Understanding the significance of US Trade Data

1. Understanding the significance of US Trade Data sites.google.com/view/us-trade-data/home The US trade data (the difference between actual exports and imports) is an important consideration for any investor who wants to buy stocks or bonds. The deficit is determined by the gross domestic product (GDP) of a country measured on an annual basis. For the United States, the gross domestic product in recent years has been consistently higher than most of its major competitors. The United States, therefore, has been one of the fastest-growing nations in the world when it comes to growth, which has made it attractive to investors who want to take advantage of the country's growth potential. One of the main drivers of the current global economic recovery is a strong US dollar. The strength of the US dollar makes US exports more competitive compared to those of its competitors, which also include other countries that are members of the European Union (EU). In addition, the strength of the US dollar also encourages US consumers and businesses to purchase more domestic assets and buy more foreign assets, resulting in a net increase in imports and exports. The rise in US trade (exports) has also resulted in to rise in the foreign portfolio equity of US companies. On the other hand, some argue that increased imports have resulted to lower exports. To illustrate this point, note that in the past, most countries have focused on increasing their gross domestic product (GDP) and reducing their trade deficit with the US. However, few if any countries have succeeded in achieving these goals. Most European countries have gained from this mix, while the United States has been trapped in a never-ending recession because of runaway protectionist policies. As a result, US companies have been forced to export less to compensate for the loss of market share, and high price increases due to a weaker currency. The result is that more of the country's exports are priced at premium levels relative to imports, and this has reduced the flow of capital and finance into the country and has chilled business activity. On the other hand, proponents of free trade argue that the US has the right to protection under the terms of the World Trade Organization Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS). The US successfully negotiated the agreement because it provided a better system of protecting its exports from currency manipulation, subsidized exports from third countries, and rules on state-to-state competition. In addition, the United States has been successful in lowering its imports and exports so as to minimize its trade deficit with its trading partners. The major reason why the US was unable to renegotiate the North American Free Trade Agreement is the fact that it failed to present a viable alternative to protect the interests of American consumers and businesses. Despite the growth of imports and exports over the past few years, the United States still lacks a competitive advantage over its trading partners. One can easily get the US trade data by contacting several agencies that are providing these data by charging a bearable fee. Many of the websites like importkey.com can be considered for accessing the data. 1/2

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