International business, 7e


Expansion of International Trade



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Expansion of International Trade

  • In the past 30 years, the volume of international trade has expanded from $200 billion to over $7.5 trillion.
  • The sales of foreign affiliates of multinational corporations are now twice as high as global exports.

Global Links Today

  • International business has created a network of global links that bind countries, institutions, and individuals with trade, financial markets, technology, and living standards.
    • For example, a reduction in coffee production in Brazil would affect individuals and economies worldwide.

Recent Changes in International Business

  • Total world trade declined dramatically after 2000, but is again on the rise.
  • The rate of globalization is accelerating.
  • Regionalization is taking place, resulting in trading blocs.
  • The participation of countries in world trade is shifting.

The Composition of Trade

  • Between the 1960’s and the 1990’s the importance of manufactured goods increased while the role of primary commodities (i.e. rubber or mining) had decreased.
  • More recently, there has been a shift of manufacturing to countries with emerging economies.
  • There has been an increase in the area of services trade in recent years.

The Current U.S. International Trade Position

  • Exports and Imports of Goods and Services per Capita
  • for Selected Countries
  • Country
  • Exports per Capita
  • Imports per Capita
  • Australia
  • Brazil
  • China
  • Japan
  • Kenya
  • United Kingdom
  • United States
  • $4,296
  • 379
  • 222
  • 4,165
  • 91
  • 4,767
  • 3,472
  • $4,525
  • 428
  • 199
  • 3,622
  • 125
  • 5,500
  • 4,962

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