IMPORT & EXPORT
Foreign trade involves the import and export of goods. Imports, exports, and the foreign trade balance are all included in the term “foreign trade,” which is displayed separately for commodities and services. As summaries of products and services, the total imports, exports, and balance of foreign trade are shown.
Selling products and services to a distant country is referred to as exporting. Contrarily, importing is the act of acquiring goods from abroad and taking them into one’s own nation. Additionally, it is split into two sections, which are,
i . Direct
ii. Indirect
Advantages of Import and Export
- One of the simplest ways to engage in international trade, import and export create a ton of job possibilities.
- Compared to other methods of joining the global trade, requires a lower time and financial investment.
- is comparatively less risky than other ways to join the international business world.
- Since no country can be completely self-sufficient, import and export are essential to the survival and development of that country.
- can assist nations in gaining access to the finest technologies, goods, and services available.
- Compared to creating a market, it provides greater trade control, and the risk is much lower.
Limitations of Import and Export
- It includes extra packaging, transportation and protection and insurance costs which build up the total cost of items.
- Exporting isn’t doable in the event that the foreign nation prohibits imports.
- Domestic organizations which are closer to the client could serve them better than firms outside their national borders.
- Merchandises are subject to quality standards any low-grade merchandise which is exported will result in Country reputation and remarks on countries.
- Obtaining licenses and documentation for foreign trade is a difficult and frustrating task.
- If you are not careful, you can lose grip on the domestic market and existing customers.
