What are Exports?

Learn about Exports with Swarg!

Case Breakdown: Movie Swarg

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.

What is an Export order?

Exports are goods and services produced in one country and sold to a different country’s buyer. International trade is 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 deficit. Many countries have 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 in foreign markets gain new knowledge and experience, giving exporters insights of 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:

  1. China is the world’s largest exporter, it is also India’s biggest source of import.
  2. Second exporting country on the list is United States, their largest exports include spacecrafts, pharmaceuticals, helicopters and refined petroleum.
  3. Third on the list is Germany. They export automobiles, pharmaceuticals, machinery, electronics and chemicals.
  4. Japan’s exports include automobiles, automobile parts and electronics.
  5. South Korea is the fifth largest exporter in the world. Its’ exports include automobiles, computers, ships and petrochemicals.

India is on the thirteenth position in this list. India’s main exports include:

  1. Refined petroleum
  2. Diamonds
  3. Packaged Medicens
  4. Jewellery
  5. Rice.

References:

https://www.forbes.com/companies/reliance-industries/?list=global2000&sh=2dea903e120f

https://en.wikipedia.org/wiki/List_of_countries_by_exports

 

Written by: Gitika Chandra

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