In this era, importing and exporting are among the most important economic fields. In light of the economic challenges and technological development, there is no country in the world that is not involved in the importing and the exporting business.
Importing and exporting is not restricted to countries, in fact, this field has been attracting businessmen for a long time. Considering the fact that most of our daily consumption is imported, it is safe to say that this business is very profitable.
More and more people want to join the importing business as it offers several opportunities and many countless ways to earn money. However, importing is not as easy as it looks. Before jumping into such a risky profitable business, you should know everything about it. Therefore, in this article, we will tell you everything you need to know about importing.
What is Importing ?
The word "import" has been derived from the word "port" since the goods were shipped by ship to foreign countries, and together the form of import and export is the basis of international trade. The value of exports, the state has a negative trade balance.
Importing is bringing a product or merchandise to one country from another. An importer can be a small company that buys goods from distributors and manufacturers in foreign markets, or it can be a global company whose import components and raw materials are worth millions of dollars.
Why Import ?
Most countries may import goods that cannot be produced as efficiently or at a cheaper price as the exporting country. Countries can also import raw materials or goods that are not available within borders. For example, many countries import oil because they cannot produce it locally or cannot produce enough of it to meet their demand.
Free trade agreements and tariff schedules often mention less expensive goods and materials to import, with globalization and greater proliferation of free trade agreements between the United States and other countries. The United States imports, for example, rose from $ 473 billion in 1989 to $ 2.2 trillion in 2016.
Companies face intense price competition, more companies are looking forward to the global market as a source for products. Many countries have a well-educated and skilled workforce earning less than the salaries of similar workers in the United States. In order to maintain their competitiveness, US firms import goods from suppliers in countries where costs are lower than they are local. This applies to both low-cost items and luxury items.
China, Canada, and Mexico are among the largest trading partners with the United States. Two of these countries share the North American Free Trade Agreement (NAFTA), which was implemented in 1994 and the largest free trade zones in the world were established at that time.
The North American Free Trade Agreement (NAFTA) is widely believed to have reduced the manufacturing of auto parts and vehicles in the United States and Canada, where Mexico has become the main beneficiary of the Convention in this sector and the cost of labor in Mexico is much cheaper than the United States or Canada, Created a long-term impact as the transfer of car manufacturers to Mexico.
Although importing is a very good business for people and countries, Free trade agreements and reliance on imports from cheaper workplaces account for much of the decline in manufacturing jobs. Free trade also opens up the ability to import goods and raw materials from cheaper production areas and reduce reliance on domestic goods which may lead eventually to the loss of the domestic market.