EECS 1520 Lecture 24: EECS 1520 Lecture 24 Notes
21 Jun 2018
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EECS 1520 Lecture 24 Notes
Introduction
Trend in U.S. Balance of Trade
The proportion of total U.S. exports to various countries is shown in the upper portion
of Exhibit 2.4.
About 20 percent of all U.S. exports are to Canada and 13 percent are to Mexico.
The proportion of total U.S. imports from various countries is shown in the lower part of
Exhibit 2.4.
Canada, China, Mexico, and Japan are the key exporters to the United States
Together, they account for more than half of the value of all U.S. imports.
The quarterly trend in the U.S. balance of trade is shown in Exhibit 2.5.
The U.S. balance of- trade deficit increased substantially from 1997 until 2008.
During 2008–2009, U.S. economic conditions worsened considerably and so the U.S.
demand for foreign products and services decreased.
As a result, the balance-of-trade deficit also decreased.
Much of the U.S. trade deficit is due to a trade imbalance with just two countries: China
and Japan.
In recent years, the U.S. annual balance-of-trade deficit with China has exceeded $200
billion.
Any country’s balance of trade can change substantially over time.
Shortly after World War II, the United States experienced a large balance-of-trade
surplus because Europe relied on U.S. exports as it was rebuilt.
During the last decade, the United States has experienced balance-of-trade deficits
owing to strong U.S. demand for imported products that are produced at a lower cost
than similar products can be produced in the United States.
Factors affecting international trade flows
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Document Summary
The proportion of total u. s. exports to various countries is shown in the upper portion of exhibit 2. 4. About 20 percent of all u. s. exports are to canada and 13 percent are to mexico. The proportion of total u. s. imports from various countries is shown in the lower part of. In recent years, the u. s. annual balance-of-trade deficit with china has exceeded billion. Because international trade can significantly affect a country"s economy, it is important to identify and monitor the factors that influence it. The most influential factors are: cost of labor, inflation, national income, credit conditions, government policies, and exchange rates. Proportion of total u. s. imports from various countries is shown in the lower part of. Canada, china, mexico, and japan are the key exporters to the united states. Together, they account for more than half of the value of all u. s. imports. The quarterly trend in the u. s. balance of trade is shown in exhibit 2. 5.
