Foreign trade is counted as an economic driving force in general because it produces incomes and generates work opportunities, primarily in the rural areas where most poor live, especially things related to the agricultural products. Therefore, foreign trade (through export) plays an effective and important role in reducing poverty.
Despite making progress in liberating the foreign trade, and encouraging export, the horizons of trade in developing countries are hindered by commercial barriers and the distorted subventions of commerce in the major developed countries, as well as high custom taxes in most developing countries.
Despite these impedimenta, We find the orientation of the developing countries towards the increasing of commerce movement through depending on exporting products and commodities which enjoy absolute or relative qualities that is because successful export has many economic and developmental benefits, of which:
1- Successful export develops the price of a product or an exported item:
A commodity needs more cost, is sold at an international price in the international market, and its price and importance increase according to its importance and the rate of demand in the international market.
2- Successful export exhorts to produce products of international required quality:
To follow the standards of quality and according to the demands and contracts with the importers, which state that products should meet specific qualities that is in conformation to the global standards.
3- Successful export yield a good revenue from the foreign currency:
That is according to the commercial system which the concerned countries follow. In general, most countries pursuit the major currencies in their foreign trade operations; such as the dollar, the Euro, and the basket of currencies which means the increase of obtaining these currencies which of economic importance.
4- Successful export accelerates economic growth:
The increase of obtaining foreign- currencies contributes to increase the national income, thus increasing revenue and financial surplus of the country, allowing the establishment of real investment projects, which achieves economic growth and prosperity to the community.
5- Successful export contributes to support the private sector and enhance its participation in the production process:
The increase of the global demand for a certain commodity, and achieving appropriate profits push the private sector forward to participate in the export operations and drawing attention to the establishment of institutions specialized in export, which in turn makes the private sector participate in bearing economic burdens and development.
6- Successful export develops the standards of living:
The increase of financial revenues will be reflected directly or indirectly to the citizens, which increases the standards of individuals' incomes, and thus lead to an improvement in living standards in different proportions.
In general, we can say: The reform of trade policy, caring for export by studying obstacles and problems facing it, and working to find appropriate solutions, in addition to giving attention to the fundamentals and basis of the success of the export process must be welcomed as a possible incentive to expand the horizons of foreign trade, increase of financial returns, and improving the living standards, especially in our Arab and Islamic countries that are rich in goods and products of absolute and relative qualities.
Rarely we see such important topics which highlights the Islamic economy or even economy in general. People are now interested in general topics, not the specialized topics which can benefit their society; they always look at themselves not at the general utility.
Please write: COMMENT in this box to verify that you are human