The United States export base is one of the leading in the world. The US exports both commodities and professional services around the world. The US is the second largest exporter of goods in the whole world and the largest exporter of professional and commercial services. However, regarding value, the commodity industry is bigger than the service industry. In the commodities industry, the number value of imports to the Us compared to the exports is usually higher resulting in deficit whereas the exports for the service industry are more than what is imported. Despite the trade of services surplus the net effect of the gross imports for the US is usually a deficit. It means that the US imports more than it exports wholesomely.
In the year 2017, America shipped goods worth US$1.547 trillion around the world. Nearly 70% of all these exports were contributed by ten significant exports. These include machines including computers, electrical machinery and equipment, mineral fuels, aircraft and Spacecraft, vehicles, optical, medical apparatus, plastics, gems and precious metals, pharmaceuticals and organic chemicals. Majority of the US exports running to over 75% of the total exports are shared among 20 trading partners ( Patatoukas, 2011 ). These include China being the leading, Canada, Mexico, Japan, and Germany closing a list of the best five.
Delegate your assignment to our experts and they will do the rest.
The U.S has dominated the service export industry for a long time. The main export in this category is the travel industry backed up by financial, charges for the use of intellectual property, transport, telecommunication computer & information services, maintenance and repairs, government, insurance and other business services. The affinity for high-quality services spurs global demand hence creating a comparative advantage for the United States, and this explains why it is leading to the exports of services; Thus it results in a surplus in services export as the US always exports more than it imports.
The export base of the use as per the above is in line with the predictions of my last paper. The United States is rich in natural resources coal being the leading mineral. Further to this, they have sophisticated technology and equipment coupled with a strong economy; thus they have a comparative in the production of innovative products. Some of these products cannot be manufactured in other countries as they lack the necessary skilled labor and they have limited knowledge in such production processes. It explains why the US is the second largest exporter around the globe with the leading exports being sophisticated machines and equipment like computers, aircrafts, medical apparatus and many more others ( Anderson & Wittwer, 2013) . Most countries usually import these goods because of the size of their economies, level of technology and low competency of their labor supply.
Reports from a recent study from Mckinsey Global Institute showed that the United States labor productivity in the service industry exceeds other competing countries ( Kilkenny,& Partridge, 2009 ). Therefore, the United States holds a comparative advantage in the service based industries including travel, government-military services, intellectual properties comprising of royalties and fees, financial, insurance and business services. The result is that globally the United States is the leading exporter of professional services leading to a trade surplus in this industry.
In conclusion, The United States export industry is robust and globally leading. It is profoundly contributed by its economic superiority, abundant natural resources, high level of technology backed up by a highly skilled labor force. Despite this, the net effect of its trade is a deficit mainly caused by the fact that it imports more goods especially labor-intensive products than it exports besides a surplus in the service industry, which is not enough to knock off the deficit.
References
Anderson, K., & Wittwer, G. (2013). Modeling global wine markets to 2018: Exchange rates, taste changes, and China's import growth. Journal of Wine Economics , 8 (2), 131-158.
Kilkenny, M., & Partridge, M. D. (2009). Export sectors and rural development. American Journal of Agricultural Economics , 91 (4), 910-929.
Patatoukas, P. N. (2011). Customer-base concentration: Implications for firm performance and capital markets: 2011 american accounting association competitive manuscript award winner. The Accounting Review , 87 (2), 363-392.
