All you need to know about exportation

Exports are the set of goods and services sold by a country in foreign territory for their use. Along with imports, they are an essential national accounting tool.

The physical entity and government body mainly in charge of this procedure is customs, so a merchandise must leave a certain customs office in a certain nation or economic block and must enter a similar one in the receiving country. It can also be carried out as a transaction to independent customers or to the direct buyer through an intermediary company.

If exports are greater than imports in total goods and services, the country will have a surplus in its balance of goods and services. On the contrary, if exports are less than imports in total goods and services, the country will have a deficit in its balance of goods and services.

Exports and aggregate demand

A country can generate production domestically and sell it in its own territory, but it can also look for buyers outside its borders. Another interesting point is regarding the balance of payments. Usually, and erroneously, exports are associated with the trade balance. However, the trade balance refers to products, but there are also other parts of the balance of payments such as the services balance.