All the import-export agencies and countries of the world maintain an import-export database. It is important to understand that trade across borders is essential for the healthy economy of a nation.
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Why Do Countries Engage In Foreign Trade?
No country in the world is self-sufficient. There is zero percent possibility of the existence of a utopian economy. Thus, all the governments engage in foreign trade of goods and services that they cannot generate.
Moreover, the countries do not have the resources to produce everything that they need in quantities that they require. Therefore, if trading a commodity is cheaper than producing one, then it is healthier to trade.
Reasons Why Maintaining/Having Access To Import-Export Database Is Important
Countries across the globe engage in the trade of numerous goods and services. The transaction is both bilateral and multilateral. Thus, maintaining a database becomes important for several reasons.
1. It Contains Valuable Information.
The foremost reason why import-export data is important is that it includes valuable information about the goods. For instance, the names of the importers and exporters, the value and quantity of goods traded, the product specifications, HS code(s), the port of origin and destination, freight charges, duty taxes, buyer and seller information etc. This knowledge is highly essential for all the countries involved in trading activities.
2. It Keeps The Established And New Businesses Well-Informed
Any company involved in export and import business needs valuable information at the right time to move ahead in the right direction.
When they get access to authentic information from a reliable import-export data provider, it helps them calculate potential risks involved and, thus, plan their next step accordingly. That is why trustworthy trade information is significant for the growth of businesses as well as economies.
3. It Helps Businesses Contact Prospective Buyers
The import-export data of any country allows you to find prospective buyers suitable for your products. It provides necessary information about the potential market as well.
For example, if you are looking to export your goods to Canada, the database of the country will help you locate the market where the demand for your product is high or is likely to rise in the near future. This enables you to find similar market players, plan a pricing strategy, and contact the related businesses that can get your product to the right market.
4. It Helps Collect Information On Competitors
Discovering your competitors can be one of the major steps that helps you take the right steps for your business. One should always be aware of the line of action their competitors are taking or planning to take. No matter which country you choose to sell your products, you will find a horde of competitors at your disposal.
It would be best if you stay alert and prepared for a tough competition. Knowledge about the strategies of the competitors can help you take your business a step ahead towards a profitable venture.
5. It Helps Locate New Clients For Service Providers
The goods and the global trade affect the service providers as well. A number of well-trained service providers are required to ensure the smooth functioning of the foreign trade platform.
Several enterprises are engaged in licensing services, import and export code authorisation services, code filing services, documentation consulting services, advisory services, processing zones, warehouse and transport facilities etc. The database helps in finding new clients who need assistance to meet the continuity of the process.
6. Risk Management
This can be applied on so many levels. Global trade is very uncertain. There are so many factors influencing the market, especially when two or more countries are involved. The uncertainty doubles in that case. So, when the traders get an insight into the import-export database, it helps them stay informed about the risks involved and even mitigate them at the earliest. .
7. Research And Analysis
The database also helps traders and other people involved in the corporate stream like journalists, academicians, and analysts to conduct research and analysis on current and upcoming market trends and prepare reports/meaningful documents.
The information derived when made public also influences stock markets across the globe. It forms a kind of chain reaction where one person benefits from the other and drives growth and prosperity.
8. It Helps Pay Duties And Taxes
Import-export trade involves paying customs duties, excise duties, and other kinds of tariffs and taxes. These have a direct impact on the value of goods. A reliable import-export data provider here, helps you to understand the meaning of these additional payments and know which tariffs will be applicable on your import or export shipments. They also, many a time, guide you through the entire process, ensuring you survive the complexity of the global trade market.
Leading Trading Countries Of The World By Export
From among the 195 countries of the world, the nations that are on the top of the export trading list are:
- China – 12.8%
- United States- 8.6%
- Germany- 8.0%
- Japan- 3.8%
Leading Trading Countries Of The World By Import
Top importing countries are as follows:
- United States- 13.4%
- China- 10.2%
- Japan- 3.7%
- United Kingdom- 3.6%
What Other Benefits Does Global Trade Generate?
Apart from the above mentioned numerous benefits to businesses and individual traders, government and professionals, even the common public enjoy the benefits of global trade.
It creates employment and affects the standard of living of the common people, thus impacting the whole economy. It is a stimulus to a country’s economic growth and assists in the optimum utilisation of the resources of a nation.