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What factors affect export and import?

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xnoe323x | Student, College Freshman | (Level 1) Salutatorian

Posted November 19, 2012 at 3:13 PM via web

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What factors affect export and import?

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pohnpei397 | College Teacher | (Level 3) Distinguished Educator

Posted November 19, 2012 at 3:24 PM (Answer #1)

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There are many factors that affect importing and exporting.  Let us look at a few of the most important of these factors.

Trade barriers.  The degree to which governments erect or remove trade barriers has a tremendous impact on importing and exporting.  The decision of the United States to open its markets significantly after World War II, for example, helped to allow Japan to build its “economic miracle” on exports to the US.

Shipping costs.  Importing and exporting typically involves the movement of large amounts of materials.  The costs of this movement have a major impact on whether importing and exporting can be profitable.  This is one reason that containerization made the post-war boom in trade possible.

Domestic costs and infrastructure availability.  One reason that importing and exporting has risen is that it has become cheaper and more feasible to produce many things in poorer countries and ship them to richer ones.  This is partly because of high costs in rich countries for things like labor.  It is also partly because poorer countries have gained infrastructure that allows them to have productive factories that make things for export.

All of these factors and more affect importing and exporting.

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gsenviro | College Teacher | (Level 2) Educator

Posted April 19, 2015 at 7:29 PM (Answer #2)

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The factors that affect import and export can be listed as:

  • Government Regulations: affect export and imports by making them favorable or unfavorable to prospective buyers and sellers. These may include anti-dumping duties, interest rates, etc.
  • Demand and Supply of an item will govern its export and import.
  • Country's currency: The stability of a country's currency affects the real cost of a product. Depreciation promotes exports and discourages imports.
  • Country's inflation rate: higher inflation leads to more imports
  • Quality: better quality means easier exports and brand building
  • Marketing: better marketing definitely leads to more exports
  • Ease of business: will affect the exports and imports. In today's world, most business can be done online without visiting the site/manufacturing facilities, thus saving time and resources. The Internet has been a big asset to exports and imports.
  • Political stability: a stable government means more chances for domestic production, while instability (and war/clashes among groups) means the country will have to depend on imports.

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