Behind the Numbers U.S. Trade in the World Economy (1992) / Chapter Skim
Currently Skimming:
Introduction
Introduction
Pages 19-30
The Chapter Skim interface presents what we've algorithmically identified as the most significant single chunk of text within every page in the chapter.
Select key terms on the right to highlight them within pages of the chapter.
From page 19... ...
systems for collecting data on international transactions are probably the most advanced in the~worId, rapid changes in the global economic environment have outpaced improvements to them. In a recent report, the Working Group on the Quality of Economic Statistics jl987)
|
From page 20... ...
Recent studies on the adequacy of existing data on U.S. international transactions are few: most separately address data on merchandise trade, international services transactions, and capital flows; some examine only certain aspects of them.
|
From page 21... ...
Our study focuses on the emerging global trading environment, how it has increased the demand for international economic data, in what respects the existing data are inadequate for meeting current and future data needs, and what correctives can be introduced. THE INTERNATIONAL ECONOMIC ENVIRONMENT Even the most cursory review of major international economic trends over the past two decades shows that there has been a dramatic expansion in the volume of world trade in goods, accompanied by even more rapid growth in services transactions and capital flows across national boundaries.
|
From page 22... ...
macroeconomic policies with those of other countries to reduce global external imbalances, stabilize exchange rates, promote full employment, and foster strong economic growth with low rates of inflation; · Negotiating bilaterally, regionally, and multilaterally to enhance market access for U.S. goods and services abroad, reduce foreign restrictions on U.S.
|
From page 23... ...
Similarly, to remain competitive as multilateral trading opportunities increase, business decision makers face a range of increasingly complex new and old issues: · Weighing the opportunities of selling their products at home and abroad; · Evaluating the alternatives of producing their goods and services domestically for export or of undertaking direct foreign investment and producing the goods and services abroad; · Considering the opportunities for importing various components of a final product rather than purchasing supplies and parts from domestic sources; · Determining what combination of local and host-country personne! to employ and whether they should be permanent or transient; · Identifying the most cost-effective sources of financing of both domestic and foreign operations, taking into account differences among countries in capital costs, exchange-rate risks, and political conditions; and · Considering the appropriate forms of cross-national commercial activities including joint ventures, coproduction, partnerships, mergers and acquisitions, and other collaborative arrangements with foreign counterparts.
|
From page 24... ...
In addition, to assist public policy deliberations and business analyses, the growing interrelationships between domestic and international economic activities necessitate that data on international economic activities be comparable to domestic economic data and that international tracle and finance data be comparable among countries. FOCUS OF ANALYSIS How well do existing data serve public and private users' needs?
|
From page 25... ...
Growing demand for data and the changing international economic environment- all in a period of tight federal budgetary constraints require that statistical programs be made more cost-effective. Among the data gaps addressed in our review are shortcomings in coverage and accuracy of existing data on merchandise trade, international services transactions, and capital flows.
|
From page 26... ...
Other topics considered in our analyses include measurements of merchandise trade, affiliates' transactions, services trade, and direct and portfolio investment, which have been complicated by frequent foreign currency conversions related to fluctuations in exchange rates, arbitrary intracompany pricing practices, and outdated assumptions used in estimation methods and asset valuations. Growing numbers of financial intermediaries and product innovations that facilitate capital transfers through nontraditional channels have also made it more difficult to capture capital transactions under existing data systems.
|
From page 27... ...
In setting priorities for improving ciata to meet current ant] future data needs, our emphasis is on enhancing the analytic capabilities of federal statistical agencies and strengthening the coordination and cooperation among them, especially in developing a conceptual framework that will integrate the disparate data sets to elucidate the complex linkages of the economy; increasing productivity of the data collection systems to improve accuracy and timeliness of existing data; and filling data gaps that will yield the highest payoffs, such as those of international services transactions and capital flows.
|
From page 28... ...
Because there has been great interest in the nation's merchandise trade balance, we have also performed quantitative analyses to examine its trend and volatility, to show how an alternative procedure might better seasonally adjust the tracle balance data to reflect the underlying trend, and to compare the accuracy of U.S. export data with those of U.S.
|
From page 29... ...
Appendix D contains an analysis of the volatility of the monthly merchandise trade balance figures. Appendix E demonstrates how the application of an alternative seasonal adjustment procedure can better reflect the seasonal influences on the trade balance and recluce the volatility in the monthly merchandise trade balance figures.
|
Key Terms
This material may be derived from roughly machine-read images, and so is provided only to facilitate research.
More
information on Chapter Skim is available.