Illustrative World Trade Flows

North AmericanIntratrade: 236

Rest of the WorldIntratrade: 100

European Community

Intratrade: 770

Asia/Pacific RimIntratrade: 274

128

105425

192

144 93 414

127

133

130

80133

Numbers are billions of dollars

Protectionism and World Trade

Tariffs

LimitSupply

IncreaseProfits

Quotas

Protectionism

DecreasedGlobal Trade

Exports of goods and services as a percentage of GDP, selected countries,

1996Country Exports as % of GDPNetherlands 56Canada 38New Zealand 30United Kingdom 30France 24Italy 24Germany 23United States 12Japan 10

Study the alphabetical list of countries below. Then rank them from highest to lowest in terms of which are the most important countries for

U.S. exports.Country RankBelgium & LuxembourgCanadaFranceGermanyJapanMexicoNetherlandsSouth KoreaTaiwanUnited Kingdom

The 10 most important countries for U.S. exports, 1991

Country Rank Imports (billions $)

Canada 1 $85.1Japan 2 $48.1Mexico 3 $33.3United Kingdom 4 $22.1Germany 5 $21.3South Korea 6 $15.5France 7 $15.4Netherlands 8 $13.5Taiwan 9 $13.2Belgium and Luxembourg 10 $10.8

Principal U.S. exports and imports of goods, 1996 (in billions of dollars)

Exports Amount Exports AmountComputers $43.7 Petroleum $72.7Chemicals 42.5 Automobiles 65.9Semiconductors 35.8 Computers 61.5Consumer Durables 33.2 Clothing 39.6Aircraft 30.8 Semiconductors 36.7Generating Equipment 24.1 Household Appliances 31.1Grains 21.2 Chemicals 26.9Telecommunications 20.3 Consumer Electronics 18.4Automobiles 17.0 Iron & Steel 17.2Nonferrous Metals 15.5 Toys & Sporting Goods 15.4

U.S. exports and imports of goods by area, 1996

Exports to

Value in billions of dollars

Percentage of total Imports from

Value in billions of dollars

Percentage of total

Industrial Countries $354 58 Industrial Countries $443 55Canada $135 22 Canada $159 20

Japan 66 11 Japan 115 14Western Europe 137 22 Western Europe 162 20

Australia 12 2 Australia 4 1Other 3 1 Other 3 1

Developing Countries 258 42 Developing Countries 360 45Mexico 57 9 Mexico 75 9

China 12 2 China 56 7Eastern Europe 7 1 Eastern Europe 7 1

OPEC Countries 20 3 OPEC Countries 44 5Other 162 26 Other 178 22

TOTAL $612 100 TOTAL $803 100

Imports vs. Exports, 1965-1996

U.S. trade exports to and imports from Canada and Mexico

91.1

85.1

33.3

31.1

0 20 40 60 80 100

Imports fromCanada

Exports toCanada

Exports to Mexico

Imports fromMexico

Billions of U.S. Dollars

Top five U.S. exporters

Company Industry Export as a % of Sales

Boeing Aircraft 61%

Sun Microsystems

Computers 49%

Intel Computers 40%

Caterpillar Heavy Machinery

36%

McDonnell Douglas

Aircraft 33%

Results of Hoover’s study of consumer preferences in automatic washers in four Western European countries

FEATURES GREAT BRITAIN ITALY WEST GERMANY FRANCEHeight* 34-inch Low 35-inch 34-inchWidth Narrow Narrow Wide NarrowLoading Top Front Front FrontCapacity 5 kilos 4 Kilos 6 kilos 5 kilosSpin speed 700 rpm 400 rpm 800 rpm 600 rpmWater heater No** Yes Yes*** YesWashing action Agitator Tumble Tumble Agitator

* Thirty-four inch height w as a standard w ork-surface height in Europe

** Most British homes had centrally heated hot w ater

*** West Germans preferred to launder at temperatures higher than generally provided centrally

All Stars Rank Company Industry1/1 General Electric Electroics, electrical equipment2/8 Cisco Systems Network Commun., Internet tech.3/2 Microsoft Computer hardware, software4/4 Intel Computer hardware, software5/7 Wal-Mart Stores Retail: general, specialty6/14 Sony Electronics, electrical equipment7/9 Dell Computer Computer hardware, software8/NR Nokia Network Commun., Internet tech.9/20 Home Depot Retail: general, specialty10/16 Toyota Motor Motor Vehicles11/22 Southwest Airlines Airlines12/11 Lucent Technologies Network Commun., Internet tech.13/NR Goldman Sachs Securities, diversified financials14/5 Berkshire Hathaway Insurance: property, casualty15/3 Coca-Cola Beverages16/NR Charles Schwab Securities, diversified financials17/17 Johnson & Johnson Pharmaceuticals18/25 Citigroup Securities, diversified financials19/15 Ford Motor Motor Vehicles20/13 Pfizer Pharmaceuticals21/10 Merck Pharmaceuticals22/21 Walt Disney Entertainment23/19 American Express Securities, diversified financials24/NR United Parcel ServiceMail, pkg., freight delivery25/NR Enron Energy transmission providers

Company Score IndustryBRITAIN Royal Dutch/Shell Group 7.70 Petroleum refiningBP Amoco 7.63 Petroleum refiningGlaxo Welcome 6.91 PharmaceuticalsPearson 6.89 PublishingTesco 6.84 Food, drug storesFrance Carrefour 6.92 Food, drug storesL'Oreal 6.65 Soap, cosmeticsGroupe Danone 6.51 Food production, processingAXA 6.51 Insurance: life, healthVivendi 6.50 EntertainmentGermany BASF 6.96 ChemicalsBertelsmann 6.75 PublishingLufthansa Group 6.56 AirlinesDaimler Chrysler 6.48 Motor vehiclesVolkswagon 6.40 Motor vehiclesJapan Toyota Motor 7.39 Motor vehiclesSony 7.34 Electronics, electronic equip.Canon 7.14 Imaging, office equipmentFUJI Photo Film 6.87 Imaging, office equipmentHonda Motor 6.62 Motor vehiclesU.S. General Electric 8.41 Electronics, electronic equip.Home Depot 8.33 Retailers: general, specialtyWal-Mart Stores 8.32 Retailers: general, specialtyUnited Parcel Service 8.20 Mail, pkg., freight deliveryEnron 7.93 Energy transmission Europe and North America Nokia (Finland) 8.12 Comm., Internet tech.Nestle (Switzerland) 7.64 Food production, processingNortel Networks (Canada) 7.34 Comm., Internet tech.L.M. Ericsson (Sweden) 7.15 Comm., Internet tech.Royal Ahold (Netherlands) 6.95 Food, drug storesASIA (Outside Japan) Singapore Airlines (Singapore) 7.26 AirlinesNews Corp. (Australia) 7.23 EntertainmentColes Meyer (Australia) 5.92 Food, drug storesPohang Iron & Steel (S. Korea) 5.36 Metals, metal productsSK (S. Korea) 4.95 Petroleum refining

National Champions

Category Champions

MANAGEMENT GETTING/KEEPING TALENT1. General Electric 1. General Electric2. Home Depot 2. Enron3. Wal-Mart 3. MerckPRODUCTS/SERVICES SOCIAL/ENVIRONMENTAL RESPONSIBILITY1. New York Times 1. Taget2. Singapore Airline 2. New York Times3. Taget 3. MerckINNOVATIVENESS USE OF ASSETS1. Enron 1. Home Depot2. Nokia 2. General Electric3. Home Depot 3. Wal-MartLT INVESTMENT VALUE GLOBAL BUSINESS ACUMEN1. Home Depot 1. Nestle2. Wal-Mart 2. News Corp3. General Electric 3. Coca-ColaFINANCIAL SOUNDNESS1. Fuji Photo Film2. General Electric3. United Parcel Service

Seller

Seller’s int’lMarketing

Headquarters

Channels betweenNations

Channels withinForeignNations

Final Consumer

International Marketing

Channel of Distribution

International comparison of the percent of U.S. software package sales that are illegal

0 20 40 60 80 100

U.S.

Germany

Benelux

Japan

Italy

Korea

Switzerland

Iberia

Taiwan

China