No matter if a country is rich in plenty of resources; every country is somehow dependent on some other country for some resources. It is good to do import and export business for a country as it helps to build stronger relationships with the neighbour countries. Although import and export both are essential aspects of trading, export has its own significance as it can earn a lot of profits to the country. Every country should make sure that they involve themselves in export trading. But the question is when countries get involved in both export and import of goods, then why should country mainly focus on export trading. This blog would help you to know why you should mainly emphasize on export while doing Import Export Business Trading.
Following are Some of the Essential Reasons Why Should a Country Mainly Emphasize on the Export Trading:
- Foreign Investment:
You just don’t need a stable government and peace only for attracting the foreign investment. A good export rate offered by the country makes it possible for investors to spend in the country, especially if a country is developing country like India. Every country requires foreign investment for filling up the gap between investment in an economy and national savings. For example, various steps have been taken up by the prime minister of India for encouraging NRI investment.
- Internal Trade:
It might sound strange but it is a true fact that export trading is responsible for promoting the internal trade by enhancing the domestic market of a country. When a country has a plenty of goods of international standards that can be exported by a country, it encourages the industries in a domestic market to enhance the productivity in order to produce more and more high-quality goods of international standards.
There is no doubt that import export business trading offers great employment opportunities in the country, but if an industry has performed well in the export of goods, then employment opportunities increase to a great extent. When it comes to India, India is a rich exporter of textile as well as jewellery and gem industry and therefore, both industries offer a large number of employment opportunities to the millions of Indians.
- Economic Stability:
An extreme fluctuation in the financial system is really bad for any country. This fluctuation can cause a number of issues like a crash in the stock market, higher inflation rates, and much more. In such case, people tend to lose their confidence that in turn affects the investment in a bad manner. Therefore, export trading helps to reduce the fluctuation rate and keeping the economy stable in the country.
Understanding the above-discussed points can conclude well that when getting involved in import export business trading, there should be more focus on the export trading.