Question

why do we export the same items that we import? For example, India exports AND at the same time imports petroleum. why?​

Answer 1

Answer:

Here, 'Same item' does not mean same in all aspect.

Explanation:

In fruit market we see variety of a single fruit, 40 kg to 140 kg, so in economy many factors work for this behavior.

1. Comparative Advantage: When we produce a good or service at a lower opportunity cost than another country we take benefit of this advantage and export things.
2. Seasonal Trends: We export fruit during domestic harvest season and import during the rest of the year.
3. Demand : People choice and preference also play crucial role here, we tend to prefer others product than domestic one in some cases.

Answer 2

Answer:

Exports and imports are important for the development and growth of national economies because not all countries have the resources and skills required to produce certain goods and services. Nevertheless, countries impose trade barriers, such as tariffs and import quotas, in order to protect their domestic industries.

Two reasons countries import and export the same goods are variations in transportation costs and seasonal effects. In the example of the United States and Canada both importing and exporting construction materials, transportation costs are the likely explanation.