Explain the Trade pattern of U.S. and World Trade

Question

Explain the Trade pattern of U.S. and World Trade?

Answer 1

1. The U.S. has a trade deficit in goods.  In 1999 U.S. imports exceeded exports of goods by $346 billion.

2. While we have a deficit in goods trade, U.S. export of services exceeds the import of services by $81 billion.

3. The U.S. imports some of the same categories it exports.  Specifically they are automobiles, computers, chemicals, and semiconductors.

4. Most U.S. trade is with industrially advanced countries.

5. Canada is the United States’ most important trade partner quantitatively.  Twenty four percent of U.S. exports sold went to Canadians, who in turn provided 20 percent of U.S. imports.

6. The U.S. has sizable trade deficits with Japan and China.  In 1999, the U.S. trade deficit with Japan was $75 billion.  There was also a sizable trade deficit with China.

7. In 1999 the U.S. imported $24 billion of goods (mainly oil) from OPEC nations, while exporting $12 billion to those countries.