Why do governments encourage exports?

Governments encourage exports primarily to support local businesses in growing their market presence. By facilitating access to international markets, governments enable domestic companies to reach a wider audience and potentially increase their sales and profitability. This expansion not only benefits individual businesses but also contributes to the overall economic growth of the country. As businesses grow and succeed in foreign markets, they may create more jobs, stimulate innovation, and boost local economies.

Additionally, increased exports can lead to a positive trade balance, where the value of goods and services sold overseas exceeds those imported, further strengthening the country's financial position. Support for exports often includes various measures such as trade agreements, financial incentives, and assistance in navigating foreign regulations, all aimed at enhancing the competitiveness of local businesses on the global stage.