Advantage of importing and exporting

Importing and Exporting between countries and nations have been going on for thousands of years. The Phoenicians, Chinese, Persians, Turks, Arabs, where known to trade with many nations. The silk road is know in history for the transport of goods between many nations.

Exporting Advantage:

  1. Creates a market for surplus goods that can be sold for cash with foreign nations.
  2. That cash can be used to buy products locally or to import it from other nations.
  3. When exports are higher than imports, that means the country has a trade surplus.
  4. Trade surplus usually results in more money coming into the country than leaving the country. Which means that surplus money can be used to develop the country, build new projects, expand manufacturing capacity, improve salaries and standard of living of citizens, and many other benefits.
  5. Usually exporting countries try to improve their production / manufacturing efficiency to reduce cost and increase production. Which leads to investment in higher technology and better infrastructure (roads, utilities, freight services, internet, etc)


Importing advantage:

  1. To acquire natural resources that is not available (or not sufficiently available) in their country (like oil and gas, commodities, farm products, etc)
  2. Cost advantage: Some countries have cheaper labor and are closer to natural resources. Which make their products rather cheaper to produce than locally.
  3. Quality: Sometimes imported products have better quality and features and locally produced.
  4. Lack of industrial and manufacturer capability in certain countries lead them to import most of their products and commodities needs.

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