The word “export” relates to the transport or shipping of goods and services to other countries. The country which sells the product is called “exporter”, whereas the buyer country of the product is called “Importer”. For example, when a Gulf country is selling oil to India, Gulf country becomes the exporter and India becomes an importer of oil. In international trade, ‘export’ is defined as the sale of goods and services produced in the home country to other cross border countries. In economics, exports refer to any product or commodity which can be transported from one country to another in a legal and appropriate manner for the purpose of trade.
The exported items are provided by domestic producers for fulfilling the needs of foreign consumers. Export can also be defined as the selling of goods and services across borders so that the country can earn foreign exchange. The activity of export involves the least accountability from the exporter.
Forms of Exports
Export can be classified into various categories and these categories may keep expanding with growing export. Export can be classified into various categories and these categories may keep expanding with growing export:
In majority of the developing countries, agricultural activities are the basic means of livelihood for the people. With the greater use of technology in the agriculture sector, the yields of different crops have increased tremendously. This has led to a surplus in the agricultural production of certain items of many countries like India. The export of agricultural commodities helps to increase the level of national income as well as foreign exchange in the economy. The countries can afford the import of other products due to such export activities. It also causes the scarcity of required goods in the domestic country. This may further affect the price level in the domestic market and lead to an increase in prices. Hence, every country focuses on enhancing the productivity of those agricultural products which have high demand in foreign markets.
2) Textile Exports:
In the international trade sector, the export of commodities from the textile industry also occupies an important position. These commodities include products like readymade garments, silk, cotton, and fiber textiles, woollens, handicrafts, jute, coir, etc. In many developed and developing countries, textile export has contributed tremendously to the economy.
3) Electronic Goods Exports:
The global trend indicates that electronic goods contribute 10.2% of all the earnings from international trade. The major exporting commodities in the electronic sector include computers, laptops, radio, television, deep freeze refrigerators, electro-medical equipment, etc. The Asian countries like China, Japan, Malaysia, and Taiwan are major exporters of electronic commodities across the world. 85% of countries in the world are net importers of electronic commodities and this implies that the bulk of global exports are done by these Asian countries. That is why these economies are sometimes referred to as Tiger economies of Asian Tigers.
4) Pharmaceutical Exports:
Similar to the above industries, Pharmaceutical industry has also made rapid progress over the last few years and now contributes to a large chunk of the international market. In Pharmaceutical export, the exporters of medicines require export certification from international bodies like WHO and the Department of Health. Indian companies like Ranbaxy have a very good reputation in the global pharmaceutical market and have been recognised as a reliable and high-quality source of phanna intermediaries and drug formulations. The pharmacy industry in India is rated high among the global peers for its product quality, technology and variety of medicines and drugs that are manufactured and exported to other countries. Indian healthcare is also emerging as a very good service provider and hospitals like Apollo have a very good brand recall in the global healthcare market.
5) Jewellery Exports:
Another emerging segment in international export which is gaining prominence is gems and Jewellery industry. This industry is very fascinating in the modern fashion and glamour oriented world and comprises categories of pearl, gemstones, and jewellery. The Indian jewellery industry has been able to achieve a good standing in the international jewellery market. India is considered as a prominent hub in the manufacturing and exporting of traditional and handmade jewellery. It has thus been able to carve a place for itself when confronted with machine made commercial jewellery market.
6) Services Exports:
The export of non-tangible goods such as technical, professional, and general services provided to other countries is known as export of services. For example, software services, nursing, telecommunication, entertainment, event management, consultants, etc. The exporting companies which are providing services to the foreign clients are referred to as service providers.
7) National Accounts Exports:
The transactions of goods and services from residents to non-residents of a country across nations are known as national accounts exports. Such transactions involve incoming and outgoing foreign exchange. The export involves transactions during sales, barter, gifs or grants exchanged among residents of two countries. Export in case of national account can be explained under the following two categories:
- Goods Export: Goods export involves the transfer of ownership of goods from a resident to a non-resident of a country. In many cases, the national accounts infer a change in ownership even though no physical transfer of the product takes place. On the other hand, in some cases, national account export occurs even without transfer of ownership. For example, cross bonier financing, leasing, deliveries between associates of the same firm, goods transferred across the border for the purpose of repair or processing. In all these cases the ownership of commodities or services is formally not transferred, yet, national account export takes place.
- Services Export: Services export consists of all the services which are given by residents to the non-residents of a country. Any kind of direct purchase of services made by the non-residents in the other country is referred o: marked as export of services. For example, the expenditures incurred by tourists from other countries in exchange for tourist services provided to them are calculated under the exports of services of that country. While calculating the export of services under the national account, the export of illegal services should also be calculated.
8) Project Exports:
When a country initiates a project in another country. it is called project export. A project has been defined as something that is a non-routine, non-repetitive and unique undertaking which has discrete goals in terms of time, financial aspects and performance.
9) Deemed Exports:
Such type of export is introduced by the Export-Import Policy of the Government of India. It refers to exports in which the goods and services that have been transacted are not transferred. physically to another country, but its payment is received in the country of origin.