Exportation and importation consist of activities related to foreign trade, configuring entrance and exit Or the sell and buy of goods, goods or services from one country to another. These activities exert enormous influence on a country's economy, indicating its potentialities in the industrial sector, as well as its deficiencies.
Read too: Sectors of the economy
What is export?
According to the Ministry of Economy, export "comprises the temporary or permanent exit in the national territory of goods or services originating or coming from the country, for payment or free of charge."
Thus, export includes the action of selling, sending or donating products and services from one country to another. Typically, countries, companies or institutions that intend to expand their business, diversify their market and grow economically choose to expand the market, turning to the outside world.
The export can be classified, according to the Ministry of Foreign Affairs, in:
Direct: the producer himself is the one who bills. This means that the export process is all carried out by the exporting company, that is, they are knowledge of the producer at all stages such as documentation, market research, financial transactions, among others.
Indirect: the sale is not carried out by the company that produces the goods to be exported. This means that the exporting company is not responsible for the foreign trade of the product in any of its stages, outsourcing this function to companies with experience in the activity.
What is import?
According to the Ministry of Economy, import "comprises the temporary or permanent entry into the national territory of goods or services originating or coming from other countries, for payment or free of charge."
Thus, import refers to the action of purchasing products, goods or services. It is a fact that no country is self-sufficient in all sectors, thus presenting certain “deficiencies”, making it necessary to import. Imports can be food, raw materials, services to enable scientific research, among others.
The import can be classified into two|1|:
Direct: fulfilled withoutintermediate, that is, the purchase is made directly with the product manufacturer.
Indirect: is realized perintermediate, for example, from companies specializing in importing, that is, the seller is not the manufacturer.
According to the Import Manual of the São Paulo State University (Unesp), import has three phases in its process:
Administrative: when the action is authorized being carried out according to the operation or type of goods to which it will be imported. At this time, an import license is required.
Exchange: when there is payment to the exporter, that is, the financial transaction occurs.
Supervisor: when there is customs clearance, that is, the goods are cleared by customs.
Advantages and disadvantages
Exporting or importing has both good and bad points. It all depends on the commercial nature as well as the countries involved.
The advantages and disadvantages of exporting and importing vary according to the commercial nature, the countries or companies involved, exchange and economic strength, location, etc. As such, they are variable and may not apply to all foreign trade relationships. See, then, the advantageous and disadvantageous possibilities in foreign trade:
→ Export
Benefits |
Disadvantages |
Possibility of increasing the productivity of the exporting country. |
It is possible that the payback time is longer. |
Possibility of reducing the tax burden of the exporting company, due to the offsetting of the payment of national taxes. |
The location causes climatic and cultural differences between countries, making it necessary, in some cases, greater care with the goods that will be exported, avoiding losses. |
Typically, companies driven by market trends tend to improve their services. |
If the company that intends to export does not have qualification for the market, it is possible that the trade abroad becomes a problem, given the bureaucratic and legislative issues that these activities imply. |
Companies that export end up getting stronger when negotiations are successful, thus becoming a reference for companies that wish to enter the foreign market. |
Possible fiscal strikes or transport problems can delay and hamper exports. |
→ Imports
Benefits |
Disadvantages |
When a currency of a certain country is more valued in relation to another, there is an exchange rate advantage. |
There is a possibility of delays in the delivery of products that were imported. |
In the case of Brazil, the Federal Government offers incentives to companies that wish to import. |
Lack of planning can bring failures, such as financial losses in relation, for example, to the necessary amount of products to be imported. |
If compared to the production time of a good, the time used in the import process is less than it would take for the product to be produced. |
The lack of trust and credibility between companies can lead to possible conflicts between them throughout the process. |
Export and Import in Brazil
Brazil is one of the largest exporters of products, such as soy and beef, to several countries.
Brazil represents the largest economy in Latin America and, according to the Observatory of Economic Complexity, Brazil is the 22nd largest export economy in the world. It is currently the biggerexporterbeef, exporting around 1.64 million tons, according to data from the Brazilian Meat Exporting Industry Association.
In 2019, Brazil's trade balance, which represents the country's imports and exports, according to the Ministry of Economy, presented surplus, that is, exports surpassed imports, maintaining a favorable trade balance. Exports reached the value of US$ 3.948 billion and imports reached US$ 3.340 billion.
The main products exported in Brazil are:
Soy |
Sugar |
petroleum oils |
Iron ore |
read more: Pre-salt in Brazil
The main destinations are:
China |
U.S |
Argentina |
Germany |
Netherlands |
China is currently Brazil's main trading partner, exporting and importing products such as soy, petroleum oils and iron ores. In 2017, Brazilian imports totaled more than US$ 150 billion. During this period, the main imports were: vehicle parts and parts, medicines and fuel oils.
The main products imported by Brazil are:
Vehicle parts |
Phones |
Medicines |
Cars |
The main importers are:
China |
U.S |
Germany |
Argentina |
Nigeria |
→ Which is better: export or import?
Imports and exports together result in what we call trade balance. Obviously, a country always values a favorable balance of trade, that is, earning more than spending, or selling more than buying. However, one cannot say that one is better than the other, since a country does not produce everything it needs, so it has the need to import certain products, goods or services in order to guarantee the supply of the needs of the population and even of the sectors of the economy: agricultural, industrial and services.
Grades:
|1| THE CHALLENGES FOR IMPORT OPERATIONS IN BRAZIL. To access, Click here.
