I. Introduction

1
I. Introduction

• The Environment of International Business
• Patterns of U.S. - World Trade
• Recent Growth for the U.S.
• The Top 10 U.S. Global Markets
• The Nationality of the Worlds Largest Industrial
  Corporation

2
Introduction

• Major Participants in Global Trade
  The Triangle
• The European Community
• North America (NAFTA)
• Asia Pacific

3
Introduction

• By 2015, we will live in an intensely
  customer-centric market dominated by global mega
  banks and densely populated by specialist
  financial services providers. Fierce competition,
  global regulation and technology will reshape
  bank and non-bank structures
• Mark Greene, Banking 2015, IBM Study Nov 2005

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Drivers of Change in Banking
5
The Nationality of the Worlds Largest
Corporations

• Country Number of Firms
• United States 32
• Japan 23
• Germany 14
• France 6
• Britain 4
• Italy 4

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Top 10 Countries for U.S. Exports (2005)

• Canada ... US211.9 billion (up 31.7 from 2002)
• Mexico ... 120.4 billion (up 23.5)
• Japan ... 55.5 billion (up 7.8)
• China ... 41.9 billion (up 89.6)
• United Kingdom ...38.6 billion (up 16.3)
• Germany ... 34.2 billion (up 28.6)
• South Korea ... 27.8 billion (up 23)
• Netherlands ... 26.5 billion (up 44.8)
• France ... 22.4 billion (up 17.9)
• Taiwan ... 22.1 billion (up 20.1)

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Top 10 Countries U.S. Imports (2005)

• Canada ... US290.4 billion (up 38.9 from 2002)
• China ... 243.5 billion (up 94.5)
• Mexico ... 170.1 billion (up 26.4)
• Japan ... 138 billion (up 13.7)
• Germany ...84.8 billion (up 35.7)
• United Kingdom ... 51 billion (up 25.3)
• South Korea ... 43.8 billion (up 23)
• Taiwan ... 34.8 billion (up 8.4)
• Venezuela ... 34 billion (up 125.2)
• France ... 33.8 billion (up 19.9)

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TOP TEN U.S. MARKETS

• Canada, China, Japan and Mexico supplied more
  than half of U.S. imports in 2005.
• Oil-producer Venezuela showed the highest
  percentage gain in its exports to the U.S.
• However, China's exports to the U.S. almost
  doubled since 2002, and account for a much higher
  share of world exports to the U.S. when compared
  to the smaller number for Venezuelan exports

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US Trade Trends

• The top 4 nations in the following list were
  responsible for 54 of America's total trade
  deficit in 2005.
• Trade deficit Exports - Imports

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Top 10 Countries Contributing to U.S. Trade
Deficit (2005)

• China ... -201.5 billion (up 95.4 from 2002)
• Japan ... -82.5 billion (up 17.9)
• Canada ... -78.5 billion (up 62.9)
• Germany ... -50.6 billion (up 40.9)
• Mexico ... -49.7 billion (up 33.6)
• Venezuela ... -27.6 billion (up 157.9)
• Malaysia ... -23.2 billion (up 69.3)
• Nigeria ... -22.6 billion (up 361.2)
• Saudi Arabia ... -20.4 billion (up 142.9)
• Italy ... -19.5 billion (up 37.3)

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US Trade Trends 2007

• The total value of U.S. exported goods to the
  rest of the world
• US1.16 trillion
• A 12.2 gain since 2006
• rate that exceeds the 5.4 gain in overall
  American imports for the same period

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Fastest-Growing U.S. Exports

• American exports that experienced the highest
  percentage gains in 2007
• Business machines excluding computers ... US5.4
  billion (up 99.6 from 2006, up 179.8 from 2003)
  
• Wheat 8.5 billion (up 99, up 111.6)
• Sorghum, barley and oats 1.2 billion (up 74.7,
  up 82.4)
• Dairy products and eggs 2.5 billion (up 64.2,
  up 229.1)
• Oilseeds and food oils 2 billion (up 53.1, up
  43.4)
• Nonmonetary gold 13.3 billion (up 51.7, up
  178.2)

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US Trade Trends

• The list for the fastest-growing exports from the
  United States 2007
• Business machines
• wheat
• barley
• oats

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US Trade Trends

• Fastest-declining exports from the U.S.
• blank audio and video media
• metalworking machine tools
• computer accessories
• manufactured tobacco

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Americas leading Exports in 2007.

• Top 6 U.S. Exports
• Semiconductors US50.2 billion (4.3 of US
  total Exports, down 4.3 from 2006)
• Complete civilian aircraft 48.8 billion (4.2,
  up 19.6)
• Automotive parts/accessories 44.2 billion
  (3.8, up 2)
• New/used passenger cars 43.7 billion (3.8, up
  28.6)
• Other industrial machines 38.3 billion (3.3,
  up 17.1)
• Pharmaceutical preparations 35 billion (3, up
  13.2)

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Fastest-Declining U.S. Exports

• American product categories for exports with the
  greatest percentage declines last year.
• Audio and video media ... US584.3 million (down
  67.5 from 2006, down 56.6 from 2003)
• Metalworking machine tools ... 6.7 billion (down
  29.3, down 27.8)
• Computer accessories ... 29.4 billion (down
  18.7, down 6.1)
• Manufactured tobacco ... 1.2 billion (down
  15.1, down 38.5)
• Complete military aircraft ... 4 billion (down
  10.5, up 85)
• Textile apparel and household goods ... 4.7
  billion (down 9.3, down 20.5)

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Waiting in the Wings

• Big Emerging Markets
• Brazil - China
• Mexico - Indonesia
• Poland - South Africa
• Argentina - India

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TRADE WEBSITES

• http//www.tradeport.org/
• http//www.buyusainfo.net/

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By Next Class Your Group Knows

• Who the members are (emails, cell, etc)
• Country to export or import from
• Three potential products the group will trade
• Group contribution to relevant websites