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Respond to the explanations of increases in United States exports for two classmates.  In particular, over the next 20 years does it seem likely that the causes highlighted in the initial post will continue?  

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thread 1

Exports are domestic products purchased by another country.  The GDP records only net exports, the difference between exports and imports (Mateer & Coppock, 2018).  If American exports are increasing, either imports are decreasing, or American businesses are gaining market share for their products.  The provided article seems to indicate the latter, since American exports are becoming more valuable.  Free trade does increase competition.  For example, before NAFTA, there was a strict ban on Mexican avocados.  After NAFTA, though avocado imports grew 2,214%, Californians planted about 800 new orchards, producing better fruit and fetching higher prices than Mexican avocados (Slaughter, 2018). 

The provided article gave a clue about the growth in U.S. exports by the fact that it began a quarter century ago, which marks the beginning of NAFTA.  NAFTA has tripled trade between the United States, Canada, and Mexico, with the two countries receiving a third of U.S. exports (Hill & Hult, 2020).  One article estimates that NAFTA raises American GDP by 0.2%–0.3%, a year, or by $50 billion (Slaughter, 2018).  The same article claims that American multinational businesses are not diminished but rather enhanced by foreign investment.  For example, if an affiliate in Mexico gains 10% more workers, the parent business in America gains 1.3% more workers and a 1.7% increase in exports (Slaughter, 2018).  This makes sense because free trade enables a country to focus on what it can make best – its comparative advantage.  The most valuable export listed for the U.S. is aircraft (Roberts, 2018).  By specializing in this industry, Americans can now claim greater demand globally for this export.    

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Some exports have increased because of better technology.  Natural gas exports have risen exponentially thanks to fracking – by 68% in 2017 (Roberts, 2018).  Mexico received 20% of this natural gas, followed by Canada at 13% (Roberts, 2018).  Developing nations in Asia import huge amounts of American coal to produce electricity.  U.S. coal exports increased by 61% in 2017, partly because Asia demanded over twice as much as the previous year (Clemente, 2018).  With economic growth, these developing countries are building better and cleaner coal-burning facilities (Clemente, 2018). 

International trade does help raise the living standards in developing countries.  In another course I’m taking, BUSI 303, I learned that international trade is illustrated by a verse in Ecclesiastes: “Cast your bread upon the waters, for you will find it after many days” (11:1, NKJV).  The “waters” are plural, as in seas, and the “bread” is like grain or other domestic products.  I think God is pleased when international trade benefits poorer countries.


Clemente, J. (2018, Oct. 7). The U.S. coal export to boom to Asia. Forbes. Retrieved from https://www.forbes.com/sites/judeclemente/2018/10/07/the-u-s-coal-export-boom-to-china/#19033aab3454

Hill, C. W. L., & Hult, G. T. M. (2020). Global Business Today (11th ed.). New York, NY: McGraw-Hill.

Mateer, D., & Coppock, L. (2018). Principles of Macroeconomics (2nd edition)New York, NY: McGraw-Hill.

Roberts, K. (2018, Feb. 28). In top 10 U.S. exports for 2017, 3 countries keep popping up: China, Canada, and Mexico. Forbes. Retrieved from https://www.forbes.com/sites/kenroberts/2018/02/28/in-top-10-u-s-exports-for-2017-three-countries-keep-popping-up-china-canada-and-mexico/#47acc03e60d3

Slaughter, M. J. (2018, Jan. 30). Leaving NAFTA would cost $50 billion a year. The Wall Street Journal. Retrieved from https://search-proquest-com.ezproxy.liberty.edu/docview/1992209293/93B6A73D527742A2PQ/5?accountid=12085

Thread 2

When a united states of America export goods, it sells them to an overseas market, that is, to consumers, businesses, or governments in some other country. Exports help to bring money into the country, which increases the exporting nation’s GDP. It can also help to achieve a surplus in the Balance of Payment account.

Exports have come to be an increasingly more necessary supply of revenue for each national and regional firm in the The United States. U.S. exports are rising rapidly, an example of which is the fast increase of ‘U.S. export markets in the developing nations of East Asia and Latin America’ (Schmidt, 1994).’ Most change theories in the economics literature focus on sources of comparative advantage. These theories postulate that all nations can attain from trade if each specializes in producing what they are notably more magnificent environment friendly at providing, based totally on their strengths. The empirical proof shows that comparative gain is indeed relevant. United States exchange policy has different widely via various historical and industrial periods. As a primarily developed nation, the U.S. has relied heavily on the import of uncooked materials and the export of finished goods. This is majorly in consonance with the similar gain principle of trade wherein the US has a comparative advantage in the production of products that require technical or different precise skills.

Secondly, the geographic distribution of U.S. exports has been shifting dramatically toward some areas of growing nations. At the vanguard of this shift was East Asia. Swift profits growth and increased exchange liberalization have transformed the developing countries of East Asia into a dynamic market for U.S. exports. The successful development of East Asia has influenced other growing countries, most notably in Latin America, to undertake comparable insurance policies for financial growth. As a result, the creating nations of Latin America have also become important markets for U.S. exports.

Over the last ten years, economists such as Guiso, Sapienza, and Zingales have been exploring the relationship between culture, values, individual preferences, and the economy, focusing on the unidirectional impact of literature on the economy. They have demonstrated empirically, for example, that the level of trust that people have in their country’s institutions and fellow citizens influence many aspects of economic activity, such as international trade.


Harrell, P., & Rosenberg, E. (2019). Economic dominance, financial technology, and the future of U.S. economic coercion. (). Washington: Center for a New American Security. Retrieved from Political Science Database; ProQuest Central Retrieved from http://ezproxy.liberty.edu/login?url=https://search-proquest-com.ezproxy.liberty.edu/docview/2219817602?accountid=12085

Schmidt, T. J. (1994). The rise of U.S. exports to East Asia and Latin America: Agricultural and business conditions, tenth federal reserve district. Economic Review – Federal Reserve Bank of Kansas City, 79(3), 67. Retrieved from http://ezproxy.liberty.edu/login?url=https://search-proquest-com.ezproxy.liberty.edu/docview/218431782?accountid=12085

VLADOS, C. (2019). The classical and neoclassical theoretical traditions and the evolutionary study of the dynamics of globalization. Journal of Economics and Political Economy, 6(3), 257-280. doi:http://dx.doi.org.ezproxy.liberty.edu/10.1453/jepe.v6i3.1941

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