legal terms no change of...
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