Import and export trade

Export trade: Goods produced and processed in the country are shipped out of the country for export as export trade or output trade.

Import trade: After outsourcing goods produced and processed in foreign countries, they are transported into the country for domestic sales and are included in import trade or input trade.

Trade balance

Trade balance means that a country’s total domestic and foreign trade imports and exports in a specific year are basically balanced.

Trade imbalance

Export>Import surplus; also called export surplus

Export

my country has been experiencing a huge trade surplus for a long time

Surplus advantages

1. Trade surplus promotes economic growth.

2. Trade surplus increases foreign exchange reserves and enhances comprehensive national strength, which is conducive to maintaining international credibility, improving external financing capabilities and the ability to introduce foreign investment.

3. Trade surplus is conducive to the overall balance of the economy.

4. The trade surplus strengthens China’s ability to fight against the risks of economic globalization and contributes to national economic security.

5. The trade surplus is conducive to the stability of the RMB exchange rate and the implementation of relatively loose macroeconomic control policies.

Disadvantages

1. The trade surplus increases the pressure for RMB appreciation and increases international trade frictions.

2. The trade surplus weakens the effect of monetary policy and reduces the efficiency of social resource utilization.

3. The trade surplus increases the cost of foreign exchange reserves and increases capital outflows.

4. Trade surplus results in excessive economic dependence on foreign countries, narrow space for national economic development, and difficulty in adjusting the export structure.

5. The trade surplus has affected the process of interest rate liberalization in the domestic financial industry

Summary:

Imports and exports can be interdependent and can transform into each other. At the same time, they are in conflict with each other, so the relationship between them is a unity of opposites. We must view the relationship between import and export dialectically, make good use of the relationship between them, and further promote the development of our country's economy