Let’s find import and export data to inform this week’s discussion. While there are many excellent online sources of trade data, please use the Department of Commerce report, U.S. Goods Trade: Imports & Exports by Related-Parties 2016. Here’s a screenshot showing step-by-step how to get data. Select any product you would like to discuss:
My query on Potatoes (NAICS code 111211) gives the following import/export data:
KFirstly, discuss some interesting statistics you found for your product. For me, I find it interesting that Canada is the number 1 source for potatoes imported into the United States. In 2016, we imported over $200 million in potatoes from Canada. Maybe even more interesting is that the number 2 country is Jamaica with over $21 million in potatoes imported. I don’t know enough about the potato market to know what varieties of potatoes we might get from Jamaica. In your post, please share any additional knowledge you have about your product that may be informative to understanding the statistics.
Secondly, think about the concept of comparative advantage. What is comparative advantage? How does comparative advantage lead to trade between countries? Do both countries benefit when they trade goods? And finally, why does the U.S. both import and export products with countries. For example, while we import over $200 million in potatoes from Canada, we export over $150 million in potatoes toCanada. Why is that? Does bilateral trade of the same good fit with the idea of comparative advantage?
Answer preview
The paper examined imports/exports statistics on potatoes and relied on data collected from the Department of Commerce report, U.S. Goods Trade: Imports & Exports by Related-Parties 2016. The query on potatoes was processed under the NAICS code 111211. It was interesting to learn that Canada is the largest exporter of potatoes to the U.S. The department of Commerce reported that the United States imported $200 million worth of potatoes from Canada (Department of Commerce, n.d.). It was even more surprising that Jamaica comes in second after Canada as the country is not explicitly known for its agricultural exploits. Further research revealed that Jamaican potatoes are highly sought-after commodities because farmers grow them in the most natural conditions possible. Therefore, their products provide a healthy eating option
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