Export or die
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Export or die The Economist
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Transcript of Export or die
Export or dieThe Economist
Concerning USAApril 3th – 9th 2010
The situation
oGDP steadily growing 3.2 %
oUnemployment rate 9.7 % last 3 months
What`is
the problem?
Is
o4% of all American firms
o15% of American manufacturers
e x p o r t
their goods
Trade deficit
379000000 0 0 0 $
Why “no“ to export?
oDomestic market large enough for most firms
Germany China* Britain Japan United States
0
10
20
30
40
50
Exports of goods and services, % of GDP, 2009
Source: Economist Intelligence Unit, authors adjustments
*Estimate
Yet
oExport to emerging markets constantly rising - from 35% to 53% in 20 years
Who?
oExisting firms with existing products
New firms with new products play a minor role
SuggestionAmerica should stick to sectors in which it has a clear competitive advantadge
microprocessors - Intel
engineering
oil-production
services
Service export
oService exports gradually increased to almost 33 % of the whole export
oEmphasis on financial services (before the crash) - not a very good idea
filmoil-drilling
architecture (Kohn Pedersen Fox)
To the East !
Apple iPod
oProduction in China - accounts for only 2 % of the wages involved in its manufacture
oUSA around 70 % (engineering, software, distribution)
Thank you
