The Faroe Islands are engaging in international trade with an increasing number of countries, and the goods that are included in the international trade in goods are goods that are registered at TAKS.
When the country imports goods of more value than it export is causes a trade deficit. The balance of trade is the difference between the import and export of goods. If the exports are greater than the imports, it results in a trade surplus. The purpose of export is to get the resources to purchase the goods we need and do not produce ourselves.
- The value of imports is calculated by the CIF method (Cost Insurance and Freight). This means that the cost of transportation is included as well as the value of the goods.
- The value of exports is calculated by the FOB method (Free On Board). This means that the cost of transport is not included.
See also Imports of goods, Exports of goods, International trade in services and Balance of payments.