The US dollar is at an all time low
Oil may be traded shortly in Euro's not in US dollars - Meaning the US will have to buy Euro's with a weak dollar and then buy oil based on the market and availability of Euro's
Right now 1 US dollar buy 0 . 69 Euro's
The only hope for the US is therefore to flip into an massive export market - somthing it has not really had to do in more than 30 years
How long would it take for such a massive switch over ?
The US will end up a nation with substantially less purchase power It will be the end of "dollar diplomacy" and such short falls will sooner or later impact military spending
This is more or less what happened to the former USSR
- China still holds a significant amount of US dollars and debt - The relationship should oil be traded in Euro's will flip and China will dictate to the US in terms of monetary matters etc
2007-10-30 09:35:38 · 14 answers · asked by Anonymous in Politics & Government ➔ Government
Not so easy:
Even with a low $, China is still cheaper on the most basic manufactured goods.
Becoming a long term exporter and not only during period of favorable currency change requires an adequate economical potential oriented toward high added value manufactured goods (like Japan or Germany).
The US lacks right now the goods and services, especially in the industrial sector which are needed in the developing world.
2007-10-30 09:40:00 · answer #1 · answered by NLBNLB 6 · 2⤊ 0⤋
The only thing the US exports in any significant quantity is Intellectual Property -- computer software, books, movies, knowledge, education.
We probably export food, although I don't know what kind of numbers. And I suspect we import as much as we export.
To fix the trade deficit, we need to go after every source of imbalance. Oil is a big one. Getting off an oil-based economy is paramount.
But basically, as long as people in China and Bangladesh are willing to work for pennies compared to US worker salaries, we're going to import everything that requires unskilled labor to produce. And the problem is moving up the food chain. Computer work -- once an American mainstay, is now being outsourced to India, Singapore and other places.
If you don't like this trend, stop buying from major importers. Look for the Made in America tag.
2007-10-30 09:41:16 · answer #2 · answered by jplrvflyer 5 · 1⤊ 0⤋
Actually, we export a product that just keeps on giving. Our jobs. we are exporting our jobs at an alarming rate. i have a big problem with Corporate America exporting America's livelihood. As far as I am concerned, Big business owes the American people!!!! If it wasn't for the hard work of the American worker these companies wouldn't be rolling in the great wealth that they are. The elite of a business(CEO's, COO's,CFO's & all the other C-O's of corporate America are all raking in more in one year than the average worker makes in a lifetime. And still not satisfied. As the jobs leave so does the ability of the American people to support this country.The very wealthy don't keep this country going the work-a-day people do!
2007-10-30 09:47:42 · answer #3 · answered by peepers98 4 · 0⤊ 1⤋
It won't unless you lower wages significantly or raise prices for products drastically... It is very expensive in Europe an average worker doesn't have the luxury to go to McDonalds or drink a nice cold coke. America has one option only and that is controling oil.. I think they are seriously considering that hence Afghanistan and Iraq war... Venezuala is next .. they got a great excuse to invade there and they own just about everything else.. You can't compete with cheap labour. If you want to compete than people's expectancy has to go low.. and it will by force ... wait and see.. grim times are ahead for us
2007-10-30 09:39:56 · answer #4 · answered by sohabe 2 · 0⤊ 0⤋
I think it would be very hard for America to be an Export nation. We use too many products from other countries. If we were somehow able to get companies to start making their products in the U.S. again it would be a lot easier. But seriously I cant see it happening.
2007-10-30 09:39:39 · answer #5 · answered by melzie3 4 · 0⤊ 0⤋
The US does not have the industrial capacity to export alot of material, also other countries can produce material alot cheaper than the US can. Basically the US is a service based economy not a manufacturing based economy. The US provides services to the rest of the world. Its a natural progression.
2007-10-30 09:39:20 · answer #6 · answered by Anonymous · 2⤊ 0⤋
The best way to reduce imports and increase exports? Let the dollar continue to weaken. A weak dollar means imports are more expensive and our exports are cheaper.
2007-10-30 09:47:46 · answer #7 · answered by rath 5 · 0⤊ 0⤋
The only way the US will become an export nation is if we change our consumer culture. As long as people keep spending and buying, it won't happen.
2007-10-30 11:06:41 · answer #8 · answered by Anonymous · 0⤊ 0⤋
Years, but first we would have to take away the tax breaks for companies that send jobs to other countries.
"A journey of a thousand miles begins with a single step."
Chinese philosopher Lao Tzu.
2007-10-30 09:38:24 · answer #9 · answered by a bush family member 7 · 1⤊ 0⤋
This will only happen if people buy MADE IN THE USA merchandise! Not Made in CHina!
2007-10-30 09:38:18 · answer #10 · answered by silverearth1 7 · 1⤊ 0⤋