Issues with MO & U.S. trades
Discussing Current Issues about Exports and Imports
In and Out of the US and Missouri
3/3/2014
Alisha Barnum
Chris Beltonville
Ryan Bollinger
Abby Meyer
Nguyen Tran
Greg Wilke
International Financial Management
BA6580
SP2014
Hung-Gay Fung, PH.D.
Trade is a relevant topic; net exports in 2012 for the United States (US) topped a deficit of $540 Billion. This came on exports of $2.19 trillion with imports of $2.73 trillion. Moreover as global transportation systems have matured and grown in the last 3 decades the US has also consumed more global goods (See Table 1 – Top 15 US Trade Partners).
Table 1 – Top 15 Us Trade Partners Source: U.S. Bureau of the Census. (2011) Top 15 US Trade Partners
The current US economy is generally described as a service economy so it is not a surprise that over 50% of the merchandise for sale in the US comes from abroad. This level of trade should not be specifically labeled bad but does have issues that are important to address. Two of the US’s leading trade issues are trade agreements and the protection of US company’s intellectual property. Likewise trade in Missouri is an important topic with exports almost totaling $14 Billion. We will discuss important trade issues with the US and Missouri.
A leading trade issue for the US is a lack of trade agreements because many countries create barriers for US imports. A trade agreement contains the policies, rules, and framework for trading between countries or groups of countries. The World Trade Organization (WTO) creates the rules to govern trade among the 154 WTO countries but bilateral and multilateral agreements are often necessary between the United States and their trading partners. Within trade agreements are polices for bilateral foreign direct investment. Specifically, The United States has free trade agreements with 20 countries and is in a regional negotiation with the Asia-Pacific
In and Out of the US and Missouri
3/3/2014
Alisha Barnum
Chris Beltonville
Ryan Bollinger
Abby Meyer
Nguyen Tran
Greg Wilke
International Financial Management
BA6580
SP2014
Hung-Gay Fung, PH.D.
Trade is a relevant topic; net exports in 2012 for the United States (US) topped a deficit of $540 Billion. This came on exports of $2.19 trillion with imports of $2.73 trillion. Moreover as global transportation systems have matured and grown in the last 3 decades the US has also consumed more global goods (See Table 1 – Top 15 US Trade Partners).
Table 1 – Top 15 Us Trade Partners Source: U.S. Bureau of the Census. (2011) Top 15 US Trade Partners
The current US economy is generally described as a service economy so it is not a surprise that over 50% of the merchandise for sale in the US comes from abroad. This level of trade should not be specifically labeled bad but does have issues that are important to address. Two of the US’s leading trade issues are trade agreements and the protection of US company’s intellectual property. Likewise trade in Missouri is an important topic with exports almost totaling $14 Billion. We will discuss important trade issues with the US and Missouri.
A leading trade issue for the US is a lack of trade agreements because many countries create barriers for US imports. A trade agreement contains the policies, rules, and framework for trading between countries or groups of countries. The World Trade Organization (WTO) creates the rules to govern trade among the 154 WTO countries but bilateral and multilateral agreements are often necessary between the United States and their trading partners. Within trade agreements are polices for bilateral foreign direct investment. Specifically, The United States has free trade agreements with 20 countries and is in a regional negotiation with the Asia-Pacific
References: 1. Business Roundtable. (2014). Trade Makes Missouri Strong. Retrieved March 1, 2014 from: ip.missouri.edu/Missouri_trade.pdf 2 3. Froning, Denise (2000) The Benefits of Free Trade: A Guide For Policy Makers. Retrieved February 23, 2014, from http://www.heritage.org/research/reports/2000/08/the-benefits-of-free-trade-a-guide-for-policymakers 4 5. Missouri Department of Economic Development. (2014). Missouri Exports. Retrieved March 1, 2014 from: http://www.ded.mo.gov/exports/missouri-exports 6 9. Office of the United States Trade Representative (2014). http://www.ustr.gov/trade-agreements/free-trade-agreements 10 11. United States Department of Agriculture (2014).http://www.ers.usda.gov/topics/international-markets-trade/us-agricultural-trade.aspx#.Uwon2GJdUpg