Changes in export and import

- Nandhini
 What is it??
Export
An export is a function of international trade
whereby goods produced in one country are
shipped to another country for future sale or
trade
Import
Imports are defined as purchases of good or
services by a domestic economy from a
foreign economy
 What influences export and import??
• Country's inflation rate
• Country's exchange rate
• Productivity
• Quality
• Marketing
• Domestic GDP
• Foreign GDP
• Trade restrictions
 Inflation
Inflation is a quantitative measure of the rate at
which the average price level of some goods and
service in an economy increases over a period of
time.

If inflation rate rises the import will increase hence

exporting becomes difficult. However an fall in
inflation will increase the country's competitiveness
and this is likely to increase export.
 Exchange rate
A fall in a country's exchange rate will lower
export prices while increase import prices.
Hence forth increasing value of its export and
lowering amount spent on imports.
 Productivity
Measure of output per unit input.

The more the productivity of a country , the

lower the cost per unit and cheaper the product.
Hence more foreign firms buy the country's
product , increasing their output.
 Quality
Achieving a minimum standard for a product or
service which meets consumer needs and
wants.

A fall in the quality of the country's product

relative to other country's products , would
possibly increase import while decrease the
export.
 Marketing
The action or business of promoting and selling
products or services, including market research
and advertising.

The amount of export not only depends on the

quality but also on the ways the firms market
their products.
 Foreign GDP
GDP refers to and measures the economic
activity within the physical borders of a country.

If income abroad increases , they foreigners will

buy more products . This may increase export in
one country.
 Domestic GDP
If income rises at home , more imports may be
bought. Firms are likely to buy more raw
material and capital goods and some of this will
come from abroad. Households will buy more
products and some of this will be imported. The
rise in domestic demand may also encourage
some domestic firms to switch from the foreign
to the domestic market . If this occurs , export
will fall.
 Trade restrictions
A relaxation in trade will make it easier for
domestic firms to sell their products to other
countries it also makes import easier.
Thank you!!