Balance of Trade / Balance
of Payment
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Where is the United States?
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http://www.census.gov/foreigntrade/statistics/highlights/top/top1012yr.html
http://www.census.gov/foreigntrade/top/index.html#2011
http://www.census.gov/foreigntrade/top/index.html#2011
http://www.census.gov/indicator/www/ustrade.ht
ml
http://www.worldsrichestcountries.com/top_us_ex
ports.html
http://www.worldsrichestcountries.com/top_us_im
ports.html
Motivation
Have the students
do “Handout 6-5-1
Buy American? It
Depends.”
Motivation (Continued)
The students will list their ideas on
the board.
 The class will examine the list and
look for trends.

Exports

Goods and services that one country
sells another country.
Major Exports of the United States
Civilian Aircraft
Semiconductors
Passenger cars
Pharmaceutical preparations
Automotive Accessories
Other Industrial Machines
Fuel Oil
Organic chemicals
Telecommunications
Percent of All Exports
5.7
3.9
3.9
3.1
3.1
3
2.7
2.6
2.6
1
2
3
4
5
6
7
8
9
10
Major Trade Partners - Exports 2011
Canada
Mexico
China
Japan
United Kingdom
Germany
South Korea
Brazil
Netherlands
Hong Kong
Billions of Dollars
281
198
104
66
56
49
44
43
43
37
Imports

Goods and services that one country
buys from another country.
Major Imports of the United States
Crude Oil
Passenger cars
Medical preparations
Automotive accessories
Other household goods
Computer accessories
Petroleum products
Cotton apparel
Telecommunications equipment
Percent of All Imports
16.3
6
3.8
3.1
2.9
2.8
2.5
2.4
2.1
1
2
3
4
5
6
7
8
9
10
Major Trade Partners - Imports 2011
China
Canada
Mexico
Japan
Germany
South Korea
United Kingdom
Saudi Arabia
Venezuela
Taiwan
Billions of Dollars
399
316
263
128
98
57
51
48
43
41
Balance of Trade

A measure of
goods (Not
services) one
country buys and
sells with other
countries.
Trade Deficit


Unfavorable
Balance of Trade
The result when a
country imports
more than it
exports
1
2
3
4
5
6
7
8
9
10
China
Mexico
Japan
Germany
Canada
Saudi Arabia
Ireland
Venezuela
Russia
Italy
2011 Deficit in millions
295,456
65,562
62,642
49,266
35,746
33,656
31,612
30,902
26,287
17,977
Trade Surplus


Favorable balance
of trade
The result when a
country exports
more than it
imports.
1
2
3
4
5
6
7
8
9
10
Hong Kong
Netherlands
Australia
United Arab Emerites
Belgium
Singapore
Turkey
Panama
Chile
Argentina
2011 surplus in millions
32,314
19,355
17,275
13,453
12,447
12,282
9,412
7,863
6,804
5,385
Balance of Payment



A more comprehensive concept than
balance of trade.
The bookkeeping record of all the
international transactions a country
makes during a year.
Not only imports, but also services such
as transportation, travel, investment
payments such as dividends and interest,
and currency transactions between
nations.
QuickTime™ and a
decompressor
are needed to see this picture.
Independent Practice

The students will do handout 7-5-2
Balance of Payments.