ABSTRACT
Exports from any country are dependent upon external factors and domestic policies and conditions. External factors determine the context in which domestic decisions are made and a nation’s export potentials are exploited. This chapter reviews some of the external and internal factors affecting Pakistan’s exports after 1970. World demand is determined by the growth of foreign incomes, the elasticities of foreign demand for a country’s exports, and changes in tastes. The commodity composition of a nation’s exports is closely related to aggregate export performance. The market distribution of a nation’s exports also affects total external demand. Export performance of the developing countries is affected by the commercial policies pursued by developed economies. Over the past decade, notwithstanding attempts at liberalization of tariff and non-tariff restrictions, protectionist practices have increased. To retain or expand a share of world trade, or of a component of that trade, a country must be able to compete effectively on the basis of price.
