Economics
Import
Import refers to the process of bringing goods or services from a foreign country into one's own country. It is a crucial aspect of international trade and allows countries to access goods and services that they may not be able to produce domestically. Imports are subject to various regulations and tariffs, which can affect their cost and availability.
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4 Key excerpts on "Import"
eBook - PDF- James D Gwartney, Richard Stroup, J. R. Clark(Authors)
- 2014(Publication Date)
- Academic Press(Publisher)
They trade goods for dollars so they can use the dollars to Import goods and purchase ownership rights to U.S. assets. Exports provide the buying power that makes it possible for a nation to Import other goods. Nations export goods so that they will be able to Import foreign products. If a nation does not Import goods from foreigners, foreigners 4 6 4 PART FIVE INTERNATIONAL ECONOMICS will not have the purchasing power to buy that nation's export products. Thus, the exports and Imports of a nation are closely linked. Supply, Demand, and International Trade How does international trade affect prices and output levels in domestic markets? Supply and demand analysis will help us answer this question. High transpor-tation costs and the availability of cheaper alternatives elsewhere diminish the attractiveness of some U.S. products to foreigners. These factors may completely eliminate foreign purchases of some commodities. However, foreign consumers will find that many U.S. products are cheaper even when transportation costs are considered. When this is the case, the demand of foreigners will supplement that of domestic consumers. In an open economy, the market demand curve for domestic products is the horizontal sum of the domestic and foreign demand. Exhibit 6 illustrates the impact of foreign demand on the domestic wheat market. When the demand of foreigners is added to the domestic demand, it yields the market demand curve A+d (where the subscripts f and d refer to foreign and domestic, respectively). Price P brings supply and demand into equilibrium. At the equilibrium market price, foreigners purchase OF units of wheat, and domestic consumers purchase FQ_. The competition from foreign consumers results in both higher wheat prices and a higher output level. At first glance, it appears that the entry of foreign consumers into the U.S.
eBook - PDFInternational Economics
Global Markets and International Competition
- Henry Thompson(Author)
- 2000(Publication Date)
- WSPC(Publisher)
INTRODUCTION This page is intentionally left blank Chapter Preview This chapter introduces some fundamental concepts: • International markets, supply and demand from different countries • Excess supply and excess demand, the international market model • Comparative advantage, the foundation of international trade • Balance of trade, net receipts from trade in goods INTRODUCTION The most Important tools of economics are market supply and demand. A market is any place or mechanism in which goods and services are traded. Markets determine prices both in nominal currency terms and relative to one another. Markets include the corner convenience store, the stock market, the market for brain surgeons, the foreign exchange market, a neighborhood lemonade stand, the international market for steel. In market transactions, money changes hands between buyer and seller at an agreed price. An international transaction arises when the buyer and seller are in different countries. International markets involve economic agents in different countries. Two currencies are typically involved in an international transaction. The buyer's currency and the seller's currency must be exchanged. Another fact that distinguishes international economics is that governments can easily tax transactions with tariffs or limit transactions with quotas or nontariff barriers. International economics is also characterized by the lack of labor mobility between countries. Workers can move within a country with relative ease, but international migration is more difficult and typically restricted by law. Investment is also inhibited across national boundaries. Comparative advantage is one of the cornerstones of economics. Comparative advantage, a relative advantage in production efficiency, is the fundamental cause of international trade. The principle of comparative advantage rests on the Important idea of opportunity costs. The opportunity cost of an action is the value of its next best alternative.
eBook - PDFMicroeconomics
Private and Public Choice
- James Gwartney, Richard Stroup, Russell Sobel, David Macpherson(Authors)
- 2017(Publication Date)
- Cengage Learning EMEA(Publisher)
Meanwhile, the Internet and other technological changes continue to reduce transport and communications costs and thereby encourage the movement of goods, ideas, and people across national boundaries. All of this promises to enliven trade issues in the years ahead. The volume of international trade has grown rapidly in recent decades. In the United States, international trade (Imports plus exports) summed to 29 percent of GDP in 2015, compared with 20 percent in 1980 and 9uni00A0percent in 1960. Comparative advantage rather than absolute advantage is the source of gains from trade. As long as relative production costs of goods differ, trading partners will be able to gain from trade. Specialization and trade make it possible for trading partners to produce a larger joint output and expand their consumption possibilities. • Imports increase the domestic supply and lead to lower prices for consumers. Exports reduce the domestic supply and push prices upward, but this means the exporters can sell their products at higher prices. The net effect of international trade is an expansion in total output and higher income levels for both trading partners. • Import restrictions, such as tariffs and quotas, reduce the supply of foreign goods to domestic markets. This results in higher prices. Essentially, the restrictions are a subsidy to producers (and workers) in protected industries at the expense of KEY POINTS LOOKINGuni00A0AHEAD EXHIBIT 12 U.S. Trade with Canada and Mexico, 1980–2015 re of GDP, U.S. trade with Mexico has increased sharply following the passage of NAFTA. 1 980 Y ear Y Y Me xico C anada Expor ts and impor ts as shar e 1 982 1 984 1 986 1 988 1 990 1 992 1 994 1 996 1 998 2000 2002 2004 2006 2008 2 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 Source: Statistical Abstract of the United States (various years) and http://www.bea.gov. Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-300
eBook - PDF- Colin Harbury(Author)
- 2014(Publication Date)
- Pergamon(Publisher)
CHAPTER 7 International Trade The analysis of international trade involves, in essence, no more than the application of general principles of economics. The subject usually merits separate treatment, however, for two main reasons, both of which arise from the existence of national boundaries. The first is that factors of production tend to be much more mobile within countries than between them. The second is that a national frontier enables a government to legislate on matters affecting its own economic life with some freedom. It is almost universal practice for a country to have its own currency. That of the U.K. is, for example, pounds sterling, while the currency of the U.S.A. is dollars. This implies that British and American traders require pounds to buy each other's goods and raises the question of EXCHANGE RATES, the prices of national currencies in terms of each other (see below) . It is probably not too misleading to approach international economics initially from one of two standpoints: (1) microeconomic, stressing resource allocation, and (2) macroeconomic, stressing finance. The allocation aspect involves extending the theory of the working of the price mechanism to the international distribution of resources. International trade can give rise to several different types of benefit. It can secure for a country goods, such as tropical fruits, which it is entirely unable to produce. It can make possible the realization of economies of large-scale production by extending the size of its market. It can provide a spur of competition for national monopolies (though this may be limited by the existence of giant multinational corporations). The advantages stressed most strongly in textbooks are those arising from the opportunities for international specialization and division of labour.
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