Export is about sending products, goods, or commodities to another country where it is either not available or in shortage.
Import is similarly bringing in goods, products or commodities which are not available or are in shortage in our Country.
Import-Export of Commodity, goods, products need to pass through the Country’s border, recorded by the Customs at both the sides and the transaction is in foreign currency.
Export-Import is all about Foreign Trade and the World becomes your market. International buying and selling are done through Banks, Customs, Shipping or air.
The most Organized and Uniform business across the World is Import-Export. The process you do in India is the same as the process anywhere in the World.
It is suggested that it needs to be learnt in detail before entering into this business. And it is very simple if the processes are followed.
Importing means buying foreign goods and services by citizens, businesses and government of a country. No matter, how they are sent to the country. They can be shipped, sent it by e-mail, or even hand carried in personal luggage on a plane. A country importing more than it’s export, runs a trade deficit. Whereas, a country importing less than it’s exports, create a trade surplus.
Exporting means goods and services which are produced in one country are purchased in another country. It is produced domestically and sold to someone in a foreign country. Most countries want to increase their exports as it increases the GDP of the country.
The import-export business is nothing but an expansion of trade boundaries where several business models already exist. A person beholding import-export license can sell his manufactured goods to the clients overseas, can act as an intermediary between the local manufacture and buyer abroad or vice versa, and can directly purchase good produced abroad and sell them in native market similar to the conventional business. This business becomes unique with the involvement of various stakeholders and risks, which do not come into picture with domestic trade.
To achieve additional sales
To extend a product’s life cycle
To respond strategically to foreign competitors
To improve the efficiency of manufacturing
Motivation for selling exports
Advantages of Import-Export
It is one of the simplest routes of entering into global trade and import-export generate huge employment opportunities.
Requires less investment in terms of time and money when contrasted with other methods of entering into the global trade.
It is comparatively less risky when compared with different routes of entering the international business.
As no nation can be 100% self-sufficient, export-import are very crucial for the functioning and growth of that nation.
It can help Countries to access the best technologies available and the best products and services in the world.
It gives better control over the trade than setting up a market and the risk is considered low.
Why businesses prefer import-export?
Businesses prefer import-export because it is one of the simplest routes of entering into the global trade. It requires less investment in terms of time and money when contrasted with other methods of entering into the global trade. It is comparatively less risky when compared with different routes of entering the international business.