International trade contributes to the economic development of countries. A country's economic growth is measured by several indicators, including the GDP and GNP. Learn More!
A country's economic growth is measured by several indicators, including GDP, GNP, or the balance of payments. That is the difference between the country's imports and exports, or the difference between the total value of receipts received from abroad and the total value of payments issued abroad.
Thus, any action contributing to the increase in one of these indicators contributes systematically to the economic growth of a country. For example, an increase in household consumption also leads to a rise in GDP, as an increase in export earnings combined with a decline in imports helps to improve the balance of payments and thus improve the country's economic indicators.
From this point of view, international trade contributes to the economic development of countries. This is especially true when they have an extensive exportable supply and self-sufficient domestic consumption. With the growth of eCommerce, it is also much easier for countries to have access to the international market to sell their products and bring back foreign currencies. This does not only benefit exports, but also the entire ecosystem setup. It allows a trade to proceed smoothly. Each sub-component of economic activity is impacted, whether it is the banks through foreign currency payments or the unemployment rate, through job creation.
It is, therefore, in the best interest of countries to put in place national export promotion strategies and to encourage local businesses to reduce exports of raw products and to favour processed products with very high added value.
That’s why Export Portal exists: to promote economic development all over the world and provide support for SMEs joining the international trade world. SMEs make up 34 per cent of exports on average in developed countries. There is a lot of potential here, both for personal economics and global economics. If you are a trade professional interested in stimulating the economy and facilitating trade for SMEs, our expert panel, EP+, today and be a part of the international trade revolution.