Question

Globalization Exercise

 

Why do countries export goods? Why do they import goods? The reason is to improve what they are not good at or do not have in abundance and to sell what they have in abundance. Using the website found below, complete the exercises listed below.

 

From the website create a list of the top three exports and imports for these countries:

 

USA

Canada

United Kingdom         

China

Russia

 

Once you have completed the list, answer the following: What single item (import or export) surprised you the most for each country and why?

Answer 1

1. Exports:-

Exports are easier to explain than imports. At least since the beginning of the industrial era almost three centuries ago, countries exported goods and services because:

1. Individuals and firms have been able to produce more goods and services than can be consumed at home. This prompted a search for foreign opportunities to sell the “excess” production;
2. Individuals and firms have been able to sell goods or services to other countries at prices higher than the prices they can obtain domestically.

In today’s global economy, exporting serves somewhat different purposes for developing and industrial countries.

2. Imports:-

Yet no country today, including the United States, can be totally self-sufficient without suffering a high cost. All countries need to—or choose to—import at least some goods and services for the following reasons:

1. Goods or services that are either a. essential to economic well-being or b. highly attractive to consumers but are not available in the domestic market
2. Goods or services that satisfy domestic needs or wants can be produced more inexpensively or efficiently by other countries, and therefore sold at lower prices.Source:- www.worldstopexports.com   and  www.worldstopimports.com