Question/Prompt:
"In 2014, “the United States exported $2.34 trillion
worth of goods and services—an all-time record. Exports from the United
States in 2014 equaled the entire gross domestic product of Brazil and
exceeded all commercial output in India, Italy, or Mexico. What is more,
exports are an increasingly important aspect of the U.S. economy.” (New top
markets series provides data, 2015)
In your thread, complete the following:
1.
Discuss economic theory related to the quote
above. Be sure to include a definition of exports
and the way in which exports are counted in the
measurement of Gross Domestic Product (GDP)
within your discussion.
2.
Locate and incorporate outside research that
gives evidence and explanation as to the possible
causes of this growth in exports. Provide an
example of 1 particular industry or country with
which export quantity has increased.
Prompt:
Before I get started an export is something (good or service) that is made in one country and sent
to another country. The economic theory related to the quote would be that exports were increasing in
2014. In 2014 exports reached a record of $2.34 trillion worth of goods and services. During the year of
2014 there was a trade surplus going on which is when a country’s exports exceed its imports. According
to the U.S. Department of State, the United States has a strong trade surplus with 7 different countries. An
example would be “The U.S.-Australia Free Trade Agreement went into force on January 1, 2005. Since
then the U.S. has maintained a trade surplus, which totaled $9.3 billion in 2016”, “The U.S.-Australia
Free Trade Agreement went into force on January 1, 2005. Since then the U.S. has maintained a trade
surplus, which totaled $9.3 billion in 2016”, “the United States has maintained a trade surplus with El
Salvador”, and the last example I will share from this journal would be “the United States has maintained
a strong trade surplus with Peru” (U.S. Department of State). Another thing that was in this Journal would
be that the United States has 14 trade agreements in place with a total of 20 different countries (U.S.
Department of State). A reason to why exports are growing would be because Obama has set up an
ambitious trade agenda that will open more markets to ‘Made in America’ goods and services, allowing
businesses to sell their products all over the world so they can expand and hire here in America
(Department of Commerce, 2015). Basically, what was set into play was the National Export Initiative.
This was to promote exports and save the economy from the economic downturn in the “Great
Recession”. Since the creation of the National Export Initiative, the United States has had major success
with exports. This allows for the economy to benefit any many ways, one of those include an increase in
well-paying jobs. Comparative advantage is the reason why countries trade, this is because it’s the ability
of any given individual, business, or country to produce goods and services at a lower opportunity cost
than other business, induvial, or country. It allows countries to specialize in different goods and services
and that is typically what they export.
The way in which exports are counted in the measurement of Gross Domestic Product (GDP)
would be that it only includes net exports. This is exports minus imports of final goods and services.
Net exports (NX) = exports – imports. Then that is incorporated into GDP = C + I + G (exports-imports).
The goal of this would be to keep a record of how people are buying the goods and services produced in
the United States. A industry or country with which export quantity has increased would be Canada.
According to Global Affairs Canada, “Consider that, in 2011, Canada’s exports and imports of goods and
services were approximately $1.1 trillion in total— which is, on average, about $31,600 for every person
in Canada, or $3 billion each and every day—and that the overall size of Canada’s economy, as measured
by its gross domestic product (GDP), was $1.7 trillion last year. Thus, the share of trade in the economy
was about 63.3 percent in 2011. Indeed, the share of trade in the economy has risen over the decades, in
particular during the 1990s when it climbed nearly 34 percentage points following the elimination of most
of the trade-dampening tariff barriers between Canada and two of its most important trading partners—the
United States and Mexico.” This means that Canada has grown in the quantity of their exports.
To tie in a biblical insight to this topic God created each person with special gifts. Therefore, this is why
some countries could be more specialized in certain areas. Meaning that these gifts can be used in
different countries to make specialized exports.
U.S. Exports Hit New Annual Record, Reaching $2.35 Trillion in 2014. (2015, February 10). Retrieved
from https://www.commerce.gov/news/press-releases/2015/02/us-exports-hit-new-annual-record-
reaching-235-trillion-2014
Outcomes of Current U.S. Trade Agreements. Retrieved from
https://www.state.gov/e/eb/tpp/bta/fta/c26474.htm
