International trade refers to the selling and buying of goods from different countries. Import and Export Both are the most common term use in international trade. Import and export both are very helping in developing the relationship between the different counter and also useful in country’s development because there is no nation or country which is self-sufficient. People always confuse about the difference between both terms import and export. Here below we are going to describe the clear What Is The Difference Between Import And Export Trade. Keep reading this article until the end will probably help you in this regard.
What is Import?
Import is a something which is bring into a country over an international boundary. We can say that the busy of good from outside country to domestic demand is called import. The basic purpose of importing goods is to meet the demand for goods which are not produce at a domestic level at a reasonable price or other. The other reason for import is that when there are no sufficient resources, skills and technologies are present in the country to produce the demand good then imports take place to meet the requirement. The level of imports directly depends upon the exchange rate of local currency. A trade deficit occurs when imports are more than the exports in a country.
What is Export?
Export is a something which is ship out to the country over an international boundary. Simply we say that the selling of goods from domestic level to outside country is called export. We rightly say that the exports are direct connected too with the exchanges rate of local currency. Import and exports are the defining financial transactions of international trade. A trade surplus occurs when exports are more than the imports in a country. For further difference, must read the below What Is The Difference Between Import And Export Trade
What Is The Difference Between Import And Export Trade
Key Difference between Import and Export Trade:
- Import is refer to the process of buying goods from outside country to domestic use whereas the export refers to the process of selling goods to the outside country.
- If a country having weak currency then the strong foreign currency may buy more of domestic currency due to which then the export level increases similar if your local currency is strong then export decreases.
- If export increases than imports in the country then the country have trade surplus if the imports increases than exports, the respective country has a trade deficit.
- Exports earn money for the country while imports mean expenses for the country.