Import and export are main businesses in the world of economy. Not many countries on Earth have everything manufactured in their own country. That’s why people use the acts of importing and exporting. People import, or bring goods from another country into their own, to get goods that they don’t manufacture or have in their own country. People also export, or send goods to another country from their country, to give people foods in other countries that they might not have. Importing and exporting can affect countries’ Gross Domestic Product (GPD), its exchange rates, and its inflation and interest rates. This, in turn, can also make goods and services more expensive, as well as create more jobs and stimulate domestic products. International evidence also shows that imports and exports are beneficial to the economy. Imports ensure increased sales, while exports ensure productivity. Importing and exporting are both very important to the economic world.
Importing and exporting have been around for a long time. Importing and exporting can be dated back to the Roman Empire. The first American colony, Jamestown, profited by exporting tobacco back to England. The colonies imported things from England, too, such as sugar, cotton, and wool. The English policy of Salutary Neglect allowed the colonists to flout the laws associated with trade. As more and more advanced technology grew, more and more items were developed and exported and imported all around the world. The U.S. imports machinery, electrical machinery, medical equipment, and so on. Because these items aren’t manufactured in the U.S., the U.S. has to import them from foreign countries. However, the U.S. exports many things to foreign countries. In 2022, the U.S. exported industrial supplies, capital goods, and consumer products. Even though the U.S. can manufacture many products that they can export, there are still some that they need to import from other countries.
Even though every single country has to import and export some materials, there are certain countries that import or export a lot. For example, China is still the largest exporter by far. In 2018, China literally exported 2.5 trillion worth of goods to other countries. In 2020, China exported an estimated $2.72 trillion worth of goods and services, primarily electronic equipment and machinery such as broadcast equipment, computers, integrated circuits, office machine parts, and telephones. In 2018, China’s exports made up about 10.78% of the global total. Meanwhile, the biggest country of importing is the U.S. In 2020, the U.S. was the leading import country in the world with an import value of about 2.41 trillion US dollars. This evidence proves that countries actually can and need to import and export quite a lot each year.
The world of economy is important, and to keep it balanced, it needs to have laws. One major principle is The Laws of Supply and Demand. Supply describes the number of a particular good or service available within an economy. For example, you can say that we have a large supply of water, which means that we have a lot of water. Demand measures how many goods consumers are willing and able to purchase at a specific price point. If a price for one item increases a lot, the consumer demand for it decreases. Then, supply takes over, but store owners have nothing to do with it, as the consumers aren’t buying it. If that happens, store owners are often to decrease the price for consumers to raise their demand for that item. That way, the consumers will buy the item, and supply will be at a balanced level. The supply and demand must be balanced in order to have a beneficial and reliable economy.
Economy is the structure or conditions of economic life in a country, area, or period in an economic system. It plays an important role in our community, relying on the Laws of Supply and Demand to keep balanced. In order to thrive, neither supply or demand must take over. They have to be perfectly balanced, or the economy may crash. This is called an economic collapse. An economic collapse is a breakdown of a national, regional, or territorial economy that typically follows a time of crisis. If this happens, it will be like the Great Depression all over again. Thankfully, importing and exporting are there to help us. Importing and exporting really help the economy, including affecting countries’ Gross Domestic Product (GPD), its exchange rates, and its inflation and interest rates. Without this, the economy wouldn’t be like how it is today. The economy pays a really important role in the thriving of our community, and we should really do our best to keep it going.
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