The main difference between import and export is that import is that form of trade in which purchase of the goods and services from other countries to the homeland. On the other hand, export implies a trade in which selling goods and services from the home country to other countries.
The important function of import is to meet the demand for goods which are not available in the domestic country and the important function of export is to create more overseas income from selling the domestic product. Export gives the benefit to the domestic economy. While import hurt the domestic economy.
|Definition||Import refers to the buying of goods and services from other countries for selling in the domestic market.||Export refers to the selling goods and services from domestic countries to the international market which is very beneficial for the country’s economy.|
|Objective||The main objective of import is to buy the goods which are not available in the domestic country.||Its objective is to sell goods and service in the international market and to raise the market coverage of domestic goods.|
|Represent||High level of import is an indicator of extreme domestic demand.||High level of export is an indicator of a trade surplus.|
|Impact||Excessive import can have a negative impact on the domestic economy||Export positively impact the domestic economy by increasing foreign income.|
What is Import?
Import refers to that type of trade in which goods and service are bought from the international market for the purpose of selling them in the domestic market. The main objective of import is to fulfill the requirement of those products which are not available in the domestic country. A lot of countries need to import water, fuel, and petroleum from other countries due to which the national income of that country affects a lot.
Excessive import leads towards the negative impact because ideally when the import is equal to export a country can utilize the money earned through exports to import goods and services it requires. So, there is always should be a balance between import and export because an imbalance in buying and selling can leads to serious economic fluctuation to the country.
What is Export?
Export refers to that type of trade in which goods and services are sending from the domestic country to the international market. If a country is very rich in particular ore and other natural resources than that country can export this ore to other countries of the world.
The main objective of export is to send goods and services to raise the market coverage of domestic goods. Export is very important for the development and growth of national economies. Export has a very long procedure the country that wants to export something must have an export license and certificate of origin to export goods and service for the betterment of the country’s economy.
Key Differences between Import and Export
The points given below are substantial so far as the difference between import and export is concerned:
- Import, as the name suggests, is the process in which goods of the foreign country are brought to the home country, for the purpose of reselling them in the domestic market. Conversely, export implies the process of sending goods from the home country to a foreign country for selling purpose.
- The main idea behind importing goods from another country is to fulfill the demand for a particular commodity that is not present or in shortage in the domestic country. On the other hand, the basic reason for exporting goods to another country is to increase the global presence or market coverage.
- Import at a high level shows a robust domestic demand, which indicates that the economy is growing. As against, the high level of export represents the trade surplus, which is good for the overall growth of the economy
So the import and export both are important for the country’s economy. No country is self-sufficient and there should be a balance of trade in every country. Import/export both can be done with the help of legal proceedings including certificates, finance and shipment. The import and export are of two types which are direct and indirect. In the case of direct import/export, the firm has direct interaction with the overseas customer. On the other hand, in the case of indirect import/export the firm has no direct interaction with the overseas customer. Hence, buying and selling should be equal to the development of the country’s economy.