Importation
In world trade there are two main transactions that manipulate the goods and services being delivered to consumers. To bring in the goods and services into the port of a country is called importing while the opposite is termed as exporting. Every country’s trade industry patronizes both import and export but this article focuses mainly on the import area. One who is engaged in the import process is called an importer, as opposed to the one operating the export process who is called an exporter.
An importer is classified in three types: 1) one that looks for any product around the world to import and sell; 2) one that looks for foreign sourcing to get their products at least cost; and 3) one that uses foreign sourcing as part of global supply chain.
Import and export started during the ancient times when there was a need to acquire products (products that are not available due to scarcity or lack of production) from other regions. To meet the needs of consumers, traders began the importation, which until today is a great marketing strategy that boosts a country’s economy.
What are the advantages of importing? Basically, when you are an importer and you purchase goods from other countries that offer cheaper price, you are guaranteed of sure profit. Aside from boosting the economy, importing enhances your domestic competitiveness while gaining your global market share. Importing reduces dependence on existing markets and extends sales potential of existing products. When you are engaged in importing industry expect it to stabilize seasonal market fluctuations.
The main objective of importation is to acquire goods at a reduced cost. An importer can really save money once he brings in products from other countries when compared to just getting the resources from local area. Ordering in large quantities can reduce cost since almost all products sell at a lower price when in bulk. Another thing to consider when importing is the quality of products being imported. Goods that were manufactured overseas are often higher in quality than those that were locally produced. The quality assurance depends on the exporting company’s reputation in the world market as most do not put their names at stake.
Importation also promotes remote management since the entire process can easily be managed. An importer can assign various providers to track the shipment and make sure it will arrive safely at expected time.
However, the import industry depends most on the country’s economy therefore a tight comprehension on economic facts should mostly be considered. If there is a local demand and locally made products are of higher cost, it is wiser to import such goods from cheaper producing countries in order to satisfy local consumers and at the same time will return higher profit.
