When people talk about importing in terms of trade, they refer to purchasing products or services from another country. These products or services are then offered to customers by the importing business or individual, broadening their choice of purchase. However, this is not the only benefit of importing; there are many more to consider. Here are some of them.
1. INTRODUCING NEW PRODUCTS TO THE MARKET
Many businesses in India and China tend to produce goods for the European and American market. This is mostly due to the size of these markets and the purchasing power of the population there. But once a new product is introduced to these two markets, it may take a year or more before the product is introduced to other, smaller markets.
If a product produced in China seems attractive/useful to entrepreneurs in Australia, they can import it and introduce it to their potential consumers. Thanks to the internet expansion, entrepreneurs can conduct market research prior to importing a certain product. This will help them determine if there is an actual need on the market for such an imported product, so they can develop an effective marketing strategy in advance.
2. REDUCING COSTS
Another major benefit of importing is the reduce in manufacturing costs. Many businesses today find importing products, parts of products and resources more affordable than producing them locally.
There are numerous cases when entrepreneurs find products of good quality which are inexpensive even when the overall import expenses are included. So instead of investing in modern, expensive machinery, entrepreneurs choose to import goods and reduce their costs. In most cases, they end up ordering large quantities in order to get a better price and minimize the costs.
