In 2016, the United States exported $2.2 trillion worth of goods and services—sl

Question

In 2016, the United States exported $2.2 trillion worth of goods and services—slightly down from nearly 2.4 trillion in 2014. Exports from the United States in 2016 equaled the entire gross domestic product of India. What is more, exports are an increasingly important aspect of the U.S. economy.* (data taken from: FRED Economic Research and The World Bank GDP Ranking) In this threaded discussion, complete the following 1) Discuss economic theory related to the information above. Be sure to include a definition of exports and the way in which exports are counted in the measurement of Gross Domestic Product (GDP) within your discussion. 2) Locate and incorporate outside research that gives evidence and explanation as to the possible causes of this growth in exports. Provide an example of one particular industry or country with which export quantity has increased. 3) - Integrate biblical insights into your discussion board thread. In what way does scripture or biblical themes influence our attitudes and actions in international trade?

Explanation / Answer

1) Let us first define Export. Export is sending of goods or services from one country to another country for the purpose of sale. Over here US is the exporter and it has exported worth $2.2 trillion worth goods and services to other countries. The Export is so huge that it can be compared to the GDP of the country India. Therefore, from this we can understand the gravity of the importance exports plays is overall economy growth.

According to the expenditure method- GDP= C+I+G+NX (net export) which is affected directly by export. Any increase in the export will positively impact the GDP of US.

2) Possible causes for the growth in export are improving trade relations with various other countries, liberal WTO rules and regulations, Reduction in MFN (most favoured nations) tariff, Higher export quotas, etc. One of the best example of a country where the export quantity has increased is China. US approximately export goods and services worth $505 million just to China and it has been increasing since many years. This is mainly because liberal export- import policy in both the countries and the rising population in china which is generating huge demands for goods and services which is being trapped by US.

3) There are Biblical themes which influence our attitude and action in international trade. Firstly, religion is a cultural institution that directly guides human behavior. Secondly, the sharing of particular religious cultures by people in different countries may increase trust and therefore, efficiently create networks that helps in complex international economic transactions.

For example, Buddhism has a positive direct and indirect institutional effects as well as trade-enhancing and correlated network with international trade.

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