Meaning of trade Trade refers to buying and selling of goods and services for money or money's worth.

It involves transfer or exchange of goods and services for money or money's worth. The manufacturers or producer produces the goods, then moves on to the wholesaler, then to retailer and finally to the ultimate consumer. Trade is essential for satisfaction of human wants, Trade is conducted not only for the sake of earning profit; it also provides service to the consumers. Trade is an important social activity because the society needs uninterrupted supply of goods forever increasing and ever changing but never ending human wants. Trade has taken birth with the beginning of human life and shall continue as long as human life exists on the earth. It enhances the standard of living of consumers. Thus we can say that trade is a very important social activity.

Different Types of Trade

Trade can be divided into following two types, viz., 1. Internal or Home or Domestic trade. 2. External or Foreign or International trade

A) Internal Trade:- Internal trade is also known as Home trade. It is conducted within the political and geographical boundaries of a country. It can be at local level, regional level or national level. Hence trade carried on among traders of Delhi, Mumbai, etc. is called home trade. Internal trade can be further sub-divided into two groups, viz., 1. Wholesale Trade : It involves buying in large quantities from producers or manufacturers and selling in lots to retailers for resale to consumers. The wholesaler is a link between manufacturer and retailer. A wholesaler occupies prominent position since manufacturers as well as retailers both are dependent upon him. Wholesaler act as a intermediary between producers and retailers.

2. Retail Trade :
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It involves buying in smaller lots from the wholesalers and selling in very small quantities to the consumers for personal use. The retailer is the last link in the chain of distribution. He establishes a link between wholesalers and consumers. There are different types of retailers small as well as large. Small scale retailers includes hawkers, pedlars, general shops, etc. B) External Trade:External trade also called as Foreign trade. It refers to buying and selling between two or more countries. For instance, If Mr.X who is a trader from Mumbai, sells his goods to Mr.Y another trader from New York then this is an example of foreign trade. External trade can be further sub-divided into three groups, viz., 1. Export Trade : When a trader from home country sells his goods to a trader located in another country, it is called export trade. For e.g. a trader from India sells his goods to a trader located in China. 2. Import Trade : When a trader in home country obtains or purchase goods from a trader located in another country, it is called import trade. For e.g. a trader from India purchase goods from a trader located in China. 3. Entrepot Trade : When goods are imported from one country and then re-exported after doing some processing, it is called entrepot trade. In brief, it can be also called as re-export of processed imported goods. For e.g. an indian trader (from India) purchase some raw material or spare parts from a japanese trader (from Japan), then assembles it i.e. convert into finished goods and then re-export to an american trader (in U.S.A)

Importance of trade and global partnerships

Trade and investment is an essential component of economic growth and an important source of job creation and sustainable income for African countries, communities and producers. Despite tremendous growth rates in 17 Africa countries over the last decade, sub-Saharan Africa has struggled to reap the benefits of global trade. In 1980, sub-Saharan Africa had a 3.6% share of world trade. By 1998, this share had dropped to just 1.3% and in 2011, it was 2.1%. Similarly, foreign direct investment (FDI) to the region remains a small fraction of global FDI flows; however, the picture is improving. While the global financial crisis led to a general drop in FDI from 2008, sub-Saharan Africa has fared relatively well compared to the G8 countries (Canada, France, UK, USA, Russia, Italy, Japan, Germany). Africas economic growth also rebounded relatively quickly from the global financial crisis. In 2011, economic growth in sub-Saharan Africa was 4.9%, and growth across 2012 and 2013 is predicted to average 5.4%; only the developing Asia region is predicted to have higher rates of economic growth during this period. Despite this progress, roughly one-third of the African population lives in poverty and building Africas capacity for global and regional trade is essential for creating a pathway to sustainable livelihoods. Sub-Saharan Africa faces some of the worlds greatest challenges in accessing local, regional, and global markets. On the supply side, poor infrastructure for roads, bridges, and unreliable access to energy and under-developed telecommunications systems are significant barriers to trade and discourage investments. Other constraints include a lack of business training, capital to build competitive industries and financial services to help entrepreneurs bring their ideas to fruition. Combined with regressive import tariff policies in many developed countries, these constraints contribute to a reliance on raw exports, such as
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minerals and agricultural products, rather than finished products. This presents significant challenges to expanding trade across the continent. Sub-Saharan African countries also face external trade barriers, such as high import tariffs, which make it difficult for their products to compete in important markets like the U.S. and Japan. To worsen the situation, wealthy nations pay subsidies many of which are trade-distorting to their producers, giving them an unfair advantage in the global marketplace. In 2011, agricultural subsidies in OECD countries reached $407 billion, which represents 0.95% of these countries GDP. More than ten times what was provided to sub-Saharan Africa in the same year. Within Africa, poor regional integration both in terms of infrastructure and government policies poses a barrier to African countries benefiting from trade with each other.

The opportunity: Inclusive economic growth, driven by trade and investment, will help end poverty in sub-Saharan Africa. Improving access to developed countries and neighboring markets, enhancing aid for trade to help countries address supply-side constraints and improve competitiveness, investing in infrastructure, increasing capital investment flows, and strengthening regional economic integration can make trade can work for Africa. Even if Africa captured only a small additional percentage of global trade, it would make a big difference. In 2011, 1% of global trade was worth $225 billion, more than six times the development assistance sub-Saharan Africa received that same year.

ADVANTAGES OF INTERNATIONAL TRADE The fundamental reason for international trade is to sell something that we dont need and to buy something we do need. Trade creates jobs, attracts investments, attracts new technology and materials, and offers Canadians a wider choice in products and services. People spend, save, or pay taxes with the money they earn in their jobs. The government uses taxes to provide services, which creates more jobs. When people save, the capital markets lend money to others, who will spend it on consumer goods, or open or expand a business, therefore creating new jobs. When people spend money, it creates demand, which creates new jobs. If something occurs to slow this expansion, the cycle reverses. Ex. higher taxes, higher interest rates.

1. A country may import things which it cannot produce International trade enables a country to consume things which either cannot be produced within its borders or production may cost very high. Therefore it becomes cost cheaper to import from other countries through foreign trade. 2. Maximum utilization of resources International trade helps a country to utilize its resources to the maximum limit. If a country does not takes up imports and exports then its resources remain unexplorted. Thus it helps to eliminate the wastage of resources. 3. Benefit to consumer: Imports and exports of different countries provide opportunities to the consumer to buy and consume those goods
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which cannot be produced in their own country. They therefore get a diversity in choices. 4. Reduces trade fluctuations: By making the size of the market large with large supplies and extensive demand international trade reduces trade fluctuations. The prices of goods tend to remain more stable. 5. Utilization of Surplus produce: International trade enables different countries to sell their surplus products to other countries and earn foreign exchange. 6. Fosters International trade: International trade fosters peace, goodwill and mutual understanding among nations. Economic interdependence of countries often leads to close cultural relationship and thus avoid war between them. 7. Attracting investment Attracting Investment follows trade. Many foreign companies will invest in an office, factory, or distribution warehouse to simplify their trade and reduce cost. This investment also creates more jobs. It also attracts international investors 8. New Technology & Materials New technology promotes competitiveness and profitability. If a business could create a machine that works better, faster, or cheaper (or all three), then the business will have produced a more competitive product for national and international markets. The biotechnology industry in Canada is second only to the U.S.

9. Diverse Products and Services A century ago, Oranges were considered a rare treat; parents put them in stockings for children. Now, we can buy oranges by the crate at local grocery stores thanks to better preservation and trading technologies. Foreign trade turns the world into a giant market, delivering food, fashions, etc. New services such as banking, travel, and consultation are also available now. Business competition is no longer on a city scale; instead, businesses compete against worldwide businesses. The result is better quality goods, lower prices, and functional design. 10Job Creation Unlike the battering that used to go on between trading partners, now businesses receive money from selling their products or services to foreign businesses. When foreign businesses buy Canadian products it creates jobs for Canadians. Exports are very important to Canadians they create one out of three Canadian jobs. 40 percent of what Canadians produce is exported. 1 billion exports means 6000 jobs for Canadians. When trade is balanced businesses remain profitable and may grow.

DISADVANTAGES OF INTERNATIONAL TRADE The Global market has made it easy to buy and sell international goods. While this has benefits, it also presents a problem. Such trade can cause countries to be prosperous for a short time, but leads to economic exploitation, loss of cultural identity, and even physical harm.

1.Import of harmful goods Foreign trade may lead to import of harmful goods like cigarettes, drugs etc. Which may run the health of the residents of the country. E.g. the people of China suffered greatly through opium imports. 2.It may exhaust resources International trade leads to intensive cultivation of land. Thus it has the operations of law of diminishing returns in agricultural countries. It also makes a nation poor by giving too much burden over the resources. 3.Over Specialization Over Specialization may be disaster for a country. A substitute may appear and ruin the economic lives of millions. 4.Danger of Starvation A country might depend for her food mainly on foreign countries. In times of war there is a serious danger of starvation for such countries. 5.One country may gain at the expensive of Another One of the serious drawbacks of foreign trade is that one country may gain at the expense of other due to certain accidental advantages. The Industrial revolution is Great Britain ruined Indian handicrafts during the nineteenth century. 6.Support of Non-Democratic Systems Great hardship can be caused when people make poor decisions about land use or surplus production for export and do not take the general populations welfare into consideration. For example: Landowners in Nicaragua and El Salvador want farmers to grow coffee beans because it is a very profitable cash crop, however, the farmers would like to use the land to grow more food for their families. The farmers wishes are ignored because they do not actually own the land.

7.Cultural Identity Issues

Culture is a major export in the world. It displays and promotes values and lifestyles worldwide. The "culture consumer" in other countries is sometimes overwhelmed by American ideas. Products also carry cultural ideas and messages. There are values of the culture the make the product. For example: Coca-Cola, McDonalds, Nike, and Microsoft all sell products that symbolize American values and symbolize and reflect American corporate culture. 8.Social Welfare Issues: Maintaining safety standards, minimum wages, workers compensation and Health benefits are all social welfare issues that cost business money. If a running shoe is made in a country where these issues are not met than the shoe can be sold for less in Canada. The down side to this is that substandard safety conditions cause death and injury in the workplace. 9.Environmental Issues: In Canada, businesses are urged by the government and environmental groups through laws and regulations to keep our air, land and water clean. This is a costly process so businesses decide to move their operations to countries; i.e. Mexico, where it is less regulated. 10.Political Issues: Precious commodities such as gold, diamond, oil or farmland are so important for countries to have control that wars have been started and as a result people are killed. Trade of these items has caused political alliances that do not help the people in the trading nation but only the powerful corporations that control the commodity.

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4 PS ENHANCING TRADE PERFORMANCE: Improving the trade route requires a major infrastructure project the building of a long-planned bridge over the river but strengthening trade in the region requires a great deal more than construction. Easing the flow of inter-regional commerce also requires training personnel, updating the design of trade documents, integrating controls at border posts and diagnosing and reducing barriers to trade. Economies cannot grow without trade, and a successful trade strategy requires comprehensive improvements that address a broad range of issues to increase revenue and reduce poverty. Alongside physical infrastructure, governments must address human capacity, policy and regulation reform, technology updates and culture shifts. While each country requires different changes to encourage trade to flourish, there are four key principles that underpin all effective trade facilitation. Crown Agents, with more than a century of experience in international trade, has developed four P's for enhancing trade performance.

People Regardless of construction projects and policy reforms, no trade project could be successful without sufficient human capacity. For trade to flourish, governments must train staff to perform the tasks required, provide on-the-job support and mentoring and create a work culture that keeps competent employees doing their jobs well. Leadership development and organisational strategy are key components to well-facilitated trade. After gaining independence in 2011, South Sudan sought to increase trade revenue to reduce dependence on oil income. A fundamental piece of the customs reform was the training of 500 employees, many of whom were trained as soldiers but had no prior customs
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experience. By helping staff understand their key role in growing the country's economy, a sense of pride was instilled in the workforce that further improved performance, with non-oil revenue quadrupling in the last year.

Policy Establishing a supportive legal environment is crucial for trade facilitation to be effective. Introducing new systems, such as joint border posts or one-stop electronic customs filing, often require careful review of the legislative framework that guides a country's trade. In countries and regions where single window environments are being introduced, for example, policy needs to be changed to ease restrictions concerning the sharing of information among authorities and agencies. In the Dominican Republic, where a single window for external trade is being implemented, a number of measures have been taken to ease the process. A detailed analysis of the country's legislative environment is underway, and reforms are being drafted at the highest national levels, with a presidential decree to support the change. International and regional trade policies are being considered and reflected in the new policies when possible in order to maximise the country's benefits from international commitments. Crown Agents has also equipped counterparts with the knowledge and tools to more successfully negotiate on the international stage, for example within the Sela (Latin American and the Caribbean economic system) regional grouping. Platform Physical infrastructure is an important piece of the larger picture for improving trade performance, and building or maintaining bridges, ports, roads and border posts in good condition is a first step to mounting trade obstacles. Technological infrastructure is increasingly
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key, as electronic systems are being used by governments to better share information across agencies and borders. In the Philippines, where improved trade facilitation is a top government priority, the implementation of electronic single window technology has significantly impacted the ease of doing business. The programme links the permit and license process electronically within all agencies, allowing traders to submit all their customs data in a single form rather than separately with a number of agencies. Philippine sugar farmers previously had to travel to the capital to apply for export permits, spending days away from their farms and hurting their livelihood. Allowing electronic submissions has changed that, making the permits more accessible to farmers who couldn't spend days travelling to Manila and reducing the release time for permits from the Bureau of export trade and promotion from one month to five days. Process For countries seeking increased efficiency of trade, improvement of business processes and procedures is a fundamental step. This requires analysing the current system, removing inefficiencies and designing a more harmonised process be it through cross-country collaboration or integration of multiple technological systems. At the Gambia/Senegal border, increased efficiency is being achieved through the implementation of joint border posts, which will help integrate the trade and transportation processes on both sides of the border. Creating a joint post requires cooperation among agencies from both countries a dialogue being facilitated by Crown Agents. When implementing trade reforms, projects can focus too often on the tangible change made through improvements to physical infrastructure, thereby neglecting the less tangible underpinnings of successful trade. Bridges and border posts are only truly effective if they are staffed by well-trained individuals who work according to efficient processes, underpinned by an enabling legal framework allows for eased movement within trade restrictions. Only when all of

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those elements are bolstered by well-maintained facilities can trade flourish and revenues rise.

HISTORY OF THE UNITED STATES OF AMERICA The 13 American colonies became the 13 United States of America in 1783, following their war for independence from Britain. Before the war ended, they ratified a framework for their common efforts. These Articles of Confederation provided for a union, but an extremely loose and fragile one. George Washington called it a "rope of sand." There was no common currency; individual states still produced their own. There was no national military force; many states still had their own armies and navies. There was little centralized control over foreign policy; states negotiated directly with other countries. And there was no national system for imposing and collecting taxes. Disputes between Maryland and Virginia over navigation rights on the Potomac River, which formed their common border, led to a conference of five states in Annapolis, Maryland, in 1786. Alexander
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Hamilton, a delegate from New York, said that such commercial issues were part of larger economic and political questions. What was needed, he said, was a rethinking of the Confederation. He and the other delegates proposed holding a convention to do just that. Support from Washington, unquestionably the most trusted man in America, won over those who thought the idea was too bold. The gathering in Philadelphia in May 1787 was remarkable. The 55 delegates elected to the convention had experience in colonial and state government. They were knowledgeable in history, law, and political theory. Most were young, but the group included the elderly Benjamin Franklin, who was nearing the end of an extraordinary career of public service and scientific achievement. Two notable Americans were not there: Thomas Jefferson was in Paris as American ambassador to France, and John Adams was in London as ambassador to Great Britain. The Continental Congress had authorized the convention to amend the Articles of Confederation. Instead, the delegates threw aside the Articles judging them inadequate for the needs of the new nation and devised a new form of government based on the separation of legislative, executive, and judicial powers. The gathering had become a constitutional convention. Reaching consensus on some of the details of a new constitution would prove extremely difficult. Many delegates argued for a strong national government that limited states' rights. Others argued equally persuasively for a weak national government that preserved state authority. Some delegates feared that Americans were not wise enough to govern themselves and so opposed any sort of popular elections. Others thought the national government should have as broad a popular base as possible. Representatives from small states insisted on equal representation in a national legislature. Those from big states thought they deserved to have more influence. Representatives from states where slavery was illegal hoped to outlaw it. Those from slave states rejected any attempts to do so. Some delegates wanted to limit the number of states in the Union. Others supported statehood for the newly settled lands to the West.
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Every question raised new divisions, and each was resolved by compromise. The draft Constitution was not a long document. Yet it provided the framework for the most complex government yet devised. The national government would have full power to issue currency, levy taxes, grant patents, conduct foreign policy, maintain an army, establish post offices, and wage war. And it would have three equal branches a congress, a president, and a court system with balanced powers and checks against each other's actions. Economic interests influenced the course of debate on the document, but so did state, sectional, and ideological interests. Also important was the idealism of the men who wrote it. They believed they had designed a government that would promote individual liberty and public virtue. On September 17, 1787, after four months of deliberation, a majority of delegates signed the new Constitution. They agreed it would become the law of the land when nine of the 13 states had ratified it. The ratification process lasted about a year. Opponents voiced fears that a strong central government could become tyrannical and oppressive. Proponents responded that the system of checks and balances would prevent this from happening. The debate brought into existence two factions: the Federalists, who favored a strong central government and who supported the Constitution, and the AntiFederalists, who favored a loose association of states and who opposed the Constitution. Even after the Constitution was ratified, many Americans felt it lacked an essential element. They said it did not enumerate the rights of individuals. When the first Congress met in New York City in September 1789, lawmakers agreed to add these provisions. It took another two years before these 10 amendments collectively known as the Bill of Rights became part of the Constitution.

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The first of the 10 amendments guarantees freedom of speech, press, and religion; the right to protest, assemble peacefully, and demand changes. The fourth protects against unreasonable searches and arrest. The fifth provides for due process of law in all criminal cases. The sixth guarantees the right to a fair and speedy trial. And the eighth protects against cruel and unusual punishment. Since the Bill of Rights was adopted more than 200 years ago, only 17 more amendments have been added to the Constitution.

Economy of USA

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The United States has the largest, most technologically-advanced, and most diverse economy in the world. While the United States accounts for only about 4 percent of the world's population, its GDP is 26 percent of the world's total economic output. The American economy is a free-market, private enterprise system that has only limited government intervention in areas such as health care, transportation, and retirement. American companies are among the most productive and competitive in the world. In 1998, 9 of the 10 most profitable companies in the world were American (even the non-U.S. exception, Germany's Daimler-Chrysler, has a substantial part of its operations in the United States). Unlike their Japanese or Western European counterparts, American corporations have considerable freedom of operation and little government control over issues of product development, plant openings or closures, and employment. The United States also has a clear edge over the rest of the world in many high-tech industries, including computers, medical care, aerospace, and military equipment. In the 1990s, the American economy experienced the second-longest period of growth in the nation's history. The economy grew at an average rate of 3-4 percent per year and unemployment fell below 5 percent. In addition, there were dramatic gains in the stock market and many of the nation's largest companies had record profits. Finally, a record number of Americans owned their own homes. This long period of growth ended in 2001, when the economy slowed dramatically following a crash in the high-technology sector. The United States has considerable natural resources. These resources include coal, copper, lead, phosphates, uranium, bauxite, gold, iron, mercury, nickel, silver, tungsten, zinc, petroleum, natural gas, and timber. It also has highly productive agricultural resources and is the world's largest food producer. The economy is bolstered by an excellent, though aging, infrastructure which makes the transport of goods relatively easy. Despite its impressive advantages, the American economy faces a number of problems. Most of the products and services of the nation are consumed internally, but the economy cannot produce enough
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goods to keep up with consumer demand. As a result, for several decades the United States has imported far more products than it exports. This trade deficit exists entirely in manufactured goods. The United States actually has trade surpluses in agriculture and services. When adjusted for the surpluses, the U.S. trade deficit in 2000 amounted to a record $447 billion. The United States has been able to sustain trade deficits year after year because foreign individuals and companies remain willing to invest in the United States. In 2000, there was $270 billion in new foreign investment in American companies and businesses. Another major problem for the American economy is growth of a 2tier economy, with some Americans enjoying very high income levels while others remain in poverty. As the workplace becomes more technologically sophisticated, unskilled workers find themselves trapped in minimum wage or menial jobs. In 1999, despite the strong economic growth of the 1990s, 12.7 percent of Americans lived below the poverty line. There are other wage problems in the United States. Although the economy has grown substantially, most of the gains in income have gone to the top 20 percent of households. The top 10 percent of households earned 28.5 percent of the nation's wealth, while the bottom 10 percent accounted for only 1.5 percent. There is also a growing number of Americans who are not covered by medical insurance. Although there is great diversity in the American economy, services dominate economic activity. Together, services account for approximately 80 percent of the country's GDP. Manufacturing accounts for only 18 percent, while agriculture accounts for 2 percent. Financial services, health care, and information technology are among the fastest growing areas of the service sector. Although industry has declined steeply from its height in the 1950s, the American manufacturing sector remains strong. Two of the largest American corporations, General Electric and General Motors, have manufacturing and production as their base, although they have both diversified into the service sector as well. Meanwhile, despite continuing declines, agriculture remains strong in the United States.
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One of the main trends in the agricultural sector has been the erosion of the family farm and its replacement by the large corporate farm. This has made the sector more productive, although there has also been a decrease in the number of farmers and farm workers. Since the middle of the 20th century, the United States has aggressively pursued free and open trade. It helped found a number of international organizations whose purpose is to promote free trade, including the General Agreement on Tariffs and Trade (GATT), now known as the World Trade Organization (WTO). It has also engaged in free trade agreements with particular nations. The North American Free Trade Agreement (NAFTA) between the United States, Canada, and Mexico is an example of this. One continuing problem for American companies engaged in foreign trade is that the United States is much more open to trade than many other nations. As a result, it is easy for foreign companies to sell their goods and services in the United States, but American firms often find it difficult to export their products to other countries. Geography of the United States of America The United States of America is the third largest country in the world based on population and land area. The United States also has the world's largest economy and is one of the most influential nations in the world. Government of the United States

The U.S. government is a representative democracy with two legislative bodies. These bodies are the Senate and House of Representatives. The Senate consists of 100 seats with two representatives from each of the 50 states. The House of Representatives consists of 435 seats and are elected by the people from the 50 states. The executive branch consists of the President who is also the head of government and chief of state. On November 4, 2008 Barack Obama was elected as the first African American U.S. president.
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The U.S. also has a judicial branch of government that is made up of the Supreme Court, the U.S. Court of Appeals, U.S. District Courts and State and County Courts. The U.S. is comprised of 50 states and one district (Washington D.C.). Economics and Land Use in the United States The U.S. has the largest and most technologically advanced economy in the world. It mainly consists of the industrial and service sectors. The main industries include petroleum, steel, motor vehicles, aerospace, telecommunications, chemicals, electronics, food processing, consumer goods, lumber and mining. Agricultural production, though only a small part of the economy, includes: wheat, corn, other grains, fruits, vegetables, cotton, beef, pork, poultry, dairy products, fish and forest products. U.S. INTERNATIONAL TRADE IN GOODS AND SERVICES Goods and Services The U.S. Census Bureau and the U.S. Bureau of Economic Analysis, through the Department of Commerce, announced today that total June exports of $191.2 billion and imports of $225.4 billion resulted in a goods and services deficit of $34.2 billion, down from $44.1 billion in May, revised. June exports were $4.1 billion more than May exports of $187.1 billion. June imports were $5.8 billion less than May imports of $231.2 billion. In June, the goods deficit decreased $9.7 billion from May to $53.2 billion, and the services surplus increased $0.2 billion from May to $18.9 billion. Exports of goods increased $4.0 billion to $134.3 billion, and imports of goods decreased $5.7 billion to $187.4 billion. Exports of services increased $0.1 billion to $56.9 billion, and imports of services were virtually unchanged at $38.0 billion.
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The goods and services deficit decreased $8.2 billion from June 2012 to June 2013. Exports were up $6.0 billion, or 3.2 percent, and imports were down $2.3 billion, or 1.0 percent. Goods (Census Basis) The May to June increase in exports of goods reflected increases in industrial supplies and materials ($1.5 billion); capital goods ($1.5 billion); consumer goods ($1.0 billion); foods, feeds, and beverages ($0.3 billion); and other goods ($0.3 billion). A decrease occurred in automotive vehicles, parts, and engines ($0.4 billion). The May to June decrease in imports of goods reflected decreases in industrial supplies and materials ($2.5 billion); consumer goods ($1.6 billion); other goods ($1.2 billion); foods, feeds, and beverages ($0.4 billion); and automotive vehicles, parts, and engines ($0.3 billion). Capital goods were virtually unchanged. The June 2012 to June 2013 increase in exports of goods reflected increases in capital goods ($2.3billion); consumer goods ($1.0 billion); and other goods ($0.5 billion). Decreases occurred in foods, feeds, and beverages ($0.6 billion) and industrial supplies and materials ($0.1 billion). Automotive vehicles, parts, and engines were virtually unchanged.

The June 2012 to June 2013 decrease in imports of goods reflected decreases in industrial supplies and materials ($4.7 billion); capital goods ($0.4 billion); and other goods ($0.2 billion). Increases occurred in consumer goods ($1.1 billion); foods, feeds, and beverages ($0.5 billion); and automotive vehicles, parts, and engines ($0.3 billion). Services

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Exports of services increased $0.1 billion from May to June. The increase was mostly accounted for by an increase in travel ($0.1 billion). Changes in the other categories of services exports were relatively small. Imports of services were virtually unchanged from May to June. A decrease in other transportation ($0.1 billion), which includes freight and port services, was mostly offset by increases of less than $0.1 billion in several categories. The June 2012 to June 2013 increase in exports of services was $3.1 billion or 5.8 percent. The largest increases were in other private services ($1.6 billion), which includes items such as business, professional, and technical services, insurance services, and financial services, in travel ($0.7billion), and in royalties and license fees ($0.5 billion). Within other private services, the largest increase was in business, professional, and technical services. The June 2012 to June 2013 increase in imports of services was $1.2 billion or 3.2 percent. The largest increases were in other private services ($0.6 billion), in other transportation ($0.2billion), and in passenger fares ($0.2 billion). Within other private services, the largest increase was in financial services. Goods and Services Moving Average For the three months ending in June, exports of goods and services averaged $188.6 billion, while imports of goods and services averaged $228.1 billion, resulting in an average trade deficit of $39.5 billion. For the three months ending in May, the average trade deficit was $40.5 billion, reflecting average exports of $186.6 billion and average imports of $227.1 billion.

What does the us export? More than two-thirds of U.S. exports are material goods ($1.547 trillion). One-third of all goods exported ($527 billion) are capital goods. The largest sub-categories are industrial machines ($46 billion), commercial aircraft ($45 billion), and semiconductors ($42
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billion). Capital equipment also includes medical equipment, telecommunications and computer equipment. Another third is industrial supplies and equipment ($501 billion). The largest sub-categories are fuel oil ($60 billion), petroleum products ($57 billion) and chemicals ($35 billion). Industrial supplies also includes plastics, gold and steel. Nine percent of U.S. goods exports are automobiles ($146 billion). The fourth largest category is consumer goods ($182 billion). This includes pharmaceuticals ($48 billion), cell phones ($22 billion) and gem diamonds ($18 billion). The smallest category ($133 billion) is foods, feeds and beverages. This includes soybeans ($26 billion), meat/poultry ($18 billion) and corn ($10 billion). The remaining third of exports are services ($632 billion). Travel passenger services was the largest single category, at $128 billion. Next was royalties and license fees, at $121 billion. Passenger fares totaled $40 billion, while other transportation was $43 billion. Government and military contracts was $20 billion. The rest was miscellaneous private services.

What Does the U.S. Import?: More than 80% of U.S. imports are goods ($2.275 trillion). The largest category ($731 billion) is industrial machinery and equipment, of which nearly half ($313 billion) is crude oil. Within this, the largest category is oil and related petroleum products. In addition to this are imports of fuel oil ($46 billion), petroleum products ($50 billion) and natural gas ($9 billion). Other large industrial imports are iron and steel products ($30 billion), chemicals ($25 billion), ferilizers ($16 billion).

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The second largest import sub-category is capital goods ($548 billion). This includes computers ($60 billion), computer accessories ($56 billion), and telecommunications equipment ($53 billion). The third largest category is consumer goods, which totaled $517 billion. Of this, apparel was the largest sub-cateogry, at $95 billion. Next was pharmaceuticals ($87 billion), cell phones ($81 billion) and toys ($33 billion). The fourth largest category was automotive vehicles, parts, and engines at $297 billion. Food, feeds, and beverages was the smallest category, at $110 billion. This includes fish ($17 billion), fruit ($12 billion) and vegetables ($11 billion). The remaining 20% of imports are services ($437 billion). Miscellaneous private services, primarily financial services, was nearly half, at $191 billion. The next largest category is travel passenger services, at $84 billion. Other transportation services was $55 billion, while passenger fares totaled $34 billion. The U.S. imported $42 billion in royalties and license fees services. Last but not least was U.S. Government service imports ($31 billion) which was primarily defense ($27 billion). The U.S. imports more than it exports. This creates a trade deficit of $540 billion. Even though America exports billions in oil, consumer goods and automotive products, it imports even more.

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2013:-U.S.A TRADE IN GOODS WITH CHINA

Month January 2013 February 2013 March 2013 April 2013 May 2013 June 2013 TOTAL 2013

Exports Imports

Balance

9,384.6 37,172.0 -27,787.4 9,302.6 32,715.0 -23,412.5 9,435.4 27,321.7 -17,886.3 8,991.9 33,101.8 -24,109.9 8,786.5 36,646.2 -27,859.7 9,181.5 35,831.3 -26,649.8 55,082.5 202,787.9 -147,705.4

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Top 10 Countries That Import U.S. Products The following are the top 10 countries importing U.S. products and services in 2010, according to the most recent data available from the U.S. Census Bureau and other U.S. government sources. No one should be shocked Canada is still the number one importer of U.S. goods. However, there are a few surprises - such as Singapore beating France for the number ten spot. 1. Canada: $228 Billion Even with the global automotive industry in decline, the top U.S. product imported was automotive-related, including accessories and parts. 2. Mexico: $149 Billion With all the media attention U.S. trade with China receives, it may come as a surprise that Mexico still imports more U.S. goods and services than the far more populous country of China. Like Canada, Mexicos primary import from the U.S. was automotive-related. 3. China: $82 Billion At $82 billion, China is a distant third in U.S. imports compared to Canada and Mexico, but it is quickly rising. Chinas number one import is computer accessories, parts, and peripherals. Part of this is related to the computer assembly industry, but also includes sales to Chinese retailers and end-users.

4. Japan: $55 Billion The primary import in 2010 from Americas fourth -largest trading partner was civilian aircraft. However, if you were to add all agricultural exports to Japan, it would far outstrip aviation products.
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5. United Kingdom: $44 Billion With the U.S. travel market facing tough times, the aviation industry turned to the international market. Like Japan, the U.K.s primary import from across the pond was civilian aircraft. Following this were chemicals and primary resources (such as metal for manufacturing). 6. Germany: $44 Billion Germany imported only $200 million less than the U.K. Its top imports from the states were pharmaceutical-related imports, such as drug-preparation chemicals. 7. South Korea: $35 Billion South Korea continues to be one of the most promising countries for U.S. exports. The number one U.S. export to the country was semiconductors, followed by products for chemical manufacturing (not pharmaceutical chemicals like Germany). 8. Brazil: $32 Billion Latin Americas largest economy is also home to some of the regions largest reserves of natural resources, like crude oil and natural gas. Its biggest import from the U.S. was chemical manufacturing, much of it related to its exploration and extraction of these natural resources. 9. The Netherlands: $31 Billion Another surprise on this top ten list may be the tiny country of the Netherlands, population sixteen million. However, with one of the highest incomes per capita of any nation, its people can afford to import. Like its European neighbor Germany, its largest import from the U.S. was pharmaceutical preparations.
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10. Singapore: $26 Billion The even smaller nation of Singapore made the list of the top ten destinations for U.S. exports. Like South Korea - one of the other Asian Tigers - Singapores primary import from the U.S. was computer/electronic-related.

Top Countries Exporting to the U.S. Top Ten Countries Exporting to the U.S. The list of the United States top ten countries to buy from is unsurprisingly similar to the list of the top ten countries it exports to. The more interesting thing is to understand what Americans are buying from its top partners. The data are based on the most recent available from the U.S. Census Bureau and other reliable sources. 1. China: $334 billion China is, by far, the biggest exporter to the U.S. The biggest U.S. import from China - computers - is related to the biggest U.S. export to China - computer components. Much of U.S.-Chinese trade is related to the computer and electronic assembly industry. 2. Canada: $252 billion The U.S. absorbs the vast majority of Canadas exports. The largest single product purchased is crude oil, followed by finished automobiles. 3. Mexico: $210 billion The primary exports to the U.S. from south of the border are manufactured/assembled goods, such as automobiles and computers, and crude oil. 4. Japan: $108 billion
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Even with the dismal performance of the automotive industry, the United States primary import from Japan in 2010 was passenger vehicles. 5. Germany: $75 billion Like Japan and Canada, Germanys biggest export to the U.S. was passenger vehicles. Healthcare-related products were the second largest.

6. United Kingdom: $45 billion The U.K.s top sales to the U.S. were related to processed chemicals, including healthcare and aromatic products. 7. South Korea: $45 billion Surprisingly, South Koreas exports to the United States were only about $500 million less than the U.K.s. Primary products exported include computer- and electronic-related goods. 8. France: $35 billion While France didnt make the top ten list of importers for U.S. products, it definitely makes this list. The French aviation industry comprised the countrys top exports to America. 9. Taiwan: $33 billion Like South Korea - the other Asian Tiger on this list - Taiwans main export the United States was computer-related, such as consumer electronics. 10. Ireland: $30 billion

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Barely edging out Venezuela for the number ten spot, Ireland sold the U.S. primarily machinery and machinery-related equipment. With the rebound of the global economy, 2011 should be a great year for international trade. It will interesting to see what this list looks like after this year!

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TOP US EXPORT PARTERNS Below is the list of the largest trade partners of the United States as compiled by the US Census Bureau. The United States has a bilateral trade deficit with 12 of the 15. So I have ranked them according to trade deficit, with China in first place by a country mile. Mexico is second, while Japan and Germany are third and fourth respectively. (With the EU as a whole, the US had a trade deficit of $80 billion). The list also includes oil exporters like Saudi Arabia and Venezuela, but the lions share of the US trade deficit is in goods and services.

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TOP US IMPORT PARTERNS I noted this morning that imports are less important to the American economy than people generally realize. Other developed countries tend to be much smaller and more specialized and so trade on both the imports and exports side is much more important to them. Americans mostly trade with other Americans. But when we do import, who do we import from? That theres a lot of China should come as no surprise to anyone who follows the news. Indeed, Id say following the news probably leads to a mistake overestimation of how important China is to the US economy. Id say China accounts for much more than 20 percent of total trade-related media coverage, even though the PRC is just 18.5 percent of our imports and less than 17 percent of our total trade. By contrast Canada is systematically under-covered in the American media. This is especially true when you consider that Canada-based business establishments are much more likely to be directly competing with US-based ones.

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TOP TRADING PARTNERS

Total export

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Import

Lets start by comparing Figures 1 and 2. These two pie charts illustrate our trading relationships with our largest trading partners. Looking at Figure 1, we can see that Canada is our largest buyer in relation to other countries buying our goods and services, they consume the most. After Canada, Mexico is our next largest buyer. So, geographically, our neighbors are buying the majority of our exports. Looking at Figure 2, the breakdown of US imports for 2010, you can see that the vast majority of our imports are bought from China. This
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probably comes as no surprise given the ubiquitous Made in China label. After China, we also purchase a great deal from Mexico and Canada. In contrasting these two pie charts, one can observe that for the majority of our trade relationshipsthere is no one-for-one trading occurring. Over time this leads to trade imbalances, where one country buys much more than it sells to another country. The U.S. currently has a trade imbalance with China. In 2011, the U.S. trade imbalance with China was valued at approximately 295 billion.6

USA Trade Balance Current and Historical Data

Current Trade Balance: $-40.3 Billion. Economists Expect: -$40.8 Billion. Source of Report: Bureau of Economic Analysis of the U.S. Department of Commerce. Upcoming Release Commentary: The U.S. trade deficit increased to $40.3 billion in April from $37.1 billion in March, due to larger imports. The consensus projection was for a deficit of $41.2 billion. The rise in international trade gap was largely due to the non-petroleum goods deficit which worsened to $37.8 billion in April from $33.7 billion the month before. Imports rose 2.4 percent after declining 3.7 percent in March, while exports rebounded 1.2 percent after decreasing 1.0 percent the month before. For May, the trade gap is expected to widen to $40.8 billion. We are likely to see another up tick in imports, following last months gain. Exports were likely unchanged, with little signs of any further increase in global demand for US exports.
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U.S. Trade Balance Historical Overview: Historically, from 1992 until 2013, the United States Trade Balance averaged a deficit equivalent to 31979.53 million USD, reaching the best deficit at 831.00 million USD in February 1992, and the worst deficit at 67351.00 million USD in August 2006.

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Market Impact Scenarios: Trade balance data has the tendency to generate some volatility for the USD. Since the United States has been running consistent trade deficits, traders generally focus on the percentage change in the deficit. A decrease in deficit will cause the US dollar to rally, while a widening deficit will lead to a potential fall in the value of the greenback. Interestingly, a strong foreign exchange value of the dollar makes imports cheaper, while, weaker the dollar is compared to other currencies, the less expensive goods and services are to foreigners, helping spurt export activity. Understanding Trade Balance: Trade balance is the monetary difference between the value of imports and exports over the reported period of time. The headline trade balance figure is expressed in billions of dollars. Despite the data being severely lagged compared to other consumption indicators, traders closely watch the monthly trade balance figures to get early clues about any revision in GDP forecasts. The United States is the worlds largest importer, but is not a leading exporter. Since 1980, the country has been running consistent trade
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deficits due to high imports of oil and consumer products. In recent years, U.S. has been running huge trade deficits with China. The U.S. mainly imports consumer electronics goods, clothing and machinery from China.

Top Ten Countries Exporting to the U.S. The list of the United States top ten countries to buy from is unsurprisingly similar to the list of the top ten countries it exports to. The more interesting thing is to understand what Americans are buying from its top partners. The data are based on the most recent available from the U.S. Census Bureau and other reliable sources. 1. China: $334 billion China is, by far, the biggest exporter to the U.S. The biggest U.S. import from China - computers - is related to the biggest U.S. export to China - computer components. Much of U.S.-Chinese trade is related to the computer and electronic assembly industry. 2. Canada: $252 billion

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The U.S. absorbs the vast majority of Canadas exports. The largest single product purchased is crude oil, followed by finished automobiles. 3. Mexico: $210 billion The primary exports to the U.S. from south of the border are manufactured/assembled goods, such as automobiles and computers, and crude oil. 4. Japan: $108 billion Even with the dismal performance of the automotive industry, the United States primary import from Japan in 2010 was passenger vehicles. 5. Germany: $75 billion Like Japan and Canada, Germanys biggest export to the U.S. was passenger vehicles. Healthcare-related products were the second largest.

6. United Kingdom: $45 billion The U.K.s top sales to the U.S. were related to processed chemic als, including healthcare and aromatic products. 7. South Korea: $45 billion Surprisingly, South Koreas exports to the United States were only about $500 million less than the U.K.s. Primary products exported include computer- and electronic-related goods. 8. France: $35 billion

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While France didnt make the top ten list of importers for U.S. products, it definitely makes this list. The French aviation industry comprised the countrys top exports to America. 9. Taiwan: $33 billion Like South Korea - the other Asian Tiger on this list - Taiwans main export the United States was computer-related, such as consumer electronics. 10. Ireland: $30 billion Barely edging out Venezuela for the number ten spot, Ireland sold the U.S. primarily machinery and machinery-related equipment. With the rebound of the global economy, 2011 should be a great year for international trade. It will interesting to see what this list looks like after this year!

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CONCLUSION

In the year 2011, Americans sold $2.1 trillion in goods and services to corporations and consumers in other countries. Goods and services sold to other countries are called exports. In 2011, Americans also bought roughly $2.66 trillion in goods and services from other countries.3 Purchases from other countries are called imports. The sum of U.S. exports and imports, $4.76 trillion, represents the total of U.S. international trade for 2011. Each day, in fact, Americans buy and sell more foreign goods and services than are produced annually in more than 80 countries around the world. That means that U.S. companies, and the average American citizen, are avid consumerswe buy a lot from other countries. We also produce a great deal to sell to other countries; the U.S. is one of the top five exporters worldwide. The recent trade performance of the United States and the rest of the world.

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