In Today's world, everyone is aware of the concept Export or Import, but only very few know the actual depth of it.
People think Exporting or Importing is an easy task.There are many documents and procedures that need to be followed by every exporter or importer, if he failed to do so he may face the consequences.
Export
An export is a good or service produced in one country that is sold into another country.
Import
Import means when foreign goods enter our country.
Import means when foreign goods enter our country.
Importing and Exporting
Importing and Exporting are means of Foreign Trade.
Foreign trade is carried out in goods and services which includes imports, exports, and the balance of foreign trade presented separately for goods and for services.
The total imports, exports, and balance of foreign trade are presented as summaries of products and services.
Exporting refers to the selling of goods and services from the home country to a foreign nation. Whereas, importing refers to the acquisition of foreign products and bringing them into one’s home country.
Further, it is divided into two ways, which are,
Direct &Indirect
Every nation is blessed certain resources, assets, and skills . For instance, a couple of nations are rich in natural reserves, for instance , petroleum products, timber, fertile soil or valuable metals and minerals, while different nations have deficiencies of those resources.
Advantages of Import and Export
1. It isone among the only routes of getting into global
trade and import and export generate huge employment opportunities.
2. Requires less investment in terms of time and money
when contrasted with other methods of entering into the
global trade.
3. It is comparatively less riskyin comparison with
different routes of entering in international business.
4. As no nation can be 100% self-sufficient, import and
export are very crucial for the functioning and growth of
that nation.
5. It can help Countries to access the best technologies
available and the best products and services in the
world.
6. It gives better control over the trade than setting up a
market and the risk is considered low
Limitations of Import and Export
1. It includes extra packaging, transportation and
protection and insurance costs which build up the total
cost of items.
2. Exporting isn’t doable in the event that the foreign nation
prohibits imports.
3. Domestic organizations that are closer to the client
could serve them better than firms outside their national
borders.
4. Merchandises are subject to quality standards any low-
grade merchandise which is exported will result in
Country reputation and remarks on countries.
5. Obtaining licenses and documentation for foreign trade
is a difficult and frustrating task.
6. If you are not careful, you can lose grip on the domestic
market and existing customers.
1. It is
trade and import and export generate huge employment opportunities.
2. Requires less investment in terms of time and money
when contrasted with other methods of entering into the
global trade.
3. It is comparatively less risky
different routes of entering in international business.
4. As no nation can be 100% self-sufficient, import and
export are very crucial for the functioning and growth of
that nation.
5. It can help Countries to access the best technologies
available and the best products and services in the
world.
6. It gives better control over the trade than setting up a
market and the risk is considered low
Limitations of Import and Export
1. It includes extra packaging, transportation and
protection and insurance costs which build up the total
cost of items.
2. Exporting isn’t doable in the event that the foreign nation
prohibits imports.
3. Domestic organizations that are closer to the client
could serve them better than firms outside their national
borders.
4. Merchandises are subject to quality standards any low-
grade merchandise which is exported will result in
Country reputation and remarks on countries.
5. Obtaining licenses and documentation for foreign trade
is a difficult and frustrating task.
6. If you are not careful, you can lose grip on the domestic
market and existing customers.
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