Wednesday, October 8, 2008

International trade

An analysis of U.S. industries sensitive to foreign trade, 1982-87 ( expanding trade wasn't better off for some workers)
International trade and finance in 1982 international trade 1982-1987 Import >Export trade.

Expanding trade affected some workers in some industries. Mechanical, apparel, leather industries and miscellaneous manufacturers lost their jobs by the expanding import. Especially, Apparel industry had big blow from import. A lot of textile products were imported from the countries which has better skill and cheaper labor.
Source: internet:

Also, Import>Export affected economic! International debt crisis 1982-1983.
Purchasing goods from foreign country cause loan since the US started to buy a lot of import good than the amount of export goods. To solve this situation, opening up their import to other countries was necessary.

Actually, loosing American labors' positions has been still a big problem. Textile industries now depend on Asia, such as China and Korea. Since China has huge labor population with much cheaper labor , many kinds of good are made in China. To survive for American textile industry, cooperating with other countries' industries is very important. Since the import has been expanded more and more, American economic still has a big debt by import. There are several reasons why companies and countries are willing to import than producing in own countries. First of all, they can get better benefit with little investment when they produce their products in developing countries, such as China. Second, the countries don't have enough resources, so they need to import from other countries . America imports huge amount of oil from Middle east since there is not enough resources in the US. The countries which has better resources are favorable on the trade. Japanese economy has much more debt than the US by the import since the country have only few resources. Importing resources is very important for developed countries to keep their economy and technology developed, but at the same time, it causes debt. I believe that it's almost impossible to ride of importing resources, and making unique products is important. For example,keep finding new technology which other countries don't have and make products with the technology, so that they can sell those products to foreign countries.

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