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    Current page location: Home > Answers > Is import and export beneficial?
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    Lucky Swan
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    Is import and export beneficial?

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    • Time:2018-09-28 13:48:28
    Is import and export beneficial?
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    Bella Qi
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    The answer must be YES. Import/Export This is a commonly used phrase, the real description of "international trade" is beneficial. Why it is so useful is to cover 101 courses in economics.

    But I will try to explain it in layman's terms. For example, you live in a country that doesn't produce the products you want to use. The only way to obtain the product in your country is through importing from the country where it is produced. You have a demand, other countries also have supplies.

    To meet the demand supply, you need to import and other countries must export. Same as the example above, but somewhat distorted. Say your country produces products, but not enough quantity or different quality than you want.

    Even in this case, you will need to import products from different producing countries. Again, the same example, but with another twist-if your country produces products, but not at the price point, makes economic sense? In other words, the cost of production in another country is lower and higher in quality, and it is still cheaper to transport from the country of origin to your country, including transport costs.

    You will import it again. However, even if imports and exports are so favourable, governments sometimes try to prohibit the import/export of certain products or commodities in order to protect local industries/producers.

    If we start importing anything from other countries that can make cheap products, the idea is to promote or control key industries that provide jobs in the local economy. These types of practices, known as protectionist practices, are actually detrimental to industry in the long run. If you protect ailing industries that are not economically viable, they still continue to be sick/living in support. Instead, these industries should be destroyed so that the workforce can be employed in other meaningful/economically viable industries – also known as "creative destruction".

    If you are an active import/export industry practitioner, you can look at TradeSNS to connect with importers and exporters from around the world.

    #1Floor 2018-09-28 15:26:58 Reply(0)
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