Exports are nothing but just shipping of goods and services out of port of a country. In international trade export is selling of goods and services produced in home countries to other markets. Export plays an imp. Role in a countryâs economy. Exports counterpart is import.
Export of commercial quantities of goods requires involvement of the customs authorities in both the country of export and the country of import. These small exports are still subject to legal restrictions applied by the country of export.
There are many good reasons for exporting which includes:
â¢ INCREASING SALES: Exporting is one way of increasing your sales potential; it expands the “pie” that you earn money from, 0otherwise you are stuck trying to make money only out of the local market.
â¢ INCREASING PROFITS: Companies generally strive to make profits and the bigger the profits the better. Some products – especially those that are unique or very innovative in nature may also command greater profit margins abroad than in the local market.
â¢ REDUCING RISK AND BALANCING GROWTH: It is risky being bound to the domestic market alone. Export sales to a variety of diverse foreign markets can help reduce the risk that the company may be exposed to because of fluctuations in local (and foreign) business.
These were some benefits discussed in detail others are the LOWER UNIT COST; ECONOMIES OF SCALE; UNTAPPED MARKETS; MINIMISING THE EFFECT OF SEASONAL FLUCTUATIONS IN SALES and many more.
This data is on export of goods and services (% GDP) of various countries.
To complete our analysis, we will be using some statistical tools like co-variance, standard deviation, regression etc. to analyse the data. More specifically, weâll be using graphs and other diagrams to come to a certain conclusion.
â¢ My data includes the comparison of 30 countries on the basis of Exports of goods and services (%of GDP) for the 7 past years.
â¢ It shows the increase or decrease of Export % of these counties
â¢ The year 2006 is Independent data whereas year 2013 is dependent data
â¢ It is an yearly or annually based data
â¢ It includes developed, developing and under developed countries.
2006 2007 2008 2009 2010 2011 2012 2013
Mean 41.51699 41.00789 42.12573 36.39336 38.76192 40.83409 40.80839 40.48122
Standard Error 7.25071 6.865684 7.359028 6.146177 6.473429 6.599717 6.480419 6.41765
Median 29.94458 29.92982 29.75912 27.04309 28.87423 30.67582 30.22714 29.67815
Mode #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A
Standard Deviation 39.71377 37.6049 40.30706 33.664 35.45643 36.14814 35.49472 35.15092
Sample Variance 1577.184 1414.128 1624.659 1133.265 1257.158 1306.688 1259.875 1235.587
Kurtosis 18.34675 16.149 16.93729 16.13465 14.68567 13.39372 12.2676 11.49432
Skewness 3.932466 3.628297 3.742181 3.643598 3.433691 3.248016 3.086103 2.985047
Range 219.4487 203.2444 217.8867 181.0129 189.2351 195.1643 189.924 185.2684
Minimum 10.65482 11.49787 12.38231 10.86722 10.02385 6.107274 5.51685 6.284704
Maximum 230.1035 214.7423 230.269 191.8802 199.259 201.2716 195.4408 191.5531
Sum 1245.51 1230.237 1263.772 1091.801 1162.858 1225.023 1224.252 1214.437
Count 30 30 30 30 30 30 30 30
MEAN is the average of all the observations in the data set.
This graph shows that lowest amt. exports were made in the year 2009.
This also shows that the exports in 2006 are more compared to 2013.
In the year 206 there were many international agreements among various countries. Due to these agreements the govt provided with more and more subsidies to the exporters to encourage exports of the country so that they can have a more impact in the GDP of the country.
Whereas in 2013 there was a decline in the exports of the countries because the countries leaved taxes on imports due to which the exporters earned lesser profits on exports which led to the decline of the exports and decline in the GDP % of the country.
MEDIAN is the value which lies in the centre of the data when the data is in ascending order.
According to the median chart the median of 2006 is more than 2013 which shows that the difference between exports in year 2006 and 2013 is much high i.e 2006 is 29.94 and 2013 is 29.67 respectively.
This is the histogram of year 2013 of 30 countries showing the exports of good and services (GDP%).
The highest export % in year 2013 was of Singapore that is191.5531. This is because
In this year Singapore tapped those markets where there was less availability of products. This increased the profits of the exporters, due to which they increased their production and started exporting more of goods. This helped in increasing the GDP% of exports in the country.
Whereas the least was of Afghanistan that is 6.284704.The reason behind this was Brazil lacks in technology of machinery due to which the country lacks producing more of goods.
Mode is the value which is appeared most no. Of times in a data set.
Co-variance is a measure to know how changes in one variable are related with the change of the other variable.
The covariance of year 2006 and 2013 is 1382.821.
Co-relation refers to any measure which tells us whether two variables are dependent or not.
The correlation of year 2006 and 2013 is 0.969865.
Standard deviation is a quantity that expresses by how much the members of a group differ from the mean value for the group.
The standard deviation of year 2006 and 2013 is 39.71377 and 35.15092.
Multiple R 0.975788699
R Square 0.952163586
Adjusted R q Square 0.950391867
Standard E Error 8.978892615
Df SS MS F Significance F
Regression 1 43327.36416 43327.36416 537.423576 2.338E-19
Residual 27 2176.75384 80.6205126
Total 28 45504.118
Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Lower 95.0% Upper 95.0 %
Intercept -4.568540998 2.611793363 -1.749196956 0.09161794 -9.927498 0.7904163 -9.927498322 0.790416326
6.284704 1.118673164 0.048255283 23.18239797 2.3382E-19 1.0196615 1.2176848 1.019661503 1.217684825
The measure for calculating the relationship between various variables is known as regression.
Equation for regression is, E(Y) = B0 + B1.X
B1 = 0.8584
B0 = 4.8416
Regression Equation between year 2006 and 2013 is
E(Y) = 0.8584x + 4.8416
This graph shows that the linear regression is nearer to +1.
This shows positive and strong relationship.
By the end of this project we can analyze that there are a few of the countries which are developed have greater amount of export % as compared the developing countries. Whereas the under developed countries are suffering to increase their exports of goods and services.
In this data the country which has the highest level of export by the end of 2013 is Singapore whereas Afghanistan is suffering from exporting goods and services. There are some countries ae there which had to see a decline of exports from the start of 2006 till the end of 2013 whereas some of the countries are increasing with due course of time.
The reason behind this is that there are some countries which have better human resources as well as the technological development due to which they are able to export more. There was decrease in export of almost all the countries in the year 2010 because there was stagnancy in the world economy.
Exports of the countries go down because there is decrease in the currency of the country against other world economies. For a country to improve its export % the country should provide subsidies to all the companies so that the cost of production is less due to which there will be more exports in the country.
...(download the rest of the essay above)