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SAI INTERNATIONAL SCHOOL

CLASSS XI

SUBJECT: BUSINESS STUDIES

Chapter-10, International Trade

Topics: Import trade, Objectives, Procedures, documents

(Module-52)

Import Trade

Meaning

Import trade refers to purchasing goods and service from a foreign country. For
Example Purchase of chemicals by an Indian company from France is termed
as import. Domestic purchaser of goods is termed as importer and overseas
seller is called exporter.

Objectives of Import Trade

Objectives of import trade have been highlighted hereunder.

1. Achieving Rapid Industrialization

Developing countries can achieve rapid industrialization by importing advanced
technology scarce raw materials, capital goods like machinery equipment, etc.,
and talents from other countries.

2. Meeting Consumer Demand

Certain goods are either not available or cannot be manufactured / produced
adequately to meet the growing demand in home country. Hence import is
necessary to meet the short supply of those goods.

3. Upgrading Standard of Living of the People

Consumers are able to use a wide variety of goods like cell phone, car laptop.
Television audio system, washing machine, perfume, soaps, etc., manufactured
in foreign countries and enhance their standard of living through import trade.