International trade, commonly known as the import-export business, is one of the biggest industries in the world. Trading is not new. It first existed during the prehistoric times. Remember about the early times when people used to trade salt and spices to outlying ethnic groups? Trading is very important, most especially when another country is in need of new products that are not available in their own territory. As technology becomes more advanced, the importing and exporting business happens to become more lucrative.
Starting an import-export business entails a starting capital of $6,000 or more. You need to know what type of products you are going to use for your import and export business. Some products do not require a license, but specialty items like medicines and weapons need permits from the government. For more information, you can check trade directories. Trade directories allow businessmen to know about the government’s economic progress and future plans.
The main reasons why the importing and exporting business is certainly big business across the whole world are accessibility and cost.
- Accessibility. There are many products that are not available in one country. For example, Alaska cannot produce bananas. They need to import bananas from other banana producing countries to supply the demands of the consumers.
- Cost. Some products are offered at a cheaper cost when purchased from other countries. Products that are low in supply in an area are usually expensive due to higher demand. These products are often imported to a country, and that is why it costs more. Of course, we follow the law of supply and demand. In Middle East countries, oil is one of their natural resources, which is the reason why petroleum products are way cheaper there as compared to other countries.
Business opportunities in the import and export industry are many. Businessmen gather in trade fairs to showcase different products that could be used in the import and export business such as car parts, clothing, electronics, food, furniture, handicrafts, musical instruments, oil, perfumes, toys, weapons and many more. Importing cars is one of the most common examples of an import/export business. There are many countries worldwide that purchase used cars and car parts from Japan. Businessmen looking for business prospects attend trade fairs to gain ideas on what kind of products they can use for their import and export business. Small time business owners also attend trade fairs to get in touch with wealthy people who are capable of investing money on their businesses.
Before starting your own import and export business, you need to get expososure through different trade fairs, business forums and seminars and jobs related to it. It will enable you to gain information on the things you need to consider before investing your money. You can get loan money from your local bank to help you start your import and export business. Once you have it, you will need an international freight forwarding service that will help you ship your products to other countries.