Jan 05

The Importance of Exports

Let it be known that NODX (Non Oil Domestic Exports) increased here in the month of October 2013 compared to the previous month. According to the IE (International Enterprise) Singapore, 2.8% was noted in October which was higher than the 1.2% in September. The increase was attributed to non electronic shipments made by Malaysia, China and Taiwan. The export growth is a positive sign in a country.

exports

You should know that export growth is very crucial because it has effects in economic stability and domestic trade of a country. Furthermore, the export growth is also connected to economic growth and the allocation of wealth and income. Even if you are not an economics major, it would help a lot if you know the basics of exports and how it is related to the growth of the economy.

The rule of exports is simple. It operates under one mechanic – sending of goods abroad. If exports increase at a speedy rate against the imports, the economy has equal chances of being a developed country in time. Lower exports can have adverse effects that can curb economic growth and development. If the country has low exports, it will mean weaker foreign exchange. If the foreign exchange of the country is weak, the purchasing power or capacity will be higher which means fewer goods can be bought in the international market.

Whether you are a businessman or not, it is important that you know and understand how the economy works. If you are into exports, you should do your best to improve your efficiency and the quality of your products.

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