Movie Case Study
The scene shows how two brothers are getting excited about a new export order for Rs. 80,00,000. They are confident that they will get this export order as they will deliver the same on time and provide the best quality. This blog, Learning Perspectives explore the meaning of exports.
What are Exports?
Exports are goods and services produced in one country and sold to a different country’s buyer. International trade is the culmination of exports and imports. Exports are extremely important for the economy of the country. Generally, countries want to increase exports over imports to create a trade surplus rather than a deficit. Many countries have a comparative advantage because they are naturally good at something. For example, Jamaica has the right climate to grow coffee. India is highly populated with English-speaking youth making India a great country to outsource work from foreign countries.
Many companies export to increase their sales and profit. Generally, goods and services to be exported create new markets or expand the existing markets. Companies that export mitigate their risk by expanding in multiple markets. Companies that export to foreign markets gain new knowledge and experience, giving exporters insights into foreign markets.
Top Exporting companies in India:
- Reliance Industries (oil, gas): US$147.2 billion
- Oil & Natural Gas (oil, gas): $72.6 billion, up 10.8%
- Indian Oil (oil, gas): $47.1 billion, up 1.1%
- Tata Motors (car/truck maker): $42.4 billion
- Tata Steel (iron, steel): $34.4 billion, up 28.8%
Top Exporting Countries of the World:
- China is the world’s largest exporter, it is also India’s biggest source of imports.
- The second exporting country on the list is the United States, their largest exports include spacecraft, pharmaceuticals, helicopters, and refined petroleum.
- Third on the list is Germany. They export automobiles, pharmaceuticals, machinery, electronics, and chemicals.
- Japan’s exports include automobiles, automobile parts, and electronics.
- South Korea is the fifth largest exporter in the world. Its’ exports include automobiles, computers, ships, and petrochemicals.
India is in the thirteenth position on this list. India’s main exports include:
- Refined petroleum
- Diamonds
- Packaged Medicines
- Jewelry
- Rice.
Understand Exports with a Video
References:
https://www.forbes.com/companies/reliance-industries/?list=global2000&sh=2dea903e120f
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