Export Industry

The export business has its foundation in history. The sending of goods from one country to another country is called ‘exporting’. Today the world has become totally interdependent on the export business. There are several reasons for this growth in the export business. Countries need goods from other companies to meet their domestic needs so they import them. Countries have a surplus of goods so they export them. This is the crux of exporting.

The Middle East countries have oil, and the biggest consumers of oil are western countries. So the Middle East exports oil to the western countries. Similarly America and Europe are the biggest consumers of coffee. But coffee grows in Africa, Latin America, West Indies and Hawaii. These countries export coffee to the countries where there are coffee consumers. Cars, buses, and trucks are manufactured by Japan, European countries and America. These are exported to countries around the world. So from these examples you see that countries are dependent on other countries to export their goods too. So governments of countries see what their export products are and who to export them to. This forms the export industry for that country.

Countries export those products that they have in surplus supply with them. They find which countries need these products and export it to them. Today China has become one of the biggest exporters of goods that range from garments to defence systems. The reason is that labour is cheap in China so they are capable of making goods at a low price and exporting them. Their economy has grown tremendously since they have entered the export business. Japan’s entire economy has developed on the export business. Although Japan is not rich in raw materials, they purchase raw material from other countries, turn them into finished products and export them. Industries in countries that only produce goods for export are known as an export industry.

Previously only goods used to be exported, but in today’s world services are also exported. Countries export their manpower to other countries that have a shortage of workers. Hence the export of manpower has also become big business, especially for third world countries.

Today all the countries of the world are intertwined in the export business. Each is dependent in some ways on the exports of another country. This internconnectivity of exports is what forms the backbone of global finance. The inter-dependence of trade between countries has increased so much that no country can survive without its export industry.