The Definition of importing is that it is an essential process of international trade, where goods and services are brought in from producing  countries for sale and utilization in other countries in need, and the word ‘import’ is derived from the word ‘port’ since the goods were shipped by ship to for foreign countries.    

In that article we demonstrates the definition of importing trade to ease  your forward readings …

The importance of imports

 

 The importance of importing is:

1. Increased employment opportunities
2. Improving the level of markets 
3. Improving the economy 

The Benefits of importing 

To Definition of importing  many advantages and benefits, perhaps the most important of which is :- 

• “Increase profit for the importer” as higher taxes, costs and minimum wages in some countries make imports an easier way to increase profit, by bringing goods from countries with much lower costs, fees and wages.
• “Quality efficiency”  some countries are characterized by the availability and production of some products of better quality, making imports an important process for the provision of high quality goods and services.
• “Facilitating government-assisted trade” in many countries’ governments have an effective role to play it in managing trade between domestic producers and importers, making the government provide additional support and benefits to importers, including Tax cuts and customer assistance.
• “Contributing to the knowledge of new products that are invading the market” The import process has helped to open up to other countries and learn new products they were not familiar with before.
• Leadership in a particular industry by importing products from competitors makes you the first importer for this product , which make you lead especially if this product is unique over time   

 

     Import defects 

As for importing advantages, it also has defects, the most important of which are:-

• Reliance on consumption rather than production, which is usually considered to be poor indicates that the importing country is heavily consumed, resulting in a decline in its economy.
• The impact on the country’s economy and the currency’s price, by increasing the demand for foreign currency.

Importing vs Exporting

Import and export are complementary processes, representing international trade financial transactions. “Import” is a means of bringing goods and services from the producing country for sale and use in other countries. Export is the process of selling products from one country to another, and is carried out in accordance with regulations and laws that support import by consuming countries and export by exporting countries.

Export is of great importance in that it is an important source of income for countries by opening new markets for their services and products, and the process of ‘export’ depends heavily on the ‘shipping’ industry, with each product having its own export method.

Import And Export Types

‘Import and export two types :- ‘ is either directly or indirectly “

Direct Import 

in which the importer the importer within one country buys the goods from the source or from a specialized brokerage company located outside the country and imports them directly without the need for a simple trading company located within the imported country 

This type of import requires, the following:-

• The ability to communicate with importers in the country of origin in terms of language and culture.
• Full market knowledge and offers available.
• A specialized department is required within the company to import and employ the necessary competencies(Transfer – contracts, etc.) and requires warehouses for the importing company within the country of origin as well as a procurement department.
• Sometimes it may require warehouses for the imported company within the country as a procurement department.
• It requires a large capital compared to indirect imports.

 Indirect Import

• In indirect import the importer buys the goods or services through an intermediary company located within the importing country, This type of import is characterized by a lack of risk resulting from the import process during purchase and transport and the verification of the quality of the goods prior to purchase, in which the price of the goods is more expensive than direct imports.In addition, reliance on the company is a good solution when companies import a large amount of different goods, helping to reduce the cost of transportation and obtain cheap prices for imported goods.

 

Direct Export

The exporter transfers the goods directly out of the country, all without the need for an intermediary.

This type of Export requires, the following:-

•  The ability to communicate directly with the client, whether linguistically, culturally or technically.
• Focus on the main objective of market knowledge in the country of import, and provide the necessary means to stay informed on the market situation.
• Ensure that after-sales services are provided if necessary, in order to maintain the company’s name in the markets of the import countries.
• Company warehouses must be located in the country of import.

Indirect Export

• Indirect Export The exporter is assisted by a foreign trade distribution or brokerage company located within the country of origin to transport goods out of the country.