Currently, exports commodities include the following:
- agricultural products – soybeans, fruit and corn;
- industrial supplies – organic chemicals;
- capital goods – transistors, aircraft, motor vehicle parts, computers, telecommunications and equipment;
- consumer goods – automobiles and medicines (Central Intelligence Agency, 2008, n.p.).
These are exported to Canada, Mexico, China, Japan, UK, and Germany (Central Intelligence Agency, 2008, n.p.). The United States should export more goods and services as such because of the following reasons:
First of all is to establish “balance of trade” (Central Intelligence Agency, 2008, n.p.). The United States should export more goods and services so that the gains from the goods and services exported will go beyond the profits of those imported (Central Intelligence Agency, 2008, n.p.).
Second, as a result of a “balance of trade”, which leads to more gains, this in turn will bring about “economic growth” (Central Intelligence Agency, 2008, n.p.). This is due to the fact that exports: 1) “improve return on investment and increase profitability”; 2) “balances seasonal or cyclical fluctuations”; and 3) “opportunities for growth with a wider sales base” (Importance of Exporting, n.d., n.a.).
Third, exporting is also synonymous with the establishment of “high productivity plants” which means that exporting also improves the rate of employment (Bernard et. al., 1999, pp. 17 – 18).
Fourth, exports motivate other countries “to be more innovative and to utilize new technology” (Importance of Exporting, n.d., n.a.). This is highly possible especially in countries wherein the product exported to does not have such products of their own (Importance of Exporting, n.d., n.a.).
Last but not least, exporting also ensures that the “life of a certain product is extended” which usually responds to the growing demands of other countries as well (Importance of Exporting, n.d., n.a.).
References
- Bernard, A.B. & Jensen, J.B. (1999). Exporting and Productivity: The Importance of Reallocation. Retrieved December 11, 2008 from http://72.14.235.132/search?q=cache:BeNdm_N72MkJ:www.ces.census.gov/index.php/ces/cespapers%3Fdown_key%3D101617+importance+of+exporting&hl=en&ct=clnk&cd=3&gl=ph&client=firefox-a
- Central Intelligence Agency. (2008). United States. Retrieved December 11, 2008 from https://www.cia.gov/library/publications/the-world-factbook/geos/us.html#Econ
- Importance of Exporting. (n.d.). Retrieved December 11, 2008 from http://72.14.235.132/search?q=cache:8qs1Nf-lXxoJ:www.austrade.gov.au/ArticleDocuments/1451/EFF_03Importance_2004.pdf.aspx+importance+of+exporting&hl=en&ct=clnk&cd=4&gl=ph&client=firefox-a
