Import vs Export
Import and export are terms that are commonly heard in international trade and these are activities that are carried out by all countries of the world. In general, import refers to an item coming inside a country from any other country while export refers to an item going out of the country to any other country of the world. Since no country in the world is self sufficient, all countries both import as well as export.
If a country is rich in a particular ore as it has natural reserves of that ore in the form of mines, the country can export that ore to other countries of the world. This is particularly true of oil producing countries that are exporters of crude oil. However, all such countries are dependent on other countries for many other products and services which is why they need to import such items from other countries of the world.
Exports earn money for a country, while imports mean expenses. For example, India is a country that has a huge number of qualified manpower in the IT sector. This manpower exports its services to companies doing business in other countries thus earning foreign currency for India. On the other hand, India is dependent for oil and arms on other countries and needs to import them for its energy requirements as well as its army. It can spend the foreign currency it earns through exports to import goods and services it is deficient in. This is the basic concept behind exports and imports.
It is the endeavor of all countries of the world to achieve parity in their exports and imports. But in reality it is never so and this is where balance of payment creeps in. In an ideal situation, where exports equal imports, a country can utilize the money earned through exports to import goods and services it requires.
However, if a company is an exporter, it does not mean it cannot be an importer. Today there is so much of interdependency in the world that companies and nations prefer to import items that they cannot manufacture or which prove to be costlier if they try to produce themselves. In fact there are companies that specialize in exporting and importing and can arrange goods for any company from a foreign country on a short notice as it has a well developed liaising network.
• Export is the term used to selling of products or service from any other country while import is the activity of buying the same from other countries
• Both exports and imports are essential for the development of any country as no nation is self sufficient
• Problem arises when imports are too high while exports are to low leading to a serious balance of payment problem for a country.