http://www.newyorkfed.org/research/current_issues/ci18-1.html
Why Is the U.S. Share of World Merchandise Exports Shrinking?
We all know that U.S. is one of the most richest and powerful country in the whole world. The economy of the United States is the world's largest national economy. Its nominal GDP was estimated to be over $15 trillion in 2011. About 60% of the global currency reserves have been invested in the United States dollar, while 24% have been invested in the euro. The country is one of the world's largest and most influential financial markets. Foreign investments made in the United States total almost $2.4 trillion, which is more than twice that of any other country.
But why is the U.S. share of world merchandise exports shrinking? For me, I can see that other countries do the same thing on how to improve their economy. Being self sufficient will decrease the world merchandise export. US share of world merchandise trade dropped from 12 to 8% over the past decade; the respective share for services even dropped from 25 to 6% during the same period.
According to the other articles that I had read, Corn and soybeans were the wrong products to gain market share with in the 1990s, as prices tumbled and income elasticity of food items were low. The growing appetite China’s for protein-rich food may well turn US food exports from laggard to driver. That said, the United States did experience large declines in share in machinery, transportation products, miscellaneous manufactures, and chemicals.
I think this is a serious threat to the economy of the U.S. and will continue if not resolved by the economists and the government.
