Export Ratio Calculator

| Added in Business Finance

What is Export Ratio and Why Should You Care?

The Export Ratio is an essential economic indicator that shows the proportion of a country's exports relative to its imports. It helps you understand how much a country is selling abroad compared to what it's buying from elsewhere.

A high Export Ratio means exporting more than importing, which is generally a sign of economic health. A low Export Ratio could indicate a trade deficit. Investors, policy-makers, and businesses keep a keen eye on this ratio to make informed decisions.

How to Calculate Export Ratio

Formula

$$\text{Export Rate} = \frac{\text{Exports}}{\text{Imports}} \times 100$$

Where:

  • Export Rate (%) is the proportion of exports to imports as a percentage
  • Total Export Price is the sum of all values of exported goods and services
  • Total Import Price is the sum of all values of imported goods and services

Calculation Example

  • Total Export Price: $800
  • Total Import Price: $1,200

$$\text{Export Rate} = \frac{800}{1200} \times 100 = 66.67%$$

The Export Ratio is 66.67%. This means the country exports about two-thirds of what it imports.

Variable Value
Total Export Price $800
Total Import Price $1,200
Export Rate 66.67%

Frequently Asked Questions

The export ratio shows the proportion of exports relative to imports. It helps understand how much a country is selling abroad compared to what it is buying from elsewhere.

A favorable export ratio can boost a country currency value and fuel economic growth. Investors and policy-makers use it for informed decisions.

A high export ratio means a country exports more than it imports, which is generally a sign of economic health and may indicate a trade surplus.

A low export ratio indicates a trade deficit, meaning the country imports more than it exports, which could impact currency value and economic standing.