The effect of imports on the price of Iranian goods
The impact of imports on prices in Iran can be positive or negative in general. On the one hand, imports can increase the variety of products and competition in the market, which can ultimately help lower prices. On the other hand, imports can increase the cost of transportation, customs and other costs, which can ultimately lead to an increase in prices, but in general, the impact of imports on prices depends on the amount of imports of a country, which is initially based on the factors that We will discuss how they affect the amount of imports in Iran.
Economic factors
- Growth of gross domestic product (GDP): An increase in the country’s gross domestic product leads to an increase in the demand for goods and services and thus increases imports.
- Inflation: A high inflation rate in the country makes domestic production more expensive and makes importing goods from other countries more attractive.
- Exchange rate: Depreciation of the national currency makes imports cheaper and increases the demand for imports.
Business and political factors
- Free Trade Agreements (FTA): Free trade agreements reduce or eliminate tariffs and trade barriers, making imports cheaper.
- Trade Liberalization: The reduction or elimination of tariffs and trade barriers increases imports.
- Investment incentives: Governments may provide incentives to attract foreign investment, which leads to increased imports.
Structural factors
- The role of the government in the economy: Government intervention in the economy can lead to an increase in imports.
- The role of the private sector in the economy: The role of the private sector in the economy can lead to a decrease in imports.
- The level of industrial development: The level of industrial development of the country can lead to an increase in the import of goods and services.
External factors
- Global price of goods: Changes in the global price of goods can lead to an increase in imports.
- Trade policies of other countries: Trade policies of other countries can lead to an increase in imports.
- Global economic crises: Global economic crises can lead to an increase in imports.
The amount of imports of a country is influenced by various factors. In Iran, economic, commercial and political, structural and foreign factors have all led to an increase in imports. In order to reduce imports and increase domestic production, it is necessary to adopt appropriate economic and commercial policies.
Various factors affect the impact of imports on prices in Iran, including:
Positive factors
Increasing the variety of products and competition in the market
Lower prices due to competition between importers and domestic producers
Access to higher quality products
Also, the import of goods can help in the cultural growth of countries, that is, by importing cultural goods, you can access cultural diversity and enrich the culture of the country.
Negative factors
The increase in transportation costs, customs and other costs will increase the prices.
Reduction of domestic production due to competition with imports. If a country has a lot of imports, domestic production in that country will decrease and this can lead to economic problems in that country.
Dependence on foreign countries: importing goods can make the country dependent on foreign countries. If the country is dependent on foreign goods to meet its needs, it will be affected by price changes, policies or problems in the importing country.
Currency and tax effects: Importing goods can have currency and tax effects. This can lead to economic problems in the country.
Also, Iran’s trade and customs policies also affect the impact of imports on prices. For example, an increase in customs tariffs can increase prices, while a decrease in tariffs can decrease prices.
In recent years, Iran’s imports have decreased due to sanctions and trade restrictions. This decrease in imports can cause prices to rise, as the supply of products decreases and the demand for them increases.
According to statistics, Iran’s imports from 1371 to 1400 have spent more than 19 trillion rials on importing goods. This statistic shows that Iran’s import has been one of the most important and volatile statistics of the country.
Also, fluctuations in the price of the dollar and commercial currency can have significant effects on a country’s imports. If the price of the dollar and commercial currency increases, the cost of imports will increase, which can increase the price of imported goods and, as a result, increase costs for consumers or manufacturing industries.
Finally, the impact of imports on prices in Iran depends on various factors, and it cannot be said in general that imports increase or decrease prices. Rather, attention should be paid specifically to Iran’s market conditions and commercial and customs policies.
Import statistics of Iran
According to statistics, Iran’s imports have been increasing in recent years. In 2018, the value of Iran’s imports reached 43 billion dollars, which was an 11% increase compared to the previous year.
In more detail:
More than 19 trillion Rials have been spent on importing goods.
Import more than 975 billion kilograms of goods into its territory.
It has spent more than one thousand billion dollars to import goods and services to the country.
What are the most important goods that Iran imports?
Foodstuffs
Auto and machinery parts
Petroleum products
Medicines and medical supplies
Household and electronic appliances
Industrial raw materials
Clothing and textile products
What are the factors that reduce a country’s imports?
Development of domestic production
Creating diversification in exports
Changes in trade policies
Change in consumption pattern
Development of complementary industries
Exchange rate changes and fluctuations
International sanctions
Finally, the impact of imports on prices in Iran depends on various factors, and it cannot be said in general that imports increase or decrease prices. Rather, attention should be paid specifically to Iran’s market conditions and commercial and customs policies.
What is the best way to do customs?
If you need consulting services regarding import, export, supply and clearance of various products and goods, you can ask your questions using the direct contact information of Behin Tadbir company at the top or bottom of the website. Also, if the phone lines are busy or the phone is not answered, you can send us a request for advice and your contact number via e-mail or social networks (Telegram, WhatsApp, ITA, etc.) and our experts will respond in less than 24 hours. They will contact you. Please note that before making any in-person referrals, make sure to book an appointment.
