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Monday, 23 September 2013

What does the statement 'countries have an export-based economy' mean?

In an export-based economy, a large portion of the manufactured goods are sold to other countries. A country based on such an economy sells more goods in other countries than it buys from them. The world 'export' is derived form a Latin word meaning 'to send out'. Germany, China, Japan, and India are some countries having an export-based economy. They export mainly cars, machine, chemical products, electrical items, and leather goods to other countries. The goods sold abroad must be transported there first-by planes, ships, trucks, or trains. An export-based economy thus needs an extensive and well-designed traffic network of harbours, airports, roads, and railway lines. An import-based economy, on the other hand, buys a greater amount of goods from other countries than it sells to them, An example is the small country of Andorra in Southern Europe.

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