ADVANTAGES OF EXPORT
1. Foreign Exchange Earnings
Export is the other part of foreign trade by which goods and services are sold abroad. It has the following advantages:
For a country foreign exchange is extremely important element in its economic system. To maximize its earnings of foreign exchange, the country formulates effective foreign policies, establishes mod relations with bordering and other countries enters economic blocs. Export is one of the most important sources of foreign exchange earnings. If a country falls short of it, it seeks help from IMF (International Monetary Fund)
The foreign exchange earned is used in. the economic development, raising people’s standard of living, and paying off of foreign debts. Every country, irrespective of its extent of development, struggles hard to earn foreign exchange by finding foreign markets for its goods and services.
2. Economic Development
Export business brings economic: development, increase in export takes production to high a level which in turn creates employment which is a significant indicator of good economic growth and development. High growth rate of an economy brings better economic rating by the international agencies. High rating enables a country to improve its international image, increase its .export, and borrow from international donors and developed countries on better conditions.
3. Identity of the country
If a country produces high quality products at reasonable prices it makes a prominent place in foreign importing countries. People buy the goods by the name of that country with great confidence,Japan,Germany,U.K.,France, U.S.A and many other developed European countries have attained this respectable status. Customers across the world and readily buy products made inJapan,U.S.A.,U.K., because these countries have gained consumers’ confidence by providing quality products.