Economists And World Trade Center Workers Explain U.S. Trade Imbalances

Since 1975, our country has been importing more than exporting and experiencing a large trade deficit. Although there had always been ups and downs, ever since the beginning 1990’s, the growth of the deficit increased rapidly. On a global basis, North American imports are always a different nation’s exports. The United States trade deficit is paired with bilateral trade surpluses of various other countries. At $103 billion, China had the most significant trade surplus with America in 2004. In comparison, the trade deficit with Japan with $70 billion, Canada was $50 billion, and Germany was $36 billion.

Product trade isn’t just the only component of the trade deficit, but according to an economist and Washington D.C. Translation Services and Localization Consultant, “It does contribute the greatest amount to the trade deficit. Starting in 2003, the U.S. export of services contributed to a trade surplus for the service category, but was overpowered by merchandise imports. Investment profits produced a deficit of $5 billion, while net unilateral transfers brought about a deficit of $56 billion.” Without exception, the size of the deficits in exchange has driven the scale of present account deficits. Although U.S. product exports are actually growing, since the mid-1990s, these increases have remained considerably below the increases in product imports. As a result, the gap between imports and exports happens to be growing and merchandise trade deficits have been expanding quickly.

For both U.S. exports and imports, manufactured products perform an essential role. Economists at a leading Baltimore Translation Services company found that 81-percent of merchandise exports are produced products, similar to almost 84% of imports. Despite the fact that there have been deficits through the decades, these were quite secure in their magnitude during the 1980s and in the early 1990s. Nevertheless, from 92 on, the growth of imports in fabricated merchandise continues to be much steeper than the increase in exports, resulting in a growing trade deficit.

“Even though there are important manufacturer surpluses with The Netherlands and other nations, many are dwarfed by manufacturer deficits with China and other nations.” claim Dallas Translation Services workers at the World Trade Center in Dallas.  In 2004, U.S. bilateral manufacturer trade with China alone was $103 billion in deficit. Reviewing the important manufactures trade imbalances by type of commodity, in 2002, there were massive U.S. surpluses in airplanes and materials, timber manufactures, scientific equipment, and compounds. Nevertheless, these surpluses were significantly outweighed by deficits in industries for example furniture, games and toys, televisions and hdtv video players, and attire. The greatest deficit category in the production field is cars, with an imbalance of $111 billion.

How Translation Services Assist Businesses With Overcoming International Political And Legal Challenges

Political factors greatly influence international business.  Political turmoil in Iran, Syria, Egypt, and various countries in Africa suggests how volatile this factor can be to international markets.  Sometimes political unrest results in acts of violence such as destruction of a firm’s property.  According to Washington D.C. Translation Services experts, years ago, the Managua, Nicaragua paint factory of H.B. Fuller Company, a U.S. manufacturer of paints, coatings and adhesives was destroyed and burned by Sandinista revolutionaries.  U.S. companies operating in Mexican border towns are also under constant threat due to drug cartels and gangs.

Many U.S. firms have set up international political risk assessment (PRA) units or turned to outside consulting services to evaluate political risks of the marketplace in which they operate.  Sometimes firms must go as far as to employee armed mercenary groups to protect staff and facilities.  Many times, U.S. corporations will also employ translation services firms to run public relations campaigns to generate goodwill among the public and negotiate with organized crime rings.

Many nations try to achieve political objectives through international business activities.  Japan for instance, has openly encouraged involvement in international marketing because much of its economy depends on export sales.  This heavy reliance of Japanese exports has also fueled the need for translation services to localize instruction manuals, user guides, legal contracts and marketing materials into languages spoken throughout the world.

Legal requirements complicate the world of business and frequently legal translation services can offer businesses some assistance.  Different countries have different regulations regarding advertising, product packaging, safe handling and product labeling.    In some markets, a government agency must approve all advertisements.  These examples illustrate the need for international companies to work closely with legal translation firms and foreign government agencies.

The legal environment for U.S. firms operating abroad can be divided into three dimensions.  These include: (1) U.S. law (2) International law and (3) legal requirements of the destination country.    International law can be found in treaties, conventions and agreements that exist among nations.  The United States has many friendship, commerce and navigation (FCN) treaties – agreements that deal with many aspects of commercial relations with other countries.  Other international business agreements concern worldwide standards for various products, patents, trademarks, reciprocal tax treaties, export control, international air travel and international communication.

Foreign Trade and Corporate Translation Services

Foreign trade can be divided into exporting—selling goods and services overseas—and importing—purchasing foreign goods and raw materials.  Major exporters include transportation equipment, electrical equipment, oil and gas or petroleum products, specialty chemicals, computers, pharmaceuticals and food products.  While the United States may have lost its position as a dominant producer of mass marketed commodity items such as textiles, shoes, garments, consumer electronics and machine tools, the more complex the product, the more likely American Translation Services companies will enjoy a role in helping domestic companies prepare themselves to become global marketers.

The foreign products that Americans most likely purchase today include transportation equipment, electronics, machinery, metals, jewelry, clothing and petroleum.  Chicago French Translation consultants indicate that while the United States trades hundreds of thousands of products with many countries, its major partners are Canada, China, Mexico, Japan, Korea, United Kingdom, France and Brazil.    Although the United States is the fourth largest exporter in the world, the United States is the largest importer by far.  The leading U.S. firms in exports include Weyerhaeuser, Du Pont, Cargill, Koch Industries, International Paper, Dow Chemical, ExxonMobil, and Du Pont.

Since the business functions of buying, selling, transporting, storing, standardizing/grading, financing, risk taking and obtaining and evaluating market information must be performed regardless of whether the market is domestic or global, some Atlanta French Translation workers believe that a question arises about the wisdom of treating language translation or communications as a distinct or separate field.   After all, language translation and localization performs the same function and has the same set of objectives regardless of the location.  Although, different departments within a business have different knowledge and training requirements for translators.  Therefore, its important to examine the characteristics of the international marketplace, the needs of the business, environmental influences and the development of an international translation strategy for a company.  It is also important to develop a sequence of steps for use in developing a translation department.

Translation and Localization Consulting Firms Discuss Price Planning

There is little likelihood that the marketer will have the option of extending the same price into many foreign nations report financial analysts and translators working for a major economics publication.  These experts state that variations in tariffs, currencies and local competitive prices often mean that the price variable will often change from market to market.  In addition, high inflation exists in some areas of the world.  For instance, inflation in Argentina exceeds and annual rate of 11-percent which makes it among the third highest in the world.  Furthermore, manufacturers may not be able to control the margins and retail prices charged by the middlemen distributing or importing their products. Translation workers at a leading Chicago Translation Services company believe that international monetary exchange rates must be understood as well by translation and localization firms that work with manufacturers who seek to export goods.  Devaluation is a government act that decreases the value of the domestic currency relative to that of foreign currency.

In 1987, the United States dollar was devalued by 24-percet against the Japanese yen.  This action made the American dollar worth less than before, thus raising the cost of goods imported into the United States and decreasing American’s buying power.  However, devaluation made it more attractive for Japanese to import American goods because the yen could buy more American products.

To cope with these factors, the translation and localization consultant needs a full understanding of all of these influences.  Cost-based pricing may be more commonly found overseas because there are so many cost elements, including tariffs, intermediary margins and value added taxes.  However, such is not always the case.  In the past, some manufacturers have attempted to enter a market with a very low price to build market share or to simply get rid of excess inventory.  New York Translation Services that provide localization consulting often discuss dumping.  According to them, dumping is a colorful term describing the practice of pricing products sold in a foreign country for less than their comparable fair market value in the domestic market.  This is often illegal.  It is widely believed that Chinese manufacturers are dumping textile materials and consumer goods such as bags, shoes, men and ladies’ clothing, all types of electronics, phones, and generators into the Nigerian market.  This has greatly weakened the manufacturing economy in Nigeria and its ability to compete.  Research compiled by various economics groups suggest that Chinese products are being heavily subsidized for export into Nigeria.   These subsidies allow Chinese products to be sold at much lower prices than those being produced locally.