import

Examples of import in the following topics:

• Imports: The Economics Impacts of Buying Goods from Other Countries

  • The domestic purchaser of the good or service is called an importer.
  • Due to the economic importance of imports, countries enact specific laws, barriers, and policies in order to regulate international trade.
  • For example, the U.S. imports labor-intensive goods from China.
  • Instead of importing Chinese labor, the U.S. imports goods that were produced in China by Chinese labor.
  • The map shows the largest importers on an international scale.

• Quotas

  • Once the initial quota is surpassed, imports are not stopped; instead, more of the good may be imported, but at a higher tariff rate .
  • By restricting imports, quotas minimize the impact of such activities.
  • Protect national security: Import quotas discourage imports and encourage domestic production of goods that may be necessary to the security of the country.
  • Import quotas may promote administrative corruption, especially in countries where import quotas are given to selected importers.
  • In the US, the import of sugar is regulated by tariff-rate barriers.

• Tariffs

  • A tariff is a tax that is imposed by a government on imported or exported goods.
  • Import tariffs: Taxes on goods that are imported into a country.
  • Specific tariffs: Tariffs that levy a flat rate on each item that is imported.
  • Imports of the good fall, from the quantity D-S to the new quantity D*-S*.
  • The government charges a tariff amount of Pt-Pw on every imported good.

• The Balance of Trade

  • The balance of trade is the difference between the monetary value of exports and imports of output in an economy over a certain period.
  • It is the relationship between a nation's imports and exports.
  • The cost of production (land, labor, capital, taxes, incentives, etc.) in the exporting economy compared to those in the importing economy
  • The availability of adequate foreign exchange with which to pay for imports
  • In the U.S., net borrowing has tended to have a direct relationship with net imports.

• Costs of Trade

  • Free trade is a policy where governments do not discriminate against imports and exports; creates a large net gain for society.
  • Free trade is a policy where governments do not discriminate against exports and imports.
  • Free trade is beneficial to society because it eliminates import and export tariffs.
  • Free trade policies consist of eliminating export tariffs, import quotas, and export quotas; all of which cause more losses than benefits for a country.
  • With free trade in place, the producers of the exported good in exporting countries and the consumers in importing countries all benefit.

• Entry Barriers

  • One important source of oligopoly power are barriers to entry: obstacles that make it difficult to enter a given market.
  • One important source of oligopoly power is barriers to entry.
  • The most important barriers are economies of scale, patents, access to expensive and complex technology, and strategic actions by incumbent firms designed to discourage or destroy new entrants.

• Exports: The Economic Impacts of Selling Goods to Other Countries

  • In order to protect exports, commercial goods are subject to customs authorities for both the exporting and importing countries.
  • Legal restrictions and trade barriers are in place internationally to control trade, whether goods are being exported or imported.
  • Disadvantages of exporting are mainly the result of manufacturers having to sell their goods to importers.
  • As a result, manufacturers may have to offer lower prices to the importers than to domestic wholesalers in order to move their product and generate business.

• Reason for a Zero Balance

  • This also happens for two reasons: to purchase assets in other countries and to import goods or services from other countries.
  • Italian euros, for eample, are supplied when Italian consumers or firms import goods and services from the rest of the world.
  • The quantity of currency supplied is equal to the demand for imports and the domestic demand for foreign assets.
  • Exports + (foreign purchases of domestic assets) = imports + (domestic purchases of foreign assets)
  • Exports - imports = (domestic purchases of foreign assets) - (foreign purchases of domestic assets)

• Finding an Equilibrium Exchange Rate

  • If the currency's value is low, imports can be too expensive though exports are expected to rise.
  • The concept of purchasing power parity is important for understanding the two models of equilibrium exchange rates below.
  • If a currency is undervalued, its nation's exports become more affordable in the global market while making imports more expensive.
  • After an intermediate period, imports will be forced down and exports will rise, thus stabilizing the trade balance and bringing the currency towards equilibrium.
  • The asset market model views currencies as an important element in finding the equilibrium exchange rate.

• The Balance of Payments

  • This includes payments for the country's exports and imports, the sale and purchase of assets, and financial transfers.
  • Whenever a country has an outflow of funds, such as when the country imports goods and services or when it invests in foreign assets, it is recorded as a debit on the balance of payments.
  • For example, if a country is importing more than it exports, its trade balance will be in deficit, but the shortfall will have to be counterbalanced in other ways – such as by funds earned from its foreign investments, by running down central bank reserves, or by receiving loans from other countries .
  • It includes the balance of trade (net earnings on exports minus payments for imports), factor income (earnings on foreign investments minus payments made to foreign investors), and cash transfers.