Ronald Jose Rubio Ampueda

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 ...

Imports are the set of goods and services purchased by a country in foreign territory for use in national territory. Along with exports, they are an essential national accounting tool. An import is basically any good and/or legitimate service that a country (called ‘importer’) buys from another country (exporter) for its use. Imports are normally subject to economic restrictions and they are regulated by all countries for the entry of products. Thus, there are many agreements between countries to agree advantageous regulations for the countries that sign them. Imports and aggregate demand The role that imports play in a country's economy is fundamental. A country can generate production to be self-sufficient, but it can also buy it from abroad. If the value of imports increases, then aggregate demand will decrease. And vice versa, if we reduce what we buy from abroad, then aggregate demand will increase. Imports in the current account balance To account for these two concepts, th...