Imports

Introduction 

The development of the countries all over the world can be possible with the availability of the different resources to live and make development in the technologies. Although many countries have various resources, they lack some of the resources which are available in other parts of the world or other countries. Those resources are to be imported to make the development of the country in a proper manner.  The imports of technology or the resources make different countries communicate with each other and help in the development. In exports and imports, customs duty is made in different countries to monitor the goods or the services exported and imported from other countries. 

Imports and Exports 

Imports refer to those goods or services which are purchased by organizations, people, or the government from other countries rather than purchasing them domestically. The imports of goods, products, and services from other countries lead to the outflow of cash from the country because the goods are to be purchased from the other country which involves the payment transaction. Exports of the goods or the services mean selling own products or the services to the different countries or the nation along with their own country to improve the business of its own and meet the needs of other countries. The export of the goods or the product leads to the inflow of cash as the transaction is made for selling domestic products and services to different foreign buyers all over the world. 

The export and import of the goods as well as services in the county affect the “Gross Domestic Product (GDP)”. The GDP of the country represents the overall market value of various goods as well as services produced in the country during a period of time. GDP is also termed as the National income of the country because it represents the flow of cash and the overall income of the country in a fixed period of time. GDP of the country is calculated by the formula represented below.

GDP = C+I+G+X-M

Where:

• • C represents  Consumers expenditure
  • I represent Investment
  • G represents Government expenditure
  • X represents Total exports

• M represents Total imports

Advantages and disadvantages of import 

Advantages

• Reduction in Costs of manufacturing 

The imports of the products and the services from the other countries help in reducing the cost of manufacturing in the countries. The countries import the products from the various countries which lead to the reduction of manufacturing in the country. 

• Being Helpful in various emergency situations

The countries can use the imported goods and the services in emergency situations when their own country is not capable enough to make the manufacturing. The situation can be seen when the country is suffering from various issues or hazards. This can be seen if the country is short of resources available to maintain the development of the country.

• Improve the strategic relation

The imports of different products and services from different countries can improve the relationship of the country with other countries. This also helps in promoting international trade all over the world leading to the development of various countries in trade.

Disadvantages

• Foreign exchange outflow 

One of the biggest disadvantages of imports is the spending on foreign exchange. In the import of goods, the country makes the transaction with the foreign exchange available with the country. The decrease in foreign exchange leads to developing pressure on the domestic currency.

• Risk on currency and country

The risk over the currency and the country can be seen when the country gets completely dependent on the imports done from the various foreign countries for raw materials. Then the raw materials are used to produce the products and export them to other countries. This can lead to losing more money from imports rather than gaining from imports. The currency risk can be seen due to the movement of currency in the imports with the loss which can result in decreasing the value of the currency. 

Custom duty 

The custom duties refer to the various taxes which are imposed on the imported as well as exported goods when transported from foreign countries to any country. The tax is imposed when the goods are transported across different international borders. The government imposes the custom duty to increase their revenue, along with keeping safeguard the various industries and the movement of their goods.

Conclusion

The regulation of imports and exports leads to the development of the nation along with the development of other countries. The organization makes efforts in the development of their business by making trade with foreign countries. The trades involve the imports of raw materials and exports of the product; it also involves the exchanges of currency and money between the companies of different countries. The custom duties imposed by the government over the products can help in the development of the government’s revenue. The government also makes reforms to improve the trade between the companies without affecting the economy of the country in an adverse manner.