Transcript Slide 1

Trade Choices
You have $1,000 to spend and your alternatives are to:
Purchase one U.S. made television and one U.S. made bicycle.
or
Purchase one Chinese made television, one Korean made bicycle and two
cases of French wine.
or
Use the $1,000 for investment in the stock of a Canadian company.
Which do you choose to do?
Apples and Oranges
Apple price $.70/lb
Orange Price $.70/lb
Washington Rancher
20 acres yields
Apples 50 bu/acre
Oranges 1bu/acre
Florida Rancher
20 acres yields
Apples 2bu/acre
Oranges 40 bu/acre
U.S. GDP and Trade Nominal $$ billions
Year
GDP
Total
Total
Exports
Imports
1995
7,415
794
891
2000
9,952
1,073
1,450
2005
12,623
1,287
1,996
2006
13,377
1,459
2,213
2007
14,028
1,655
2,351
2008
14,291
1,843
2,541
2009
13,939
1,575
1,956
2010
14,526
1,837
2,337
2011
15,075
2,103
2,663
www.bea.gov
Top U.S. Trade Partners
Total Trade: Exports Plus Imports
Rank by Exports( US $--billions)
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
Canada
410
381
371
394
445
499
533
566
600
431
527
596
Mexico
247
233
232
236
267
290
332
347
367
306
393
461
China
116
122
147
181
231
285
343
384
408
366
457
503
Japan
211
184
173
170
184
193
207
206
204
147
181
195
Germany
88
89
89
97
109
119
130
143
152
114
130
148
UK
85
82
74
77
82
90
98
107
172
93
98
107
S Korea
65
51
51
49
56
57
78
82
33
68
88
100
France
50
50
47
46
53
56
61
68
73
60
65
68
http://www.census.gov/foreign-trade/balance
Trade with Canada, 2011
in billions of dollars
1-Digit SITC Commodity
Exports
Imports
19.7
17.4
1 Beverages and Tobacco
1.4
0.85
2 Crude Materials, Inedible, except Fuels
8.2
11.8
18.3
101.9
0.6
1.2
5 Chemicals and Related Products, N.E.S.
32.4
28.1
6 Manufactured Goods Classified Chiefly by Material
38.7
40.4
7 Machinery and Transport Equipment
124.6
83.3
8 Miscellaneous Manufactured Articles
29.2
13.2
9 Commodities and Transactions, N.E.S.
7.7
16.3
280.8
314.5
0 Food and Live Animals
3 Mineral Fuels, Lubricants and Related Materials
4 Animal and Vegetable Oils, Fats and Waxes
* TOTAL *
tse.export.gov
Trade with Mexico, 2011
1-Digit SITC Commodityin billions of dollars
Exports
Imports
0 Food and Live Animals
13.7
14.0
1 Beverages and Tobacco
0.6
2.8
2 Crude Materials, Inedible, except Fuels
7.3
1.9
3 Mineral Fuels, Lubricants and Related Materials
23.6
44.0
4 Animal and Vegetable Oils, Fats and Waxes
0.9
0.07
5 Chemicals and Related Products, N.E.S.
23.5
4.8
6 Manufactured Goods Classified Chiefly by Material
25.0
19.0
7 Machinery and Transport Equipment
84.0
139.5
8 Miscellaneous Manufactured Articles
13.8
24.5
9 Commodities and Transactions, N.E.S.
6.2
12.4
198.6
263.0
* TOTAL *
tse.export.gov
1-Digit SITC Commodity
Trade with China, 2011
in billions of dollars
Exports
Imports
0 Food and Live Animals
4.9
5.6
1 Beverages and Tobacco
0.2
0.04
2 Crude Materials, Inedible, except Fuels
32.3
1.9
3 Mineral Fuels, Lubricants and Related Materials
2.0
0.5
4 Animal and Vegetable Oils, Fats and Waxes
0.2
0.04
5 Chemicals and Related Products, N.E.S.
14.4
13.9
6 Manufactured Goods Classified Chiefly by Material
5.4
42.4
7 Machinery and Transport Equipment
36.4
202.0
8 Miscellaneous Manufactured Articles
7.1
128.9
9 Commodities and Transactions, N.E.S.
1.0
4.2
103.9
399.5
* TOTAL *
tse.export.gov
Imports of Goods by Principal End-Use Category 2011
Other Goods; 3%
Consumer Goods;
27%
Foods, Feeds, &
Beverages; 4%
Industrial Supplies;
24%
Automotive Vehicles,
etc.; 13%
Capital Goods; 29%
Exports of Goods by Principal End-Use Category 2011
Consumer Goods;
13%
Other Goods; 3%
Foods, Feeds, &
Beverages; 6%
Industrial Supplies;
27%
Automotive Vehicles,
etc.; 10%
Capital Goods; 41%
U.S. Services Imports 2011
Direct Defense
Expenditures; 7%
Travel; 19%
Passenger Fares; 7%
Other Private
Services; 45%
Other Transportation;
13%
Royalties & License
Fees; 9%
U.S. Services Exports 2011
Transfers Under U.S.
Military Sales
Contracts; 3%
Travel; 19%
Passenger
Fares, 6%
Other Private
Services; 45%
Other
Transportation
7%
Royalties & License
Fees; 20%
U.S. Balance of Payments 2008
($ billions)
Current Account
-706.0
Merchandise trade balance
-695.9
Goods & Services exports 1,826.6
Goods & Services imports -2,522.5
Net Transfers
-128.3
Net Income Payments
118.2
Capital Account
Increase in U.S. holdings of foreign assets
Increase in Foreign holdings of U.S. assets
Statistical Discrepancy
http:bea.gov
+706.0
-106
505,166
+200
Sources of U.S. Imports 2011
Africa; 1%
South and Central
America; 8%
All Others; 3%
Pacific Rim; 9%
OPEC; 9%
Japan; 6%
EU; 17%
China; 18%
Other Europe; 4%
Canada; 14%
Mexico; 12%
Destinations of U.S. Exports 2011
Africa; 2%
South and Central
America; 11%
All Others; 4%
Pacific Rim; 13%
OPEC; 4%
Japan; 4%
China; 7%
Other
Europe, 4%
EU; 18%
Mexico; 13%
Canada; 19%
U. S. Goods Trade Balance With Other Nations, 2011
($US - billions)
Country
Exports
Imports
Trade Balance
Canada
281
315
-34
Mexico
198
263
-65
China
104
399
-295
Japan
66
129
-63
Germany
49
99
-50
EU
268
368
-100
Taiwan
26
41
-15
South Korea
43
57
-14
France
28
40
-12
http://www.census.gov/foreign-trade/balance/
U.S. Balance of Payments 2011
($ millions)
Current Account
Goods & Services exports
Goods 1,497,406;
-465,926
2,103,367
Services 605,961
Goods & Services imports
-2,663,247
Goods -2,235,819; Services -427,428
Net Transfers
Net Income Payments
Capital Account
U.S. Owned Assets Abroad
Foreign Owned Assets in the U.S.
Capital Transactions
Statistical Discrepancy
http:bea.gov
-133,053
227,007
+465,926
-483,653
1,009,900
-1,212
-89,208
Destinations of U.S. Foreign Direct
Investment
2011
(percent)
Sources of Foreign Direct Investment
in the United States
2011
(percent)
United Kingdom
13
United Kingdom
17
Canada
8
Japan*
11
Netherlands
14
Netherlands
9
Japan
3
Germany
8
Germany
3
France
8
Australia
3
Canada
8
Switzerland
3
Switzerland
8
Bermuda
8
Luxembourg
7
France
2
http://bea.gov
**2008
Statistical Comparison of NAFTA Countries, 1997
(In current U.S. $$)
Population
(millions)
GDP
(billions
U.S.$)
GDP
per capita
Exports
(billions $)
Imports
(billions
$)
Canada
29.9
637.5
21,260
250.6
238.5
Mexico
95.4
401.4
4,207
121.6
122.4
U.S.
272.6
8,265.0
30,282
934.8
1,042.7
Statistical Comparison of NAFTA Countries, 2011
(In current U.S. $$)
Population
(millions)
GDP
(billions
U.S.$)
GDP
per capita
Exports
(billions $)
Imports
(billion $)
Canada
34.5
1,736.0
50,345
539.1
561.9
Mexico
114.8
1,153.3
10,047
365.2
380.6
U.S.
311.6
14,991.3
48,112
2,105
2,665.0
Hourly Compensation Costs for Workers
in Manufacturing, Selected Countries, 2011 (current dollars)
Labor Costs
(in $ U.S.)
United States
Canada
France
Germany
Italy
Japan
United Kingdom
Korea
Mexico
Singapore
Philippines
35.53
36.56
42.12
47.38
36.17
35.71
30.77
18.91
6.48
22.60
2.01
v
www.bls.gov