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Two Types of Exported Product

There are two types of the exported products.

1. Materials for making products has been purchased in USA or from Europe, Made in USA or Europe, Sold in USA and exported to Europe and other countries. (Price will be with inclusion of all taxes and all expenditure).

2. Same Materials with same quality for making products has been Imported from other countries cheaply, made in USA or made in other countries (another factory of same company), Sold in USA and exported to other countries. (Price will be with inclusion of all taxes and all expenditure but Price will be cheap due to cheap Import).

Currency should be Strong till comfortable level. Uncomfortable level of Strong Currency hurts the export.

There are two Conditions :-

1) Supposed Company purchased material in USA and Built the Product in USA , Sold in USA.

2) Company purchased same material in cheap from other countries and Built the Product and exported the Product.

(Profit = Earning - Expenditure.

Due to Strong Currency, Import becomes Cheap. Cheap Import does decrease the expenditure for making the Product. In this Condition, Earning > Expenditure.

Profit = Earning - Expenditure.

Company will be in Profit.)