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Imports and Exports: amazing Guidelines for International Business
Most people have heard of imports and exports. They are what international trade is based on. However, it isn’t that simple.
If you are an entrepreneur or own your own business and you want to start trading outside of your country borders, then this article is for you.
- We will look at what imports and exports are, their pros as well as their limitations, how to start your own imports and exports business, what the rules and different types of Imports and Exports businesses are, and our top tips for becoming an Import Export Agent.
Understanding the difference
Imports refer to the services or goods that are bought by a country’s residents from other countries across the world, instead of buying from domestic producers or providers. Importing goods leads to an outflow of money from the country because import transactions involve the buyer making a payment to a seller in another country.
Exports are services and products that are made domestically and then sold to clients outside of that country. Exports involve an inflow of money to the producer or provider’s country. This is because export transactions entail selling domestic products or services to a client residing in a different country.
Pros of imports and exports:
- It is one of the easiest ways to enter the global trade market
- Imports and exports create huge opportunities for employment and growth
- It will cost a lot less time and money than alternative ways to enter the global trade market
- By comparison, it is less risky than other methods of starting doing business internationally
- No country can be completely self-sufficient, so imports and exports are vital for any nations functioning and growth
- Imports and exports enable countries to access the best and latest technologies and well as the highest-quality goods and services in the world
- It allows for better control over trade than establishing a market with much higher risks
Are there any limitations?
Are there any limitations of doing imports and exports:
- Importing and exporting goods leads to more packaging, protection, insurance and transportation costs which make the product more expensive
- Exporting isn’t allowed if another country bans imports
- Domestic companies that are nearer to the customer could offer a better service than businesses that are based in another country
- There are certain quality standards for some goods so selling low-quality products or services can result in a bad reputation for the company and country
- It can be frustrating, difficult and time-consuming to obtain licences and documents for foreign trade
- You might run the risk of losing influence within your domestic market and with existing clients, if you are not careful
It has beens shown in some reports that up to 70% of people are unhappy in their current position. However, changing career paths, although daunting, is not impossible. Why not give international trading a go?
Taking time out to learn a new business and do some research, start a business and create a marketing plan takes a lot of courage, but it is worth it. It isn’t easy, but once the first few deals start happening, it is a very rewarding feeling to see what you have been working on come to fruition.
Starting your own business is an exciting process. All the work you put in directly benefits you rather than someone else you report into. You will be making the decisions and be accountable only to yourself, bringing you a sense of freedom. There is plenty to gain from starting your own company. The W.M.B.S is determined to help traders make the most of global trading opportunities by laying out all the necessary information clearly.