Final answer:
Determining if there is demand for a product before importing is crucial to reduce risk and potential financial loss, hence the statement is true. Market research aligns importation with consumer interests and profitability, while considering broader implications like national interests and regulations.
Step-by-step explanation:
The risk involved in importing is indeed increased if you do not first determine whether there is any demand for the product you plan to import. Without assessing demand, there may be no market for the goods upon arrival, leading to excessive inventory and financial losses. Therefore, the statement is true. Conducting market research to evaluate demand is a crucial step in ensuring that the importation efforts align with consumer interests and potential profitability.
Furthermore, it's important to consider the broader implications of importing goods, such as environmental concerns and national security. Governments may impose restrictions to protect national interests based on various factors, including economic, environmental, and security concerns. These factors can influence the viability and legality of importing certain goods. Therefore, understanding how the demand and supply model applies to international trade is essential for businesses engaging in importing activities.