Import vs. Export

Difference Between Import and Export The terms Import and export are commonly used in international trade.  These refer…

Difference Between Import and Export

The terms Import and export are commonly used in international trade.  These refer to the activities all countries of the world carry out. Import refers to goods coming inside a country from any other country. On the other hand export refers to the goods going out to any other country. All countries import as well as export goods because not a single country in the world is self dependent.

A country usually exports those natural resources which are found in excessive amount in the country. For example iron ore is exported by those countries which have ample amount of it. Crude oil is exported by Arab Countries. But those countries may be deficient in other resources. So, they have to import some resources from other countries.

Not only goods but services can also be imported and exported. Import means cost while export means profit. India has a huge man power in information technology field. So it exports services to companies and earns foreign currencies. India is deficient in oil and military equipments. So, it has to import them from other countries. Foreign currency can be spent to import foreign goods. This is the basic concept of import and export.

All countries of the world attempt to achieve parity in their import and export. But In fact it is never so. In an ideal situation, a country can use the money earned through exports in importing goods it needs when import and export are equal.

If a company is an exporter, it does not imply that it may not be an importer. All companies and countries are interdependent.  As a result of interdependency in the world, nations and companies prefer to import those goods which they cannot produce. If they themselves try to produce them, it will be proved costlier.

 

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