In today’s world, importing and exporting are some of the major tasks that are being done. There are many reasons for this change in trading. The first reason is that there is a lot of trade going on between different countries. The second reason is that with globalization taking place, more and more countries are able to produce goods at low prices so that they can sell them at higher prices in other countries. Another reason why there has been an increase in import export company is because people want to get rid of certain products which may be harmful for them due to their quality or price.
These are some factors that help in the process of import and export
1.Effects of exchange rates
Each country’s currency is valued against other currencies. A fall in the domestic currency leads to falling export prices and rising import prices and vice versa.
2.Trade/Government Policy
Many countries have trade barriers that prevent you from buying or selling a particular product in that country, or impose higher fees.Like the government, it imposes the same trade restrictions on certain products for health and safety reasons.
3.Competitiveness
In times of increasing competition, it is difficult for a company to maintain its position in the market. Larger countries will tend to achieve higher levels of world trade. The bigger and more developed the country, the stronger the competition.
4.National GDP
When a country’s GDP increases, imports and exports are assumed to increase. Businesses can buy more raw materials and goods from other countries.
5.Marketing
Marketing plays an important role in every business. People later control the price and quality of the product, marketing attracts customers to the product. So before you export or import, promote your product properly.
In addition to the previous points, international trade is also affected by the demand for that nation’s goods. Measures that restrict imports or subsidize exports also affect the prices of these goods.
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There are factors that help in the process of import and export. These factors include:
- Availability of goods
- Cheap rates of goods
- Transportation facilities available to ship your product from one place to another place which is far away from you
1.Availability of goods
The major factor that helps in the process of import and export is the availability of goods in different countries.
The major factor that helps in the process of import and export is the availability of goods in different countries. Goods are available at cheaper rates in other countries, so you can save money by importing them from these places.
There are two ways to import goods from another country:
- Direct Import: This is when you go directly to your supplier and buy what you need. Your company will have an office or warehouse there where all your purchases will be delivered by air or sea freight services, depending on how far away they are located from where you live or operate your business (i.e., if it’s across town vs across continents).
- Indirect Importing: Another way that companies import products into their country is through indirect purchasing methods such as using wholesalers who may sell directly to consumers but also act as middlemen between manufacturers/suppliers and retailers/distributors; thus providing access for businesses like yours!
2.Cheap rates of goods
Availability of goods at cheaper rates. This is one of the main factors that help in international trading company. There are many countries where the goods are cheaper than other countries. For example, if you want to buy something from China then it would be much cheaper than buying it from another country. Thus, availability of goods at cheaper rates helps in promoting international trade activities because now people have more options where they can get their desired products at lower prices and thus they will prefer buying them from these regions instead of spending extra money on them.
3.Transportation facilities
Transportation facilities are the most important factor in this process. They are used for the import and export of goods, transnational transportation of goods from one country to another, inter-state transportation of goods from one state to another. Transportation facilities include railroads, highways and waterways.
