Two opposing mechanisms - export and import - function in the world 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
Exports and imports are the two main mechanisms of the external and internal economy of any country. These are two opposite directions of international trade, which make it possible to judge the level of economic development of a country.
Import refers to the import into a 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 - everything for which there is a demand in the world economy.
The country that exports products and sells them in other countries is called an exporter. A country that accepts foreign or imported goods on its market is called an importer. Products manufactured domestically are called national goods.
Features of export and import, or what is the "balance"?
All countries, without exception, are importers. In some countries, imports prevail over exports, and in some - on the contrary. The calculation of imports and exports is carried out by summing up all goods exported abroad and imported into the country. The difference between the received amounts in economics is denoted by the concept of "balance".
To find out whether a country has a positive (active) or negative (passive) balance of foreign trade, it is necessary to subtract the sum of the prices of imported goods from the sum of the prices of exported goods. If more is exported from the country than it is imported, then the balance will be active or positive, but if more is imported, then the balance of foreign trade will be passive and the difference obtained in the calculations will be negative.
Developed and developing countries
In the exports of developed countries, the manufacturing industry and its products occupy a large part. These are mainly various equipment and machines. Their foreign trade is usually focused on the same economically developed countries, which are united by a high level of division of labor and narrow specialization of employees. According to the UN, developed countries include Canada, USA, Japan, European countries, New Zealand and Australia.
In the structure of the export of developing countries, tropical agriculture and the mining industry predominate. The high percentage of raw materials in the export structure hinders the development of the state's economy, as it makes it dependent on prices in the world market, which are not constant. According to the UN, developing countries include Russia, China, and other countries of the Middle East (Iran, Kuwait and others).
To date, there is no uniformly accepted classification of countries according to the type of developed and developing (less developed) economy.
