Copyright

What is an Export? - Definition & Example

An error occurred trying to load this video.

Try refreshing the page, or contact customer support.

Coming up next: What is an Import? - Definition & Example

You're on a roll. Keep up the good work!

Take Quiz Watch Next Lesson
 Replay
Your next lesson will play in 10 seconds
  • 0:00 Exports - Definition
  • 0:59 Customs
  • 1:57 Free Trade
  • 2:36 Examples Of Exports
  • 3:50 Lesson Summary
Add to Add to Add to

Want to watch this again later?

Log in or sign up to add this lesson to a Custom Course.

Login or Sign up

Timeline
Autoplay
Autoplay
Create an account to start this course today
Try it free for 5 days!
Create An Account

Recommended Lessons and Courses for You

Lesson Transcript
Instructor: Aaron Hill

Aaron has worked in the financial industry for 14 years and has Accounting & Economics degree and masters in Business Administration. He is an accredited wealth manager.

Learn about exports and discover what some of the most common exports in the United States are today. Find out how things such as balance of trade, customs, and imports relate to the exporting business.

Exports- Definition

Very few countries can exist in a vacuum. Most rely on other countries to ship them particular goods - whether it's something like oil, or maybe even the pair of jeans hanging up in your closet. Countries also rely on their international neighbors to buy the goods they create. This is the basis of exports.

Exports are goods that are produced in your own country and shipped to another country for sale. They can also be used for trade with another country if the home country needs a product from the country they are exporting to. Exports are often referred to when speaking about international trade, which is simply the exchange of goods and services with other countries.

In contrast to exports, imports are goods and services that are brought into a country. The difference in the total value of exports and the total value of imports is referred to as a country's balance of trade.

Customs

In the global business world we live in today, it is not just large companies that can drive increased sales by exporting or shipping their products outside their own border. If you can mail a product or upload or download it from an Internet site, it can be considered an export.

Most large companies shipping vast quantities of products often use air and ocean freight to ship goods. In these cases, it is often necessary to work with customs authorities in the country shipping and the country receiving the good. Customs officials help protect their home country by working to ensure that no illegal or unsafe goods are shipped into the country. They also play a vital role in stopping pirated and counterfeit goods, such as smart phones, computers, prescription drugs and shoes. In 2012 alone, customs seized almost $100 million dollars (in retail value) of knock-off Nike and other name brand shoes!

Free Trade

The ability to export goods helps an economy to grow by selling more overall goods and services, which increases the income and lifestyle of the citizens in the country. One of the key focuses of foreign policy in many countries is to encourage and find solutions that foster free trade, which removes additional taxes and limitations on exported goods such as tariffs, duties and quotas.

It is important to note that some countries are off-limits or very difficult to export to for legal reasons. If you live in the United States and your business was counting on shipping goods to Cuba, North Korea or Iran; you may be out of luck.

To unlock this lesson you must be a Study.com Member.
Create your account

Register for a free trial

Are you a student or a teacher?
I am a teacher

Unlock Your Education

See for yourself why 30 million people use Study.com

Become a Study.com member and start learning now.
Become a Member  Back

Earning College Credit

Did you know… We have over 160 college courses that prepare you to earn credit by exam that is accepted by over 2,000 colleges and universities. You can test out of the first two years of college and save thousands off your degree. Anyone can earn credit-by-exam regardless of age or education level.

To learn more, visit our Earning Credit Page

Transferring credit to the school of your choice

Not sure what college you want to attend yet? Study.com has thousands of articles about every imaginable degree, area of study and career path that can help you find the school that's right for you.

Create an account to start this course today
Try it free for 5 days!
Create An Account
Support