How do exports benefit the economy?

What is the benefit of exports?

Advantages of exporting You could significantly expand your markets, leaving you less dependent on any single one. Greater production can lead to larger economies of scale and better margins. Your research and development budget could work harder as you can change existing products to suit new markets.

How do countries benefit from exports?

Exports help a nation grow. As a trading component, they assume importance in diplomatic and foreign policies. Countries export goods and services in which they have a competitive or comparative advantage. Governments encourage exports because they increase revenues, jobs, foreign currency reserves, and liquidity.