...U.S. Trade Analysis with other Countries Abstract Purpose- This paper presents the analysis of U.S. imports and exports by managing the trade balance. It also presents the leading U.S. imports and exports in terms of value along with the important partners. Design/methodology/approach- The author explains the balance of trade including the rise and fall of U.S. trade deficit using the analysis between different countries imports and exports. Research limitations/implications- The study is limited to analysis of imports, exports, trade surplus and deficit of U.S. trading. Originality/value- This paper will help to build up the understanding about the basic imports, exports and importance of balancing the trade cycle for a country. Keywords- Deficit, Import, Export, Surplus, Economy Introduction Every country has to follow a set of policies, methods and processes in order to perform imports and exports. A number of conflicts arise due to weak foreign trading policies by countries. It requires professional expertise to manage the trade of a country. There are also a number of conflicts generated between the different countries related to financial decisions of countries. To eliminate the risk involved in financial issues a system of principles, procedures, policies, responsibilities, accountabilities are used by stakeholders. Many of the famous financial scandals are noted in the history occurring at Parmalat, Nortel, and Enron. It has cost a lot of drop in the market...
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...Maria Tovar Trade Surplus and Trade Deficit China overtakes USA as worlds trading partner China´s Trade Surplus Vs. USA´s Trade Deficit Countries that have open economies are those who carry out economic activities with other countries and trade goods and services. Countries can export, which means selling domestic goods and services to another country or they can import, which means buying goods and services from another country. An economic surplus makes reference to having a positive balance of trade; when a country´s exports exceed its imports. On the other hand, a trade deficit is when a country´s imports exceed its exports and has a negative commercial balance. As the video: “China overtakes USA as a world´s trading partner,” suggests, China currently has a trade surplus. Between 2000-2008 China´s imports have grown 403% whilst its exports have grown 474%. China´s exports are currently higher than its exports due to its economic strategy, which will be explained below. The video explains why China has overtaken the US as world´s trading partner, and thus why China has a trade surplus and the US a trade deficit. American and many other companies are now producing and assembling their products in China due to the low manufacturing costs in this country. It is more profitable for American companies to produce and assemble their products in China not only for the low labor costs, but also for the low transport costs. Even though this harms the US´s economy, companies...
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...Oil Prices and the U.S Trade Deficit Along with the financial industry, chemical industry and entertainment industry, the energy industry is one of the top markets in the United States with oil production as one of its core essentials. Since the beginning of 2002, oil prices have almost quadrupled overtime. The United States is estimated to be the number one country of oil consumption therefore making the soaring prices one of the major concerns within the country. Although the amount of U.S imports and exports have varied overtime, recently the U.S has been running trade deficits. With the price of oil increasing, an oil-importing country like the U.S will have a substantial increase in the cost of petroleum imports therefore suggesting the deterioration of their trading deficit will be even greater. In this study, Michele Cavallo examines the changes of oil prices and how they affect a number of different factors. These factors include the slow-paced growth in oil production creating has an increase in demand which has outpaced the increase in supply. Cavallo explores the relationship between the surge in oil prices and trade, how the U.S trade deficit evolves in response to higher oil prices and furthermore creates a model that helps explain how the import of oil, despite the increase in price, remained constant and what affect it has on the trade deficit. Using data from January 2002 to July 2006 for overall trade balance and the petroleum trade balance, Cavallo...
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...Trade has been a common thing for the U.S and so many other countries and since most of the big countries are already mentioned, I will focus on my own country, Ecuador. Ecuador and the U.S biggest trade accomplishment was during the year 2013. It was a very good year because of the imports exports and investments made by each country. Ecuador is currently the 33rd largest trading partner. Between (two ways) Ecuador and the U.S is $18.8 billion in total trading goods. Exports were totaled at $ 7.3 billion dollars and imports were totaled in $11.5 billion. The goods being traded are mineral fuel, machinery, plastic, and vehicles from the U.S and from Ecuador it is Mineral Fuel, fish and seafood, Edible Fruit and Nuts, and Precious Stones such as gold. The U.S had a trade deficit at 4.2 billion. Kind of seems unfair, but somehow it is helping Ecuador because they are making money too, and also from personal experience, making changes throughout the country. After viewing these statistics I was a bit surprised not because Ecuador is trading with the U.S but because of how much money is being traded in cost of goods. I wasn’t too surprised seeing that the U.S had more of a trade deficit because obviously the U.S has so much more to offer. Overall it is pretty interesting seeing these statistics for the first time in my life. After reading my peer’s posts, I see a lot of similarities with the U.S trading with countries all over the world. It is very surprising of the amount...
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...Trade and Finance Speech ECO 372 DO NOT Plagiarize this is simple for guidence International Trade and Finance Speech In the United States international trade is an important aspect when it comes to our nation’s economy. Over the years the nation’s economic responsibility has changed from being creditors to debtors. With this change it has affected the layout of our global economy and with the advancement of our technology it has enhanced the amount of trade done between countries all over the world. With the abundance of goods imported into the United States it has provided us with a surplus. Surplus is typically used to aid in slowing down the economy and balancing out the deficits. When surplus of imports are brought into the United States a deficit is created due the balancing of the trade. According to "United States International Trade Commission" (n.d.), there are three foreign imports that entered into the United States over the years and they are electronic products, transportation equipment and energy-related products. From 2011 to 2013 these three imports from foreign countries have steadily increased. Out of the three imports two of them have been beneficial when there was a change in the economy. During a time period, we had issues within the housing market and agencies were losing money because consumers were unable to afford their mortgages. When it comes to the Gross Domestic Products (GDP) the international trades does have...
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...Benefits of Low Interest Rates In a market economy, resources tend to flow to activities that maximize their returns for the risks borne by the lender. Interest rates (adjusted for expected inflation and other risks) serve as market signals of these rates of return. Although returns will differ across industries, the economy also has a natural rate of interest that depends on those factors that help to determine its long-run average rate of growth, such as the nation's saving and investment rates.4 During times when economic activity weakens, monetary policy can push its interest rate target (adjusted for inflation) temporarily below the economy's natural rate, which lowers the real cost of borrowing. This is sometimes known as "leaning against the wind." 5 To most economists, the primary benefit of low interest rates is its simulative effect on economic activity. By reducing interest rates, the Fed can help spur business spending on capital goods—which also helps the economy's long-term performance—and can help spur household expenditures on homes or consumer durables like automobiles.6 For example, home sales are generally higher when mortgage rates are 5 percent than if they are 10 percent. A second benefit of low interest rates is improving bank balance sheets and banks' capacity to lend. During the financial crisis, many banks, particularly some of the largest banks, were found to be undercapitalized, which limited their ability to make loans during the initial stages...
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... G REECE White Paper - Impact of Greece Crisis Global Research Limited Introduction Historically, financial crisis tend to lead to sharp economic downturns, low government revenues, widening government deficits, high levels of debt, pushing many governments into defaults. This is called SOVEREGIN DEBT CRISIS. GREECE is currently facing this, it accumulated high levels of debt during the decade before the crisis, when capital markets were highly liquid. As the crisis has unfolded and there was liquidity crunch in world economy, Greece may no longer be able to rol over its maturing debt obligations. Build – Up To The Current Crisis Between 2001-2008, Greece reported budget deficits averaged 5% per year, compared to Eurozone average of 2%. Also, its current account deficits averaged to 9% per year compared to Eurozone average of 1% Greece funded these twin deficits by borrowing in international capital markets, leaving it with chronically high external debt (115% of GDP in 2009) Some of the facts which can be depicted from following charts : www.capitalvia.com 2 White Paper - Impact of Greece Crisis G lobal Research Limited How Country Debts And Budget Deficits Compare? Projected budget deficit for 2009 Budget deficit figs as % of GDP Debt as % of GDP 68.6% UK 13% 112.6% Greece 12.5% 54.3% Spain 11.25% 65.8% Ireland 10.75% 114.6% Italy 5.3% 74.3% Germany 3.5% Source: European Commission /...
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...IMPACT of GREECE White Paper - Impact of Greece Crisis Global Research Limited Introduction Historically, financial crisis tend to lead to sharp economic downturns, low government revenues, widening government deficits, high levels of debt, pushing many governments into defaults. This is called SOVEREGIN DEBT CRISIS. GREECE is currently facing this, it accumulated high levels of debt during the decade before the crisis, when capital markets were highly liquid. As the crisis has unfolded and there was liquidity crunch in world economy, Greece may no longer be able to rol over its maturing debt obligations. Build – Up To The Current Crisis Between 2001-2008, Greece reported budget deficits averaged 5% per year, compared to Eurozone average of 2%. Also, its current account deficits averaged to 9% per year compared to Eurozone average of 1% Greece funded these twin deficits by borrowing in international capital markets, leaving it with chronically high external debt (115% of GDP in 2009) Some of the facts which can be depicted from following charts : www.capitalvia.com 2 White Paper - Impact of Greece Crisis Global Research Limited How Country Debts And Budget Deficits Compare? Projected budget deficit for 2009 Budget deficit figs as % of GDP Debt as % of GDP UK 13% Greece 12.5% Spain 11.25% Ireland 54.3% 68.6% 112.6% 65.8% 10.75% 114.6% 5.3% Italy Germany 3.5% 74.3% Source: European Commission / Economic forecast autumn...
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...other, particularly in the area of international trade. Like any international trading relationship government policies affect the way business is conducted. For example, piracy is very common in China; piracy is the unauthorized use or reproduction of copyrighted or patented material. In some cases a government can affect international trade flows by its lacks of restrictions on piracy. In the case with the relationship between the US and China some may argue that piracy is a major contributor to the uneven nature of financial flows and trade between the United States and China. The US has a large trade deficit with China, but there is little legislation between the US and China forcing China’s government to officially address the issue of piracy in their country. The Trade Relationship between China and the United States The trading relationship between China and the US dates as far back as 1784 when the empress of China decided to open trade between the US and China. At that time the US had very few possessions to offer; however several hundred years later after several wars, changes in leadership, economic needs, and industrial revolutions a more in-depth trading relationship evolved. While the two countries need each other the relationship that they have is very complex. China relies on exports to the US to drive growth while the US requires investment from China to finance giant deficits. The two constantly spar over a range of sensitive issues. Most recently the US...
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...forms of tariff and non-tariff barriers have contributed to this imbalance. While Bangladesh has progressed much ahead of India along with its liberalization of trade, India remains slow. Both Bangladesh and India are two major countries of the SAARC and have a long common historical past and similar cultural and social evolution. As far as trade relation is concerned, India is the 2nd largest trading partner of Bangladesh just after USA in 2003. India’s position is at the top for Bangladesh’s imports from the world (IMF: Direction of Trade Statistics, June 2004). Therefore, an analysis of current trade status between the two nations, obstacles and opportunities for mutual trade expansion is very critical for economic development of both countries, especially of Bangladesh, as Bangladesh has been suffering from historical trade deficit with India since its independence. The trade deficit has been increasing exponentially since the recent past. Official data show that compared to 1983, trade deficit in 2003 is more than 46 times higher1 (IMF: Direction of Trade Statistics). This growing deficit is a cause of serious concern for Bangladesh and has important economic and political implications. Hence the importance of the study is realized, and it is expected that the study will help policy makers to understand the roots of the problems on the way of trade expansion, and to formulate and execute the appropriate policy measures to mitigate or remove these problems. With this objective...
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...Electric Vehicles Can Help us Achieve Freedom from Oil Has the United States ever done something to decrease the oil dependence? Are people trying to help and reduce the pollution? What is one solution? A solution could be starting to promote, and use electric cars, because they provide a viable alternative to gasoline-fueled cars, and because the benefits outweigh the cost of buying an electric car. Electric cars are a necessity for the future. They can help The United States to achieve freedom from oil, and they are good for the environment. It is known that electric cars produce zero CO2, and nitrous oxide emissions, since cars that use gasoline are responsible for around 25% of all global gas emissions. Promoting, and buying electric cars is going to help us keep the planet green, and it is going to save us money, why is it going to save us money? Because it may be that buying an electric car is more expensive than a normal one, but at the end, electric cars spend electricity, and electricity is cheaper than petrol, and it is a renewable resource. “About 3 cents per mile driven is all it costs to "fuel" a typical electric car today, assuming an electricity rate of 10 cents per kilowatt-hour (kWh). By contrast, at a pump price of $2.75 per gallon, a 25-mpg conventional car costs more than three times that amount.” (Renewable Energy, 2012). According to the Department of Energy and the Environmental Protection Agency, about 75 percent of the chemical energy stored in an electric...
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...of international trade and the relationships between trading countries. For example, the amount of goods and services a country imports and exports may have vast effects on foreign and domestic market places, economies, and their monetary and trading policies. Exchange rates also play a role in market activity. Relationships between trading countries are also affected by trading tactics, strategies, and policies. It is important to understand how and why policies and marketplace interactions, both foreign and domestic, work and are determined, and how they affect international trade. International trade is what makes the world an amazing place to do business of all types. With international trade, businesses can import and export many goods and services that help keep prices down, but also can cause a loss of jobs from importing being too high. Nevertheless, we tend to treat imports as some sort of negative or bad thing even though, when you think about it, imports are what we gain from international trade while exports are what we pay in international trade (Mcteer, 2013). International trade has effects on the domestic markets because many consumers do not care where there product is coming from and continue to support importing regardless of associated consequences. Tuition and fees paid for by international university students, and their rising prices, are valuable factors of information when evaluating the U.S. trade market. According to "International Trade Administration" (n...
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...will analyze concepts that focus on international trade and the workings of foreign exchange rates. The speech will also provide detail to the effects of international trade in relation to gross domestic product (GDP), domestic markets and university students. Other topics discussed will include the affects of import surpluses, and how tariffs and quotas are put into place to promote domestic trade. The international trade speech gives insight into the trading process, factors influencing trading between countries, and laws and procedures that protect the trading countries. Effects of an Import Surplus When the United States imports a specific product that is not domestically produced in the United States it will cause a surplus of imports. This happens particularly when a foreign country has a higher supply of an item that the United States does not produce or have a high quantity of. Considering the cost of petroleum in the United States, that product alone can represent as one of the largest components of the U.S. trade deficit at approximately 25% (Secure Energy, 2013). An example would be Saudi Arabia; they can produce oil at a lower cost in part because of lower labor rates. The United States recently experienced a decrease with the cost of gas at the pumps due to a higher supply of gas than was anticipated. Price increases affect international trade and may cause conflict in trade relations. Effects of International Trade The international trade affects university students...
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...of its trade deficit. At current exchange rates, the strength of the U.S. economy, combined with slow growth in demand in many other parts of the world, will lead to further widening of the U.S. trade deficit. How long can the trade deficit continue on that trajectory without disrupting the U.S. economy or the world economy? Absent structural reforms in the United States and abroad, a large devaluation of the dollar, or significant changes in the business cycle, both the trade and the current account deficits will continue to widen until they become unsustainable, perhaps two or three years out. Changing the trajectory will be difficult. The U.S. trade deficit is now so large that even if world economic growth were to pick up and boost U.S. exports, U.S. imports would have to slow dramatically for the gap to narrow. To shrink the trade deficit significantly, say, over a two-year period, exports would have to grow twice as fast as they did in the 1990s, when growth averaged 7.5 percent a year, and the growth rate of imports would have to be halved, from 11 percent to 51/2 percent a year. Moreover, following twenty years as a net recipient of capital inflows, the United States will soon be confronted with much larger service payments. At some point, either the United States' negative net international investment position and the associated servicing costs will become too great a burden on the U.S. economy or, more likely, global investors will decide that U.S. assets account...
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...U.S. free trade agreements with other countries have a negative impact on U.S. job opportunities. Free trade is a form of business cooperation in which different countries share their resources and trade with each other with free or lower tariffs (Eiras, n.d.). Free trade can be presented in the forms of importing products such as coffee and vegetables directly from other countries and outsourcing process to other countries. Although it is possible for one country to produce all goods efficiently, it will be more productive for this country to trade with other country. Both countries can benefit from trade because each country specializes in what they have a comparative advantage. Free trade offers more advantages to each country since there are no trade barriers between countries. Nowadays, with the trends of globalization, free trade is becoming more and more commonplace. Some people argue that free trade creates job opportunities while increasing the growth of economy. Riley (2012) states that total U.S. employment significantly increased after the U.S. signed the North American Free Trade Agreement (NAFTA) and joined the World Trade Organization (WTO). However, opponents focus on the negative impact which is job losses inside the country. Column (2011) points out that it cost 2.8 million jobs for trade between the U.S. and China. Trade deficit between countries and outsourcing during free trade lead to job losses eventually. Therefore, with the integration of global economy...
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