Farmers are price takers. For years, the export opportunities created by market opening policies have been positively reflected the price they get for their corn. But as we spoke about current trade policy with its frequent tariff announcements, the farmers were checking the current price of corn. “We’re down to 3.6!” a farmer from Michigan interjects as we talk about China.
Farmers markets are a great way to shop fresh and seasonal, but if you can’t get there, you can still find an increasingly impressive selection of tomatoes at your local grocery store. To meet year-round demand, the business of the heirloom tomato has grown global.
Every January, the global automobile industry gathers in the Motor City for the North American International Auto Show (NAIAS). In a celebration of ingenuity, companies display futuristic concept cars, present cutting-edge technologies, and promote their latest offerings.
Changes are underway which could substantially diminish the relevance of export-led development strategies for countries in East Asia.
The global production of goods can be charted by each stage at which activity occurs and value is added. The great news is that Americans excel at the activities on the production curve that require the most creativity and know-how, and that generate the most profit.
If you’re one of the millions of Americans headed to Starbucks for a seasonal pumpkin spice latte, the benefits of trade are right in your hand. Whether it’s Starbucks or a boutique coffee shop, the coffee we drink is imported. Because while the United States excels at growing many crops, coffee beans aren’t one of them.
Twice a year, the U.S. Treasury Department issues a report required by Congress that assesses the foreign exchange policies of our major trading partners. Our experts break down the key take-aways from the latest FX Report.
How can one bakery focus on selling this many flavors of macaron cookie? Production in our economy is increasingly specialized. Specialization requires trade, which in turn promotes more specialization. And, the greater the number of consumers and producers, the larger the scope for each producer to focus on a narrow specialization. That’s part of the story of trade.
Higher education is fast becoming one of the world’s leading “exports.” Many people may not think of education as an “export,” but when an international student comes to the United States, for example, the monies spent on tuition, fees and living expenses are considered “exports” of education services.
In 2016, the United States ran a trade deficit of $500.6 billion. If President Trump wanted to reduce the U.S. deficit with Mexico or China, all he has to do is change the way we count it.