export definition

In the field of economics, export is defined as the sending of a product or service to a foreign country for commercial purposes. These shipments are regulated by a series of legal provisions and tax controls that act as a contextual framework for commercial relations between countries.

It should be noted that exports are always carried out within a legal framework and under conditions already stipulated between the countries involved in the commercial transaction. Thus, the laws in force in the issuing country and in which the merchandise is received are intervened and respected.

Services and products supported by land, air and more recently virtual roads

The export can be effected from different means of transport, because yes or yes, in the export, the set of goods or services must "travel" to another country, which is several kilometers away, and then it will be necessary to move them by land, in trucks, cars, among others, by sea, or by plane. In recent years, thanks to the benefits provided by new technologies, especially the Internet, it has become common and frequent for people to export their labor services linked to work via the web, and then, in this special case, what is exported it is an abstract service.

The activity opposite to that of export is that of import, which on the contrary supposes the entrance, the introduction of goods or services of foreign origin to a nation.

Export and trade balance

In such a globalized world, the trade balance is a fundamental element in the future of the economy of the countries, since they are immersed in a network of exchanges of imports and exports worldwide. Achieving balance on this scale is one of the objectives of any country that wants to keep its accounts healthy and not run into an excessive deficit. Intuitively explained, for a country to maintain a balanced trade balance, it must not buy more than it sells, or in other words, imports must not exceed exports.

Throughout history, numerous economists have focused on studying how to keep the trade balance positive, but always, regardless of the different approaches with which they faced the issue, they reached the same conclusion: correct the trade deficit must be a priority.

Exports and the strength of currencies

The currency in which business transactions take place and its value can have a strong impact on a country's export. In fact, some countries have traditionally used their ability to depreciate their own currency as a way to stimulate imports, by making this maneuver so that other countries prefer to purchase their products over those of other competing countries due to their lower cost.

However, the variability of currencies is also a double-edged sword, since it can affect some of the parties negatively if the transaction is carried out in a currency that experiences a very sharp rise or fall in a short period of time. It must be taken into account that exports are closed at a certain price and specific payment conditions, which usually include payments deferred to 90, 120 or 180 days, and that a substantial variation in the value of the currency between one moment and another can end up generating significant imbalances over the initially agreed price. Thus, a transaction of 100 million euros may end up involving an extra cost of 5 million only if between the closing period of the agreement and that of the first payment, the euro has appreciated against the dollar by 5%.

It is a common resource for those nations that promote the development of their industry to establish protectionist measures with respect to the products and services they produce in order to gain an advantage over the products that are imported. They are popularly called import barriers and have the mission of safeguarding production and the local producer. For this matter, eminently exporting countries will be affected by a model of this type.

In the computer area

In the field of computingWe also find a reference for the term, since in this way it is called the action of forcing an application to create a document that it will not be able to edit later. We can find this option in the most developed text editors.

Photos: iStock - suriyasilsaksom / GregorBister

$config[zx-auto] not found$config[zx-overlay] not found