Thursday 261112

 

Mostly summarized from Gregory Mankiw’s Principles of Economics, 5th Ed.
PART 11 The Macroeconomics of Open Economies
Chapter 31 of 36 Open-Economy Macroeconomics: Basic Concepts
Section 4 of 11
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Figure 1 - The Internationalization of the U.S. Economy
This figure shows exports and imports of U.S. economy as a percentage of U.S. gross domestic product since 1950.
The substantial increases over the years show the increasing importance of international trade and finance.
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The growth of international trade and finance in the U.S. economy over the past five decades has been dramatic.
Figure 1 shows total value of goods as a percentage of gross domestic product exported to other countries and imported from other countries
In the 1950s, imports and exports were between 4 and 5 percent of GDP.
Recently, exports have been over 10% and imports over 15%.
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In 2008 the top U.S. trading partners, total imports and exports, biggest at top
· Canada
· China
· Mexico
· Japan
· Germany
· United Kingdom
The increase in international trade is due in part to transportation improvements.
In 1950 the average cargo ship carried less than 10,000 tons of goods, now many ships carry over 100,000 tons.
The wide-body jet was introduced in 1967, greatly reducing the cost of air transport.
Goods once only produced and sold locally can now be sold around the world,
e.g. flowers grown in Israel are flown to the U.S.
Fresh fruits and vegetables that can grow only in summer can now also be consumed in winter, these can be readily shipped to the U.S. from Mexico and South America.
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Telecommunications advances have also helped increase trade.
The first transatlantic telephone cable was laid in 1956.
In 1966 only 138 simultaneous conversations between North America and Europe could be held.
Now, communications satellites allow more than 1 million.
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Technological progress has also caused increase of international trade by changing the kinds of goods economies produce.
Before, bulky raw materials such as steel and perishable goods such as food were a large part of the world's output.
Transporting these goods was often very costly.
Now, goods produced with modern technology are mostly lighter and easier to transport.
Consumer electronics now have low weight compared to value, easy to produce in one country and sell in another.
Hollywood can digitally send copies of new movies around the world at negligible cost.
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Government trade policies have been a factor in increasing international trade.
Economists have long understood free trade between countries is mutually beneficial.
Most policymakers around the world have now accepted this conclusion.
Results include the North American Free Trade Agreement and the General Agreement on Tariffs and Trade.
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the growth has been dramatic
seichō wa gekitekidatta
成長は劇的だった
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