US Exporters Feel Favorable Trade Winds

Many politicians running for office lash out at global competition, blaming it for a host of domestic problems during election campaigns. Yet trade is a two-way street, and firms with international trade links can succeed. Examples in the US include MTS Systems, which makes tire testers, and Caterpillar, which manufactures construction and mining equipment. A sagging US dollar, the rapid expansion of Chinese industrialization and US competitiveness in high technology contribute to increased exports. Because its imports outpace exports, the US has a high trade deficit. Global interconnectedness is complex and has its ironies: Many firms benefiting from exports provide parts for goods made by foreign companies and subsequently sold to US consumers, ultimately contributing to the trade deficit and reinforcing the global drift of trade. – YaleGlobal