Imports are products and services purchased from another country by a company or a customer. As a result, money outflows from the country that is buying foreign products and services. Most countries want to export more products and services than they import in order to boost domestic revenue; a growing number of imports might signal an expanding economy. This is especially true if the imports are mostly productive assets, such as machinery and equipment, which the receiving country may utilize to improve its economy’s productivity.

For example, a paper manufacturing business in the United States may decide to import a new machine from Italy rather than develop one themselves or buy one from a domestic supplier since it is more cost-effective. Manufacturers may be able to enhance their ability to make paper products once the machine is installed, resulting in more revenue and the opportunity to export more of their goods in the future.

Exports are the goods and services produced in a country and sold to companies or customers in other countries. As a result, the country selling the goods and services receives revenue. Companies may choose to export their goods and services to another country in order to participate in international trade, gain access to new markets and boost their revenue.

Companies often export products or services in areas where they have a competitive edge over other businesses due to their superior product or service. They may also be able to export natural resources that other countries lack due to the climate and geography. Jamaica, for example, has a climate conducive to coffee production. This aids its capacity to sell this product to countries that do not have access to coffee production in their region.