We explain to you what is the difference between import and export, the function of each one and its intervention in international trade.
Import and export allow countries to obtain goods produced abroad.What is the difference between import and export?
Import and export are two common concepts in the world of International Trade, and that can be understood as the operation of acquisition and transport of goods of a country to another: these goods are imported when they are bought abroad and distributed within the country, and they are exported when they are manufactured in the country and sold to consumers foreign.
Both operations make up international trade, which is the tool that countries have to obtain goods and services offered by others nations, and thus make up for what is not available on its own territory. Furthermore, imports and exports constitute what is known as a nation's trade balance: the balance (if any) between what is bought and what is sold abroad.
Importing is key so that countries can have access to materials and services that are scarce in their own territory, and that on the other hand, the selling country has surplus. However, this has a notable impact on the Commerce local, since products imported products can compete in price and quality with national products.
On the other hand, exporting is a way of dealing with the excess production of the local supply, thus obtaining extra money to spend on savings, or local improvement.
The public or private initiatives that are dedicated to these operations are logically known as importers or exporters, and their shopping or sales are governed by both the legislation of their countries, as per the agreements and commercial statutes of international rigor.
Normally, countries usually impose taxes to imported merchandise to collect from the treasury and to increase its consumption value, thus protecting local producers of the same item.
But when agreements are signed free trade and other similar provisions, a freer and easier flow of merchandise is allowed, without customs impediments or so many taxes, which directly affects import and export rates.
Finally, goods and services brought into a country from abroad are called imported goods or imports, while goods and services offered abroad are called exported goods or exports.