Exporting And Importing Term Papers

In US dollars the import of textile has dropped by 16.42%, while apparel has dropped by 9.40% (Major Shippers Report, 2009).At first glance, such a trend is quite disturbing, but it is necessary to remember about the current economic recession which steadily outgrows into a profound economic depression which affects the economic development of the USA as well as Italy.Among other companies present in the market, it is possible to name B&B Italia.

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At the same time, it should be said that recently Italy has reduced substantially its import of apparel to the USA.

To put it more precisely, the last year the total import of textile to the USA from Italy reduced by 39.43% (Major Shippers Report, 2009), while the import of apparel to the USA from Italy dropped by 15.36% (Major Shippers Report, 2009).

As a result, it is more profitable for Italian companies operating in apparel and textile industries to focus on domestic or European market, which is located closer to manufacturer and where it is easier to sell apparel and textile products due to lower costs of transportation and localization of production.

The difference in the drop in SME and US dollars can be explained by the inflation and devaluation of the US dollar, as well as by the qualitative changes in apparel and textile imported to the USA, which becomes more expensive than it used to be in the past.

The latter proves the orientation of American market on top quality and renowned Italian brands, while smaller and less popular companies cannot afford competition with local manufacturers and manufacturers from developing countries.

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But are you aware of its advantages and disadvantages? Importing and Exporting are means of Foreign Trade.

Foreign trade is carried out in goods and services – which includes imports, exports, and the balance of foreign trade – is presented separately for goods and for services.

Secondly, the American apparel industry attempts to replace import by local manufacturers in order to make apparel and textile products more available to local customers.

Furthermore, it is important to remember about the drop of production in Italy, which cannot keep increasing its export to the USA, when its production drops along with consumption in the USA.


Comments Exporting And Importing Term Papers

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