Group name:

1. Izzuddin Nur Ridhwan

2. Haryoso
3. M. Sofiyan
4. M. Khafidz

THE BENEFITS OF EXPORTS AND IMPORTS

1. INTRODUCTION

Export is interpreted as an activity to sell certain goods/materials from the

inside of the country, while the body/person who performs the activity is called an
exporter. Goods sold is usually a result of abundant nature in the country that
conducts export activities. Usually this trade is carried out if a country produces these
items in large quantities. If the country carry out export activities on a large scale, the
shipment must be assisted by customs in the recipient country and the sender.

The term import is interpreted as an activity to purchase goods from overseas

which then the material is sold domestically for domestic needs. The
institution/person who performs this activity is called an importer. Import activities
will take place if the material to be supplied to the country costs more cheap abroad.
Import activities are carried out to strengthen the balance of payments and reduce the
potential for foreign exchange outflows. According to Marolop Tandjung (2011: 379),
“The definition of import is a trade activity by entering goods from abroad into
Indonesian customs areas in accordance with the applicable rules and regulations.”

Exported goods are goods that become mainstay products or excess country,
while imported goods are goods that can not be produced or not have availability by
the country. Each country imports due to shortage of resources owned by the state.
Countries with excess resources will send to countries that require these resources, so
that every country will definitely need a good inter-country relationship.

in Indonesia, the fact of exports in 2019 has slowed and is in the range of 4.4-
4.8%. this was due to trade tensions between China and America which led to reduced
exports of coal, iron and steel. while textile exports will continue to increase. Import
growth in 2019 slowed and in the range of 7.1-7.5%. this is due to a decline in export
performance and a slowdown in the performance of non-building investments. so the
government strives to use domestic products.
2. CONTENT

Exports and imports have 8 benefits: first, increase the country’s foreign
exchange. Foreign exchange is an important asset in increasing the economy of a
country. The exporting activities of large foreign exchange, especially for the exporter
country. When the goods are exported to another country, then the buyer must buy the
rupiah in the currency of their country. Foreign exchange so that countries add up.
Second, expanding the markets of local product. Export activities are instrumental in
marketing domestic products overseas. The greater demand for domestic products
abroad will be the greater production activities by taking place domestically. For
example, Indonesia is typical of batik clothes. When doing batik marketing abroad
and demand to remind, automatically the activities of batik production in Indonesia
will increase.

Third, expanding employment. The availability of extensive employment is

crucial in an effort to reduce the unemployment rate and liabilities of the country.
With the export activities that play a role in the expansion of local products, indirectly
will increase the employment of the country. Such as the previous batik case whose
production activities increased due to the increasing demand of the world market. So,
to produce batik that is efficient according to the number of requests needed to
increase the workforce so that the job opening. Therefore, the unemployment rate will
be reduced.

Fourth, improving cooperation relations between trading countries.

Cooperation relationship is established because the important role of each country to
the availability of material/service needs of each country. The purpose of cooperation
between countries : the economic shortage for each country that conducts cooperation,
the economies of the countries that conduct cooperation, improving human life,
welfare and prosperity of the world, expanding relationships and enclose friendship,
and foreign exchange. Fifth, obtaining raw materials. Raw materials are essential in
the production of an item. Availability of raw material supply must be controlled so
that production activities run smoothly. Usually the raw materials produced in the
country is relatively more expensive compared to those produced abroad even
sometimes not available in the country. Therefore, domestic producers tend to import
raw materials from overseas.
Group name:
1. Izzuddin Nur Ridhwan
2. Haryoso
3. M. Sofiyan
4. M. Khafidz
Sixth, obtaining goods and services that cannot be produced by yourself. Each
country is rich in natural results of different types. While the fulfillment of the need is
not as well-enough with the supply that is in the country. Therefore, import activities
are done so that goods and services that are not in the country can be available to
fulfill the needs of the community. Seventh, acquiring modern technology. Modern
technology plays an important role in the ease of production of the most volatile
materials. However, in developing countries such as Indonesia the availability of
modern technology is still very minimal. To overcome this, Indonesia conducts import
of technology from overseas to support more efficient production activities.

Eight, add income or revenue to countries. The income or revenue of countries

can increase by the value of the selling factor is more expensive than the value
purchased from export activities. Nett export is exports minus imports (NX=E-M).
State income formula (Y=C+I+G+NX). So, when the exports is surplus, state income
will increase with the help of other factors. But, when the nett exports is deficit, state
revenues will decline and must be supported by other factors so that state revenues are
surplus.

3. CONCLUSION

Exports and imports have many benefits that can be tailored to the needs of the
country. This activities can make all the needs that the country needs can be fulfilled.
If the export value exceeds the import then there will be surplus. And if the import
value is higher then the value of the export, so there will be a deficit. Foreign
exchange increase is influenced from exports, if the export value is high then the
foreign exchange will rise.