This report is based on the analysis of the world’s largest economy, the United States. The trade data for the complete year of 2010 has been analyzed so as to identify the patterns in the trade flows of the economy while analyze the rationale behind the same. The economy of US is categorized in the group of developed economies across the globe and is also deemed to be the most powerful economy worldwide. Recently the economy has been witnessing recessionary forces engulfing its economy that were initiated by the subprime mortgage crisis in 2008.
Trade Patterns of the economy of United States
As stated, the data for 2010 has been used to analyze the trade flows. First the trade flows are analyzed in the context of the economy. United States is an open economy and has a huge volume of imports and exports. As per US Trade Data – Exports (2010), US exported products of the value $1,277,109,162,000 while it imported goods of the value $1,966,496,750,000 (US Trade Data – Imports, 2010), which implies that it had a negative trade balance and a total trade deficit of $689,387,588,000. If the pattern of trade is seen, it is seen that US exported goods of maximum value to Canada (Exports to Canada were 19.4% of the total exports made by US) followed by Mexico (exports to Mexico constituted 12.8% of the total exports). The other three trading partners were China (accounted for 7.2% of the total exports), Japan (accounted for 4.7% of the total exports) and United Kingdom (accounted for 3.8% of the total exports). In fact, both Germany and United Kingdom accounted for 3.8% each of the total exports made by US in 2010 (US Trade Data – Exports by country, 2010). Thus it can be seen that the major trading partners of US are developed economies with the only exception being China that is a developing economy but is poised for a high growth trajectory. The total exports that are made by the US to its top 6 trading partners sum up to 51.7% of the total exports implying that almost half of the total exports of US are made to its five major trading partners.