chap2-cateora (1)

7/23/2019 Chap2-Cateora (1)

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The Dynamic Environment

of International TradeChapter

2


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Top Ten 2000 U.S. Trading

Partners ($ illions!

Canada $176.4 $229.2 $405.6 -$52.8

Mexico 111.7 135.9 247.6 -24.2

Japan 65.3 146.5 211.8 -81.3China 16.3 100.0 116.3 -83.8

Germany 29.3 558.7 88.0 -29.5

Unied "in#dom 41.5 43.5 85.0 -1.9

o%h "orea 27.9 40.3 68.2 -12.4

&ai'an 24.4 40.5 64.9 -16.1(rance 21.0 29.0 50.0 -8.0

in#apore 17.4 19.6 37.0 -2.2

Country U.S. Exports U.S. Imports Total Surplus/

Deficit

Irwin/McGraw-Hill

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#opyright2002 y The %c&ra'"ill #ompanies) Inc. *ll rights reserved.


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U.S. %+ltinational in E+rope " ,-0/s

Fifteen years from now theworlds third greatest industrial

power, just after the United Statesand Russia, may not be Europe, butAmerican industry in Europe.

J.S. Servan Schreiber:

Le Defi American, 1967

What Happened?

Irwin/McGraw-Hill #opyright2002 y The %c&ra'"ill #ompanies) Inc. *ll rights reserve.

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Copyright 2002 by The McGraw-Hill Companies, Inc. All rights resere!.

The 1ationality of the orld/s ,00 3argestInd+strial #orporations (y co+ntry of origin!

United States 67 47 47 33 32 24 24 36

Germany 13 13 8 12 14 14 13 12

Britain 7 7 5 6 4 1 2 5

France 4 11 5 10 6 12 13 11

Japan 3 7 12 18 23 37 29 22

Italy 2 3 3 4 4 3 4 3

Netherlands!nited "in#d$m 2 2 2 2 2 2 2

Netherlands 1 3 1 1 1 2 2 5%&it'erland 1 1 2 3 3 3 5 3

(r#entina 1

Bel#i)m 1 1 1

Bra'il 1 1 1

*anada 2 3

India 1

")&ait 1 +e,ic$ 1 1 1 1 1

-ene')ela 1 1 1 1 1

%$)th "$rea 4 2 4 2 4

%&eden 1 2 1

%$)th (.rica 1 1

%pain 2 2

/)rey 1

*hina 2

1963 1979 1984 1990 1993 1995 1996 2000

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Irwin/McGraw-Hill


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U.S. #+rrent *cco+nt y %a5or

#omponents) ,--0",--- ($ illions!

Merchandi)e &rade

a. *xpor) $201.8 $219.9 $215.9 $224.0 $246.6 $319.9 $362.1 $389.3 $416.9 $440.4 $456.9

+. ,mpor) 268.9 332.4 338.1 368.5 409.9 446.4 477.4 498.3 491.0 536.5 589.4

c. aance -67.1 -112.5 -122.2 -144.5 -160.3 -126.5 -115.2 -109.0 -74.1 -96.1 -132.5

%)ine)) er/ice)

a. *xpor) 42.3 44.3 46.2 51.8 59.4 69.1 116.5 136.6 153.7 164.4 174.5

+. ,mpor) 35.8 42.3 47.2 51.0 58.0 63.2 86.9 98.7 101.6 104.4 112.7

c. aance 6.6 2.0 -1.0 0.8 1.4 5.9 29.6 37.9 52.1 60.0 61.8

1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993

S6U7#ES8Surve !f "urrent #u$ine$$, U.S. Department of #ommerce)

9+rea+ of Economic *nalysis. http8::'''.stat"+sa.gov:9E1:heal:sch.html.

;er+arly ,--


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1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993

U.S. #+rrent *cco+nt y %a5or#omponents) ,-


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9+ying 9oom for *sia) ,--="2000

Miion) oho%)ehod)approachin#

$18000 per year+%yin# po'er,ndexed oin#apore price)

14.4

32.5

73.3

1991 1995 2000

ha he added e'een 1993 andmidde ca)) 'i 1995 2000+%y (In million)

edroom) 32 116

i/in# oom) 16 58"ichen) 16 58

ahroom) 32 116

i/in# )pace ).m.: 1200 4350

ar#e appiance) 16 58

&ee/i)ion) 24 87

&eephone) 24 87

Car) 16 58

S6U7#E8 9ill Saporito) >here the &loal *ction Is.?

%!rtune) *+t+mn"inter ,--) p.4.Irwin/McGraw-Hill

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hat o+ld 6ne U.S. Dollar 9+yA(Selected Bears!

1985 1987 1988 1992 1993 1994 1995 1996 1997 1999 2000

British Pound 0.86 0.67 0.54 0.56 0.66 0.68 0.63 0.64 0.59 0.62 0.68

French Franc 9.6 7.55 5.4 5.29 5.67 5.55 4.95 5.12 5.94 6.49 7.28

apanese !en 250.23 123.32 123.70 126.70 111.08 102.18 93.96 108.78 129.15 102.58 112.21

S"iss Franc 2.25 2.07 1.29 1.41 1.48 1.37 1.18 1.24 1.43 1.58 1.68

#U$% 0.99 1.11

&e'ico Peso 0.37 2.21 2.28 3.12 3.11 5.31 6.45 7.60 7.92 9.43 9.47

Irwin/McGraw-Hill

( Forei)n #'chan)e $ates *or 1999 and 2000 are the a+era)e rate p*

e'chan)e in ,ece-er.

So+rce8 *dapted from '''.stat"+sa.gov

2"1ontariff 9arriers to U.S. %an+fact+red Eports)?

&he "!'umbia J!urna' !f W!r'd #u$ine$$, S+mmer ,-


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%onetary 9arriers

oc@ed C%rrencyoc@ed C%rrency


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orld Trade 7eg+lation

2",=

Irwin/McGraw-Hill

Genera ;#reemen on &ari) and &rade G;&&:Genera ;#reemen on &ari) and &rade G;&&:

ord &rade Ar#aniBaion &A:ord &rade Ar#aniBaion &A:


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hat T6 %eans to Different Ind+stries

an@) 'i +e ao'ed o compee reey in o%h "orea andoher pace) 'here hey are re)riced.

,n)%rance companie) 'i +e a+e o )e poicie) in ,ndia oneo he ord) mo) i#hy co)ed mar@e).

Mo/ie) 'i ha/e +eer proecion rom &hai imco%nereier).

harmace%ica) 'i ha/e +eer proecion rom

;r#enine imiaor).

Comp%er )o'are ma@er) 'i ha/e +eer proecion romraBiian) 'ho rip o copyri#hed pro#ram).

Gainer)Gainer)

S6U7#E8 *dapted from >hat free trade 'ill mean to different Ind+stries)?

%!rtune, *+g+st 2) ,--,) P.-2Irwin/McGraw-Hill

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Ga))'are ari) a) hi#h a) 30 percen on inexpen)i/edrin@in# #a))e) 'i +e red%ced hreaenin# )ome40000 o+).

&exie) 'i #rad%ay o)e %oa) and ari) ha proec 1.1miion U.. 'or@er) - and add 50 percen o 'hoe)ae price)o cohin#.

ean%) 'i o)e %oa) ha imi impor) o a hand% and

ha proec 19000 ;merican armer).


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&loal ;inancial Instit+tions

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