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10 Factors that Influences the Value of a Country’s Exports & Imports

A country’s status is defined by its economy and export import plays an important role in growing a nation’s economy. Learn import export online and know how you can run and judge your business successfully. Import export training in Ahmedabad can give a better understanding of our today’s blog topic.  As international trade directly affects a nation’s economy, it is important to identify the factors that influence the value of countries’ exports and imports. Here are some of the factors discussed-

1 Trade/Government Policies-

Many countries have some trade barriers which stop you from buying or selling a particular product in the country or have more charges. Like the government imposes the same trade restriction on certain products for health and safety reasons.

2 Impact of Exchange Rates-

Each nation’s currency is valued in terms of other currencies. A fall in a nation’s currency will lower export prices and raise import prices and vice versa.

3 Competitiveness-

In this era of increasing competition it is difficult to maintain any company’s market position. The bigger countries will tend to attain a higher level of global trade. The bigger and more developed the country is, the more competition it has.  

4 Inflation Rate-

If a country has a high rate of inflation, the imports increase and automatically the export of the country decreases. Likewise if a country has low inflation, the exports increase and the imports reduce.

5 Domestic GDP-

If a nation’s GDP increases, more imports and exports are assumed to be done. Companies may buy more raw material and goods from other countries.

6 Foreign GDP-

If the GDP of any other country increases, people are more likely to buy more products and thus it increases the export opportunity to the country.

7 Export Subsidies-

Government offers subsidies to the exporting companies, to encourage the export and to attract new exporters. The subsidies can help exporters with loans, or low cost manufacturing, etc.

8 Quality-

If you are selling good quality products people will definitely buy your products and if the quality falls it would have an adverse effect on the country’s trade. People will automatically get attracted to the products which are of good quality.  

9 Geographical Location-

The geographical location of the trading nation also affects the export import. Correct transportation facilities like waterways & airways, and climate can make international trade easy.

10 Marketing-

Marketing plays an important role in any business. People check the product price and quality later, marketing is the one that attracts the customers to the product. So, before exporting or importing, do proper marketing of your product. Apart from the above points the international trade is also affected by the demand for goods from that nation. Also, policies that restrict imports or subsidize exports impact the prices of those goods.  Make your doubts clear with Digital Exim by attending our online classes on export import. Digital Exim provides export import online classes, 6 month consultancy. Attend a live doubt solving session with our trade managers. Get personal consultancy by the experts for a better start of your business.   Visit our website !  

Diwali 2020 | Know How Indian Trader Community Is Geared Up To Boycott The Sale of Many Goods From China

China’s exports During COVID-19 really got impacted during Covid-19. Especially in India, as the boycott trend continues. Let’s check out how Indian traders are geared up to boycott goods from China this Diwali. 

“Some people dream of success, while other people get up every morning and make it happen.” 

– Wayne Huizenga

Digital Exim Wishes You A Very Happy Diwali 

Firstly, wishing everyone who is reading this, A very happy Diwali. May this Diwali you advance even more in life. Digital Exim wishes you a happy & healthy new year ahead. Let’s be determined to win every single day & make our parents proud by achieving tons of success. 

History of India-China Trade 

The tone of India and China keeps on changing with time. Frequent border disputes between India and China is one of the main reasons for the great tension. China became India’s largest trading partner in 2008. Overall, many hurdles are still there for India and China. Bilateral relationships between both countries resulted in growth in diplomatic & economic influence. Jawaharlal Nehru too had made enough efforts for India. The Bilateral trade between China & India has grown fourfold in the past decade. Though the trade was titled more in favor of China. Still, we can hope for better relations of China India Global Trade.

COVID Impact on Global Trade

Who says that the economic conditions are still fine during COVID-19? Coming to India, we can see good results in the exporting sector. The Atmanirbharbharat movement initiated by the government of India is hugely appreciated on the International Level. Globally, tourism has been impacted very badly. Many countries have managed to secure their domestic market. No doubt, the global pandemic resulted in a significant market failure in most countries around the world. We can see how India’s GDP has gone down, the same goes with some other major countries as well. Countries like Japan, India, and the United States have encouraged the domestic market as well as the manufacturing sector. 

 Chinese Loss in Crores This Diwali Season

This Diwali might not be that good for China as Indians are approaching Atma Nirbhar Bharat. First, China’s Export During COVID-19 were affected & now Diwali 2020. Secretary General Praveen Khandelwal said that around Rs 70,000 crore of business is done in India every year during the Diwali season by traders, and goods worth around Rs 40,000 crore were imported from China in the past years. “But because of the brutal massacre by China killing 20 Indian soldiers mercilessly, there is great anger and resentment towards China in the people of the country which has prompted the people not to buy Chinese goods.” No doubt, they have suffered a backlash in recent years. 

Benefits of Boycott Chinese Export Products Trend

1. India can do more exporting & manufacturing.

2. #atmanirbharbharat, no more dependency on China.

3. Manufacturing Growth. 

4.  Increase In Domestic Market.

5. Getting The Best Product at a pocket-friendly price. 

6. Benefits for especially, toys, mobile assembly, cutlery products, glass products & electronic goods. 

Time For AtmanirbharBharat 

As China exports During the COVID-19 trend continue in India, the Indians are becoming self-dependent. “China has taken a huge dent as far as edible products are concerned, to India’s advantage,” said Ajay Sahai, director general of the Federation of Indian Export Organisations. He also added about the export of apparel, footwear, gems, jewelry, and handicrafts saying that normally, by this time, we would be getting orders for February-March next year, but we are only getting orders for the pre-Christmas period. Buyers are not taking long-term calls since they are unsure of the market. We just need a little more push & then we will be rocking the world through export. This is the best time to become #atmanirbhar. 

Conclusion:

Also, there are numerous examples in which the countries suffered and most of them recovered too (Economically). It depends on you whether you turn obstacles into opportunities or not in the world of export-import business. Let’s motivate each other for manufacturing and supply so that we can grow faster. Online Exim Academy plays a vital role for Import import-export training in making the future Exporters of India. Exim, the land of export-import guidance. Do explore with us for total practical knowledge of export-import business. Digital Exim – Connect l Collaborate l Trade

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