Friday, October 2, 2009

Imports and exports

Imports and Exports

Exports & Imports for Stock Market

Imports and Exports

Import is allowed to trade (buy) one country from other country Such as goods, commodity transports one country to another country. Both, imports and exports are part of international trade system. In the imports system to be bought and export sold.

For example, mangoes those are produced in the India, and sold into the USA. We can say process of sold and bought each other country such goods, commodity, service, capital etc.

Why imports & exports?
We need to import and export condition of Requirement, Unable to production, Low producing process, not sufficient technology, environment, high demand against supply, etc

Factors and Risk of Imports and Exports

Taxation factor

War Risk
Non-acceptance Risk
Exchange rate Risk
Transfer risk

Deference of measurement method

(Meter-kilo-second, International System)
Disaster Risk
Politics Risk
Economic Risk

From the imports and export system helpful to select equity for investment/trading. Due to some special report, Raw material of company need to much than expatiation. So company has to bring in form foreign country. An effect of import system looks on profit power of company. Form balance sheet of company can check profit and loss of company therefore, price of this company falling.

For example: - Indian importing Crude oil forms other producing company (Saudi Arabia, Iran, and Iraq). Problems (like a War, economic, disaster etc) with Iran and Iraq, Crude price will be raise. That affects soon our all country which importing form there.