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Import

A good produced in a country other than the one in which it is sold. Imports bring money into the producing country and can remove money from the country in which the good is sold. For that reason, many economists believe that a nation's proper balance of trade means more exports are sold than imports bought. Some countries set up various trade barriers against imports, notably import quotas and tariffs. Most governments seek to promote exports, while they have differing positions on imports. See also: Free trade, NAFTA.

import

A good or service brought into a country from another country and offered for sale. While some imported items originate in foreign subsidiaries of domestic companies, large increases in imports tend to hurt sales and profits of many firms located in the importing country. Compare export. See also balance of trade, quota.

import

  1. a good which is produced in a foreign country and which is then physically transported to and sold in the home market, leading to an outflow of foreign exchange from the home country (visible import).
  2. a service which is provided for the home country by foreign interests, either in the home country (banking, insurance) or overseas (for example, travel abroad), again leading to an outflow of foreign exchange from the home country (invisible import).
  3. capital which is invested in the home country in the form of portfolio investment, foreign direct investment in physical assets and banking deposits (capital imports).

    Together these items comprise, along with EXPORTS, a country's BALANCE OF PAYMENTS. See INTERNATIONAL TRADE, IMPORT DUTY, IMPORTING, IMPORT PENETRATION.

Importclick for a larger image
Fig. 84 Import. (a) UK goods and services imports, 2003.

(b) Geographical distribution of UK goods/services imports, 2003. Source: UK Balance of Payments, ONS, 2004 domestic industries from foreign competition. See TARIFF, IMPORT RESTRICTIONS, PROTECTIONISM.

import

(i) a good that is produced in a foreign country and that is then physically transported to, and sold in, the ‘home’ market, leading to an outflow of foreign exchange from the home country (‘visible’ import). (ii) a service that is provided for the ‘home’ country by foreign interests, either in the home country (banking, insurance) or overseas (for example, travel abroad), again leading to an outflow of foreign exchange from the home country (‘invisible’ import). (iii) capital that is invested in the home country in the form of portfolio investment, foreign direct investment in physical assets and banking deposits (capital imports). Imports are important in two main respects:
  1. together with EXPORTS, they make up a country's BALANCE OF TRADE. Imports must be financed (‘paid for’ in foreign currency terms) by an equivalent value of exports in order to maintain a payments equilibrium.

    The combined net payment figures (exports minus imports) for (i), (ii) and (iii) are shown in Fig. 13 (a), BALANCE OF PAYMENTS entry;

  2. they represent a WITHDRAWAL from the CIRCULAR FLOW OF NATIONAL INCOME, serving to reduce real income and output. (See PROPENSITY TO IMPORT.)

On the one hand, imports are seen as beneficial in that they allow a country to enjoy the benefits of INTERNATIONAL TRADE (obtaining goods and services at lower prices), but on the other hand, as indicated by (b) above, detrimental because they reduce income and output. It is important to maintain a balance between imports and exports. Imports are beneficial, provided that they are matched by exports - i.e. ‘lost’ income on imports is restored by income ‘gained’ on exports to maintain domestic income and output levels, and, as indicated by (a) above, imports are financed by exports to preserve a BALANCE OF PAYMENTS EQUILIBRIUM.

Fig. 84 gives details of the product composition and geographical distribution of UK (merchandise) goods imports in 2003. See Fig. 68 , EXPORT entry, for comparable export data. See BALANCE OF PAYMENTS, INTERNAL-EXTERNAL BALANCE MODEL, GAINS FROM TRADE, IMPORT PENETRATION, IMPORT RESTRICTIONS, IMPORT SCHEDULE, IMPORT SUBSTITUTION, PARALLEL IMPORT.

References in periodicals archive ?
Put differently, if the exportable sector requires relatively more cash, then the MRS [= (1 + [delta])q] is less than the relative price q, which implies that there is an excessive consumption of importables.
When trade protection is provided only to the importable sector, the proportional change in price of exportables is zero and the proportional change in price of nontradeables is less than that of importables (with the shift parameter being less than one).
The negative impact on importables should have been even more severe and the benefits to exportables more modest.
Also, if wages in the importable sector were reduced, and assuming a sufficient degree of labor mobility, workers would react to a relative wage difference by moving into the nontradable sector, thereby depressing the level of wages there and placing a downward pressure on the nontradables price.
To see why, note that a zone can increase or reduce the domestic demand for importables as income rises or falls.
From standard properties of the expenditure and GDP functions, we know that the Hicksian demand functions for importable goods are [e.
If all factors of production had been included (and the factor intensity of importables and imports can be assumed to be identical), net trade in the factors weighted by their factor prices ought to differ from zero only by the size of the current account surplus.
It is important to point out that the extent of the effect on the equilibrium real exchange rate would depend on whether more of capital inflows are spent on non-tradables as against importables or vice versa.
Interestingly, we find that if the consumption of the exportable commodity requires larger cash balances than the consumption of the importable, then contrary to standard results, an import quota may promote national welfare.
Terms of trade can be represented by the external relative price of exportables to importable.
This is due to the fact that an increase in the tariff rate will lead to substitution away from importables and towards the non-tradable commodities creating a current account surplus and, thus, causing an appreciation of the real exchange rate.
To capture the realistic features of the economy KW divide the economy into a non-traded goods sector and two traded goods sectors; namely, exportable and importable.