Posted in Finance, Accounting and Economics Terms, Total Reads: 196
An import is a good that is brought from one country to another. The country from which the good is brought is called exporting country and the country to which the good is brought is called importing country. The imports and exports are regulated by the different import quotas, tariffs of different countries. World Trade Organization helps to resolve the trade conflicts between the countries and try to reduce the international trade barriers through facilitating bilateral negotiations and organizing trade conferences.
Any country imports any good in two cases, either when the demand of the good is more than the supply or when the good is available in the international market at a lower price. Balance of trade of any country is the difference between the monetary value of its imports and exports.
Balance of trade = Exports – Imports
NX = X – M
There are two types of imports
I. Industrial goods and consumer goods
II. Intermediate goods and services
Some of the Importing goods of India are
a) Oil (38.3 % of total imports)
b) Gems, precious Metals, Coins (13 % of total imports)
c) Electronic Equipment (6.9 % of total imports)
d) Machines, Engines, pumps (6.7 % of total imports)