Exports and imports

Exports and imports, goods shipped out of or into a country. A country exports products it can produce cheaply or plentifully; it imports products it cannot produce or can produce only at high cost. Imports may compete with domestically produced goods, and a country may protect its own producers by levying import tariffs (taxes) on specific foreign products, or by limiting imports. Governments encourage exports by providing subsidies making it profitable for producers to export, or by granting tax exemptions to export industries. Governments may also control exports and imports by manipulating currency exchange rates. The ratio of the value of a country's imports and exports is called the balance of trade.

See also: Trade.