In your opinion what are the most important reasons for regu

In your opinion, what are the most important reasons for regulating imports?  Please give examples from your homeland(India) whereimports have been regulated and the reason why?  Give any examples you have where import regulations have been counter-productive.

Solution

Imports and exports refer to the movement of the goods from one country to another legally. Imports are described as the goods which are produced outside the country by the foreign producers and brought to the domestic country for the domestic users.

Any country prefers to export more than to import. This is because, in the monetary terms, exports help to boom the country\'s economy. Same is the case with India.

In India, imports and exports are governed by the foreign trade. In order to restrict certain movement of the goods, a strict regulation acts are passed by the government. If the imports are not regulated, then anything and everything can be imported to the country. For example, importing of the narcotic drugs, chemicals, weapons, etc can cause severe threat to people and the environment. Hence, these items are restricted. There are certain items like electronic goods, gold, precious stones etc has import regulations. Huge taxes are to be paid if they are brought to the country. This is in the interest of the domestic market. The domestic market and the producers and manufacturers in India suffer if there are no regulations on the Imports. It takes away the job opportunities. Anything that is made in one\'s own country will cost less due to the manufacturing facility and this will in turn increase the employment opportunities.

The buying capacity of the population has increased, with the Imports, certain class of the people would prefer foreign made goods instead of Indian made. With the import, all the duties and taxes are levied on the goods and the final price of the product increases. Though price increases, certain class of people would like to buy them due to their purchasing capacity instead of buying from the domestic market. This could slowly diminish the use of domestic products and biggest sufferers in this case are the manufacturers.

Hence, keeping in mind the best interest of the people, government regulates the imports. There are examples of the import regulations in the electronic goods, precious stones and gold, but the importers import these goods illegally by two sources - either they bring back door by cheating the embassy, or they buy people by paying them a huge lump sum amount such that these people don\'t speak out of the illegal trade.