Courses : Intermediate Macroeconomics Lecturer : Frischa Adellia Semester : 4th Semester, 2022/2023 Sesion Export And Import In Economic Growth Exports and imports are trading activities between a country and another country. Exports refer to goods and services sold to other countries, while imports refer to goods and services purchased from other countries. Export and import activities play an important role in a country's economic growth because they can affect the trade balance, exchange rate, employment, and industrial growth. In a global economy, countries rely on exports to increase national income and create jobs. Countries also import goods and services to meet their domestic needs, such as raw materials, technology, and consumer products. International trade can enhance a country's economic growth by enabling it to maximize its strengths and expertise, as well as take advantage of larger economies of scale and diversified natural resources. However, exports and imports can also negatively affect the economy, especially when there is an imbalance in the trade balance. When a country imports more than it exports, it can result in a trade deficit and higher spending. Therefore, countries must maintain a healthy balance between exports and imports to avoid negative impacts on economic growth. Exports and imports are two important components in a country's economic growth. Exports refer to goods and services sold abroad by a country, while imports refer to goods and services purchased from abroad by a country. In relation to economic growth, exports and imports can affect a country's economy in several ways. First, exports can provide additional income for the country, thereby increasing national income and overall economic growth. Second, imports can meet the needs of domestic consumers and industry, and thus, help economic growth. However, relying too much on exports or imports can also bring risks to a country's economy. Relying too much on exports can make the country's economy highly vulnerable to changes in global demand for exported goods and services. On the other hand, too many imports can harm the domestic industry and create a trade balance deficit. Therefore, it is important for a country to find a balance between exports and imports, and pay attention to the long-term implications of trade policies adopted. Exports and imports play an important role in economic growth because they help increase trading activities between countries and provide significant economic benefits. Export is the delivery of goods or services from one country to another, while import is the activity of importing goods or services from other countries to certain countries. Balanced export and import growth can increase a country's economic growth. Exports can provide economic benefits because they can increase state revenues from the sale of goods and services to other countries. In addition, exports can also help reduce the unemployment rate by opening up new job opportunities and increasing the productivity of the export sector. Meanwhile, imports play an important role in economic growth because they can provide access to resources and goods that are not available domestically, increase competition in the domestic market, and can help reduce the prices of goods and services. However, too much import and dependence on imports can have a negative impact on economic growth, such as weakening the domestic manufacturing sector and weakening the national currency exchange rate. Therefore, it is important for a country to maintain a balance between exports and imports. Examples of economic growth supported by exports and imports can be seen in countries such as Japan, South Korea and Taiwan which have successfully utilized the potential of exports to increase their economic growth. One example of a case in the United States regarding exports and imports was in 2018 when the Donald Trump administration imposed a policy of import tariffs on a number of goods from certain countries, including China. This policy is intended to reduce the US trade balance deficit with China and promote domestic production. However, this policy has an impact on producers and exporters in the US who depend on imported raw materials at lower prices. Instead, China responded by imposing counter-import tariffs on a number of goods from the US, including soybeans and pork. The impact of this policy on the US economy was quite significant, especially in the agricultural and manufacturing sectors. Soybean producers in the Midwest are experiencing significant declines in price and demand as China is one of the largest markets for US soybeans. Meanwhile, some manufacturers in the US who depend on imported raw materials have been forced to increase the prices of their products to cover the additional costs caused by import tariffs. In the long term, this import tariff policy can also trigger uncertainty in global markets and disrupt international trade cooperation that has been well established for years. Factors that affect a country's exports and imports include: 1. Global economic conditions: Adverse global economic conditions can affect interest in investing and exporting and importing. This can happen when there is a global recession, political turmoil or war between countries, and economic problems in big countries such as the United States, Japan and China. 2. Currency exchange rate: A country's currency exchange rate can affect the competitiveness of exports and imports. If a country's currency strengthens against another country's currency, the price of that country's export products becomes more expensive and makes its competitiveness decrease. Conversely, if the currency weakens, export prices will become cheaper and export competitiveness will increase. 3. Trade policy: Trade policies taken by the government of a country can affect exports and imports. Policies such as tariffs, import quotas and subsidies can affect the competitiveness of products in the domestic and international markets. 4. Availability of resources: The availability of resources of a country can also affect exports and imports. Countries with abundant resources tend to export more and import less. Conversely, countries that lack resources will import more. 5. Infrastructure: Adequate infrastructure can also affect a country's exports and imports. Good infrastructure such as seaports, airports, toll roads and integrated logistics systems can speed up the goods distribution process and increase product competitiveness in the global market. 6. Technology: Developing technology can also affect a country's exports and imports. Countries that are more advanced in terms of technology tend to be superior in terms of product competitiveness and can reach a wider global market. 7. Fiscal and monetary policy: Fiscal and monetary policies taken by the government can also affect exports and imports. Fiscal policies such as taxes and government spending, as well as monetary policies such as interest rates can affect currency exchange rates and the performance of exports and imports.