ADVANTAGES AND DISADVANTAGES OF IMPORTING AND EXPORTING

IN /TO COLOMBIA

GINA MARCELA SOTO CHAPARRO

TECNOLOGO EN NEGOCIACION INTERNACIONL

SENA
2018
 IMPORT

It is the customs regime by which goods imported from abroad or from a Special
Economic Development Zone can circulate freely in the customs territory, in
order to remain in it definitively, after the payment of the duties and taxes to the
Importation, surcharges and penalties, where applicable, and compliance with
customs formalities and obligations.

However, the globalization of markets for goods and services has moved
foreign suppliers to the importing country, facilitating their acquisition, which
forces them to balance the pros and cons of international purchases.

ADVANTAGE:

1. In developing countries it is necessary to reach an international level of

quality, which requires the improvement of machinery, raw materials and
processes, on the basis of imports, necessary for export.

2. In high-cost manufacturing countries, it is probably cheaper to import

than to manufacture, thus becoming resellers, from manufacturers to
traders.

3. In countries with international free trade agreements, the gradual

reduction of import taxes to zero will lower the cost of international
purchases.

DISADVANTAGES:

1. Buying in another country reduces income from the country where the
entrepreneur resides, economic problems such as greater imports than
exports.

2. Imports always implies the risk of an increase in the price of the foreign
currency. Businesses tied to the increase of foreign currency by imports that are
their main source of income, should hedge exchange or futures, in brokerage
houses, to protect themselves.

3. Imports, to a large degree, make the entrepreneur dependent on international

purchases. Any dependency weakens the company and with greater reason,
international suppliers for the distance, deliveries and conditions.