U.s. Trade And Economy - 1293 Words

US TRADE AND ECONOMY Then and Now Oshin Nandal 1001111637 EXECUTIVE SUMMARY As we know US went from being a net exporter to a net importer in a short span of time. Currently US economy is strong but with lots of debt. These changes in trade gap and debt were caused basically due to other developing nations coming up with low cost manufacturing system and thus US ended importing products from other countries. Also many US manufacturers moved their factories abroad due to cheap labor and other services. Some companies are considering reshoring and bringing at least some part of the process back to US as labor cost and other services are rising in other countries. This paper gives a detailed account of all the factors†¦show more content†¦This recovery of the European and Japanese economies, and the advancement of industrial limit in the developing countries unavoidably diminished the share that United States had in world exports and output. By the 1970s, exchange examples reflecting fundamental similar point of interest had been restored, and the Unit ed States was at the end of the day a merchant of buyer products. The United States global speculation position soon after World War II was very small. United States resources in 1950 totaled $17.5 billion and investment done outside was $8 billion. During this time US was open to all trade options, but had a small part as an owner in international assets. The resources and other factors have been growing since 1950 at a constant rate of about 10% an year. This served as an internationalization of the investments during the period, which United States lost its powerful position in world trade market. US was making surpluses in mid 1960’s in areas such as trade capital stock, horticulture and chemicals, and was falling behind in buyer things and nonagricultural mechanical supplies and materials. All automobile products were surplus at first, but then changed to deficit in 1968 in trade market. (Please refer the table)(Feldstein) TRADE BALANCES (U.S.) As of late the span of the exchange gap or