Analyzing the U.S. Content of Imports and the Foreign Content of Exports (2006) / Chapter Skim
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1 Introduction
1 Introduction
Pages 5-15
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From page 5... ...
Consider, for instance, how the products and services delivered to homes all over the world today still come to some significant extent from the creative labor of Thomas Edison on the electric motor in Menlo Park, New Jersey, in the 1870s and from the creative labor of Gottliev Daimler and Karl Benz in Germany on the internal combustion engine in the 1880s. The evolution of supply chains in both time and space can improve the overall efficiency of an economy and is an indispensable part of eco 5
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From page 6... ...
border -- that is, the accounting for imports and exports when there are complicated multicountry supply chains. The committee held extensive discussions on both the narrow question of measuring content and the broader context of offshoring.
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From page 7... ...
Those functions include both mundane services like call centers and less mundane work like software coding.1 The new trend is especially troubling because the intellectual services sector has been the hard rock of U.S. comparative advantage in the world economy and has increasingly been the source of U.S.
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From page 8... ...
The arrow between the upper-left corner and the upper-right corner shows these business-to-business transactions -- occurring, for example, when one firm hires another firm to do its accounting or custodial work, or when a firm purchases parts from a local independent manufacturer. This is local procurement of goods and services.
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From page 9... ...
This term encompasses both the global intrafirm operations of a company as well as interfirm operations, as long as the transactions involve the movement of goods and services across international borders. Although "outsourcing" is commonly used to describe the increasing global procurement of goods and services, the committee uses "offshoring," which covers the activity of concern in our charge.
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From page 10... ...
14 Goods Imports 12 Goods Exports Services Imports Services Exports 10 8 GDP of 6 4 Percentage 2 0 1947 1952 1957 1962 1967 1972 1977 1982 1987 1992 1997 2002 FIGURE 1-2 U.S. exports and imports of goods and services as a percentage of GDP.
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From page 11... ...
. DATA CURRENTLY COLLECTED The empirical research on offshoring and its wider context is based on a series of data sets, many gathered on a routine basis by the federal government, including international trade flows, foreign investment, and domestic economic indicators.
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From page 12... ...
affiliates of foreign companies and their foreign parent companies.5 For the most part, however, transactions with affiliated foreigners are collected in BEA's surveys of direct investment abroad and foreign direct investment. 3For more detailed information, see http://www.bea.gov/bea/newsrelarchive/2005/ info0105.htm [accessed January 2006]
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From page 13... ...
In the United States, the criterion used to distinguish direct investment abroad from other types of investment abroad is the ownership of at least 10 percent of a foreign business enterprise. Foreign direct investment in the United States is determined by the same 10 percent rule and is based on the country of residency of the foreign owner, not on the owner's citizenship.
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From page 14... ...
The International Price Program (IPP) was established in 1971 and uses market sale prices and transfer prices, which are market related, for calculating export and import price indexes.7 Sample establishments are chosen for the IPP on the basis of their relative trade value in imports and exports during the course of a year.
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From page 15... ...
gathers information on the labor force status of approximately 60,000 households on a monthly basis.8 The data on jobs in the United States are organized by occupation, by geographic region, by industry, or by more than one criteria -- that is, a particular occupation in a given area or industry. General employment data are not designed to isolate job losses attributable to any specific causes.
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