The United States function in global commerce
With more imports and exports than any other nation, the US is the biggest
trader in the world. What is the true meaning of this? Does this imply that
American production, consumption, and employment are more reliant on trade
with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold. With more imports and exports than any other nation, the US is the
biggest trader in the world. What is the true meaning of this? Does this imply
that American production, consumption, and employment are more reliant on
trade with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold.
With more imports and exports than any other nation, the US is the biggest
trader in the world. What is the true meaning of this? Does this imply that
American production, consumption, and employment are more reliant on trade
with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold.
With more imports and exports than any other nation, the US is the biggest
trader in the world. What is the true meaning of this? Does this imply that
American production, consumption, and employment are more reliant on trade
with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold.
With more imports and exports than any other nation, the US is the biggest
trader in the world. What is the true meaning of this? Does this imply that
American production, consumption, and employment are more reliant on trade
with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold.
With more imports and exports than any other nation, the US is the biggest
trader in the world. What is the true meaning of this? Does this imply that
American production, consumption, and employment are more reliant on trade
with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold.
With more imports and exports than any other nation, the US is the biggest
trader in the world. What is the true meaning of this? Does this imply that
American production, consumption, and employment are more reliant on trade
with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold.
With more imports and exports than any other nation, the US is the biggest
trader in the world. What is the true meaning of this? Does this imply that
American production, consumption, and employment are more reliant on trade
with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold.
With more imports and exports than any other nation, the US is the biggest
trader in the world. What is the true meaning of this? Does this imply that
American production, consumption, and employment are more reliant on trade
with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold.
With more imports and exports than any other nation, the US is the biggest
trader in the world. What is the true meaning of this? Does this imply that
American production, consumption, and employment are more reliant on trade
with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold.
With more imports and exports than any other nation, the US is the biggest
trader in the world. What is the true meaning of this? Does this imply that
American production, consumption, and employment are more reliant on trade
with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold.
With more imports and exports than any other nation, the US is the biggest
trader in the world. What is the true meaning of this? Does this imply that
American production, consumption, and employment are more reliant on trade
with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold.
With more imports and exports than any other nation, the US is the biggest
trader in the world. What is the true meaning of this? Does this imply that
American production, consumption, and employment are more reliant on trade
with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold.
With more imports and exports than any other nation, the US is the biggest
trader in the world. What is the true meaning of this? Does this imply that
American production, consumption, and employment are more reliant on trade
with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold.
With more imports and exports than any other nation, the US is the biggest
trader in the world. What is the true meaning of this? Does this imply that
American production, consumption, and employment are more reliant on trade
with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold. With more imports and exports than any other nation, the US is the
biggest trader in the world. What is the true meaning of this? Does this imply
that American production, consumption, and employment are more reliant on
trade with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold. With more imports and exports than any other nation, the US is the
biggest trader in the world. What is the true meaning of this? Does this imply
that American production, consumption, and employment are more reliant on
trade with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold.
With more imports and exports than any other nation, the US is the biggest
trader in the world. What is the true meaning of this? Does this imply that
American production, consumption, and employment are more reliant on trade
with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold.
With more imports and exports than any other nation, the US is the biggest
trader in the world. What is the true meaning of this? Does this imply that
American production, consumption, and employment are more reliant on trade
with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold.
With more imports and exports than any other nation, the US is the biggest
trader in the world. What is the true meaning of this? Does this imply that
American production, consumption, and employment are more reliant on trade
with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold.
With more imports and exports than any other nation, the US is the biggest
trader in the world. What is the true meaning of this? Does this imply that
American production, consumption, and employment are more reliant on trade
with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold.
With more imports and exports than any other nation, the US is the biggest
trader in the world. What is the true meaning of this? Does this imply that
American production, consumption, and employment are more reliant on trade
with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold.
With more imports and exports than any other nation, the US is the biggest
trader in the world. What is the true meaning of this? Does this imply that
American production, consumption, and employment are more reliant on trade
with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold.
With more imports and exports than any other nation, the US is the biggest
trader in the world. What is the true meaning of this? Does this imply that
American production, consumption, and employment are more reliant on trade
with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold.
With more imports and exports than any other nation, the US is the biggest
trader in the world. What is the true meaning of this? Does this imply that
American production, consumption, and employment are more reliant on trade
with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold.
With more imports and exports than any other nation, the US is the biggest
trader in the world. What is the true meaning of this? Does this imply that
American production, consumption, and employment are more reliant on trade
with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold.
With more imports and exports than any other nation, the US is the biggest
trader in the world. What is the true meaning of this? Does this imply that
American production, consumption, and employment are more reliant on trade
with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold.
With more imports and exports than any other nation, the US is the biggest
trader in the world. What is the true meaning of this? Does this imply that
American production, consumption, and employment are more reliant on trade
with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold.
With more imports and exports than any other nation, the US is the biggest
trader in the world. What is the true meaning of this? Does this imply that
American production, consumption, and employment are more reliant on trade
with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold.
With more imports and exports than any other nation, the US is the biggest
trader in the world. What is the true meaning of this? Does this imply that
American production, consumption, and employment are more reliant on trade
with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold.
With more imports and exports than any other nation, the US is the biggest
trader in the world. What is the true meaning of this? Does this imply that
American production, consumption, and employment are more reliant on trade
with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold. With more imports and exports than any other nation, the US is the
biggest trader in the world. What is the true meaning of this? Does this imply
that American production, consumption, and employment are more reliant on
trade with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold.
With more imports and exports than any other nation, the US is the biggest
trader in the world. What is the true meaning of this? Does this imply that
American production, consumption, and employment are more reliant on trade
with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold.
With more imports and exports than any other nation, the US is the biggest
trader in the world. What is the true meaning of this? Does this imply that
American production, consumption, and employment are more reliant on trade
with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold.
With more imports and exports than any other nation, the US is the biggest
trader in the world. What is the true meaning of this? Does this imply that
American production, consumption, and employment are more reliant on trade
with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold.
With more imports and exports than any other nation, the US is the biggest
trader in the world. What is the true meaning of this? Does this imply that
American production, consumption, and employment are more reliant on trade
with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold.
With more imports and exports than any other nation, the US is the biggest
trader in the world. What is the true meaning of this? Does this imply that
American production, consumption, and employment are more reliant on trade
with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold.
With more imports and exports than any other nation, the US is the biggest
trader in the world. What is the true meaning of this? Does this imply that
American production, consumption, and employment are more reliant on trade
with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold.
With more imports and exports than any other nation, the US is the biggest
trader in the world. What is the true meaning of this? Does this imply that
American production, consumption, and employment are more reliant on trade
with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold.
With more imports and exports than any other nation, the US is the biggest
trader in the world. What is the true meaning of this? Does this imply that
American production, consumption, and employment are more reliant on trade
with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold.
With more imports and exports than any other nation, the US is the biggest
trader in the world. What is the true meaning of this? Does this imply that
American production, consumption, and employment are more reliant on trade
with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold.
With more imports and exports than any other nation, the US is the biggest
trader in the world. What is the true meaning of this? Does this imply that
American production, consumption, and employment are more reliant on trade
with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold.
With more imports and exports than any other nation, the US is the biggest
trader in the world. What is the true meaning of this? Does this imply that
American production, consumption, and employment are more reliant on trade
with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold.
With more imports and exports than any other nation, the US is the biggest
trader in the world. What is the true meaning of this? Does this imply that
American production, consumption, and employment are more reliant on trade
with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold.
With more imports and exports than any other nation, the US is the biggest
trader in the world. What is the true meaning of this? Does this imply that
American production, consumption, and employment are more reliant on trade
with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold.
With more imports and exports than any other nation, the US is the biggest
trader in the world. What is the true meaning of this? Does this imply that
American production, consumption, and employment are more reliant on trade
with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold. With more imports and exports than any other nation, the US is the
biggest trader in the world. What is the true meaning of this? Does this imply
that American production, consumption, and employment are more reliant on
trade with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold.
With more imports and exports than any other nation, the US is the biggest
trader in the world. What is the true meaning of this? Does this imply that
American production, consumption, and employment are more reliant on trade
with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold.
With more imports and exports than any other nation, the US is the biggest
trader in the world. What is the true meaning of this? Does this imply that
American production, consumption, and employment are more reliant on trade
with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold.
With more imports and exports than any other nation, the US is the biggest
trader in the world. What is the true meaning of this? Does this imply that
American production, consumption, and employment are more reliant on trade
with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold.
With more imports and exports than any other nation, the US is the biggest
trader in the world. What is the true meaning of this? Does this imply that
American production, consumption, and employment are more reliant on trade
with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold.
With more imports and exports than any other nation, the US is the biggest
trader in the world. What is the true meaning of this? Does this imply that
American production, consumption, and employment are more reliant on trade
with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold.
With more imports and exports than any other nation, the US is the biggest
trader in the world. What is the true meaning of this? Does this imply that
American production, consumption, and employment are more reliant on trade
with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold.
With more imports and exports than any other nation, the US is the biggest
trader in the world. What is the true meaning of this? Does this imply that
American production, consumption, and employment are more reliant on trade
with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold.
With more imports and exports than any other nation, the US is the biggest
trader in the world. What is the true meaning of this? Does this imply that
American production, consumption, and employment are more reliant on trade
with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold.
With more imports and exports than any other nation, the US is the biggest
trader in the world. What is the true meaning of this? Does this imply that
American production, consumption, and employment are more reliant on trade
with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold.
With more imports and exports than any other nation, the US is the biggest
trader in the world. What is the true meaning of this? Does this imply that
American production, consumption, and employment are more reliant on trade
with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold.
With more imports and exports than any other nation, the US is the biggest
trader in the world. What is the true meaning of this? Does this imply that
American production, consumption, and employment are more reliant on trade
with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold.
With more imports and exports than any other nation, the US is the biggest
trader in the world. What is the true meaning of this? Does this imply that
American production, consumption, and employment are more reliant on trade
with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold.
With more imports and exports than any other nation, the US is the biggest
trader in the world. What is the true meaning of this? Does this imply that
American production, consumption, and employment are more reliant on trade
with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold.
With more imports and exports than any other nation, the US is the biggest
trader in the world. What is the true meaning of this? Does this imply that
American production, consumption, and employment are more reliant on trade
with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold. With more imports and exports than any other nation, the US is the
biggest trader in the world. What is the true meaning of this? Does this imply
that American production, consumption, and employment are more reliant on
trade with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold.
With more imports and exports than any other nation, the US is the biggest
trader in the world. What is the true meaning of this? Does this imply that
American production, consumption, and employment are more reliant on trade
with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold.
With more imports and exports than any other nation, the US is the biggest
trader in the world. What is the true meaning of this? Does this imply that
American production, consumption, and employment are more reliant on trade
with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold.
With more imports and exports than any other nation, the US is the biggest
trader in the world. What is the true meaning of this? Does this imply that
American production, consumption, and employment are more reliant on trade
with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold.
With more imports and exports than any other nation, the US is the biggest
trader in the world. What is the true meaning of this? Does this imply that
American production, consumption, and employment are more reliant on trade
with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold.
With more imports and exports than any other nation, the US is the biggest
trader in the world. What is the true meaning of this? Does this imply that
American production, consumption, and employment are more reliant on trade
with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold.
With more imports and exports than any other nation, the US is the biggest
trader in the world. What is the true meaning of this? Does this imply that
American production, consumption, and employment are more reliant on trade
with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold.
With more imports and exports than any other nation, the US is the biggest
trader in the world. What is the true meaning of this? Does this imply that
American production, consumption, and employment are more reliant on trade
with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold.
With more imports and exports than any other nation, the US is the biggest
trader in the world. What is the true meaning of this? Does this imply that
American production, consumption, and employment are more reliant on trade
with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold.
With more imports and exports than any other nation, the US is the biggest
trader in the world. What is the true meaning of this? Does this imply that
American production, consumption, and employment are more reliant on trade
with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold.
With more imports and exports than any other nation, the US is the biggest
trader in the world. What is the true meaning of this? Does this imply that
American production, consumption, and employment are more reliant on trade
with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold.
With more imports and exports than any other nation, the US is the biggest
trader in the world. What is the true meaning of this? Does this imply that
American production, consumption, and employment are more reliant on trade
with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold.
With more imports and exports than any other nation, the US is the biggest
trader in the world. What is the true meaning of this? Does this imply that
American production, consumption, and employment are more reliant on trade
with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold.
With more imports and exports than any other nation, the US is the biggest
trader in the world. What is the true meaning of this? Does this imply that
American production, consumption, and employment are more reliant on trade
with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold.
With more imports and exports than any other nation, the US is the biggest
trader in the world. What is the true meaning of this? Does this imply that
American production, consumption, and employment are more reliant on trade
with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold. With more imports and exports than any other nation, the US is the
biggest trader in the world. What is the true meaning of this? Does this imply
that American production, consumption, and employment are more reliant on
trade with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold.
With more imports and exports than any other nation, the US is the biggest
trader in the world. What is the true meaning of this? Does this imply that
American production, consumption, and employment are more reliant on trade
with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold.
With more imports and exports than any other nation, the US is the biggest
trader in the world. What is the true meaning of this? Does this imply that
American production, consumption, and employment are more reliant on trade
with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold.
With more imports and exports than any other nation, the US is the biggest
trader in the world. What is the true meaning of this? Does this imply that
American production, consumption, and employment are more reliant on trade
with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold.
With more imports and exports than any other nation, the US is the biggest
trader in the world. What is the true meaning of this? Does this imply that
American production, consumption, and employment are more reliant on trade
with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold.
With more imports and exports than any other nation, the US is the biggest
trader in the world. What is the true meaning of this? Does this imply that
American production, consumption, and employment are more reliant on trade
with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold.
With more imports and exports than any other nation, the US is the biggest
trader in the world. What is the true meaning of this? Does this imply that
American production, consumption, and employment are more reliant on trade
with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold.
With more imports and exports than any other nation, the US is the biggest
trader in the world. What is the true meaning of this? Does this imply that
American production, consumption, and employment are more reliant on trade
with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold.
With more imports and exports than any other nation, the US is the biggest
trader in the world. What is the true meaning of this? Does this imply that
American production, consumption, and employment are more reliant on trade
with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold.
With more imports and exports than any other nation, the US is the biggest
trader in the world. What is the true meaning of this? Does this imply that
American production, consumption, and employment are more reliant on trade
with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold.
With more imports and exports than any other nation, the US is the biggest
trader in the world. What is the true meaning of this? Does this imply that
American production, consumption, and employment are more reliant on trade
with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold.
With more imports and exports than any other nation, the US is the biggest
trader in the world. What is the true meaning of this? Does this imply that
American production, consumption, and employment are more reliant on trade
with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold.
With more imports and exports than any other nation, the US is the biggest
trader in the world. What is the true meaning of this? Does this imply that
American production, consumption, and employment are more reliant on trade
with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold.
With more imports and exports than any other nation, the US is the biggest
trader in the world. What is the true meaning of this? Does this imply that
American production, consumption, and employment are more reliant on trade
with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold.
With more imports and exports than any other nation, the US is the biggest
trader in the world. What is the true meaning of this? Does this imply that
American production, consumption, and employment are more reliant on trade
with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold. With more imports and exports than any other nation, the US is the
biggest trader in the world. What is the true meaning of this? Does this imply
that American production, consumption, and employment are more reliant on
trade with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold.
With more imports and exports than any other nation, the US is the biggest
trader in the world. What is the true meaning of this? Does this imply that
American production, consumption, and employment are more reliant on trade
with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold.
With more imports and exports than any other nation, the US is the biggest
trader in the world. What is the true meaning of this? Does this imply that
American production, consumption, and employment are more reliant on trade
with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold.
With more imports and exports than any other nation, the US is the biggest
trader in the world. What is the true meaning of this? Does this imply that
American production, consumption, and employment are more reliant on trade
with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold.
With more imports and exports than any other nation, the US is the biggest
trader in the world. What is the true meaning of this? Does this imply that
American production, consumption, and employment are more reliant on trade
with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold.
With more imports and exports than any other nation, the US is the biggest
trader in the world. What is the true meaning of this? Does this imply that
American production, consumption, and employment are more reliant on trade
with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold.
With more imports and exports than any other nation, the US is the biggest
trader in the world. What is the true meaning of this? Does this imply that
American production, consumption, and employment are more reliant on trade
with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold.
With more imports and exports than any other nation, the US is the biggest
trader in the world. What is the true meaning of this? Does this imply that
American production, consumption, and employment are more reliant on trade
with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold.
With more imports and exports than any other nation, the US is the biggest
trader in the world. What is the true meaning of this? Does this imply that
American production, consumption, and employment are more reliant on trade
with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold.
With more imports and exports than any other nation, the US is the biggest
trader in the world. What is the true meaning of this? Does this imply that
American production, consumption, and employment are more reliant on trade
with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold.
With more imports and exports than any other nation, the US is the biggest
trader in the world. What is the true meaning of this? Does this imply that
American production, consumption, and employment are more reliant on trade
with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold.
With more imports and exports than any other nation, the US is the biggest
trader in the world. What is the true meaning of this? Does this imply that
American production, consumption, and employment are more reliant on trade
with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold.
With more imports and exports than any other nation, the US is the biggest
trader in the world. What is the true meaning of this? Does this imply that
American production, consumption, and employment are more reliant on trade
with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold.
With more imports and exports than any other nation, the US is the biggest
trader in the world. What is the true meaning of this? Does this imply that
American production, consumption, and employment are more reliant on trade
with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold.
With more imports and exports than any other nation, the US is the biggest
trader in the world. What is the true meaning of this? Does this imply that
American production, consumption, and employment are more reliant on trade
with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold. With more imports and exports than any other nation, the US is the
biggest trader in the world. What is the true meaning of this? Does this imply
that American production, consumption, and employment are more reliant on
trade with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold.
With more imports and exports than any other nation, the US is the biggest
trader in the world. What is the true meaning of this? Does this imply that
American production, consumption, and employment are more reliant on trade
with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold.
With more imports and exports than any other nation, the US is the biggest
trader in the world. What is the true meaning of this? Does this imply that
American production, consumption, and employment are more reliant on trade
with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold.
With more imports and exports than any other nation, the US is the biggest
trader in the world. What is the true meaning of this? Does this imply that
American production, consumption, and employment are more reliant on trade
with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold.
With more imports and exports than any other nation, the US is the biggest
trader in the world. What is the true meaning of this? Does this imply that
American production, consumption, and employment are more reliant on trade
with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold.
With more imports and exports than any other nation, the US is the biggest
trader in the world. What is the true meaning of this? Does this imply that
American production, consumption, and employment are more reliant on trade
with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold.
With more imports and exports than any other nation, the US is the biggest
trader in the world. What is the true meaning of this? Does this imply that
American production, consumption, and employment are more reliant on trade
with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold.
With more imports and exports than any other nation, the US is the biggest
trader in the world. What is the true meaning of this? Does this imply that
American production, consumption, and employment are more reliant on trade
with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold.
With more imports and exports than any other nation, the US is the biggest
trader in the world. What is the true meaning of this? Does this imply that
American production, consumption, and employment are more reliant on trade
with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold.
With more imports and exports than any other nation, the US is the biggest
trader in the world. What is the true meaning of this? Does this imply that
American production, consumption, and employment are more reliant on trade
with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold.
With more imports and exports than any other nation, the US is the biggest
trader in the world. What is the true meaning of this? Does this imply that
American production, consumption, and employment are more reliant on trade
with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold.
With more imports and exports than any other nation, the US is the biggest
trader in the world. What is the true meaning of this? Does this imply that
American production, consumption, and employment are more reliant on trade
with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold.
With more imports and exports than any other nation, the US is the biggest
trader in the world. What is the true meaning of this? Does this imply that
American production, consumption, and employment are more reliant on trade
with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold.
With more imports and exports than any other nation, the US is the biggest
trader in the world. What is the true meaning of this? Does this imply that
American production, consumption, and employment are more reliant on trade
with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold.
With more imports and exports than any other nation, the US is the biggest
trader in the world. What is the true meaning of this? Does this imply that
American production, consumption, and employment are more reliant on trade
with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold. With more imports and exports than any other nation, the US is the
biggest trader in the world. What is the true meaning of this? Does this imply
that American production, consumption, and employment are more reliant on
trade with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold.
With more imports and exports than any other nation, the US is the biggest
trader in the world. What is the true meaning of this? Does this imply that
American production, consumption, and employment are more reliant on trade
with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold.
With more imports and exports than any other nation, the US is the biggest
trader in the world. What is the true meaning of this? Does this imply that
American production, consumption, and employment are more reliant on trade
with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold.
With more imports and exports than any other nation, the US is the biggest
trader in the world. What is the true meaning of this? Does this imply that
American production, consumption, and employment are more reliant on trade
with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold.
With more imports and exports than any other nation, the US is the biggest
trader in the world. What is the true meaning of this? Does this imply that
American production, consumption, and employment are more reliant on trade
with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold.
With more imports and exports than any other nation, the US is the biggest
trader in the world. What is the true meaning of this? Does this imply that
American production, consumption, and employment are more reliant on trade
with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold.
With more imports and exports than any other nation, the US is the biggest
trader in the world. What is the true meaning of this? Does this imply that
American production, consumption, and employment are more reliant on trade
with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold.
With more imports and exports than any other nation, the US is the biggest
trader in the world. What is the true meaning of this? Does this imply that
American production, consumption, and employment are more reliant on trade
with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold.
With more imports and exports than any other nation, the US is the biggest
trader in the world. What is the true meaning of this? Does this imply that
American production, consumption, and employment are more reliant on trade
with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold.
With more imports and exports than any other nation, the US is the biggest
trader in the world. What is the true meaning of this? Does this imply that
American production, consumption, and employment are more reliant on trade
with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold.
With more imports and exports than any other nation, the US is the biggest
trader in the world. What is the true meaning of this? Does this imply that
American production, consumption, and employment are more reliant on trade
with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold.
With more imports and exports than any other nation, the US is the biggest
trader in the world. What is the true meaning of this? Does this imply that
American production, consumption, and employment are more reliant on trade
with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold.
With more imports and exports than any other nation, the US is the biggest
trader in the world. What is the true meaning of this? Does this imply that
American production, consumption, and employment are more reliant on trade
with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold.
With more imports and exports than any other nation, the US is the biggest
trader in the world. What is the true meaning of this? Does this imply that
American production, consumption, and employment are more reliant on trade
with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold.
With more imports and exports than any other nation, the US is the biggest
trader in the world. What is the true meaning of this? Does this imply that
American production, consumption, and employment are more reliant on trade
with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold. With more imports and exports than any other nation, the US is the
biggest trader in the world. What is the true meaning of this? Does this imply
that American production, consumption, and employment are more reliant on
trade with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold.
With more imports and exports than any other nation, the US is the biggest
trader in the world. What is the true meaning of this? Does this imply that
American production, consumption, and employment are more reliant on trade
with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold.
With more imports and exports than any other nation, the US is the biggest
trader in the world. What is the true meaning of this? Does this imply that
American production, consumption, and employment are more reliant on trade
with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold.
With more imports and exports than any other nation, the US is the biggest
trader in the world. What is the true meaning of this? Does this imply that
American production, consumption, and employment are more reliant on trade
with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold.
With more imports and exports than any other nation, the US is the biggest
trader in the world. What is the true meaning of this? Does this imply that
American production, consumption, and employment are more reliant on trade
with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold.
With more imports and exports than any other nation, the US is the biggest
trader in the world. What is the true meaning of this? Does this imply that
American production, consumption, and employment are more reliant on trade
with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold.
With more imports and exports than any other nation, the US is the biggest
trader in the world. What is the true meaning of this? Does this imply that
American production, consumption, and employment are more reliant on trade
with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold.
With more imports and exports than any other nation, the US is the biggest
trader in the world. What is the true meaning of this? Does this imply that
American production, consumption, and employment are more reliant on trade
with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold.
With more imports and exports than any other nation, the US is the biggest
trader in the world. What is the true meaning of this? Does this imply that
American production, consumption, and employment are more reliant on trade
with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold.
With more imports and exports than any other nation, the US is the biggest
trader in the world. What is the true meaning of this? Does this imply that
American production, consumption, and employment are more reliant on trade
with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold.
With more imports and exports than any other nation, the US is the biggest
trader in the world. What is the true meaning of this? Does this imply that
American production, consumption, and employment are more reliant on trade
with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold.
With more imports and exports than any other nation, the US is the biggest
trader in the world. What is the true meaning of this? Does this imply that
American production, consumption, and employment are more reliant on trade
with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold.
With more imports and exports than any other nation, the US is the biggest
trader in the world. What is the true meaning of this? Does this imply that
American production, consumption, and employment are more reliant on trade
with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold.
With more imports and exports than any other nation, the US is the biggest
trader in the world. What is the true meaning of this? Does this imply that
American production, consumption, and employment are more reliant on trade
with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold.
With more imports and exports than any other nation, the US is the biggest
trader in the world. What is the true meaning of this? Does this imply that
American production, consumption, and employment are more reliant on trade
with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold. With more imports and exports than any other nation, the US is the
biggest trader in the world. What is the true meaning of this? Does this imply
that American production, consumption, and employment are more reliant on
trade with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold.
With more imports and exports than any other nation, the US is the biggest
trader in the world. What is the true meaning of this? Does this imply that
American production, consumption, and employment are more reliant on trade
with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold.
With more imports and exports than any other nation, the US is the biggest
trader in the world. What is the true meaning of this? Does this imply that
American production, consumption, and employment are more reliant on trade
with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold.
With more imports and exports than any other nation, the US is the biggest
trader in the world. What is the true meaning of this? Does this imply that
American production, consumption, and employment are more reliant on trade
with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold.
With more imports and exports than any other nation, the US is the biggest
trader in the world. What is the true meaning of this? Does this imply that
American production, consumption, and employment are more reliant on trade
with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold.
With more imports and exports than any other nation, the US is the biggest
trader in the world. What is the true meaning of this? Does this imply that
American production, consumption, and employment are more reliant on trade
with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold.
With more imports and exports than any other nation, the US is the biggest
trader in the world. What is the true meaning of this? Does this imply that
American production, consumption, and employment are more reliant on trade
with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold.
With more imports and exports than any other nation, the US is the biggest
trader in the world. What is the true meaning of this? Does this imply that
American production, consumption, and employment are more reliant on trade
with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold.
With more imports and exports than any other nation, the US is the biggest
trader in the world. What is the true meaning of this? Does this imply that
American production, consumption, and employment are more reliant on trade
with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold.
With more imports and exports than any other nation, the US is the biggest
trader in the world. What is the true meaning of this? Does this imply that
American production, consumption, and employment are more reliant on trade
with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold.
With more imports and exports than any other nation, the US is the biggest
trader in the world. What is the true meaning of this? Does this imply that
American production, consumption, and employment are more reliant on trade
with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold.
With more imports and exports than any other nation, the US is the biggest
trader in the world. What is the true meaning of this? Does this imply that
American production, consumption, and employment are more reliant on trade
with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold.
With more imports and exports than any other nation, the US is the biggest
trader in the world. What is the true meaning of this? Does this imply that
American production, consumption, and employment are more reliant on trade
with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold.
With more imports and exports than any other nation, the US is the biggest
trader in the world. What is the true meaning of this? Does this imply that
American production, consumption, and employment are more reliant on trade
with foreign countries? The percentage of a Chapter 7 161 nation's gross
domestic product that can be attributed to international trade provides a
reasonably accurate estimate of that nation's reliance on international trade,
despite the fact that it is not an entirely precise metric. shows the extent to
which different nations are open to foreign trade. The information provided
supports the previously described Principle of Declining Share of Foreign
Trade. The annual value of global trade rose from $187 billion to $2 trillion
between 1965 and 1985. In other words, its volume more than doubled,
surpassing the growth of industrialized nations' output. As indicated by the
average of imports and exports as a percentage of GDP, each nation in the graph
had significantly greater trade openness in 1985 than it did in 1965. Although its
trade-to-GDP ratio rose from 5% to 9%, the United States was the least open of
the major industrialized nations. Surprisingly, Japan's trade-to-GDP ratio rose
from 10% to 15%, indicating that it was still a closed economy by European
standards. Belgium's ratio rose to 76% and West Germany's to 33%. One thing
unites the nations on the left side of the graph: their GDPs and populations are
sizable. The nations on the graph's right side are tiny. For the nations on the
right side of the graph, trade represents a higher proportion of GDP than for the
nations on the left. For instance, Belgium has the highest percentage of foreign
trade despite having a relatively small population of only 10 million people.
However, with less than 10% of GDP coming from overseas trade, the United
States, the nation with the biggest population, has the least reliance on
international trade. However, the United States' relative situation is not as
favorable as it seems. First, Japan's ratio 162 rose by just 50% over the 20 years
depicted, whereas the United States' ratio doubled. Second, the percentage of
the U.S. GDP that is allocated to international commerce rises to almost 25%
when international banking activities are included. Compared to other
qualitative shifts, these recorded quantitative changes in the US's position in
international commerce are less substantial. Once a major exporter of
manufacturing and industrial commodities, the United States is today a major
importer of many of these items. Additionally, the United States used to have a
strong surplus in services trade, but this is now starting to diminish. In the so-
called high-tech sector of industrial products, the majority of people still have
high expectations for the United States' capacity to compete on the global
market. However, over the 20 years between 1960 and 1980, the US made
minimal headway in increasing its market share. In actuality, the nation suffered
losses in a few of these areas, particularly in the categories of professional and
scientific instruments and electronic equipment and components. The developed
nations of Canada, Japan, and West Germany, as well as the recently
industrialized nations of Taiwan, South Korea, and Mexico, have largely
profited from the decline of US hegemony in global markets, according to the
data in Figures 7.8 and 7.9. The foreign trade deficit has accelerated
dramatically as a result of U.S. businesses' incapacity to compete in the global
market, a drop in the prices of primary products (agricultural products), which
decreased import receipts, and the growing desire of American consumers for
foreign goods. Between 1980 and 1986, the U.S. trade deficit increased
fourfold.
