Making Trade Choices with $1,000: U.S.-Made or International Products?
Exploring trade decisions with a budget of $1,000: choose between U.S.-made products or an array of international goods including electronics, bicycles, and wine. Consider the benefits of voluntary trade, wealth creation, and examples of comparative advantage. Discover the U.S.'s top trade partners and their impact on total trade. Each choice presents unique opportunities for investment and economic growth.
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Trade Choices You have $1,000 to spend and your alternatives are: Purchase 1 U.S.-made television and 1 U.S.-made bicycle. or Purchase 1 Chinese-made television, 1 Korean-made bicycle and 2 cases of French wine. or Purchase $1,000 of stock in a Canadian company. Which do you choose?
Voluntary Trade Voluntary Trade Creates Wealth Creates Wealth
Trade & Comparative Advantage Example Apples and Oranges Apples and Oranges Apple price $.70/lb Orange Price $.70/lb Washington Grower 20 acres yields Apples 50 bu/acre Oranges 1bu/acre Florida Grower 20 acres yields Apples 2bu/acre Oranges 40 bu/acre
Top 10 U.S. Trade Partners, Total Trade, Year to Date (May, 2014) US$, bn, unrevised Rank Country Exports Imports Total Trade % of Total Trade 100.0% --- Total, All Countries Canada China Mexico Japan Germany Korea, South United Kingdom France Saudi Arabia Brazil 665.2 948.2 1,613.4 1 2 3 4 5 6 7 8 9 127.0 49.3 98.3 27.7 21.1 18.8 21.3 13.1 7.2 17.7 141.0 174.5 119.0 55.3 50.2 27.9 22.4 19.7 24.4 11.2 268.0 223.8 217.2 82.9 71.3 46.7 43.7 32.8 31.6 29.0 16.6% 13.9% 13.5% 5.1% 4.4% 2.9% 2.7% 2.0% 2.0% 1.8% 10 http://www.census.gov/foreign-trade/statistics/highlights/top/top1405yr.html
U.S. Trade, Imports & Exports, Year to Date (May, 2014) US$, bn, unrevised Country % of Total Exports 71.8% Exports Rank Country % of Total Imports 76.6% Imports Total, Top 15 Countries Canada 477.5 --- Total, Top 15 Countries China 726.5 127.0 19.1% 1 174.5 18.4% Mexico 98.3 14.8% 2 Canada 141.0 14.9% China 49.3 7.4% 3 Mexico 119.0 12.5% Japan 27.7 4.2% 4 Japan 55.3 5.8% U.K. 21.3 3.2% 5 Germany 50.2 5.3% Germany 21.1 3.2% 6 Korea, South 27.9 2.9% Korea, South 18.8 2.8% 7 Saudi Arabia 24.4 2.6% Netherlands 17.9 2.7% 8 U.K 22.4 2.4% Brazil 17.7 2.7% 9 France 19.7 2.1% Hong Kong 16.8 2.5% 10 India 19.2 2.0% http://www.census.gov/foreign-trade/statistics/highlights/top/top1405yr.html
U.S. Trade Surplus & Deficit, Year to Date (May, 2014) US$, bn, unrevised Rank 1 2 3 Country Hong Kong Netherlands United Arab Emirates Australia Brazil Singapore Belgium Panama Argentina Egypt Surplus 14.5 8.8 7.6 Rank 1 2 3 4 5 6 7 8 9 10 Country China Germany Japan Mexico Canada Korea, South Saudi Arabia India Ireland Italy Deficit -28.8 -6.6 -5.1 -4.3 -2.8 -2.7 -2.7 -2.4 -2.1 -2.1 4 5 6 7 8 9 10 6.7 6.5 6.1 5.3 4.2 2.7 2.6 http://www.census.gov/foreign-trade/statistics/highlights/top/top1405yr.html
International Comparisons of Hourly Compensation Costs in Manufacturing International Comparisons of Hourly Compensation Costs in Manufacturing
