In 2014, \"the United States exported $2.34 trillion worth of goods and services

Question

In 2014, "the United States exported $2.34 trillion worth of goods and services - an all time record. Exports from the US in 2014 equaled the entire gross domestic product of Brazil and exceeded all commercial output in India, Italy, or Mexico. What is more, exports are an increasingly important aspect of the US economy."

1) discuss economic theory related to the quote above. Be sure to include a definition of exports and the way in which exports are counted in the measurement of GDP.

2) locate and incorporate outside research that gives evidence and explanation as to the possible causes of this growth in exports. Provide one example of one particular industry or country with which export quantity has increased.

Explanation / Answer

1. International trade takes place because of the variations in the product factors that causes difference in price in different countries. These price differences are the main causes of international trade. Goods that are purchased from another country are imports, and the goods that are sold are exports. Net exports (Exports-Imports) is a component in the calculation of GDP. Imports are subtracted, not because they are a drag on output, but because imports are included in the other elements of identity. That’s the reason why it is termed as net exports in the whole GDP expression.

2. The U.S. exports grew dramatically for a variety of reasons. The jobs supported by exports has increased more than 16 percent since 2009. Nearly 30 percent of the GDP growth over the last five years has been the result of export growth. Countries like China, Mexico, and Canada have contributed the most to export growth since 2009. Petroleum products, chemicals, and electronic products also contributed significantly to the export growth of the United States. At the state level, five states have reported the largest dollar increase in exports. Hence exports are an increasingly impact of the U.S. economy. Aircraft and spacecraft was the fastest growing among the top ten export categories during 2015, and America’s top ten exports accounted for 68.4% of the overall value of its global shipments.

*****

Related Questions

Navigate

• Browse (All)
• Browse I
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.