Export is essential to the United States (U.S.) economy. It creates jobs, puts money back in the pockets of local, state and national government, and builds international relationships.
Canada, Mexico, China, Japan, and Germany are the top five countries that the U.S. exports to. The top five countries that the U.S. imports from are China, Mexico, Canada, Japan, and Germany. The U.S. imports 12.7 percent more from China than China imports from the U.S., and three percent more from Mexico than that which is exported to Mexico. While Canada is the largest country in terms of importing U.S. products, they are still nine percent less than what the U.S. imports from China. An import/export balance is essential to the economy.
The differences in the percentages equal domestic jobs and economic growth. While unemployment may be dropping, there are still plenty of Americans who need jobs, and that is not to mention all the employed Americans who took positions below their normal wages or skill set, just to keep a roof over their heads and their families fed.
While it is true that labor is much more costly in the U.S. than in other countries, it is still beneficial for companies to export for their own growth and profit margin. The slogan “Made in the USA” does not just draw in U.S. consumers. It also attracts international consumers, particularly those in China. Products made in the U.S. are considered to be high quality, and consumers are willing to pay more for American made products.
Since less than one percent of the 30 million U.S. companies export, there is an untapped potential for small businesses to export. It is clear that most of the purchasing power is foreign, so tapping into that market share will not only increase brand recognition, but also their bottom line. Companies that export create more jobs, grow their sales faster, and pay their employees more than their non-exporting competitors. Goods made in the U.S. are recognized throughout the world for being innovative and high quality, and U.S. companies are known for excelling in their customer service and business practices. While the U.S. economy fluctuates, affecting business throughout the nation and causing them to close their doors, U.S. companies that export, grow faster and are less prone to go out of business.
Cars, refined petroleum, planes, helicopters, and/or spacecraft, gas turbines, as well as packaged medication are the top five US exports, with aircraft parts, places, helicopters and spacecraft, medical instruments, soybeans, wheat, blood (human or animal), gas turbines and delivery trucks being the top of all exports.
The top five goods that the U.S. imports are cars, computers, crude petroleum, packaged medications, and broadcasting equipment. Cars are at the top of both the import and export lists. The U.S. once led the world in automobile production and now much of that business belongs internationally. The U.S. economy would boom if car makers, and subsequently car buyers, would bring that business back.
The automobile industry is just a drop in the bucket compared to all the other industries that can manufacture domestically and export to other countries. Textile, agriculture, cosmetics, electronics and many others are things that the U.S. imports, that are also manufactured domestically and that can be exported for an essential benefit to the economy.
By: Jennifer Barclay
Photo by: Wendell Flickr License