BENEFITS OF IMPORTING
There are several benefits of importing in international trading by the means of global economy and market. Various products we use in our life daily such as electronics, various kinds of food, vehicles or medical equipment rely on importing. In each part of the world, there are differences in geographical conditions, technologies or other factors. So they bring out a global supply and demand cycle which forms the basis of international trading. Some goods are widely found or manufactured in advanced levels in some countries. However some others have to be imported. Also as a part of the supply chain, some articles may be subject of importing. Because they are used for completing the production process of industrial goods.
Importing may be the more economical way for supplying some consumable goods. Also it may be more useful for some intermediate products in some situations. For instance, advanced level of technologies may be used in industrialization and manufacturing in some countries. Then supplying some daily consumable goods may be the easier solution. Some countries are rich in raw materials, resources or other tradable goods. So they may use this potential for importing and supplying rare or non manufactured goods. This may bring us to a conclusion that in every region of the world, any country may have both a good position in exporting and high necessity for importing.
THE COMPARISON BETWEEN BENEFITS OF IMPORTING AND EXPORTING
Within the supply and demand cycle, it is also critical for countries to keep the balance between importing and exporting. Import and export levels can affect both economical and industrial structures of a country. Exporting seems to have more positive effect on local economy. However, importing may offer various economical benefits. For a country, importing new, different and exciting goods can bring a boosting effect on many areas. Because it contributes to the local industry to manufacture new, different and higher quality products. So this brings an economical boost especially to developing countries. Because it gives local market the chance to offer diversity in products. Also it allows the customers to reach different goods without travelling abroad. Also for some products and sectors, importing may be more beneficial where supplying the product is cheaper than producing. Because the conditions may be unsuitable or sources would be inadequate.
On the other hand, excessive importing may form a trade deficit which breaks the balance into a negative way for the local economy. It may bring a growth in unemployment with the decrease in production. Unlike, exporting means new production fields with more employment and growth in business. Companies that rely on export markets may be more advantageous in case of slowdown in their local economies. They can keep their profits that they obtain with the business in international markets. Besides the benefits, depletion of some products or some resources may be a critical point in excessive exporting. This would result in higher prices with the less availability of products.
BESIDES BENEFITS OF IMPORTING, WHAT ABOUT THE RISKS?
Concerning both importing and exporting, international trade may often include several business risks. These risks can be exemplified as quality issues with the products, financial concerns about supplier or buyer, lack of information, concerns about deliveries and possible other security risks. At this point the most crucial necessity for a smooth business should be the reliability of the business partner. So in order not to have annoying experiences in trading, it is a must for both importers and exporters to take their steps carefully.