Import and export what is the difference

Ever since she began contributing to the site several years ago, Mary has embraced the exciting challenge of being a researcher and writer. Mary has a liberal arts degree from Goddard College and spends her free time reading, cooking, and exploring the great outdoors. Mary McMahon. Please enter the following code:. The second occurs, when the given product or service is not possible to produce domestically because of lack skills, resources or technology. The level of import directly depends on the exchange rate of local currency.

If the local currency is strong - which means that you buy more foreing currency and at the same time more foreign goods, the import level increases. If your local currency is weak, then the import level decreases. There are several reasons, why companies decide to export their output. To increase the market share or global presence. Represents High level of import is an indicator of robust domestic demand.

High level of export is an indicator of trade surplus. Import refers to a type of foreign trade in which goods or services are brought into the home country from a foreign country, for the purpose of reselling them in the domestic market. The following procedure is followed for the import of the goods:. Export can be defined as a form of trade in which domestically manufactured goods are sent to the foreign country, on demand of the overseas buyer.

The process followed for exporting the goods to another country is given as under:. Similarly, most companies try to export their products since the more they export, the greater their competitive advantage.

Moreover, they also gain knowledge about how to sell to foreign markets. Furthermore, one of the fundamental functions of diplomacy and foreign policy between governments is also to foster economic trade for the benefit of all trading parties.

Import refers to bringing goods and services from another country to the home country while export refers to selling goods and services from the domestic country to other countries. This is the main difference between import and export. The main aim of import is to fulfill the demand of goods and services that are lacking or not available in the domestic country whereas the main aim of the export is to create more foreign income from the selling of domestic products and to increase the global presence of domestic products and services.

Since import is buying from external countries, excessive import can have a negative impact on the domestic economy. On the contrary, more export can benefit the domestic economy since it increases the foreign income to the home country.

Both import and export are significant procedures in the international trade. With the development of the free market trade, many countries in the present world engage in both import and export.