World Trade

USA,Import, Export, World Trade

Trade Balance

After the World War II, USA was the major world economy with a trade surplus as it imported raw material from various countries and exported finished goods

However, as its economy grew, the standard of living improved and wages paid to people increased, as a result of which manufacturing many products locally was no longer competitive. Though technology continued to be developed in USA, most of the manufacturing was outsourced to low cost countries in East Asia like China, Thailand, Malaysia and Korea. As result of this, the country which earlier had a trade surplus, now has a trade deficit.

Technology

Due a culture which encourages risk taking and innovation, most of the new technologies are developed in the USA. These remain the major exports.

The media in most countries paints a very rosy picture of life in the USA, as a result of which the brightest students in the country go to USA for their higher education and later continue to work there. This helps the country retain its cutting edge in technology development.

Marketing

Though most of the widely used products in most major markets are manufactured either locally or in low cost countries, many of the popular brands are owned by companies in USA.

This is because the companies take the time and effort to understand the local market and influence people accordingly