EXPORT
1. Definition:
Exports are goods and services that are produced domestically, but then sold to
customers residing in other countries.
Exports are goods and services that are produced in one country and sold to buyers in
another country.
2. Factors Affecting Export Performance/Growth Export
a. Demand and Supply
b. Foreign Trade Policy
c. Marketing--- Strong linkages to international market
3. Government Policies to Increase Export------Decrease Import
a. Trade protectionism is a policy that protects domestic industries from unfair
competition from foreign ones. Trade Protectionism is also called as Protectionist
Policies or Protectionist Strategies. There are four primary tools of trade protectionism:
 Impose tariffs (taxes) on imports. That immediately raises the price of imported
goods, making them more expensive. They become less competitive when compared
to local goods.
 Provide subsidies to their local (domestic) industries. The subsidy lowers business
costs so they can reduce prices.
 Impose quotas on imported goods. This method is more effective than the first two.
No matter how low a foreign country sets the price through subsidies, it can’t ship
more goods.
 Lowering their currency value. That has the same effect as subsidies. It lowers the
prices of goods. Central banks reduce interest rates or print more money. They also
buy foreign currency to raise its value.
b. Trade agreements. Once protectionism has lowered trade, countries may see the
wisdom in reducing tariffs.
IMPORT
1. Definition
Imports are goods and services bought by a country's residents that are produced in a
foreign country.
Imports are foreign goods and services bought by citizens, businesses, and the government
of another country.
2.
 Combined export and import make up a country's trade balance.
 When the country exports more than it imports, it has a trade surplus.
 When it imports more than it exports, it has a trade deficit.
BALANCE OF PAYMENTS (NERACA PEMBAYARAN)
The Balance of Payments is a statement that contains the transactions made by residents of
a particular country with the rest of the world over a specific time period. It is also known
as the balance of international payments and if often abbreviated as BOP. It summarizes all
payments and receipts by firms, individuals, and the government.
There are two accounts in the BOP statement: the Capital Account and Current Account.
The Capital account shows the net change in ownership of foreign assets and transactions
in financial instruments. The Current account records all transactions involving goods,
services, investment income, and current transfer payments.
Capital Account= Neraca Modal
Current Account= Neraca Berjalan