International BusinessSupply Chain

Import and Export in an Age of Global Commerce

With the rise of the multinational corporation, “born-global” corporations, and complex technology products, defining “import” and “export” has become challenging. The global nature of supply chains and the proliferation of global organisations that source internationally confuses the import/export division. Products may be assembled from parts that come from a set of geographically disparate countries. These parts may be shipped into a country as part of an internal supply chain, or bought as imports through local markets. Assembly could occur in several countries other than the product’s intended final market. Finished products will then be sold globally, including into countries from which the components were sourced.

Routine textbook definitions express the classical business-to-customer conception of export, e.g. “export is the sale of goods produced in one country to residents of another country”; “import is the purchase of goods produced in one country by residents of another country.” Multinational corporations both source and sell transnationally, hence the business-to-business conception of export and import is considerably more complex.  The following reasons for import and export explain the nature of both more.

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