ADVANTAGES OF IMPORT
No country, no matter how developed, cannot avoid importing goods and services. That is, import is not confined to poor or undeveloped countries. There is no country around the world that does not import. Rich and developed countries import mostly raw materials and manpower. Poor and undeveloped ones import manufactured consumer and industrial goods.
The import business has the following advantages.
Availability of Goods
International trade bridges the gap between demand and supply, shortage and surplus, and production and consumption. Since no country around the globe is self-sufficient and hence faces the shortage or lack of certain goods or services – which are replenished by import from the manufacturing countries. For instanceAmerica, a rich and developed nation, andPakistan, a poor and undeveloped country, both are short of oil which they import fromMiddle Eastcountries. Not only this, they have to import thousands of other items which they do not produce. Thus all the short goods are made available through import.
Reduction in Prices
Shortage of goods causes the rise in prices creating difficulties for the customer. It increases the cost of living making the life miserable of a common man. When the nations have no way out to overcome the shortage they resort to import, and consequently prices come down giving relief to the masses. As an economic phenomenon when supply is less than demand the price go up and vice versa. So to bring down prices import is one of the measures.
Competition & Quality
Sometime as an economic policy imports are allowed only to create healthy competition which brings prices at the reasonable level, forces the manufacturer to improve quality and innovate goods. The improvement and innovation goes up to the extent that they are demanded abroad.
Friendship among countries, treaties, and economic blocs allow to open borders for exchange of goods among them. Sometimes, the foreign trade relations bring the exporting country under the pressure of importing country which would elicit certain political or otherwise gain from the former. .
Infusion of New ideas & Technology
Closure of borders for imports brings only short-term benefits. But in the long-run it creates suffocation, brings quality down owing to lack of competition, and increases the wealth of sellers at the cost buyers. Since quality becomes substandard foreign markets arc lost. The ban on imports not only gives way to smuggling inflicting losses to the exchequer and if the government manages to curb it, the country is deprived of the new ideas, technology, innovation, and now techniques that are taking place in the developed countries creating further digital divide between poor and rich countries.
Imports are instrumental in economic growth. They are in fact buying the needs for local development. Imports allow the purchase of capital goods including machinery, plants, equipment, and raw materials for local industries. New technology, latest ideas, and scientific advancements in the foreign developed countries can be infused in the local industry.