The aim of export is to benefit their countries economy by being present in the global market through marketing, selling, leasing anything that the world needs.
Import does close the gap of certain product demands in their home country, the monetary rewards mainly rest in the hands of the importer. The profit margins are thin when one product is purchased, transported, reached out with limited profit margins. It has a surplus of one or more products and gives room to choose to whom and where to export their products. The sense of choice and decision power is exported super potentiality.
The effect of both import and export can be positive and negative. For example, if too many foreign cosmetics are imported, local cosmetic brands will see demise. But if the foreign cosmetics are brought in the limit, the local brands can fight with competitive prices at a cheaper rate.
Hence, the manner in which one market, sells, advertises and serves the gaps in between demand and supply effects positively and negatively to both import and export.
Import advantage is that the act can see smiles on the faces of people when they get to products they love from other lands but the earning out of the selling is minimal. Also, import backs of heightened domestic demand. In export the residents, businessmen, government benefit through mutual bilateral agreements wherein they sell commodities, products, manpower and get the choice to decide the selling cost.
In the times of globalization, the more products that a country is capable of exports prove that they are self-sufficient, providers, and creators and have a stronger presence in the international market. On the other hand, import fills the needs of the customer, but if overindulgence is acted upon, the human development index suffers. Import disturbs the local currency if a lot of goods are brought from outside the country on a wholesale price.
If the local currency is very strong their economy can fight back. This is the reason when a currency weakens, it only gets weaken. On the other hand, foreign trade refers to a country or region with other countries or regions exchange of goods, technology and services.
Therefore, when referring to foreign trade to specify a specific country. Your Name required. Your Email required. Your Message. What are the differences between import and export trade and international trade? Related Articles. The Delhi government imported oxygen cylinders from China. Put simply, an import is something that is brought into a country over an international boundary, while an export is something that is shipped out of a country over an international boundary.
If an American grocery store chain buys bananas from Mexico, it is said to be importing the bananas, while the Mexican produce company which grows the bananas is exporting them.
Most countries attempt to achieve a trade balance , in which the flow of imports and exports is relatively equal. If a country exports too much, it may not be able to support its domestic needs, while a country that imports excessive amounts of products may not have enough money to support the high volume. In a country with a trade balance, these rates are about equal, with nations exporting excess items for sale, and importing the goods that it needs.
The confusion between the two terms can be alleviated by looking at the prefixes and comparing them to other known words.
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