Imports and exports are terms used in international trade to describe the movement of goods and services between countries. Here are some key points about imports and exports:
Imports
- Imports refer to goods or services purchased in one country that have been produced or manufactured in another country.
- They are any good or service brought in from one country to another.
- They are crucial for international trade and ensure the availability of particular goods and services when the domestic market doesn’t offer the same products.
Exports
- Exports refer to goods or services produced in one country and sold to buyers in another.
- They are the goods and services a country produces domestically and sells to businesses or customers who reside in a foreign country.
- They are critical for a country’s economy as they boost sales and profits of the manufacturers and producers.
The export process usually entails settling several financial matters upfront. First, the exporter may seek out a letter of credit from the importer if applicable. This ensures the exporter can have greater faith in the transaction and will receive compensation for the goods once exported. The exporter and importer also fix the exchange rate at which the exported goods will be exchanged at from the foreign.
