Advantages of Import
Reduced Costs: If a foreign market has cheaper goods that the local market, it is better to import the goods and cut costs.
Higher Quality: To manufacture high quality products, it's essential to have access to high quality materials, which may not be available locally. In this case, high quality goods should be imported from other countries.
More Variety: Different places may offer more variety of as compared to the local place. Hence, more variety will help to expand the business and have a wider scope of the business.
New Markets: Import helps the businesses to discover new markets and gain maximum benefits from various markets. It also helps to understand the varied market trends and how it would affect the business.
Insulation from Seasonal Domestic Sales: Some products may not be available throughout the year domestically. This may cause hindrance in the business and it may not be able to function effectively. In this case, that product may be imported from a country where is it is available during that time.
Disadvantages of Import
Erosion of Domestic Market: If all companies start importing their goods, the demand for domestic goods will go very low and eventually, it would stop.
Foreign Exchange Risk: There may be a sudden change in the currency exchange rate which may cause a loss for the business during import.
Piracy Risk: There may be a slight chance of getting cheated by a dealer and receiving unauthentic goods.
Political Risk: The government may suddenly increase the taxes of importing some goods which may unexpectedly increase the costs.
Advantages of Export
Increased Sales and Profits: Exporting outside the country increases the production, resulting in the increase in sales and eventually increase in profits.
Enhance Domestic Competitiveness: The idea of exporting creates a healthy competition among companies manufacturing similar goods, and hence enhance domestic competitiveness.
Gain Global Market...