American Export Trade Business Research Paper Example | Topics and Well Written Essays - 2500 words

American Export Trade Business - Research Paper Example Between 1992 and 2013, average exports by the United States is estimated to be US $103197.71 million and the maximum level in these two decades has reached in December 2012 at US $188686.00 million (â€Å"United States exports†). US primary export items are capital goods, industrial supplies, food and beverages, automotive vehicles, engines and vehicle parts; high tech manufacturing goods remains one of the most important categories of exports. However, in the twenty first century US started to lose comparative advantage on manufacturing of such goods. This paper aims at researching the stake of current US high tech trade deficit and how an improvement in the trade condition would help to improve living standards in the US economy. US export trade The Department of Commerce’s U.S. Census Bureau and the Bureau of Economic Analysis released their annual report of international trade of the US in goods and services for the year 2012 in December that year. The report reveal s that exports of commodities and services by the country increased by 2.1 percent in 2012 since the month of November in 2012 and reached a record figure of $2.20 trillion. The trade deficit in US decreased since the country’s imports have fallen by 2.7 percent during this period (â€Å"U.S. export fact sheet†). Figure: Exports of United States between 2011 -2013 (Source: â€Å"United States exports†) Exports have been an important part of the U.S. GDP and in 2012 the share of exports in GDP was 13.9 percent. This share has improved in 2011 from 2008 (12.9 percent) and has remained steady since 2011 (â€Å"U.S. export fact sheet†). Capital goods form the largest category of export commodities for the US. In 2012, this category of exports was worth $526.7 billion. The leading manufacturing sector for export commodities has been named as the â€Å"motor vehicles and parts sector† (â€Å"U.S. export fact sheet†). High-technology exports The ma nufacturing sector in the US contributes a large section of the country’s GDP that other sectors and has been a driver of economic growth in the country since 1947. This sector is highly engrossed in international trade than other sectors. The manufacturing sector strengthens the growth process by bringing in technological innovation in the other industries. Production of high-technology products require high intensity of R&D. Industries that produce high tech products in the US are aerospace, pharmaceuticals, electrical machinery, computers and scientific instruments (â€Å"High-technology exports (current US$)†). The US manufactured goods account for nearly 35 percent of the total worth of high technology products traded in the international market. Till 2008 US enjoyed high trade surplus owing to high revenue income from export of high tech manufactured goods and royalties earned from the sale of technical know how. 57 percent of the country’s exports were ma nufactured goods. US outpaced its rival countries in the field of technological research and industrial development. Advancement in technology has support the manufacturers in the US