Q.What is meant by export trade?

Export trade is one of the two directions of foreign trade, defined by the direction in which the goods move.

The goods flow out of the country and the payment (usually in foreign currency) flows in.

Export trade is the branch of foreign trade in which goods produced within a country are sold to buyers located in another country. The goods move out of the exporting country and, in return, payment — usually in foreign currency — flows into it. For example, when an Indian manufacturer sells cotton garments to a buyer in Germany, the transaction is export trade.

Do not confuse export with import; the test is the direction of the goods. Also avoid limiting the definition to 'selling goods abroad' without noting that the goods are home-produced and leave the country.