Exportation

An export in international trade is a good or service produced in one country that is bought by someone in another country. The seller of such goods and services is an exporter; the foreign buyer is an importer. Export of goods often requires involvement of customs authorities. An export's reverse counterpart is an import. Many manufacturing firms began their global expansion as exporters and only later switched to another mode for serving a foreign market. Exporting refers to sending of goods and services from the home country to foreign country. Methods of exporting a product or good or information include mail, hand delivery, air shipping, shipping by vessel, uploading to an internet site, or downloading from an internet site. Exports also include distribution of information sent as email, an email attachment, fax or in a telephone conversation. Trade barriers are government laws, regulations, policy, or practices that either protect domestic products from foreign competition or artificially stimulate exports of particular domestic products. While restrictive business practices sometimes have a similar effect, they are not usually regarded as trade barriers. The most common foreign trade barriers are government-imposed measures and policies that restrict, prevent, or impede the international exchange of goods and services. International agreements limit trade in and the transfer of, certain types of goods and information e.g. goods associated with weapons of mass destruction, advanced telecommunications, arms and torture, and also some art and archaeological artefacts. For example: A tariff is a tax placed on a specific good or set of goods exported from or imported to a country, creating an economic barrier to trade. Usually the tactic is used when a country's domestic output of the good is falling and imports from foreign competitors are rising, particularly if the country has strategic reasons to retain a domestic production capability. Some failing industries receive a protection with an effect similar to subsidies; tariffs reduce the industry's incentives to produce goods quicker, cheaper, and more efficiently. The third reason for a tariff involves addressing the issue of dumping. Dumping involves a country producing highly excessive amounts of goods and dumping the goods on another country at prices that are 'too low', for example, pricing the good lower in the export market than in the domestic market of the country of origin. In dumping the producer sells the product at a price that returns no profit, or even amounts to a loss. The purpose and expected outcome of a tariff is to encourage spending on domestic goods and services rather than imports. Tariffs can create tension between countries. Examples include the United States steel tariff of 2002 and when China placed a 14% tariff on imported auto parts. Such tariffs usually lead to a complaint with the World Trade Organization (WTO). If that fails, the country may put a tariff of its own against the other nation in retaliation, and to increase pressure to remove the tariff.