Most important export or import in international business ?
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Most important export or import in international business ?
Introduction:
International business involves the exchange of goods and services between countries. This exchange can occur through exports and imports, which are vital for the economic growth and development of nations. While numerous products are traded internationally, some exports and imports hold more significance due to various factors such as economic value, demand, and strategic importance.
Most Important Export:
Crude oil is considered one of the most important exports in international business. It is a highly sought-after commodity due to its indispensable role in global energy consumption. Crude oil is used as a fuel source in transportation, manufacturing, and electricity generation. Key factors that make crude oil a critical export include:
1. Economic Value: Crude oil exports contribute significantly to a country's revenue and foreign exchange earnings. Oil-exporting nations have the opportunity to generate substantial income and invest in infrastructure, education, healthcare, and other sectors.
2. Global Demand: The demand for crude oil is consistently high worldwide. Industrialized nations heavily rely on oil imports to meet their energy needs. As emerging economies continue to grow, their demand for oil also increases, contributing to the importance of crude oil exports.
3. Political Influence: Countries that are major crude oil exporters possess significant political influence due to their control over the global energy market. This influence allows them to shape geopolitical dynamics and make strategic alliances.
Most Important Import:
Machinery and equipment are crucial imports in international business. They play a pivotal role in enhancing productivity, driving economic growth, and promoting technological advancement. Key factors that make machinery and equipment a vital import include:
1. Industrial Development: Importing machinery and equipment enables countries to upgrade their industries and enhance production capabilities. Advanced machinery helps in achieving economies of scale, improving efficiency, and fostering innovation.
2. Job Creation: Importing machinery and equipment often leads to the creation of new jobs. As industries expand and modernize, they require skilled workers to operate and maintain the imported machinery, thereby boosting employment opportunities.
3. Technological Transfer: Importing advanced machinery facilitates the transfer of technology and knowledge. This enables countries to bridge technological gaps and acquire new skills, which can ultimately lead to the development of domestic industries and increased competitiveness.
Conclusion:
While there are numerous exports and imports in international business, crude oil stands out as a critical export due to its economic value, global demand, and political influence. On the other hand, machinery and equipment are vital imports as they contribute to industrial development, job creation, and technological transfer. Understanding the significance of these exports and imports is crucial for countries to formulate effective trade policies and foster economic growth.
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