How Foreign Money Exchange Rates & The World Economy Are Inextricably Linked to Imports & Exports

October 31st, 2012
The import and export market is what fuels foreign money exchange rates and in turn the global economy. The countries of the world have different skills and products available to them and this determines what goods and services they can export to the rest of the world and conversely what they need to import from other countries. At Best Exchange Rates UK we have looked at the biggest export countries in the world, which will help reveal some useful insights into how foreign money exchange rates and the world’s economy go hand in hand.
In first place as the world’s largest exporter, producing and exporting nearly $120 trillion worth of goods annually, is China. Among the main products produced are power generating and electrical equipment and machinery, apparel, iron and steel. The Chinese workforce is well known for being permissive – labour can be bought at a far lower rate than in many other countries, who often find it cheaper to produce and import items from China rather than on home turf – this can be a topic of heated debate.
In second place is Germany. Maybe one of the reasons for Germany’s robust economy is attributable to its huge annual exports, which total $1.12 trillion. Export forms the economic backbone of Germany and accounts for 1/3 of its total economic output. In fact mechanical engineering accounts for 20% of the total world market for mechanical engineering products.
The third largest exporter is the US, with an annual export revenue of $1.05 trillion, capital goods such as engines, boilers and factory components form the bulk of its production output.  The main strategic thrust behind Obama’s masterplan for America’s future is to increase exports. At an annual trade conference he told delegates that America would be significantly upping their game when it comes to the exportation of goods, ninety-five percent of the world’s customers and fastest growing markets are outside of US borders.
In 4th place is Japan, who exports $581 billion worth of goods annually. This East Asian country is well known for its expertise in the production of cars and car parts, computer accessories, industrial machinery and video equipment. Japan may not be the world’s number one exporter but it does have the worlds fastest growing export economy- watch this space!
It is easy to see the importance of import and export activity on a countries economic wellbeing. Foreign money exchange rates affect the feasibility of transacting internationally and buying in goods from other countries. If exchange rates are unfavourable, alternatives will be sought. For all of your foreign currency needs visit us at Best Exchange Rates UK.