Jun 17 2009
USA Export: Oil Widens the Trade Gap… Two Times
If it had not been for the oil imports the trade gap would have decreased. The US recession is playing a large part in the decreasing amount of imports. Americans buy less foreign cars and car parts, buy less food and drinks from overseas. But whatever we buy, it is now costing more because of the 10% drop in the strength in the Dollar. At the end of April the Dollar was worth 70% of a Euro and 60% of a British Pound, compared to 80% and 70% three months earlier.
The global recession is affecting our exports as well. However, USA Export numbers are falling off at a slower rate than our imports. That is a reason to be hopeful. With a weaker dollar and renewed efforts to look for new markets, US manufacturers should continuously explore the possibility to take their products to foreign markets. The recession has shown how fragile an economy can be. The domestic market is not offering the guarantee of generating enough business as in the past. These manufacturers cannot even count on the domestic market to keep them in business. Global business has taken on a very different meaning. How does the competition from anywhere affect the business locally? More and more, USA Export sales need to be large enough so that a company can depend on it to be profitable and survive.
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