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

A popular saying asserts that numbers do not lie, which holds within the economic realm. Economics is a discipline within social sciences that evaluates how societies produce, distribute, and consume wealth. Prosperity arises when the society produces more than it consumes and uses this surplus to generate revenue for itself and improve its members’ lives. The advancement of human societies has seen state boundaries play a crucial role in shaping the economic dynamics within a particular area and the socioeconomic conditions of the people involved. While there are numerous tools for gauging the financial standing of a country, an evaluation of its imports and exports data is vital in providing a broad overview of how a nation is fairing in the production and consumption of wealth in a particular area. This paper examines data from the importation and exportation of potatoes and the various issues that come into play and shape these figures.

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