Evidence 10: Advantages and disadvantages of importing and exporting

in / to Colombia

IMPORT
It is the customs regime by which goods imported from abroad or from a Special
Economic Development Zone can circulate freely in the customs territory, in
order to remain in it definitively, after the payment of the duties and taxes to the
Importation, surcharges and penalties, where applicable, and compliance with
customs formalities and obligations (COPCI, 2010).

Description:
The objective of imports is to obtain raw materials, machinery, technology or
services that do not exist in the country of the entrepreneur or if the There, of
unsatisfactory quality.
However, the globalization of markets for goods and services has moved
foreign suppliers to the importing country, facilitating their acquisition, which
forces them to balance the pros and cons of international purchases.

ADVANTAGE:

1. In developing countries it is necessary to reach an international level of

quality, which requires to improve machinery, raw materials and processes,
based on imports, necessary for export.
2. In high-cost manufacturing countries, it is probably cheaper to import than to
manufacture, thus becoming resellers, from manufacturers to traders.
3. In countries with international free trade agreements, the gradual reduction of
import taxes to zero will lower the cost of international purchases.

DISADVANTAGES:
1. Buying in another country reduces income from the country where the
entrepreneur resides, economic problems such as greater imports than exports.
2. Imports always carry the risk of an increase in the price of the foreign
currency. Businesses tied to the increase of foreign currency by imports that are
their main source of income, should hedge foreign exchange or futures, in
brokerage houses, to protect themselves.
3. Imports, to a large degree, make the entrepreneur dependent on international
purchases. Any dependency weakens the company and with greater reason,
international suppliers for the distance, deliveries and conditions.

I consider that there are both advantages and disadvantages to the export
process, but the most important thing is that the people who carry out this
activity must take into account all the possible risks they will have, for that
reason it is indispensable that you seek advice with some expert Of foreign
trade. And the following aspects should be considered:

WHAT ARE THE ADVANTAGES OF EXPORT

1. The sales of our country rise notably thus causing a better economy in our
country since our Trade Balance avoiding that there are trade deficits.
2. They are the engine of the economy of our country as it helps us with
sources of jobs at the national level, and considerably reducing poverty in our
country.
3. It allows us to be more competitive internationally, and allows us to show the
world outside a variety of products that our country can market.
4. Make the most of the resources of our country and look for alternatives to
position ourselves in the market.
5. We have a stronger position in front of other suppliers or our direct or indirect
international competition.
6. We have access to new international markets, also certain tariff measures
can be applied for their commercialization because of their quality and prices.

WHAT ARE THE RISKS OF EXPORT

1. Irrigate that our buyers are not reliable people.
2. Analyze the way of payment of our buyers avoiding so that they are people
delinquent.
3. Not getting adequate funding to compete at the international level.
4. Risks due to political or economic provisions.
5. Possible risks of force majeure, such as accidents in which the goods can not
arrive on time.

Bibliographic
Ventajasydesventajasdelaimportacion
www.diariodelexportador.com/