Table of Contents
What is Import?
Import refers to bringing goods, commodities, or services from abroad to our country for sale. In simple words importing is purchasing goods from the rest of the world rather than buying domestically.
Import and export are international transactions of a country and are important for any country. A country imports goods and solutions from other nations lacking in its domestic market.
The government or the private sector purchases goods and services from foreign nations to benefit the public. Why imports are needed the reason is when a country lacks particular goods or resources, then it becomes necessary to import things from other countries.
Most countries purchase raw materials and commodities. Raw materials or commodities unavailable within a country are usually imported. One of the best examples is that many countries import oil from Middle Eastern countries.
Consequently, the party that exports those products benefits from imports. In the same way, a country must spend its financial assets to import these goods and services. Therefore, if a country imports more than it exports, it runs a trade deficit.
There are two main kinds of imports
- Industrial and consumer goods
- Intermediate goods and services
What is Export?
Export is the selling of goods and services from the domestic country to other countries. When a product or a service is sold abroad, it is called an export. Exports are also international financial transactions of the countries.
The seller of the goods is an exporter, while the foreign buyer is an importer. Several services are included in international trade, including financial, accounting, and other professional services, tourism, education, and intellectual property rights.
The exports bring foreign income to the domestic countries. The selling of goods increases the nation’s gross output. For example, suppose a country manufactures excess products or has more natural resources, such as oil.
In that case, it can sell them and earn extra income. Today, many developed countries benefit greatly from exporting their products and services. China, for example, is the world’s largest exporter of products.
Therefore, China has developed its self-sufficiency and overcome the issue of unemployment and economic inflation. Most companies export their products since the more they export, the greater their competitive advantage.
As a result, they gain expertise in producing goods and services.
Furthermore, they learn how to sell to foreign markets. One of the fundamental functions of diplomacy and foreign policy between governments is to promote economic trade.
Difference Between Import and Export
Imports meaning bringing goods and services into the domestic country from any country of the world. Obtaining a product in one country is exporting it to another.
While on the other hand, export is the selling of products and services or solutions from domestic countries to other countries.
The main difference between imports and exports is the kind of sale importing is when a residential business purchases items from other nations to offer to domestic consumers in a domestic market.
Exporting is when items are purchased from other nations for export. Export, in contrast, is the sale of locally produced products to global markets.
Comparison Between Import and Export
|Parameters of Comparison||Import||Export|
|Definition||Import refers to bringing goods, commodities, or services from abroad to our country for sale.||Export is the selling of goods and services from the domestic country to other countries.|
|Purpose||Meet the needs of the goods and services that are not available in domestic country.||If products manufactured excessively are sold to other countries to increase market share and global presence.|
|Represents||High import demands shows high need of products to the country.||A strong export rate is a sign of a current account surplus.|