International commerce relies on imports and exports as fundamental principles. Import Service refer to the arrival of products/services into one nation from an outside nation, while exports refer to the movement of products/services from one nation to another country.
Simply put, when a nation purchases products from a different nation, that is termed an import; whereas if the nation sells products to another nation, then that is termed as an export.
Nations typically import because they cannot manufacture enough of the goods they need; additionally, nations will often export in order to receive a foreign currency and to promote their economy.
Imports
- Purchase of Products/Services within the nation.
- Purchasing from Foreign Markets.
- Circulation of Cash Out of the Nation.
Example – India imports crude oil and electronics from other nations.
Exports
- The Sale of Product/Services to an Outside Country
- Selling to Foreign Markets.
- Circulation of Cash Into the Country.
- Example – India exports textiles, software, and spices to outside countries.