objectives of export trade
Objectives of export trade are:
1. Promotion and maintenance of financial balance.A country can earn valuable foreign exchange through exports. The amount of foreign exchange so earned can be utilised to import goods.
2. A country may produce a commodity in such quantities that are more than its needs. The country can sell its surplus output to foreign countries.
3.The growth of export trade creates employment opportunities for a large number of people and thus contributing towards economic development.
4.Aim of export trade is attaining specialisation because of the availability of distinct resources, culture, labour force and technical know-how, every country has a specialisation in particular types of products. Thus, countries export with an aim of attaining specialisation in the goods in which they have a superior technical know-how or the goods that can be produced only with the domestically available specific resources which are not available in other countries.
1. Promotion and maintenance of financial balance.A country can earn valuable foreign exchange through exports. The amount of foreign exchange so earned can be utilised to import goods.
2. A country may produce a commodity in such quantities that are more than its needs. The country can sell its surplus output to foreign countries.
3.The growth of export trade creates employment opportunities for a large number of people and thus contributing towards economic development.
4.Aim of export trade is attaining specialisation because of the availability of distinct resources, culture, labour force and technical know-how, every country has a specialisation in particular types of products. Thus, countries export with an aim of attaining specialisation in the goods in which they have a superior technical know-how or the goods that can be produced only with the domestically available specific resources which are not available in other countries.