Name:Um-e-Ammara khan

Reg No:5162-fms-bba/s/18
Subject: International Bussiness
and WTO

Section: BBA 38

Assignment No: 2

Submitted To: Dr.Attayah shafiq

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Why Imports are being promoted and how?

What are IMPORTS?

An import is a good or service bought in one country that was produced in another. Imports and exports
are the components of international trade. If the value of a country's imports exceeds the value of its
exports, the country has a negative balance of trade, also known as a trade deficit.

Countries are most likely to import goods or services that their domestic industries cannot produce as
efficiently or cheaply as the exporting company. Import is to introduce or bring goods from one country
to be sold in another.

For Example import is introducing a friend from another country to deep fried Twinkies. Another
example of import is a shop owner bringing artwork back from Indonesia to sell at their San Francisco
shop.

Why imports are being promoted?

When we talk about why imports are being promoted so there are considered to be different
various benefits due to which imports are being promoted by each and every country. There are a
variety of reasons for importing goods, one of which is the benefit for the global economy.
Medical equipment, smartphones, and many different types of food are just a few products that
we rely on every day that wouldn’t be possible without imports. The modern world also relies on
imports to build sustainable products. Some items like microchips, wires, and oil are imported
and used to build or operate local products.

Now I will discuss in detail about the benefits of import promotion:

 Extend your profit margins:

A key reason that companies all over the world choose to import goods is to extend their profit
margin. High taxes, wage minimums, and material costs in certain countries make it more useful
to import products from a country where fees, wages, and material costs are considerably lower.
Certain products can cost upwards of 50% less to grow, manufacture or produce abroad. This
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situation is particularly common when importing goods where natural resources are abundant.
For example, imported cacao from Ghana is considerably cheaper than imported cacao from the
United States.

 Better Quality:

Sometimes you’d like to sell an item or good that is not native to your region. In this case, it’s
better to go the source, as you’re likely to get a higher quality product. Each country has
particulars strengths when it comes to exports. Consider, the Moroccan sardine industry, For
example: Sardines from Morocco are not only plentiful but considered much better quality due
to the soil and natural habit that make the country an ideal home for the fish. When possible, it’s
best to get your product from the highest quality source, even if that means importing out of the
country.

 Government-Assisted Trade:

The government provides added support and benefits to importers including reduced taxes and
assistance with customs.

How imports are being promoted?

Import-promotion policies are measures intended to increase the volume of a country’s imports
from a particular trading partner or group of trading partners. Such policies may include bilateral
agreements, bureaucratic directives, import subsidies, or procedures to improve foreign
exporters’ information about domestic market opportunities.