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Topic: Is the export of goods related to manufacturing capabilities or resources? (Read 232 times)

legendary
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Hm, the op's asking a pretty tough question. I think the two (manufacturing capabilities and resources) are related, but that it also depends on the type of export. They're related about without resources, you're unlikely to be able to build factories and other infrastructure to manufacture certain things. Also, by manufacturing a lot, both for trade and domestic use, you can get more resources for your economy.
But that also depends on a type of exports and situation. China, clearly, in an example of manufacturing capabilities. But it's harder with the UK earlier. Their main exports were cotton and woollen goods, iron and steel. Let's also not forget about opium. I'm not sure if I'd call all of it manufacturing. Cotton is something you grow, but clothes are manufactured. Opium was also grown, but in the colonies.
I'd say that with the UK, it was imperial resources first, manufacturing second.
legendary
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Blackjack.fun
I would guess that "import/export" is just the topic, making money is not just based on this topic though, you could always look at Saudi Arabia and how they are making money with just oil, but if you remove oil, they do make money too. From simple obvious things like tourism, to financial companies to software to many other stuff, you do not have to send any products to any nation and still make a lot money.

Oil revenues make 40% of Saudi Arabia GDP but it counts as 75% of their fiscal revenue,  it's like having a $100, you cut oil you got $25, you cut ALL the rest you still have $75 to spend on your citizens. How long do you think it will be till Saudi Arabia turns into Venezuela?

Another great example would be Singapore, people go there all the time, and it is getting to become one of the most famous financial capitals in the world.

Singapore exports $77 billions of circuits and conductors a year while getting $14 billion from tourism!  Wink
If you think tourism alone can sustain a country, that's not the case even for a city, Venice for example gets only 10% of it's income from tourism, and that's a city you can't really rival when it compares to the population ratio and it's fame!

hero member
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150 years of exporting between countries began in 1870, when the beginnings of exporting from the United Kingdom began in the 1800s, and from that time countries such as the United Kingdom, the United States, Germany, China, and Japan topped the lists of exporting countries. Is export capacity related to manufacturing capabilities or to resources available in those countries?

What natural resources does Japan have? The only resource Japan has is a hard working and well educated working class.
The United Kingdom also doesn't have many natural resources, but it exploited the natural resources of many colonies around the world.
The USA and China have lots of natural resources in their lands, but they also have to import lots of resources.
In summary, the export capability is determined by manufacturing efficiency and the access to cheap resources(labor can be also viewed as a resource).
I would guess that "import/export" is just the topic, making money is not just based on this topic though, you could always look at Saudi Arabia and how they are making money with just oil, but if you remove oil, they do make money too. From simple obvious things like tourism, to financial companies to software to many other stuff, you do not have to send any products to any nation and still make a lot money.

Another great example would be Singapore, people go there all the time, and it is getting to become one of the most famous financial capitals in the world. So all in all, I would say that it should be something that we should target to make it better and we could potentially get a lot better with time, we just need to do a lot more with digital income.
hero member
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150 years of exporting between countries began in 1870, when the beginnings of exporting from the United Kingdom began in the 1800s, and from that time countries such as the United Kingdom, the United States, Germany, China, and Japan topped the lists of exporting countries. Is export capacity related to manufacturing capabilities or to resources available in those countries?

It depends on the country you are talking about. You see the countries that top the list of exportation all had nothing but were smart enough to exchange what they didn't have in their countries in the 1800s and today, they have the capacity to have manufacturing structures and also have available resources. If you remember, it was when slavery ended in around the 1850s that exportation increased between these countries and the era of industrialization increased in these modern countries.

Check the countries that have the resources today, they still don't have the manufacturing capabilities especially African countries where these resources are in aboundant. It is painful but you can't fault nature for not making some people to think ahead of others, isn't it funny that a country has crude oil but doesn't have a refinery? not a single one but they have these resources that are been export to where there is manufacturing structures and then they sell back the products to the same place where these resources are in abundant.
legendary
Activity: 2912
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Blackjack.fun
What natural resources does Japan have? The only resource Japan has is a hard working and well educated working class.
The United Kingdom also doesn't have many natural resources, but it exploited the natural resources of many colonies around the world.

Add this to the list:
https://www.washingtonpost.com/business/interactive/2022/netherlands-agriculture-technology/
The second agricultural exporter in the world is a country with nearly 1% of the population of India and 2/3 the size of Sri Lanka! Or to make it funnier their agricultural exports are bigger than the entire! GDP of Kenya!  Cheesy

As for resources, some forget that the first industrial revolution started by the time the USA didn't even exist at that point, the Ottoman empire still was in control of North Africa and it was about 100 years before Livingstone was the first European to see the Victoria falls and the British Empire didn't had one settler in Australia.





legendary
Activity: 3752
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Of course it's connected!
But there are nuances...
1. The presence of resources alone cannot be considered an indicator of a stable and efficient economy. The world knows a lot of examples when a country has resources, but the lack of reasonable and quality management, do not give even minimal advantages. Such countries are called raw material appendages. For example, Russia.
2. There are countries that have resources, and most importantly - the technology to turn them into a ready demanded commodity with a LARGE ADDED VALUE. And this creates a strong and progressive economy. For example USA, Germany,...
3. there are countries that do not have resources but have technologies and industries that allow them to turn resources into goods with high added value. For example, Singapore, Japan,...
4. There are countries that have resources and investments that allowed them to build a productive sector. They can both produce goods themselves and on the basis of contract manufacturing for third-party customers. For example, China, Taiwan.

And they all provide the working cycle of the world economy, they all participate, but their efficiency is different.
legendary
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Is export capacity related to manufacturing capabilities or to resources available in those countries?
Export capacity will depend on the two factors, some countries have the resources and the raw goods, but they do not have the infrastructure to refine them and turn it into finished products, thus they export only these raw materials to countries that are well developed and capable of refining it and turning it into finished products.

Having said that, a country's export capacity would be greater if they have the natural resources, can also manufacture products and turn raw material into finished goods, thus their export capacity would continue to grow as they would be producing/manufacturing at a faster pace.
sr. member
Activity: 630
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I think that exporting is more profitable to manufacturing countries, because the manufacturing countries are more well-off than their resources countries that export raw materials to them. Many developed countries rely on developing countries to get their raw materials, they'll only pay for the units of the raw materials collected and after production with resources from other areas they export as finished products to different countries, and the irony of it is that they'll even export the finished products to these underdeveloped countries. This is why countries like China, are big industrialized nations, they probably use most of their natural resources for production, they have a cheaper workforce and so they sale at cheaper price to other Nations, becoming richer in the process. It doesn't really matter where natural resources comes from, if they can not convert it to finished products, then they're enriching the industrialized nations that'll buy their resources produce it to finished product and resale it to them.
hero member
Activity: 3192
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Quote
150 years of exporting between countries began in 1870, when the beginnings of exporting from the United Kingdom began in the 1800s, and from that time countries such as the United Kingdom, the United States, Germany, China, and Japan topped the lists of exporting countries. Is export capacity related to manufacturing capabilities or to resources available in those countries?

What natural resources does Japan have? The only resource Japan has is a hard working and well educated working class.
The United Kingdom also doesn't have many natural resources, but it exploited the natural resources of many colonies around the world.
The USA and China have lots of natural resources in their lands, but they also have to import lots of resources.
In summary, the export capability is determined by manufacturing efficiency and the access to cheap resources(labor can be also viewed as a resource).
hero member
Activity: 2688
Merit: 588
Is export capacity related to manufacturing capabilities or to resources available in those countries?
Yes of course. Your country's resources, machineries and other goods can be exported to other countries that needs it. How do you export manufacturing goods and resources if your country doesn't have it? Based on my observation quality of products and it's prices are some factors affecting export capacity in a specific country.
I think he was only asking about the export capacity and I'm sure he already knows that one country can be able to export to the other. Also he is referring to the goods only. When we say goods, the first thing that can come to our mind are the food. It's because this is the primary need of the humans, and the rest are only just an addition.

@Husires, I think your question has an obvious answer but it's weird on why you still ask it xd. Definitely if our manufacturing capability or resources is only limited or not that good in quality, the goods that we are going to export to some countries will also be affected. We may only export limited amounts.
full member
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I think the country's ability to export a lot of stuff depends on how well it can make things and what resources it has. But it's not just about manufacturing because a country should also work on economic policies, trade deals, and global politics.
sr. member
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150 years of exporting between countries began in 1870, when the beginnings of exporting from the United Kingdom began in the 1800s, and from that time countries such as the United Kingdom, the United States, Germany, China, and Japan topped the lists of exporting countries. Is export capacity related to manufacturing capabilities or to resources available in those countries?


Exportation is not only about the fact that if the country exporting has resources, it could as well be as a result of the fact that the country exporting is a major sea route to other continent, there are countries that are landlocked and don't have sea route to export the goods they produce or they are not even close to the Mediterranean sea, so most times those countries that have a sea routes serve as export terminals for other countries to bring in their goods so they can help export them overseas. Also your exporting capability can also depend on your productivity, China for example are very good producers of electronics and most of these electronics come through the sea route, especially through cargo shipping and destination could be Africa, American and a whole lot's of others countries.
legendary
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I think the export of goods is primarily related to manufacturing capabilities rather than resources. Manufacturing capabilities refer to a countries ability to produce goods efficiently & at a high quality. This includes things like  skilled labor, technology, infrastructure & supply chains. Resources play a role in the manufacturing process, the ability to transform resources into finished products relies heavily on a countries manufacturing capabilities.
sr. member
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I think it's related to both manufacturing capabilities and resources, most 3rd world and developing country with lack of expert and technology doesn't have the manufacturing capability, so they only relies on the raw material resources that has lower value in the market, but developed country that has advanced technology and expert will already have good industry and manufacturing capabilities they can buy raw materials from the countries mentioned before that doesn't have manufacturing capabilities and then export it to other nations, even export it back to the countries where those raw material came from and multiplies the price.
sr. member
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Is export capacity related to manufacturing capabilities or to resources available in those countries?

Yes of course. Your country's resources, machineries and other goods can be exported to other countries that needs it. How do you export manufacturing goods and resources if your country doesn't have it? Based on my observation quality of products and it's prices are some factors affecting export capacity in a specific country.
legendary
Activity: 2688
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150 years of exporting between countries began in 1870, when the beginnings of exporting from the United Kingdom began in the 1800s, and from that time countries such as the United Kingdom, the United States, Germany, China, and Japan topped the lists of exporting countries. Is export capacity related to manufacturing capabilities or to resources available in those countries?

A bit of an uneducated introduction you have there, trading between countries has been going on thousands of years, long before some decided to stick the "start" date on that graph. Just because there were not the more modern records that allow for comparison between these nations, doesn't mean that on that date trading suddenly came into existence. You probably intend to discuss industrialization, but some how wound up making a weird and incorrect mention of trade. Adam Smith and his pioneering ideas of division of labor is worth a read, if you wish to understand how better organization of companies and an economy, supported by a proper legal framework and enforcement system are what really started to propel these nations forward much faster.
full member
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Is export capacity related to manufacturing capabilities or to resources available in those countries?
Export capacity is more related to manufacturing capabilities than availability of resources. No country in the world has all the resources it needs for productions, there is always one very precious mineral or resources that they need that they do not have and will need to buy from countries that have that to sell. Countries that exports a lot are countries that have manufactured enough of their needs that they now have enough to sell to other countries that do not have manufacturing capability for those kind of goods.
legendary
Activity: 4424
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its related mainly to COST of resources
So resources + cheap labor? There are many countries that have resources, whether rare earth minerals or raw products and cheap workers, yet they are far from being leaders in exports, such as India, Afghanistan, South Korea, Morocco, Brazil. All of these countries have not achieved a quarter of the success of China or Japan despite Japan's lack of resources or cheap labor.

depends on whats being exported
china done the smart thing. they get youngsters to do western education in STEM and then take that knowledge back to china to then teach locals cheaply and create companies using the designs they learned whilst in the west. to then export them STEM based products back to the west

other countries concentrate on foods and clothing. some even take on call centre contracts. which is big business for developing countries and is outsourced from western countries but doesnt really show up as an eastern "export" even if the money flow west to east to pay for the service should be considered as a export from the east

things like potatos. china is bottom of the list of exporting potato
sr. member
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Is export capacity related to manufacturing capabilities or to resources available in those countries?
In economics there's what is known as comparative advantages it's refers to the resourcefulness of a country to produce a particular good or service at a good and favourable opportunity cost than their counterpart and this is as a result of them not just having manufacturing capabilities but abundance of that resources available in the countries that they turn out to be next to none in that area as they don't only have enough to feed their citizens only buy sufficient to export in larger capacity. So it can be argued that yes, export capabilities is heavily related to available resources than manufacturing only.

You can have the manufacturing ability but if the resources is not abundantly available your manufacturing capacity will be limited as such affecting export capacity.
hero member
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Yes, of course this is very closely related, because it includes planning and control applied to the production process. This is useful for controlling the smooth running of production so that the process can meet consumer needs well.

In this case, not all countries have sufficient natural resources and not all countries are able to manage their natural resources domestically. Countries in the Asian region are countries that have abundant natural resources, including rare materials, but to manage these natural resources and materials into finished goods, these countries need the role of other countries, such as European countries, to manage these resources. These natural resources are turned into finished goods, which will later be redistributed or traded to countries that need them. So that in the end this becomes a mutually beneficial collaboration.
sr. member
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150 years of exporting between countries began in 1870, when the beginnings of exporting from the United Kingdom began in the 1800s, and from that time countries such as the United Kingdom, the United States, Germany, China, and Japan topped the lists of exporting countries. Is export capacity related to manufacturing capabilities or to resources available in those countries?

Yes, but "manufacturing capabilities or to resources" includes what factors are associated with them, I see them including accompanying intelligence. As some examples of countries that do not have internal resources for those things, instead they have previously accumulated financial potential and constraints on the territory to build companies and corporations, factories outside the country, and can utilize labor resources, and also impose legal issues to purchase resources. Control within their scope keeps them at the forefront of export capabilities, but at a certain threshold the balance leads to the elimination of domination by weaker countries and they become autonomous, and with that conflicts of interest so that some external influences shape armed conflict perspectives, in general this is an issue that includes many different and complex things.
hero member
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In most country that export goods to other country this simply shows that there is a strong producing capacity in that country and for that it increase their gdp as well as boosting their economy because any country that records most in their import power having little production and export so they will low economic turned down. Just take my country Nigeria as a case study, Nigeria has been the consuming nation for long, they don't export much products to other countries including their neighboring country such as Ghana, Niger, Guinea, Cameroon and Chad causing our currency to depreciate in value.

That is why we see some of the country currencies are taking over the next, USD/NGN because of the low export ratio and if Nigerian production his higher than what we export from other country you would see surpass in NGN/USD or any other currencies. So export of good is related to manufacturing capabilities and resources.
hero member
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its related mainly to COST of resources

if america has to import rare minerals and then use US labour cost to build products.. the costs are #x more then other countries
if china domestically has rare minerals and then use chinese labour cost to build products.. the costs are #x less then other countries

this then makes china the more popular source of finished goods because even if adding on shipping costs. its still cheaper then gathering rare minerals and adding labour to manufacture at the destination country demanding the product

Yes cost of labour and operation plays a key role in terms of finished goods, Chine has perfectly utilized this for their benefit and thus it has become a manufacturing factory for the world, I mean if we have to look around our house and see the products we use on daily basis most of them would be manufactured in China, but we cannot replicate the same sort of labour and production in our countries, I have a classic example wherein there are some raw material which are grown in our native but still the finished good of that product is imported from China due to the cost of labor and processing.

Lately Bangladesh has been emerging as hub for textile industry due to it's low labour cost. 
hero member
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Not all resources are needed in all places, some of them are needed in some other places, so its not an easy decision. Like for example, for many decades, even over a century, people talk about how Europe has colonized and hurt African nations, which is true, what Europe did was horrible, from slavery to pillaging to many other atrocities that is without a doubt correct. However, before Europe went there, not that many resources were used neither. Imagine living in a land where there are a lot of oil, you could take it out and become rich, but you are not, so someone else comes and takes it from you, while what they did was wrong, it also didn't make you poorer, you weren't taking it out neither. So resources depends on the one who uses it, and not always the same for every nation.
hero member
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The availability of the resources, materials and services from the countries that does export is really have the edge on this world. We see it from cars, smartphones, devices, in the health care and more.

I think that being capable of producing those things is related and proportionate to each other having the resources. As where the resources are, the government is capable to export and sees the opportunity within and that's where the manufacturing comes from.

If they know that they're capable of doing it, they'll have to do it before any other countries sees that opportunity that's already inside of them.
hero member
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150 years of exporting between countries began in 1870, when the beginnings of exporting from the United Kingdom began in the 1800s, and from that time countries such as the United Kingdom, the United States, Germany, China, and Japan topped the lists of exporting countries. Is export capacity related to manufacturing capabilities or to resources available in those countries?
Based on observation and personal experience the export capacity of every country depends on the ability to manufacture. Most of the exporting countries import raw materials from other nations. An example is what we see in Africa. The continent has been a supplier of raw materials because it cannot refine these natural resources.

Nigeria is the world's seventh largest exporter of crude oil but with no single working refinery. Burkina Faso is the fourth-highest producer of gold in Africa but the first gold refinery was built just last year. Niger produces 5% of the world's Uranium supply but it doesn't refine any quality to finished products all of them are exported to other countries.

Many exporting countries like China, EU nations, etc don't have these mineral deposits but they have the technological and skilled human resources to convert these raw materials to finished goods. But a country will be a super exporting nation when it has deposits of natural resources and the ability to refine them.
sr. member
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Exporting goods to countries differs based on various factors and one thing I would say is current relationship between the leaders of exporting and importing plays major role in it, obviously the availability of resources is the primary because we can export something that isn't available. Also the manufacturing capabilities which shows why China tops the exporting list because it's known as the manufacturing hub of the world.
hero member
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its related mainly to COST of resources
So resources + cheap labor? There are many countries that have resources, whether rare earth minerals or raw products and cheap workers, yet they are far from being leaders in exports, such as India, Afghanistan, South Korea, Morocco, Brazil. All of these countries have not achieved a quarter of the success of China or Japan despite Japan's lack of resources or cheap labor.
The government can monopolize their own resources, which mean they choose to hold instead of use it.

Cheap labor isn't always a good labor, many cheap labor didn't give a same contribution like the well paid labor, this could be due to intelligence, not capable, lack of infrastructure, culture and other thing.

Moreover not all countries are free from corruptions https://www.transparency.org/en/cpi/2022
legendary
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Exportation could be a caused of services in need by other countries which they are either not sufficient having or they apparently lacks such services in need in their country.

This type of export is understandable, as there are countries that export oil, such as Russia and the Gulf countries, and some of them export agricultural and animal products, and they were not mentioned in the list because we are talking about manufacturing or industrial exports.

its related mainly to COST of resources
So resources + cheap labor? There are many countries that have resources, whether rare earth minerals or raw products and cheap workers, yet they are far from being leaders in exports, such as India, Afghanistan, South Korea, Morocco, Brazil. All of these countries have not achieved a quarter of the success of China or Japan despite Japan's lack of resources or cheap labor.
legendary
Activity: 4424
Merit: 4794
its related mainly to COST of resources

if america has to import rare minerals and then use US labour cost to build products.. the costs are #x more then other countries
if china domestically has rare minerals and then use chinese labour cost to build products.. the costs are #x less then other countries

this then makes china the more popular source of finished goods because even if adding on shipping costs. its still cheaper then gathering rare minerals and adding labour to manufacture at the destination country demanding the product
sr. member
Activity: 546
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Is export capacity related to manufacturing capabilities or to resources available in those countries?
Exportation could be a caused of services in need by other countries which they are either not sufficient having or they apparently lacks such services in need in their country.
However, you don't demand for what you have or what more demands of what you are contented about. Contrarily some countries indeed exports their goods to other countries either for service exchanges or for trading affairs with the fact of having more than the rate that could sustain their citizens and you could only export depending on your resources or services capacities.
legendary
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150 years of exporting between countries began in 1870, when the beginnings of exporting from the United Kingdom began in the 1800s, and from that time countries such as the United Kingdom, the United States, Germany, China, and Japan topped the lists of exporting countries. Is export capacity related to manufacturing capabilities or to resources available in those countries?

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