Exportation what is it, types and importance

Exportation: what is it, types and importance

Exportation is the action of sending or selling goods and services from one country to another. In other words, it is an operation, whether commercial or not, where a product or merchandise is sent outside of a country.

It is about any service or product that a country or territory sends or dispatches to a third party for its use or purchase.

Exportation types

Depending on the time and shipment, the export can be temporary, definitive, direct, indirect or concentrated.

Temporary

This type of exportation occurs when a product or merchandise is sent to an international market through customs agreements, in which it will remain for a stipulated time.

After the agreed time has elapsed, this product will return to the market where it has been nationalized.

Definitive

This type of exportation occurs when the product is sent to an international market with the intention of being consumed or used abroad.

Thus, the departure from the country of origin will be final, with the exception that the exporter does not comply with the contract agreements and the product or merchandise is returned by the recipient.

Concentrated

Concentrated exportation occurs when several companies reach an agreement and collaborate with each other to send goods to a common destination.

Direct exportation

Direct exportation is the most used by companies with experience and human resources, since here it is the same company that is in charge of doing the export, thus eliminating any intermediary and assuming all the responsibilities of the process.

Hint

This type of exportation is recommended to beginner companies in their sector, who want to reduce risks during export.

Here, the production company hires a person specialized in international trade, who is in charge of both training clients and the entire process involved in exporting.

Importance of exportation

Exports are important as they help to form a source of income that encourages the growth of the country’s economy.

In turn, they allow to be a source of employment and help many people to have a better quality of life.

In addition, exporting avoids the risks of unstable internal markets and, in turn, reduces the effects of macroeconomic problems.