Question

objectives of export trade

Answer 1

Promotion and maintenance of financial balance.A country can earn valuable foreign exchange through exports. The amount of foreign exchange so earned can be utilised to import goods

Answer 2

Answer:

The main objectives of export trade are as follows:

• To sell surplus goods:

A country may produce a commodity in such quantities that are more than its needs. The country can sell its surplus output to foreign countries. In this way export trade is undertaken to make fruitful use of surplus goods.

•  To make better utilisation of resources:

Export trade widens the market for goods. A country can make better utilisation of its resources by producing goods on a large scale both for domestic use and exports.

• To earn foreign exchange:

A country can earn valuable foreign exchange through ex­ports. The amount of foreign exchange so earned can be utilised to import scarce capital goods. Such imports are necessary for rapid economic development of the country.