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What Are Export And Import 1.1

What Are Export And Import

Introduction

The number of years that trading has existed cannot be counted by our fingers. The existence of trading is dated back to the Roman empire when European and Asian traders imported and exported goods across the vast lands of Eurasia. The trading was done by following the barter system which involved buying and selling of goods in exchange of goods. This system stopped after a period of time as the value of different commodities was different and trading became impartial or biassed. That is when currency came into existence and people started using them to buy various commodities and services. But that’s not it because trading or import and export of goods is a vast concept and has a lot more details that we need to see. So, explore the world trading through this article and read on further.

How to Decrease Imports And Increase Exports?

Taxes

Governments reduce excessive import activity by applying taxes and quotas on the imports. The taxes make the process of importing goods and services more expensive than purchasing them regionally or domestically. This results in improving the balancing of trades.

Subsidies 

Government provides subsidies to certain regional businesses in order to reduce their expenses and increase their income. This encourages the customers to go local and buy products that are manufactured in their region itself. By allowing the producers to produce goods with least cost, subsidies may also increase exports as cheaper goods become more attractive to international buyers.

Trade Agreements

At times countries ensure a regular flow of foreign trade, that is a high volume of both imports and exports by entering into a trade agreement with another country. Such kinds of agreements aim at stimulating trade and supporting economic growth for both the countries involved. Trade agreements focus on the exchange of various types of products.

Currency Devaluation

Another way of increasing exports and decreasing imports is by devaluing the domestic currency. Governments generally devalue the currency and aim at bringing down the prices of domestic goods and services and ultimately increasing the net exports. This method also makes buying from other countries more expensive that leads to reduction in imports.

Why are Imports And Exports Important?

Import and exports are very important for a country to increase its economy and increase the sales and profit of various companies within the country. Countries vary considerably in imports and exports and their overall balance of trade is to their economies. Exports and a net positive balance of trade are critical to the success and development of the country’s economy. The growth of a country’s economies is often fueled by huge exports of commodities and raw materials by developing countries to the developed countries. Mining is commonly a key industry in many developing countries.

What Are Export And Import 1.2

Create The Basics

Anyone starting a business in the modern world needs to fulfil certain requirements like creating a website as well as accounts on various social media channels like Facebook, Twitter, Instagram, etc. Other than that, the first thing to do is register the business with the state in which the headquarters will be located and also register the domain name and get the various licences that you would need to legally operate in the region. The next thing is to create a business plan and adopt various strategies keeping all the future goals and objectives in mind.

The next step is to find a product or industry that you are interested in and that you think could sell in foreign markets. Conduct research on the products that have the highest demand. The ones that have the lowest demand and segregate them accordingly. Then list down all the products and select the one that you feel is the most apt. 

Source Suppliers

One the product is decided, the next step to start an import and export business is to find a local manufacturer or producer that makes your product. A good relationship with the supplier can help the business to last longer. 

Price The Commodity

You have selected the product and the supplier. Now the next step is to decide the prices of the commodity at which the customers will buy your product. Choose reasonable prices keeping in mind the demand and availability of the product.

Find The Customers

Next step would be to find the right customers. For this you will have to conduct marketing and promotional activities through traditional marketing or digital marketing. It is generally preferred to use digital marketing campaigns as they are much more effective.

Get The Logistics Down

The last and the most complex step is to get the logistics down. As the product has to be manufactured at one place and sold at another. For this one needs to take the proper permits and licences given by the government and understand the tariff rates and policies for different countries.

The Bottom Line

Import and export are two crucial elements for countries and each and every government takes it seriously. It builds a strong relationship among countries. It provides various facilities to the citizens at a relatively lower price without compromising on the quality. You need to read about successful industries that are working in this line. And take inspiration from them in order to start your own business. 

A well known company that you can get inspired from is PL Global Impex Pte Ltd. It is working in the trading industry with more than 80 years of experience along with its talented employees. The company believes in bringing the world together and providing all the necessary commodities in an easy and efficient way. 

We hope this article motivates you to learn more about imports and exports. Also start a business of your own or create a bright future in this field. 

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