Top 10 Largest Service Exporting (Trade) Countries in the World (1970-2020)

Exports are goods or services produced in one country that are sold to another country. The difference between exports and imports can be confusing, because any given product is both an import and an export, and the appropriate term at any given time is dependent upon whether the user is in the sending country or the receiving country.

The country producing and selling a product is the exporter, and the products it sends to other countries are known as exports. Conversely, the country purchasing and receiving the products is known as the importer and calls those products imports. Exports are extremely important for a country’s economy. Exports give producers access to a global marketplace, greatly expanding their potential customer base. Additionally, imports and exports factor heavily into international diplomacy and foreign policy between governments.

Governments encourage exports and generally want to increase exports over imports. Exports create jobs, bring in higher wages, raise the standard of living for a country’s residents, and increase foreign currency reserves and liquidity. Because exports result in international funds coming into the country and imports result in money being sent out of the country, governments will often use trade protections, such as placing tariffs on incoming goods, to raise the price of imports and give their domestic industries an advantage.

Alternatively, countries often negotiate trade agreements with one another that reduce trade protections such as tariffs and create mutually beneficial trade relationships.

Sources : World Bank