Can you please give me 5 intelligent questions about this power point to ask to
ID: 1110376 • Letter: C
Question
Can you please give me 5 intelligent questions about this power point to ask to the presenter?
The Top U.S.International Exporters
Overview
• The U.S. has the 2nd largest export economy in the world
• 8th most complex economy according to the Economic Complexity Index
(ECI).
• In 2016, the United States exported $1.42T and imported $2.21T, resulting in
a negative trade balance of $783B.
• In 2016 the GDP of the United States was $18.6T and its GDP per capita
was $57.5k.
Importance of Exports
• Employment: Traditionally export jobs have been in manufacturing industries; an
important source of full-time employment, especially in industrial regions.
• Economic Growth: Exports are a component of aggregate demand (AD). Rising
exports will help increase AD and cause higher economic growth.
• Current Account Deficit: The strength of exports has a large role in determining
the Current Account Deficit(measurement of a country's trade where the value of
the goods and services it imports exceeds the value of the goods and services it
exports.)
What determines the level of exports?
• Competitiveness
• Quality and value added of exports
• Exchange rate
• Long run productivity
• Economic growth in other countries
How to increase the level of exports?
• Supply side policies to improve competitiveness.
• Promote private sector innovation.
• Reduce tariff barriers.
The Top U.S. International Exports in 2012
(continued)
• Most of U.S. top exporters also have production facilities abroad.
• Because of that, total sales are much higher than indicated by their exports.
• Net value is hard to determine since parts of components of many exported
goods are imported into the country.
U.S. Exports by Country
The top export destinations of the United States are:
• Canada ($266B) (NAFTA Member)
• Mexico ($229B) (NAFTA Member)
• China ($115B)
• Japan ($63.2B)
• United Kingdom ($55.3B)
Estimating the Demand for U.S. Imports and
Exports
• The demand for U.S. Imports(Qm) is a function of the dollar price of the
imported commodity or service(Pm), U.S. consumers income (I), the number
of U.S consumer(N), the dollar price of a related commodity or service in
the U.S.(Py), taste of the U.S consumers(T) and other significant variables
that determine demand.
• Qm = f(Pm, I, N, Py, T, …)
• The dollar price price of U.S. imports depends on prices in exporting nations
and on the rate of exchange between the dollar and foreign currencies.
Explanation / Answer
Q 1. Being 8th most complex economy according to the Economic Complexity Index(ECI), how US has the 2nd largest export economy in the world?
Q 2. Explain the role of exports in the US Economy.
Q 3. If Competitiveness determines the level of exports then how US is able to manage the 2nd position with its level of competitivness?
Q 4 Which is the top export county for US and why?
Q 5. What is the importance of exports in US economy? Can it be replaced by anything else?