In Economics, equilibrium is such a strong key for a strong nation. Because of globalization and international trade, companies from all around the world can now transfer, transform, and transcend without minding the global boundaries.
Import and export are one of the backbones of globalizations because it involves transporting goods, services, ideas, and people from one country to another.
A balanced import and export trades can result to many advantages and improvement to one’s nation while disbalanced import and export will obviously cause problems and negative influence.
The advantages of having export trade are that it highlights and gives opportunities for domestic sellers and companies to go international and expand. As we all know, expansion for growth strategy is a powerful way to grow and the first step to become multinationals. It is vital for a company to expand their market for them to increase in sales and profit that can carry their increasing expenses. While importing is the best way to transform one nation by accepting goods and services from other countries and transform into a diverse and multi-cultured nation, perfect for culture adaptation that can enhance our knowledge, skills and upbringing.
Import and export affect the nation through the process and its results ever since the world started barter across islands to exchange and swap goods. Now, the world has becoming more focused on the integration of all sorts of products, ideas and even people to expand and grow each economy by importing and exporting. In order to be a successful economy, one nation must be a risk-taker when it comes to dealing with limited resources and multiplying it by having connections to other nations which have the resources that a nation doesn’t specialize, vice versa. Thus, both trades would influence the Gross Domestic Product (GDP) of a country and which we are all aware that it stimulates the growth and higher budget appropriation of a nation. Still, equilibrium is important because once there are too many imports than exports, it will cause downtrend in the exchange rates. This will cause deficits and more expenditures than revenue which is bad for the nation.
Also, through international trade, the influence of import and export on the current economic movement and trends are relevant to develop and discover more principles underlying how goods and services are traded all around the world, lifting up the sellers or the providers and guiding the customers. Products and services being transported from across boundaries involve communication between different races, developing our understanding with other cultures, foods that are only available in certain countries can be eaten everywhere, and skills such as multilingual speaking specially for BPO Industries, tourism and many more.
There are also impacts o import and export in the inflation and interest rates of one country. Particularly, it still lies from the exchange rates that are affected by trading. If there is no steadiness when it comes to exports and imports, the cost of raw materials and labor is affected because of the high level of inflation resulting to expensive trading, increased interest rates and weaker currency compared to dollars. The exports would slow down and imported goods will becomes expensive. The economy can benefit and also suffer from uneven trades especially the domestic sellers who export and may not even reach breakeven.
My example for one of the amazing contributions of international trade is our food experience. Basically, in the Philippines, we can easily find restaurants, global brands of foods, like our access to Korean restaurants and marts here in the country. By that, we can try the foods we only see online and experience how it tastes like first hand. Also, another example is the transformation of other's skills in terms of cooking dishes like Japanese and Chinese dishes through our exposure to their culture via import and export. Without the process of trade, it is hard to transcend cultures, trends and ideas from different boundaries.
There must be healthy balance of import and export for one country to reach its optimum growth and performance. We can all benefit in the long run, considering that consumers and sellers both benefit in globalization by having better experience and trying different things, hence, sellers could expand their markets and provide higher quality goods and services. One of the greatest effects of this international trade is when nations increase their value whenever domestic companies go global and it favors the economy’s productivity, improving local companies’ value as well. Importers and exporters influence outflow and inflow of goods and services that transcends boundaries, leading one powerful world that embraces differences.
Article that helped me
