In economics, an import is any good or commodity, brought into one country from another country in a legitimate fashion, typically for use in trade. Economics is the social science that studies the production distribution, and consumption of goods and services. A commodity is anything for which there is demand but which is supplied without qualitative differentiation across a market Trade is the willing exchange of goods, services, or both Trade is also called Commerce. Import goods or services are provided to domestic consumers by foreign producers. Consumers refers to individuals or households that use goods and services generated within the economy. Import of commercial quantities of goods normally requires involvement of the Customs authorities in both the country of import and the country of export. Customs is an Authority or agency in a Country responsible for collecting and safeguarding customs duties and for controlling the flow of goods In Economics, an export is any good or Commodity, Transported from one country to another country in a Legitimate fashion

The amount of goods and commodities imported into a nation, I, is a function of two variables, the domestic absorption, A, and the real exchange rate, σ. A commodity is anything for which there is demand but which is supplied without qualitative differentiation across a market In Finance, the exchange rates (also known as the foreign-exchange rate, forex rate or FX rate) between two currencies specifies how These two are the two largest factors of imports and they both affect imports positively.

I = I(A,σ)

Absorption, or domestic spendings, include both domestically produced and imported goods and services. When a nation increases its domestic spendings, the imports are naturally following the increase, therefore the plus sign. The real exchange rate, σ, is a nations competitiveness towards other nations since it is the relative price of goods produced at home compared to goods produced abroad. When the real exchange rate increases foreign goods become less expensive and imports then increase. ^[1]

Notes and References

1. ^ Burda, Wyplosz (2005): Macroeconomics: A European Text, Fourth Edition, Oxford University Press

See also

• International trade
• List of countries by imports
• Export function

International trade is exchange of Capital, Goods, and Services across International borders or Territories. This is a list of countries by Imports, based on The World Factbook. The Export function is an idea used in economic theories to measure exports

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