Balance Of Goods In Trade Essay Sample
Germany and the United Kingdom are two of the countries that trade heavily with the United States. The countries receive exports from the United States. They also export goods to the United States.
The export from the United States to Germany was $ 13,026 million in the first quarter. The figure reduced to $ 12,522 million in the second quarter of 2014 and then increased slightly to $12,596 million.
The balance on goods between Germany and the United States is huge. The figure stood at $ 17, 584 in the first quarter of 2014. The balance in goods increased to $19,163 million in the second quarter of 2014 and $19,404 in the third quarter of 2014. The figures were almost the same in 2013 with the figures ranging from $ 15 million to $17 million.
The balance in goods between the United Kingdom was around $ 1,173 million in the first quarter of 2013. However, there is a downward trend in the balance with United Kingdom recording $ 1594 million in the third quarter of 2014. This indicates increased reciprocal trade between the two countries.
There are many economic factors that can explain the balance in the goods between the United States and the two countries. Inflation and growth rate is some of the factors (Aslanov, E. pg 6). Inflation rates in the two countries are higher than that of the United States. This contributes to the deficits. Their growth rates are also lower than that of U. S thus affecting trade.
The inflation rated in Germany stood at 0.1 percent early this year. However, the inflation rate of the United States stands at -0.1 percent. The inflation rate in United Kingdom currently stands at 0.3 percent. By December of 2014, the inflation rate was 0.5 percent.
The growth rate of Germany stood at 0.7 percent in the last quarter of 2014. This was an increase from 0.1 in the July. The growth rate of the United Kingdom grew by 0.5 percent. The demand for imports is affected by these factors (Reininger, T. pg 5)
Aslanov, E Analysis of Economic Factors Affecting Export and Import in the Countries of the South Caucasus, 2010, Retrieved on 6 March 2015, Retrieved from http://www.iset.ge/files/submission_aslanov__isayeva__gasimova.pdf
Reininger, T Factors Driving Import Demand in Selected Central, Eastern and Southeastern European Countries, 2009, print
Trading Economics Inflation Rate - Countries – List, 2015, Retrieved on 06 March 2015, Retrieved from http://www.tradingeconomics.com/country-list/inflation-rate