Conventional trade statistics may no longer be as reliable


" As goods and services cross borders several times at different stages of processing, conventional trade statistic may not tell whole story"

1. When Gurria refers to " conventional trade statistic, he means statistics that have:

• historically been provided only to government analyst.

• been used only by the Organization for Economic Cooperation and Development.

• only been made available to the World Bark.

• historically been publically available and commonly used.

2. Conventional trade statistics may no longer be as reliable as they once were because:

• the U.S. government has assumed responsibly for the trade statistics.

• the Organization for Economic Cooperation and Development has changed constituency several times.

• once goods and services cross borders several times, double counting may occur.

• countries could be providing fraudulent information.

3. Inaccurate trade statistics cause problems because they:

• make it less difficult to evaluate the revenue of tariffs.

• create inconsistencies when planning trade wars.

• reduce the accuracy of export and import nformation.

• make it less difficult to establish quotas.

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Macroeconomics: Conventional trade statistics may no longer be as reliable
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