The business of import has the following advantages:
International trade bridges the gap between demand and supply, shortage and surplus, and production and consumption. Since no country around the globe is self-sufficient and hence faces the shortage or lack of certain goods or services which are replenished by import from the manufacturing countries.
Shortage of goods causes the rise in prices creating difficulties for the customer. It increases the cost of living making the life miserable of a common man. When the Nations have no way out to overcome the shortage they resort to import and consequently prices come down giving relief to the masses. As an economic phenomenon when supply is less than demand the price go up and vice versa. So to bring down prices import is one of the measures.
Sometime as an economic policy imports are allowed only to create healthy competition which brings prices at the reasonable level, forces the manufacturer to improve quality and innovate goods. The improvement and innovation goes up to the extent that they are demanded abroad.
Friendship among countries, treaties and economic blocs allow opening borders for exchange of goods among them. Sometimes, the foreign trade relations bring the exporting country under the pressure of important country which would elicit certain political or otherwise gain from the former.
Closure of borders for import drinks only short term benefits. But in the long run it creates suffocation, brings quality down owning to lack of competition increases the wealth of sellers at the cost of buyers. Since quality becomes substandard foreign markets are lost. The ban on imports just take them to the way of smuggling.
The business of import has the following disadvantages:
Although import creates healthy competition and becomes instrumental to the improvement of quality but this state of affairs is not acceptable to the industrial is and producers because they have their own individual interest which are badly hit.
Every country attaches extremely importance to the foreign exchange and strive hard to maximize its earning, and try to spend it very carefully. It’s used on the import of essential items as raw materials, machinery and other industrial goods are read the desirable. But on the other hand it is consumed on the import of luxury and inessentials items especially by the developing of undeveloped countries. It will be harmful for the economy.
People tend to prefer imported goods to locally manufactured ones on in their prices and quality and consequently foreign products capture the local market. These products are so strong that they manage to change the taste and culture of the society.
Import divides it into two cultures:
- The culture of the uses of foreign goods.
- The culture of the consumers of local goods.
The cultural divides bring the changes in behavior, viewpoints and temperament of the local people. The divide between the rich and poor becomes more injurious.
