Merchandise Exports and Imports
Merchandise Exports and Imports
Merchandise exports are tangible goods sent out of a country; merchandise imports are tangible goods brought in. Since these goods visibly leave and enter, they are sometimes referred to as visible exports and imports. The terms exports and imports are frequently used in reference only to merchandise exports or imports. In the opening case, the Jedi action figures are merchan- dise exports for Taiwan when they are sent to the United States and merchandise imports for the United States when they arrive.
The exporting and importing of goods is the major source of international revenue and expenditure for most countries. Among companies engaged in some form of international business, more are involved in importing and exporting than in any other type of transaction.
Importing and/or exporting is usually, but not always, the first type of —foreign operation a firm undertakes. This is because at an early stage of international involvement these operations usually entail the least commitment and the least risk to a firm's resources. For example, firms may be able to export by using excess capacity, thus limiting the need to invest more capital. In addition, firms may be able to use the services of trade intermediaries who, for a fee, will take on the export-import functions, thus eliminating the need for trained personnel and a department to carry out foreign sales or purchases.
. Exporting and importing are typically not abandoned when firms adopt other international business forms. Although they may sometimes cease, they usually continue, either by business with other markets or to complement the new types of business activities.
Merchandise exports are tangible goods sent out of a country; merchandise imports are tangible goods brought in. Since these goods visibly leave and enter, they are sometimes referred to as visible exports and imports. The terms exports and imports are frequently used in reference only to merchandise exports or imports. In the opening case, the Jedi action figures are merchan- dise exports for Taiwan when they are sent to the United States and merchandise imports for the United States when they arrive.
The exporting and importing of goods is the major source of international revenue and expenditure for most countries. Among companies engaged in some form of international business, more are involved in importing and exporting than in any other type of transaction.
Importing and/or exporting is usually, but not always, the first type of —foreign operation a firm undertakes. This is because at an early stage of international involvement these operations usually entail the least commitment and the least risk to a firm's resources. For example, firms may be able to export by using excess capacity, thus limiting the need to invest more capital. In addition, firms may be able to use the services of trade intermediaries who, for a fee, will take on the export-import functions, thus eliminating the need for trained personnel and a department to carry out foreign sales or purchases.
. Exporting and importing are typically not abandoned when firms adopt other international business forms. Although they may sometimes cease, they usually continue, either by business with other markets or to complement the new types of business activities.
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