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Import is a business term, which means purchase of both raw materials and finished products from another country. On the other hand, exports denotes sell of domestically produced goods and services to other countries.
These two aspects, Imports and exports, are vital factors in any country’s economy. As for the imports it helps a country to obtain goods and services it does not produce domestically while exports helps a country to earn foreign income which enables it to purchase imports.
The difference between nation’s exports and imports of goods and services determines its balance of trade. An economy is said to have a favorable balance of trade if its total exports exceed total imports. If its’ imports exceeds exports then it will be experiencing unfavorable balance of trade.
Imports and exports in the fashion industry
Fashion industry currently dominates large part of the international trade. Fashion generally means the currently popular style and practice majorly in clothing, footwear and accessories. USA has greatly involved itself in the fashion industry.
It has recently been importing cotton T-shirts from china for men’s market as well as women’s market. Manufacturers of these T-shirts are several. One of them is Zhongshan Fu Yu Mei Fashon Co. LTD located at Zhongshan, China. Equally, USA exports second hand clothing to other countries (Virginia Imports, n.d.).
These are used/second-hand blue jeans, Levi’s jeans, Ropa Usada Espanola, apparel, garments and many more .A company known as Second Hand Clothing Company situated at Miami Florida majorly deals in export of these goods. They are exported to Africa, Latin America, Asia, and Middle East and worldwide. It partly forms section of the total US export.
Advantages and disadvantages of imports and domestic purchases
After having a deep insight into the global fashion market we can identify advantages and disadvantages of buying imports over domestically produced products. First, let us see the advantages and disadvantages we realize from buying imports. In this case, we shall discuss about the fashion industry.
First and foremost, we are able to get clothing, foot wares and accessories of higher quality as compared to what is offered domestically. Domestic companies might lack materials and technology that would ensure quality manufacturing of such products.
We are also able to get clothing and other related products in the fashion industry at cheap prices as compared to what is available domestically (Miami, 2010). This is because foreign companies are able to produce such products at lower cost most probably because of large economical scale. Consequently, domestic market is assured of stabilized prices (Virginia Imports, n.d.).
In addition, consumers are able to access variety of products at the fashion industry. This would mean consumers would access products that are currently popular at the global market. This is common with fashion industry as it goes with current style and practice in the market.
Conversely, purchase of imports is always influenced by country’s government regulations on imports such as tariffs, which makes it uneconomical to import. Import is also affected by costly air transport and shipment costs. Fluctuation of currency exchange rate also affect fashion market negatively if domestic currency becomes weak over the currency from which to buy the fashion industry products such as necklaces, earrings etc (Miami, 2010).
Buying domestic products will also have its advantages and disadvantages over the imports. Domestic products are only subject to tax charges at the manufacturing stage. So they are likely to be sold at lower cost as they are exempted from import taxes. Buying domestically also helps to boost domestic industries.
It also enables one to avoid lengthy and complicated legal processes of buying goods and services related to fashion industry across the boarder. Great disadvantage is that domestic fashion products might be of lower value and expensive in relation to global market for fashion related items (International Trade, 2010).
A retailer should balance on the advantages and disadvantages of both domestic and foreign purchase since no one way is correct. He should import if he is able to get a variety, and of course get what is not manufactured domestically. He should also consider the final cost of domestic versus foreign fashion product, and make a wise decision of where to purchase to make his business profitable.
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International Trade. (2010). Imports and exports scavenger hunt. Web.
Miami. (2010). Used clothing wholesale from Miami Florida. Web.
Virginia Imports, (n.d.). Imports and Virginia’s economy. Web.