import penetration

import penetration

the proportion of domestic consumption accounted for by IMPORTS. In the case of particular products the displacement of domestic supply by imports may be beneficial, allowing consumers access to products at lower prices than can be obtained from local producers (see INTERNATIONAL TRADE). Widespread import penetration across the economy however, when unmatched by an equivalent volume of EXPORTS, can result in BALANCE OF PAYMENT difficulties, falling domestic output and job losses (see UNEMPLOYMENT). In the case of the UK, import penetration in the competitive manufacturing sector has increased substantially, imports rising from 7% of domestic consumption of manufactures in 1955 to 51% in 2004. See also STRUCTURE OF INDUSTRY.
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fig. 85 important penetration. The Uk import penetration ratio for manufacutured good. Source:office for National Statistics.

import penetration

an increase in the proportion of domestic CONSUMPTION accounted for by IMPORTS. In particular cases the displacement of domestic supply by imports may be beneficial insofar as it reflects COMPARATIVE ADVANTAGE (imports cheaper than domestic goods). Widespread import penetration across the economy however, not matched by an equivalent amount of EXPORTS, can result in balance-of-payments difficulties and a fall in domestic income and output levels. In the case of the UK, import penetration in the manufacturing sector has increased markedly in the period since 1955, as Fig. 85 shows. See PROPENSITY TO IMPORT, DEINDUSTRIALIZATION.
References in periodicals archive ?
The link between more aggregate factors--the economywide inflation and prime age male unemployment rates, and industry import penetration rates--and concessions is less robust, with the exception of a significant and consistent effect of inflation on the probability of concessions of all kinds.
foundry industry: growth and forecasts; end-use markets; capacity; import penetration; export markets; new technology; government regulations; company profiles; market shares; labor; material; and energy costs.
Trailer Canopy Market: High Cost and Inhibition of Import Penetration by Domestic Players to Prevail as Key Growth Deterrents The trailer canopy market contains only a handful of international established players, however occupancy of numerous domestic players worldwide has been inhibiting the import penetration.
This has further inhibited prospects of import penetration of playroom furniture, as local vendors of playroom furniture are first in the line to leverage potential opportunities by attracting consumers through their novel offerings.
The slowdown at the end of the year interrupted the recovery in global trade as a share of GDP, which remains nearly 5 per cent below its level at the beginning of 2008, suggesting that the level of import penetration in some countries may bear a long-term scar from the global recession.
In particular new orders have been undermined by the slowdown in retail sales, continued import penetration and stagnant exports to the euro zone.
The growth contribution of net exports was negative, as import penetration continued to increase and the competitiveness of Norwegian manufacturing industry to suffer.
As the authors describe the concept, "Import penetration measures the ratio of imports for a particular industry to the sum of imports plus that portion of domestic production that is not exported abroad.
Grossman and Helpman specifically model differences in protection in terms of import elasticity, import penetration ratios, and whether the industry is politically organized.
The trailer canopy market contains only a handful of international established players, however occupancy of numerous domestic players worldwide has been inhibiting the import penetration. End-users tend to prefer trailer canopy manufactured by domestic players over international players, in case of specific utility-based purchases.
Import Penetration: Ratio of imports to apparent consumption.