agriculture and international trade
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Agriculture and International Trade. Chapter 16. Discussion Topics. Growth and instability in agricultural trade The importance of agricultural trade The composition of agricultural trade Direction of U.S. agricultural trade U.S. agricultural trade performance. Page 314. - PowerPoint PPT PresentationTRANSCRIPT
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Agriculture andInternational
Trade
Chapter 16
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Discussion Topics
Growth and instability in agricultural trade
The importance of agricultural tradeThe composition of agricultural tradeDirection of U.S. agricultural tradeU.S. agricultural trade performance
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Importance of Trade
Crop agriculture in U.S. has become export dependent.
More than one-half of annual cotton, rice and soybean production is exported
Livestock agriculture less dependent on foreign sales for sustainable demand
Greater dependence on imports as well
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U.S. Exports and Imports as a Percent of Total U.S. Milk Solids Production
Dairy Exports
Dairy Imports
% of Dairy Solids
Dramatic DropIn Milk Prices
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Importance of Trade
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U.S. agricultural exports generate jobs inboth the farm and nonfarm sectors…
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Bulk commodities dominated U.S. agricultural exports until the early 1990’s when value-added sales began to-increase.
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U.S. agricultural exports by region and selected countries.Note the growing importance of Asian markets (36%).Canada (15.6%) and Mexico (14.1%) accountfor more than all of Western Europe (10.2%).
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U.S. agricultural imports by region and selected countries.Western Europe is a more significant supplier of imports to theU.S. than it was a source of export sales for U.S. agriculturalexports. Latin America is largest supplier to U.S.
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Balance of TradeThe balance of trade is a measure of overall
trade performanceTrade Surplus
Exports greater than imports Provides capital since the nation is selling more than it is
buyingTrade Deficit
Imports greater than exports Can reduce a nation’s capital reserves over time forcing it
to either limit imports or borrow capital
U.S. agriculture has recorded trade surpluses since the 1950’s
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SummaryTrade distortions have prompted nations to
seek general agreements on tariffs and trade (GATT).
U.S. agriculture becoming increasingly dependent on export sales
Imports supplying a growing share of domestic food and fiber consumption.
Developing countries are supplying a growing share of world exports
U.S. agriculture generates a trade surplus each year partially offsetting trade deficit in other merchandise
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Chapter 17 focuses on exchange rates and their impact on trade….