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SAI INTERNATIONAL SCHOOL

CLASSS XI

SUBJECT: BUSINESS STUDIES

CHAPTER -10, International trade

Topics: Export trade, Objectives, Procedures

(LESSON NOTES-51)

What is Export Trade?

Exports are explained as the goods and services manufactured in one country
and acquired by citizens of another country. The export of good or service can
be anything. This trade can be done through shipping, e-mail, transmitted in
private luggage on a plane. Basically, if the product is manufactured
domestically and traded in a foreign country, it is known as an export.

In International trade, exports are one of the components. The other
component is imported which means the goods and services purchased by a
country’s citizens that are manufactured in a foreign country. Both the export
and import combined contribute to the country’s trade balance. Whenever the
country’s export is more than the import, it is called a trade surplus. However,
when the import is more than the export, it is known as a trade deficit.

Objectives of Export Trade:

(1) Sale of Surplus Production

 A country may produce more than it requires.
 Then, in that case, the surplus may be sold to foreign countries.

(2) Optimum Utilization of Domestic Resources

 Every country has some natural resources in plenty.
 These resources can be utilized to increase the production and sell to
those countries where these are in shortage.
(3) Employment Opportunities

 International business helps the business enterprises to focus on more
production which requires more manpower that means more
employment opportunities.