subject: The Trade Institute News: History, Benefits and Funtions of The Import/Export Business! [print this page] The Trade Institute News: History, Benefits and Funtions of The Import/Export Business!
Entrepreneurs get involved in the import and export industries due to the high potential for profit. Investments in goods traded internationally require careful planning, impeccable timing and a commitment to the longer view. The vagaries of operating ships, paying duties and dealing with customs officials need to be understood before diving into this industry.
History
The origins of the import and export industry go back to the first European traders journeying into Asia. These traders brought potatoes and bronze goods to Asia in exchange for silk, spices and firearms. Spain, France, Great Britain and other European nations began to use colonies for their natural resources as well as their dependent consumers in the sixteenth century. As colonies gained independence starting with the American Revolution, independent nations continued trade with their former colonizers due to common economic ties. Recent innovations like airplanes, computerized inventory systems and dedicated port districts have made international trade easier for nations big and small.
Function
The function of the import and export business is ensuring a diverse marketplace of products despite geographical boundaries. Importers and exporters ship products to ensure that airports, retail outlets and grocers from Kenya to Canada meet the demands of customers. While the homogenization of products in chain stores like Wal-Mart and McDonald's reduces market diversity, importers and exporters keep product prices low by shifting resources to existing suppliers. Importers and exporters have simplified international shipping, air cargo and inventory control through industry standards unavailable prior to the globalization of trade.
Benefits
The primary benefit of the import and export business is the exchange of goods unavailable overseas. Consumers in cold-weather places like Russia, Canada and the Scandinavian region benefit from imported goods like oranges, pineapples and coffee. Another benefit of importing and exporting goods is creating goodwill between nations with divergent interests. While the United States has political disagreements with China, both sides have created an effective trade relationship starting with imports to Chinese exiles in Taiwan during the 1950s.
