Defining imports and exports

These two concepts are common in the international business arena. It is important to understand and differentiate them in order to have greater clarity when carrying out these types of transactions.

On the one hand, "export" is an operation in which an individual or company sells its merchandise or products in a foreign country. On the other hand, "import" occurs when a foreign individual or company sells their merchandise or products in our country. Both actions entail certain obligations related to the issuance of licenses, payment of fees, rules of origin, among others.

When exporting or importing goods or services, supply and demand must be taken into account since the success of the sale will reside in the shortage, cost or low quality of the product in the country of destination. A good is usually exported when it is known that in the market of the foreign country it is an expensive, scarce or poor-quality product, in this way the chances of selling it will be high since the competition will not be an impediment.

However, it must be borne in mind that there are rules relating to competition law, that is, not all practices are valid when entering to offer goods or services in a certain market. There are limitations regarding prices, dumping, consumer rights, among others. However, that will be the subject of another post.