Profitability assessment of import from China

Abstract

The radical change in China's economic structure over the last thirty years has influenced the global economy. The rapid development of the country and the opening of the market have stimulated international trade, intensifying the flow of trade and the processes of importing and exporting with the rest of the world. Today, besides being a world leader in the commercial sector thanks to its unlimited supply of goods and services at competitive prices, China is also the promoter of huge initiatives that involve even more continents. The Chinese dragon encourages cooperation with many countries, including Italy, with the aim of carrying out the projects it has in mind and fortifying even more relationships. The paper underlines the current trade relations between China and Italy, emphasizing the import process from China into Italy. The aim of this thesis is to outline all the dynamics, procedures and documents needed to successfully import goods from China. In addition to the description of the practical and logistical aspects, the costs to be borne and the impact on the working capital invested are analyzed from an economic and financial point of view, evaluating the related risks. Finally it is important to understand if, despite the attractive prices offered by the market, it is advisable to buy in China.