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Exports Re-Defined

Exports are the purchase of domestic goods by foreigners. The seller of such goods and services is called an ”exporter,” while the foreign partner takes the role of the importer. As a component of the GDP, they represent foreign demand for domestic goods. Also, they have a very positive impact on the size of a country’s GDP and on the trade balance.

The size and value of a country’s exports is dependent on many of the factors that determine the size and value of the country’s imports. The one major difference is that, while imports depend on the size of the domestic GDP, exports depend on the GDP of the foreign partners.

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