GLOBAL CHANGES
GLOBAL CHANGES
The General Agreement on Tariff and Trade, a supra-international body, has entered into a complex period called the Uraguay Round, with the goal to change trade rules and reduce trade barriers by multilateral and bilateral negotiations. The result will be new markets worldwide. The total volume of international trade will grow even more.
Things are happening! As a result of all the changes, many American businesses are making big profits in international
trade. Millions of others are asking, "Is the time right for me to get into the import /export game?"
To answer this question, let's look at the history of United States international trade. Our ex-colonial forefathers were in a trade deficit during most of the nation's early years. In fact, it wasn't until the 1880's that the balances became positive. Fifty years later, during the Great Depression, the balances shifted back to large deficits. Following WWII, America had unprecedented surpluses. We now have deficits. In 1987, the United States' merchandise trade was out of balance by $170 billion. In 1988 the deficit improved to about $140 billion. Notwithstanding the improvement, Americans were still spending $140 billion more for imported goods than America was exporting.
Even though United States imports still exceeded exports, traders gained tremendous profits, because the opportunities for profit from two-way trade depend on whether you see the glass as half full or half empty.
Optimist
The optimistic importer says, "$140 billion more imports than exports? I'm making a whole lot of money. I better stay in imports." An optimistic exporter would say, "What goes down must come up—the rate of decline is reversing. I'm staying in exports to make big profits!"
Pessimist
A pessimistic importer might say, "The deficits are reducing. It's time to begin exporting." A pessimistic exporter would say, "Overall, things look really bad for exporting. Maybe I should start importing."
Those who are winning the trade game know that regardless of deficits or surpluses, the time is always right for business in international trade to make profits. The winners simply swing with political and economic changes over which they have little or no control.
The General Agreement on Tariff and Trade, a supra-international body, has entered into a complex period called the Uraguay Round, with the goal to change trade rules and reduce trade barriers by multilateral and bilateral negotiations. The result will be new markets worldwide. The total volume of international trade will grow even more.
Things are happening! As a result of all the changes, many American businesses are making big profits in international
trade. Millions of others are asking, "Is the time right for me to get into the import /export game?"
To answer this question, let's look at the history of United States international trade. Our ex-colonial forefathers were in a trade deficit during most of the nation's early years. In fact, it wasn't until the 1880's that the balances became positive. Fifty years later, during the Great Depression, the balances shifted back to large deficits. Following WWII, America had unprecedented surpluses. We now have deficits. In 1987, the United States' merchandise trade was out of balance by $170 billion. In 1988 the deficit improved to about $140 billion. Notwithstanding the improvement, Americans were still spending $140 billion more for imported goods than America was exporting.
Even though United States imports still exceeded exports, traders gained tremendous profits, because the opportunities for profit from two-way trade depend on whether you see the glass as half full or half empty.
Optimist
The optimistic importer says, "$140 billion more imports than exports? I'm making a whole lot of money. I better stay in imports." An optimistic exporter would say, "What goes down must come up—the rate of decline is reversing. I'm staying in exports to make big profits!"
Pessimist
A pessimistic importer might say, "The deficits are reducing. It's time to begin exporting." A pessimistic exporter would say, "Overall, things look really bad for exporting. Maybe I should start importing."
Those who are winning the trade game know that regardless of deficits or surpluses, the time is always right for business in international trade to make profits. The winners simply swing with political and economic changes over which they have little or no control.
Comments
Post a Comment