For a business to survive and sustain profit, the management and proprietors ought to increase their competitive advantages. Strategies have been developed to achieve this end, such as cost minimization and revenue maximization, all with a view to increasing profits. As a result, raw materials are sought at the lowest possible buying price, processed at the lowest possible cost, sold at the highest possible selling price, after incurring minimum selling and distribution costs. This practice may be applied beyond borders, and may be referred to importing and exporting business.
A distinction between the terms is necessary. Basically, importing implies bringing of goods or services originating from a country different from that which you reside in. Exporting is the act of selling goods and services to consumers outside your home country. The classical definition is the bringing in and taking out of goods to and from a national harbor, respectively. This activity is age old, as we may recall the inter-community bartering, whereby goods such as salt, glass, gold and slaves sold like hotcake.
Taking part in trade beyond borders is of remarkable advantage to an organization. It is, for instance, known that goods sought abroad may end up being cheaper than those sought locally. In addition, it is the only means to obtain locally unavailable goods owing to industrial constraints. This also implies that goods are needed abroad, hence creating a stable market for exportation.
Various costs are incurred in this activity, such as freight, duty and storage. In addition, goods have to undergo quality tests prior being availed for sale locally. This aims at discouraging a vice known as dumping, whereby goods of embarrassingly low quality are sold to unsuspecting consumers at even more ridiculous prices. Luckily, developments and evolutions in legislation and monitoring have made the process efficient, a catalyst.
It is important to note that the practice is not limited to tangible goods. Services rendered by foreigners as well as those rendered to foreigners also apply, with much simpler rules and regulations. In this day and age, outsourcing surpasses political and geographical borders.
This kind of business has a widespread impact on the economy of a country. For instance, the Balance of Trade, and Balance of payments are terms which are directly coined from the impact of importing and exporting business. The extent to which government regulation is applied to these sectors of the economy at every budget reading highlights the extent of its importance.
Trading blocs, which allow free roaming of goods between member countries, were spawned as a result. They aim to make the terms of exchange of goods and services easier and efficient, and their denial is more often than not a tool of punishment for errant policies by members. This also highlights the fact that no nation is capable of sustaining itself independently.
Trading beyond national borders is of great advantage to any business and country. Facilitating good relations, as well as cultural exchange, it opens up the borders to the rest of the world. New and cheaper and hitherto unavailable goods become available in the world. These coupled with the sizable amounts of revenues realized in foreign currency, as well as duty payments for the government ensures all parties stand to benefit from importing and exporting business.
A distinction between the terms is necessary. Basically, importing implies bringing of goods or services originating from a country different from that which you reside in. Exporting is the act of selling goods and services to consumers outside your home country. The classical definition is the bringing in and taking out of goods to and from a national harbor, respectively. This activity is age old, as we may recall the inter-community bartering, whereby goods such as salt, glass, gold and slaves sold like hotcake.
Taking part in trade beyond borders is of remarkable advantage to an organization. It is, for instance, known that goods sought abroad may end up being cheaper than those sought locally. In addition, it is the only means to obtain locally unavailable goods owing to industrial constraints. This also implies that goods are needed abroad, hence creating a stable market for exportation.
Various costs are incurred in this activity, such as freight, duty and storage. In addition, goods have to undergo quality tests prior being availed for sale locally. This aims at discouraging a vice known as dumping, whereby goods of embarrassingly low quality are sold to unsuspecting consumers at even more ridiculous prices. Luckily, developments and evolutions in legislation and monitoring have made the process efficient, a catalyst.
It is important to note that the practice is not limited to tangible goods. Services rendered by foreigners as well as those rendered to foreigners also apply, with much simpler rules and regulations. In this day and age, outsourcing surpasses political and geographical borders.
This kind of business has a widespread impact on the economy of a country. For instance, the Balance of Trade, and Balance of payments are terms which are directly coined from the impact of importing and exporting business. The extent to which government regulation is applied to these sectors of the economy at every budget reading highlights the extent of its importance.
Trading blocs, which allow free roaming of goods between member countries, were spawned as a result. They aim to make the terms of exchange of goods and services easier and efficient, and their denial is more often than not a tool of punishment for errant policies by members. This also highlights the fact that no nation is capable of sustaining itself independently.
Trading beyond national borders is of great advantage to any business and country. Facilitating good relations, as well as cultural exchange, it opens up the borders to the rest of the world. New and cheaper and hitherto unavailable goods become available in the world. These coupled with the sizable amounts of revenues realized in foreign currency, as well as duty payments for the government ensures all parties stand to benefit from importing and exporting business.
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