0
Import is an economic activity that brings in goods/services into the home country by procuring it from a foreign country. Imports are usually done when:
(1) The product/service is not available in adequate quantities to satisfy internal demand and can't be met by domestic suppliers
(2) The product/service is unique/niche and can't be made domestically.
(3) The product/service is of superior quality that can't be matched domestically.
(4) The product/service is available at lower cost than the ones manufactured domestically.
Three Factors that influence imports are:
(1)Climate of domestic manufacturing and supply
(2) Trade Balance between the Importing and Exporting nations
(3) People's perceptions about the products/services available locally Vs those procured through imports - quantity, quality and price
Each of the 3 factors can be controlled to influence imports.
(1) By encouraging the domestic suppliers/producers to produce more through collaborations, providing financial incentives, tax breaks/discounts, ensure availability of raw materials at affordable prices and provide favourable manufacturing climate.
(2) Control the foreign exchange balance by controlling currency to make imports expensive, tariffs, import duties etc. that makes the price high enough so that purchases are discouraged to some extent
(3) Ensure domestic market caters to the quantity, quality and price needs of the people by adopting innovative ways of production, and apply reduce/reuse/recycle measures to cater to demands.
Wiki User
∙ 13y ago
Add your answer:
Earn +20 pts
What are the advantages of forward linkages?
1. The formation of linkages gives reputability to an upcoming establishment. 2. They reduce the extravagant depletion of important resources. 3. They reduce the dependence on imports. 4. They assist in quick national business development.
When net exports are negative what is best?
when the imports exceeds the imports then net exports are negative and positive is best for country.
What does the term quotas mean?
a physical restriction on imports
Canadas 5 major imports in order?
Canada imports machinery and equipment, motor vehicles and parts, crude oil, chemicals, electricity, and durable consumer goods.
What are the trade barriers of Russia?
One of the trade barriers of Russia is the fact that it has placed very high tariffs on imports and exports. Other trade barriers include limits on exports and imports.
What are ways the government can reduce its imports?
One way is by imposing tariffs
Use protective tariff in a sentence?
In the past, the government used protective tariffs to reduce imports.
What would most reduce current us reliance on foreign imports of oil?
Drill here drill now
What are the advantages of forward linkages?
1. The formation of linkages gives reputability to an upcoming establishment. 2. They reduce the extravagant depletion of important resources. 3. They reduce the dependence on imports. 4. They assist in quick national business development.
What are Louisiana's imports?
lsu imports
Tariffs lower the price of foreign goods?
No, the opposite is true. Tariffs raise the price of foreign goods compared to domestic goods. Because of this, tariffs reduce imports.
What are greek's major imports?
It's GREECE's major imports, not greek's major imports.
What are the pros and cons of trade in Australia?
Reducing tariffs on imports allows companies to expand to other countries. Without tariffs, imports from countries with a low cost of living cost less. It makes it difficult for U.S. companies in those same industries to compete, so they may reduce their workforce.
What are Iran's imports and exports?
Imports and Exports
What is one cause of the US trade deficit?
.Increased imports from China.
Why is agriculture is important of country?
Agriculture produces a nations food, and helps to reduce dependency on imports. But, efficient agriculture may also produce a surplus of produce that can be exported abroad.
What were ancient Greeks imports?
Some of their imports were:papyrusspiceswoodmetalsfabrics
