![]() ![]() And because services are not yet internationally traded on a large scale, the benefit to their trade balances is not yet evident. Typically, services now account for 60 to 70 percent of gross domestic product (GDP) for industrial members of the Organization for Economic Co-operation and Development (OECD). The non-traditional export of services also will become a major generator of economic growth in the future for many U.S. And workers in jobs supported both directly and indirectly by exports are paid 13% more. Workers in jobs supported directly in high-technology industries are paid 34% more. What’s more, according to the Office of the Chief Economist, Office of International Macroeconomic Analysis, Department of Commerce, workers in jobs supported directly by exports are paid 20% higher than the average national wage. In fact, the number of export-related jobs has grown six times faster than total U.S. Predictions indicate that by the year 2000, exports will support 16 million jobs. exports of goods and services supported 12 million American jobs. In 1997, the Office of Economic Affairs, Executive Office of the President, reported that U.S. exports of goods and services increased from $430.2 billion to $932.3 billion, an increase of 117 percent. Trade and Investment Is Risingįrom 1988 through 1997, U.S. economic growth and are expected to grow faster than overall economic activity for the remainder of this decade.” U.S. According to President Clinton, “Exports now account for almost one-third of real U.S. In fact, in just the last decade, the number of companies exporting - especially small and medium-size companies - has increased significantly. firms have come to understand this and are developing strategies designed to support worldwide exportation and investment. To achieve this, the United States, which accounts for only 4 percent of the world’s population, must sell and to the other 96 percent. Today, it requires international expansion.Ī primary economic goal of the United States is to maintain a high and rising standard of living. Consequently, for companies to survive and remain competitive in this environment, it takes more than a quality product at an attractive price. companies, small and large, are facing record levels of foreign competition. The world is quickly becoming economically integrated, forcing unprecedented changes at every level of industry. And those companies that do not recognize this trend will likely become a fatality of globalization.įor many years, the United States’ enormous internal market has more than satisfied the needs of U.S. In order to survive in the 21st century, companies in every industry are taking steps to expand internationally through trade and investment. The Trend Toward GlobalizationĮvery country in the world is touched by the globalization trend. And basing decisions on old assumptions undoubtedly will lead to undesirable outcomes. Keeping up with these changes is extremely difficult. They affect every nation, every level of industry, and virtually every business. Ushered in with this new era are dynamic trends toward globalization, the proliferation of trade agreements and the resulting emergence of competing trade blocs that are taking us by storm. These ambiguities are causing us to question our business tactics and reassess our strategies. ![]() As a result, many economic assumptions no longer seem to apply - yet new realities still need to be defined. As we enter into the 21st century, a new era is approaching at warp speed that is affecting virtually every aspect of our lives.
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