core exports from north america
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CORE EXPORTS FROM NCORE EXPORTS FROM NAMERICAAMERICA
ByS.Mah
07mba
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NORTH AMERICA
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United statesUnited states
y The USA is the largest economy in accounting for more than 20% of the wGDP.
y The GDP growth has slow down a littleach year from a rate of 3.6% in 2004 t1.9% in 2007.
y The unemployment rate is showing a trend and is estimated at 4.8% in compared to 6% in 2003).
y Though agriculture contributes only 1%but produces 60% of the world's a
production.y The industrial sector contributes nea
GDP.y The US economy is becoming mor
service oriented (contributing more th
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International TradeInternational Tradey The USA achieves 30% of their external tra
NAFTA countries & 20% through the Europey A free trade agreement between the USA an
Morocco came into force in 2005.y The country mainly imports mineral fu
machinery & electric equipment, veh
chemicals.y The USA is encouraging imports from low co
like China (now its third largest trade partnery Its top three top import partners are: Can
and Mexico.y USAs top three export partners are: Cana
and Japan.y The goods mainly exported are machinery
electronic equipment, vehicles, optical &instruments, aircrafts & their parts.
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Auto IndustryAuto Industryy The U.S. auto industry is a key compo
nations manufacturing base.y It accounts for about 5 percent of GDP and
of all durable goods shipments.y The automotive industry, including the autom
sector, accounted for about 996.8 thousan
employees in 2007, a decline of 7 percent froy It accounted for 7.2 percent of all ma
employees.y The Center for Automotive Research
automotive suppliers employed 7,83,100 Uand contributed to 4.5 million jobs nationwide
y
This is because automakers encourage supclose to auto producing plants to improve delivery of parts, quality control, and flexibilit
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Other SectorsOther Sectors
y Foreign demand for advanced machinerexports of civilian aircraft, drillitelecommunications equipment, agriculturaand excavators all rose at double-digit rates
y In some industries the shift has been dramaof iron and steel products rose 21% in 2007.
y Employment in construction is plunging, exmanufacturing and mining employment is alevel in a decade.
y Export-related manufacturing and mining some 8% of GDP but only 1.5% ofemployment.
y
Mark Zandi , chief economist points out trelated manufacturing, in particular, is highlyand therefore less prone to mass hiring.
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CANADACANADA
Canada has the 8th largest economy in thThe Canadians enjoy one of the highest liin the world.Due to slowdown in US economy, the GDP
down from more than 3% in 2005 to a forfor 2008.Unemployment and inflation is aroundrespectivelyAgricultural sector employs about 3% of
and contributes a similar percentage toGDP.The services sector now accounts for 66while as the manufacturing sector accounts
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International tradeInternational trade
y Since the implementation of NAFTA in two-way merchandise trade between theCanada has more than doubled.
y The top three import partners of CanadU.S.A, China and Japan.
y Canada mainly imports vehicles, macelectronic equipment.
y The top three export partners are: tJapan and the United Kingdom.
y The country mainly exports mineral fuvehicles, machinery, and electric & equipment.
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y The Canadian market for electrical powevalued at $13.8 billion in 2007, a 9% increawhile export growth was 8.4%.
y The main types of equipment are hemachinery like electric motors and geswitchgear equipment with a total market
billion in 2007, a 5.5% increase over 2006.y Lighting market is valued at $2 billion in
increase over previous year.y The Canadian Aerospace Industry ranks 3
behind the U.S. and the E.U. ,valued at US$revenues, 85% of which came from exports
y
Since 1990, Canadian aerospace industrmore than doubled.
Sectorial Growth
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MexicoMexico
y GDP is growing at 4.8% in 2006 and 3%
y Mexico is highly dependent on exports which account for almost a quarter of thGDP. As the U.S. economy has emergdownturn in 2001, so has the Mexican e
y The weak point of the Mexican econheavy dependence on the US exports.
y 80% of Mexican foreign trade is carried US.
y Both unemployment (around 3%) an(around 3.5%) are under control.
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International tradeInternational trade
y Mexico is one of the worlds most trade depecountries.
y The share of foreign trade in countries GDP 60%.
y The country signed a free trade agreement w
European Union in 2000 and the commerciasigned with Japan came into force on April 2
y The top three import partners are: the USA, Japan.
y It mainly imports electrical & electronic equip
machinery, vehicles, plastics and mineral fuey USA buys 80% of its exports. The top three e
partners are: the USA, Canada and Spain.
y The commodities mainly exported are electri
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SectorialSectorial GrowthGrowth
y Over the past decade, Mexico has increexport product variety with annual growth0.3% in Machinery & Transport Equipme
y The growth rate in Wood & Paper industr
y Overall, more than 87% of US imports infrom products which Mexico exports.
y It was 79% in 1990.
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