The United States and World TradeThis is a featured page

  • Volume and Pattern:
    • volume: the volume of international trade in the world is increasing relative to GDPs as well as absolutely based on dollar amounts of exports
    • pattern:tendencies in trade between deficit and surplus
  • Dependence: when one nation relies heavily on imports from other nations. (America)
    • world trade is a "two-way street" a nation must both export and import goods and services for the international linkages to be effective.
  • Trade Patterns:
    • trade deficit- when imports exceed exports
    • trade surplus- when exports exceed imports

  • Financial Linkage
    • The United States obtains more goods from others than providing them, however by either borrowing from foreigners or selling real assets (ex. factories, real estate) to them, it finance its trade deficits.
    • In case of Japan, they "recycle their excess dollars" by buying U.S. real estate. This which helps the United States financially.
  • Rapid Trade Growth
    • Transportation technology: transportation cost is cost that needs for transporting products from firms to households. As firms have higher cost of the transportation, they have lower profit. But with the development of transportation technology, now there are many different kinds of transportation for different types of goods. (example : plane, car, rail, and etc)
    • Communications technology: improvements in communications technology, such as computers, the Internet, telephones and fax machines, advances world trade. Such technology allows for direct links between traders around the world. Overall, improvements in technology increases convenience for traders.
    • Decline in tariffs: have generally fallen since 1940. Because of lowered tariffs, international trade has increased.

  • Participants in International Trade
    • Top participants: The top participants in world trade are Germany, the United States, China, and Japan. Other western European nations like France, Britain, and Italy are also major importers and exporters.
    • Multinational corporations: Multinational corporations are firms that have a large amount of production and distribution activities in other countries. The headquarters for the world's large multinational corporations are mostly provided by the top participants in international trade, such as the United States, Japan, and the western European countries.
    • New participants: China has become an important participant in world trade. The reason is that China has increased its reliance on the market system, and reintegrated with Hong Kong, an active participant in international trade. China is currently experiencing a remarkable economic growth, and its total output nearly doubles every 8 years.



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claire425 		Latest page update: made by claire425 , Aug 29 2007, 1:42 PM EDT (about this update About This Update claire425 Edited by claire425


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