- June 8, 2020
Exporting and Importing Q1
Romaniais a key player in the European economy through its trade imports andexports. The electronic and car parts industry forms the bulk ofexports in the country. Romania sells these products to Germany andItaly (Nine Oclock, 2015). The Clothing industry is the largestimporter in Romania. The clothing companies import footwear parts,hides and men suits from Italy. However, the country has a hugetrade deficit. Its exports are estimated to amount to $49.41 billionwhile the imports total to $76.17 billion (Nine Oclock, 2015).
Themajor exports partners for Romania are Germany, Italy, and France.The country also imports products mainly from Germany Hungary andItaly. Romania trades with countries in the European Union and othersthat are not part of the block through the intra and extra-commerce(Nine Oclock, 2015). The value of intra-EU trade amounts toapproximately 37.305 billion euros in exports and 44.103 billioneuros in imports. Romania’s extra-EU exports totaled to 15.153billion euros, and the imports amounted to 14.401 billion euros(Balasan, 2012).
Thevarious countries within the EU block can specialize in differentproducts to improve their economies. Romania, for instance, is aleading producer of electronic equipment. The country can specializein the exportation of the farm products and reduce the deficit in thebalance of payment. Another country, Ireland is a major exporter ofmachinery and computer parts. Intensifying their market in the EU andoutside the block can increase the earnings. On the other hand,Cyprus produces citrus fruits and potatoes in excess. Germany andRomania have a mutual trade pattern. Germany specializes in themanufacture and exportation of cars and machinery. Romania exportscar parts and insulated wires to the country (Balasan, 2012). Thecountry should specialize in motor vehicle manufacturing for sale inIntra and Extra EU trade. The United Kingdom is a leading exporter ofmanufactured goods. Specializing in the products can increase itsdominance in the regional trade and make its balance of payment morefavorable.
Summarily,Romania is a major producer of electronic products and car parts. Themajor trade partners for the country include Germany, France andHungary. For the country to improve their balance of payments, theymust specialize in the goods that it produces at low costs. Also, itmust have a mutual relationship with others with the EU. This willincrease the earnings from the intra-EU commerce more than the onesgained from external trade. The rationale for settling forRomania’s, specialization in electronic products is that it is theprinciple originator of the items in EU. It exports them to Hungary,Germany, China, Cyprus, UK and Ireland. Finally, the countrycurrently imports more than it exports and this leads to a tradedeficit and this can be corrected by intensifying the electronicsmarket.
Balasan,C. (2012). The recent trend of Romania’s international trade ingoods. CESWorking Papers,4(1). Retrieved fromhttp://www.ceswp.uaic.ro/articles/CESWP2014_VI1_BAL.pdf
NineOclock. (2015). Afirst in Romania’s economy: Trade volume surpasses EUR 100 billionin 2014.Retrieved fromhttp://www.nineoclock.ro/a-first-in-romania%E2%80%99s-economy-trade-volume-surpasses-eur-100-bln-in-2014/