INTERNATIONAL TRADE
INTERNATIONAL TRADE
Exports are the goods and services sold by individuals or Millions. Imports are the goods and services purchased. By these methods, products valued at more than 2 trillion United States 11( >i lars are exchanged worldwide each year. By the mid-80's the I Inited States alone exchanged more than $600 billion in two-way trade, and sales volumes are increasing every year. When we, as consumers, enjoy fresh flowers from Latin America, tropical fruits in the middle of winter, or a foreign car, we are participants in, and beneficiaries of, international trade.
We are living in the age of global interdependence—a time of increasing expectations brought about by the worldwide distribution of Hollywood movies, New York and London television, and speedy transportation systems. People all over the world want the same luxuries and standards of every other place. They see things and, naturally, they want them.
Richard Whalen of the Center for Strategic and International Studies, Georgetown University, sees international trade
as a game. In his best school-house language he suggests, "The international (trade) struggle is actually a little-understood contest among governing elites, testing relative ingenuity in devising new political and economic arrangements to offset mounting social and cultural obstacles to productivity."
As a business person, you know, when left alone, the "free enterprise" and "free market" system works. Fortunately, things are happening! More and more nations are moving toward free trade and open-market systems. International trade has become the business of the '80s, '90s, and the future.
United States of America
The United States recently passed a new trade law, called the Omnibus Trade Act, which, in many ways, stiffened the American resolve to ward off protectionist trends. That act strengthened the president's authority to negotiate for more open markets. It also, among other things, provided for less burdensome export controls and approved America's joiningthe rest of the international community in using a more common tariff schedule. Bilateral negotiations are ongoing to spur an increase in international business.
Canada
Effective January 1, 1989, Canada and the United States formed the world's largest free-trade area. The two countries were each other's largest supplier and customer with almost $170 billion in two-way trade in 1987. The new agreement will strengthen the existing deep and friendly relationship by eliminating all tariffs between the two countries by 1998, expanding government procurement opportunities, liberalizing laws and regulations related to services, and continuing a favorable investment climate—all of which leads to many more new trade and investment opportunities.
Mexico
Mexico has joined the General Agreement on Tariff and Trade (GATT), and that means a movement toward more open markets and a greater opportunity to sell United States products in that country—resulting in more international trade opportunities.
European Community
The twelve-member European Community (EC) is in the process of completing the formation of a Single Internal Market. By 1992, some 300 rule changes will result in the removal of substantially all physical, technical, and fiscal barriers in the exchange of goods and services from within the Common Market.
The target changes are:
• to agree on a common value added tax rate,
• to remove handicaps to market entry to allow freedom to establish financial firms and services across borders,
• to deregulate transportation,
• to establish minimum industrial and safety standards
• to broaden the EC-wide bidding process for government procurement.
This initiative could radically change America's competitive conditions in one of our largest markets, but on the overall, it should be another major change in the world of international commerce that will increase the total volume of trade.
Asia
Importing and exporting with the Pacific Rim countries has now surpassed our trade with Europe.
Nonmarket Countries
Even the nonmarket (communist) economies are moving toward free markets. China and the Soviet Union are doing more and more market business with western nations. Many eastern European countries already have established trade relationships.
Exports are the goods and services sold by individuals or Millions. Imports are the goods and services purchased. By these methods, products valued at more than 2 trillion United States 11( >i lars are exchanged worldwide each year. By the mid-80's the I Inited States alone exchanged more than $600 billion in two-way trade, and sales volumes are increasing every year. When we, as consumers, enjoy fresh flowers from Latin America, tropical fruits in the middle of winter, or a foreign car, we are participants in, and beneficiaries of, international trade.
We are living in the age of global interdependence—a time of increasing expectations brought about by the worldwide distribution of Hollywood movies, New York and London television, and speedy transportation systems. People all over the world want the same luxuries and standards of every other place. They see things and, naturally, they want them.
Richard Whalen of the Center for Strategic and International Studies, Georgetown University, sees international trade
as a game. In his best school-house language he suggests, "The international (trade) struggle is actually a little-understood contest among governing elites, testing relative ingenuity in devising new political and economic arrangements to offset mounting social and cultural obstacles to productivity."
As a business person, you know, when left alone, the "free enterprise" and "free market" system works. Fortunately, things are happening! More and more nations are moving toward free trade and open-market systems. International trade has become the business of the '80s, '90s, and the future.
United States of America
The United States recently passed a new trade law, called the Omnibus Trade Act, which, in many ways, stiffened the American resolve to ward off protectionist trends. That act strengthened the president's authority to negotiate for more open markets. It also, among other things, provided for less burdensome export controls and approved America's joiningthe rest of the international community in using a more common tariff schedule. Bilateral negotiations are ongoing to spur an increase in international business.
Canada
Effective January 1, 1989, Canada and the United States formed the world's largest free-trade area. The two countries were each other's largest supplier and customer with almost $170 billion in two-way trade in 1987. The new agreement will strengthen the existing deep and friendly relationship by eliminating all tariffs between the two countries by 1998, expanding government procurement opportunities, liberalizing laws and regulations related to services, and continuing a favorable investment climate—all of which leads to many more new trade and investment opportunities.
Mexico
Mexico has joined the General Agreement on Tariff and Trade (GATT), and that means a movement toward more open markets and a greater opportunity to sell United States products in that country—resulting in more international trade opportunities.
European Community
The twelve-member European Community (EC) is in the process of completing the formation of a Single Internal Market. By 1992, some 300 rule changes will result in the removal of substantially all physical, technical, and fiscal barriers in the exchange of goods and services from within the Common Market.
The target changes are:
• to agree on a common value added tax rate,
• to remove handicaps to market entry to allow freedom to establish financial firms and services across borders,
• to deregulate transportation,
• to establish minimum industrial and safety standards
• to broaden the EC-wide bidding process for government procurement.
This initiative could radically change America's competitive conditions in one of our largest markets, but on the overall, it should be another major change in the world of international commerce that will increase the total volume of trade.
Asia
Importing and exporting with the Pacific Rim countries has now surpassed our trade with Europe.
Nonmarket Countries
Even the nonmarket (communist) economies are moving toward free markets. China and the Soviet Union are doing more and more market business with western nations. Many eastern European countries already have established trade relationships.
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