International trade remains one of the most profitable industries in the world. While the industry is not new by any means, international trade has become more and more rewarding – both in terms of personal satisfaction and profitability. For example, China is able to obtain materials from the United States as U.S. factories are scraped and the parts are sold to China for nothing. This type of industry is profitable for everyone involved. Vicky Kastrati, owner of Crown Industrial, reported that export to China from her company has increased by 70 percent since 2011. While nearly anything can act as “global merchandise”, industrial parts and equipment are fair game for savvy traders. These products are sold, purchased and distributed all over the world on a daily basis.
Imports are goods or services brought into a country. Generally, these are goods that producers do not make enough of for local demand, or products that are cheaper to produce in other countries. Many imported goods fall into one of three categories: capital goods which are large equipment purchases, consumer goods which are items sold in shops, and immediate goods which are used in manufacturing and industry to create other products.
Exports are a type of good or service that is sold to another country. These are typically goods that a country produces more of than it actually needs. These products are then sold to another country to earn a profit. Industrial parts are just one example of an exported good.
Reason for International Trade
The fundamental reason for international trade is simple: Some countries are better at producing certain items than others. This generally means that they are economically better off if they can specialize in what they do best and exchange a percentage of what they produce for the goods of other nations who also specialize in what they do best.
Exporting allows you to grow your business by essentially tapping fresh overseas markets, exposing your new ideas and methods, and expanding your network contacts. This allows you to consider options you may not have considered before. Importing can also help you expand your business by allowing you to reach fresh domestic markets. A successful importing strategy can help you reach business success by decreasing manufacturing costs and allowing you instant access to new products you may not otherwise have access to. This business strategy is highly important to the success of certain companies.