What is the Difference Between Import and Export?

Difference Between Import and Export

The words ‘Import’ and ‘Export’ may confuse while using them, but they are very easy to understand. Both these words are used in the context of international trade. Here I will clarify both these words and go through the Difference Between Import and Export.

Import implies the kind of foreign trade, where goods and services are brought into the home country from a foreign country so that they can be re-sold in the domestic market.

Import is done when a particular country does not have the necessary resources or goods; that is why those goods and services are imported from a foreign country.  The countries that receive imported goods and services have to spend their financial assets.

Export can be defined as the form of trade where domestically manufactured goods, services, or raw materials are sent to the foreign country as per the overseas buyer’s demand. Exporting brings foreign income to the domestic country.

Export is usually done when the country manufactures excess of some products or has some natural resources or services that other countries do not possess. The country exports these resources, goods, and services and earn extra income.

Import vs Export

• In the process of import, the goods of foreign countries are brought to the domestic country, while in the process of export, the goods and services are sold to the other countries.
• The main idea of importing goods and services from other countries is to fulfill the demand for a particular commodity that is not available or in shortage in the domestic country. While the reason for exporting the goods to foreign countries to have a global presence and broad market coverage.
• Import at a high level indicates robust domestic demand, which means the economy is growing; on the other hand, a high level of export implies a trade surplus, which is beneficial for the economy’s growth.

Both import and export are significant aspects of international trade. With the development of free-market trade, many countries are engaged in import and export. In short, import means buying goods and services which are not available within the country. At the same time, export means selling goods and services to foreign countries.