Export Incentives


DEFINITION of 'Export Incentives'

Monetary, tax or legal incentives designed to encourage businesses to export certain types of goods or services. A government providing export incentives often does so in order to keep domestic products competitive in the global market. Types of export incentives include tax exemption on profits made from exports.

BREAKING DOWN 'Export Incentives'

Export incentives make domestic exports competitive by providing a sort of kickback to the exporter. The government collects less tax in order to deflate the exported good's price, so the increased competitiveness of the product in the global market ensures that domestic goods have a wider reach. This level of government involvement can also lead to international disputes that may be settled by the World Trade Organization (WTO).

  1. Balance Of Payments (BOP)

    A record of all transactions made between one particular country ...
  2. Terms of Trade - TOT

    The value of a country's exports relative to that of its imports. ...
  3. Export Trading Company - ETC

    An independent company that provides support services for firms ...
  4. Import And Export Prices

    Two indexes that monitor the prices of imports and exports in ...
  5. World Trade Organization - WTO

    An international organization dealing with the global rules of ...
  6. Export

    A function of international trade whereby goods produced in one ...
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