Factors influencing businesses to import products from overseas for distribution in their own county.

Businesses import products from overseas for sale in their own county for a variety of reasons. These reasons include cost, technology, and quality. It may be one of these factors or a combination that make importing a product attractive.

The most important reason for a business to import a product is fill a market need. The end user has a demand for a product therefore the supplier needs to provide it. It is a case of supply chasing demand when the products are only available in other parts of the world. A good example is bananas that are grown only in certain parts of the world and must be imported by countries unable to grow them.

Cost is also major factor when selling products. The consumer wants the best possible price. With competition so fierce, less expensive alternatives have been introduced to grasp new business. Because of cheaper labor, inexpensive raw materials, and loose government regulations many production facilities have been moved overseas where suppliers now purchase their products. If the cost for the supplier becomes lower, the end user price will become lower while creating a higher demand for the product. Lower cost is a primary reason many companies import products from overseas.

Another driving force for suppliers purchasing products from overseas is technology. In many instances a home county does not have the resources for a certain product and they must import to remain competitive and in business. A good example is airplanes since few countries have the technology and infrastructure to manufacture modern jets but all need airplanes for travel and military purposes.

Lastly, a major factor for importing a product is quality and craftsmanship. Consumers desire a quality, well produced product in which skilled craftsman manufacture. An example of a quality product is the Ferrari sports car. Made with precision in Italy and desired by people all over the world. The specialized production facility maintains extreme precision and craftsmanship. The Ferrari has been a staple in the sports car community because of its extreme attention to detail, style, and quality that is not found elsewhere.

Importing products is done in all countries of the world. Imported products bring a better quality of life to a society; they allow growth and development for businesses and individuals. They also tie together countries and their citizens in mutually beneficial trade. 프리미어중계

By Admin

Leave a Reply

Your email address will not be published. Required fields are marked *