How do governments keep track of trade?

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Economic statistics showing imports and exports are published by pretty much all governments every year, or at the very least estimates are compiled by international organizations like the UN or the IMF. Given just how much complexity goes into our globalized economy and how many things cross borders, how can governments keep track of this? Do they just go around and ask businesses what crossed the borders and how much?

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2 Answers

Anonymous 0 Comments

They don’t ask – they demand.

Businesses are required to report imports and exports to the government so that customs duties can be correctly calculated. From that information, you can estimate the total amount of any good that came into or left the country.

Anonymous 0 Comments

Customs. Every port, airport, or other access point to the country has customs officials to tally goods moving across borders. It’s quite the undertaking. Moving things across the border without clearing customs (even if those goods would otherwise be perfectly legal) is smuggling.

Not sure how tracking imports and exports is handled in Europe (specifically the Schengen Area) where it’s much easier to drive a truck across borders without telling anyone you did.