Imports and Exports

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Imports are goods and services purchased from a foreign country by domestic people.

The United States, for example, buys a lot of the stuff produced within the boundaries of other countries, including bananas, coffee, cars, chocolate, computers etc.

Exports

The sale of goods and services to the people of other countries.

The United States, for example, sells a lot of the stuff produced within our boundaries to other countries, including wheat, beef, cars, furniture etc.

In general, domestic producers get benefits of increase in sales, more buyers, a higher price, and more profit.

Foreign Trade

Imports and exports are the essence of foreign trade; goods and services that are traded among the citizens of different nations.

Imports and exports are frequently combined into a single term, net exports (exports minus imports).

How Imports and Exports can be made?

Imports and exports can be made by using any acceptable mode of international payments and transportation of goods. You can identify any suitable payment option by recognizing the risks and advantages of various payment options available internationally. 

There are five methods of payment commonly used for international trade transactions: 

  1. Cash in Advance
  2. Letter of Credit
  3. Documentary collection
  4. Open account
  5. Consignment

A detailed description of each method is available at Methods of Payment in International Trade