Disadvantages Of Export

1499 Words6 Pages
The world has become very interdependent on each other due to the availability of goods and resources in different places. A particular country may have a particular mineral or product abundantly whilst another country can barely have it. Therefore, there should be a need to balance such deficiencies and that means is, through exporting or importing. A country will export goods and services to another country which needs those products and services. On the other hand, a country may need products and services that are not available, and hence import them from other countries. Imports can be defined as any goods and services that are brought by governments, business organizations or residents of a country, but produced in another country. It…show more content…
Besides, imports create an economic flow where a particular country can trade with another country, thus creating jobs in both the importing and exporting countries. However, when imports are way more than exports they do create numerous problems, therefore leading the country into economic downturn and trade deficit. Trade deficits are therefore bad for the economy and the researcher attempts to highlights consequences of imports which lead to trade deficit. Furthermore, this cause the devaluation of local currency thus increasing the value of foreign money and making imported products very expensive. In addition to the above problems, it also affects the GDP (Gross Domestic Products) by giving them low values that affecting country’s domestic production and job creation. As a result of that the paper examines how imports can affect the economy of developing…show more content…
Besides local producers or industries will get benefit as well in the long run in the process of increasing our exports as the government struggles to the dominance of trade with its allies. 1.7. Limitations The researcher has faced some limitation which could affect the reliability of the study. It is not easy to get update confidential documents about imports and exports as they can only be given to authorized personal. Another obvious obstacle is time, since the researcher is enrolled full time university, it become very difficult for us to travel to Berbera. Lastly, there were no previous studies related to this topic conducted in the country, hence the researcher could not find large number of secondary
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