Import: When domestic companies buy goods abroad and bring them to domestic sales, imports will occur. The common reason for importing goods is to meet the demand for goods which cannot be produced domestically at affordable prices. The first scenario is when domestic technology knows how or when resources are outdated or expensive.

  The second scenario is the inability to produce products or services domestically, owing to lack of skills, resources or technology. The level of imports depends directly on the exchange rate of the local currency. If the local currency is strong-it means you are buying more foreign currency, while at the same time you are increasing the level of imported goods and imports.

  If your local currency is weaker, the import level is reduced.

  Export: Export occurs when a domestic company sells its products or services abroad. There are several reasons why companies decide to export their output. First, they may want to get into the new geographic market and expand and internationalize. Second, in terms of exports, companies are likely to meet the needs of those who live abroad because their products or services do not have domestic demand.

  Exports are also a good way to reduce oversupply and thereby increase productivity. The export level is closely related to the local currency exchange rate. If it is weak-this means that people with strong foreign currency can buy more domestic money while your domestic goods are then exported at an increased level.

  If the local currency is strong, the export level will decline.

  Anyway: Both export and import are the main activities of national trade. If exports increase imports than we have a trade surplus, if on the contrary, we have a deficit.

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