Foreign Markets Thrive in US Economy
International product marketing is doing well in the United States. In 2006 the U.S. spent more for imported goods and services than ever before; it was a record of 22.2 for GDP according to Daniel Griswold, the Director for Trade Policies Studies at the Cato Institute.
For many years, foreign investors have been buying huge investments in the U.S. Especially in the area of electronics and the auto industry they have started many profitable businesses in the U.S.A. The advent of the internet has helped the global economy grow. With a global economy foreign markets can gain a lot of U.S. business over the internet. The researcher Daniel Ikenson of Cato has shown that “U.S. companies have enjoyed the fastest export growth to the very same countries that have also seen the fastest growth of their imports to the U.S.” Thus, encouraging international product marketing in the U.S. is an open door that helps their economy and ours. Perhaps, though not everyone agrees it is a good thing.
The Federal Reserve has contributed to the lessened value of the U.S. dollar by lowering interest rates to avoid a run on the banks in which everybody withdraws their money like in the depression era. The value of the dollar also went down because of sub prime mortgages. When the U.S. dollar goes down monies of other countries go up. Particularly the ones that are already gaining more economic status, thus China and India are thriving through their involvement with international product marketing.
China made 5.2 million passenger cars in 2006, while the U.S. made 4.4 million. In seven years their output went from 5.4% of U.S. levels in 1997, but shot up to 118% during the intervening years says Tom Rafter of www.EconomyInCrisis.org. This is a prime example of international product marketing having an excellent outcome for another country, while the U.S. is sinking. In 1998 the German company Daimler-Benz bought Chrysler. It is now DaimlerChrysler. International product marketing is making huge inroads in the car industry of the U.S.
Foreigners control 39% of our domestic car production and they own 59% of the U.S. market. In another industry, Silicon Valley imports 59% of its computer equipment. Ninety percent of Nike and New Balance shoes are imported. The free trade agreements aren’t working for the United States. Those agreements are working for the international product marketing of other countries.
Foreign markets are thriving in the United States. There is a definite imbalance in the importing and exporting of goods. When you take an honest look at the facts and figures you wonder how some people and institutes added their numbers. The international product marketing model just isn’t working for the U.S. anymore. The pendulum has swung and China, Japan, India, and Germany are thriving amongst others that aren’t doing so badly. But the United States needs a change in the way we’re doing business, while we still have business to do.