Export Commodity

Definition

An export commodity is a good or product that a country produces primarily for export to other countries, rather than for domestic consumption.

Analogy

Think of your school's bake sale. The cookies you make aren't meant for your own snack time; they're made to be sold (or "exported") to others in the school. In this case, the cookies are like an export commodity.

Related terms

Trade Balance: This refers to the difference between a country's exports and imports. If you sell more cookies than you buy ingredients, you have a positive trade balance!

Primary Industry: This is the sector of an economy making direct use of natural resources. It includes agriculture, forestry and fishing, mining, and extraction of oil and gas. Just like how baking starts with raw ingredients (flour, sugar), primary industries start with raw materials.

Globalization: This is the process by which businesses or other organizations develop international influence or start operating on an international scale. Like if your bake sale becomes so popular that schools around the world start buying your cookies!