Global Trade Balance

Global Trade Balance

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Global Trade Balance as of Year 2011.

Global Trade Balance ( Year 2011)

Surplus   in Billion US-Dollar

Deficit   in Billion US-Dollar

Rank Country Surplus Rank Country Deficit

1

 Saudi Arabia

252.756

1

 USA

-784.775

2

 Germany

219.938

2

 UK

-162.973

3

 Russia

198.76

3

 India

-154.401

4

 China

155.142

4

 France

-117.676

5

 UAE

80

5

 Turkey

-105.862

6

 Kuwait

72.8

6

 Spain

-64.691

7

 Qatar

72

7

 Hong Kong

-55.63

8

 Norway

67.982

8

 Italy

-33.872

9

 Nigeria

64

9

 Japan

-31.593

10

 Netherlands

63.145

10

 Egypt

-28.375

Total

1897

-1836

** Source –   Wikipidia

Executive Summary

  • The top ten merchandise traders accounted for just over half of world merchandise trade in 2012. While developing nation dominate around 40% of merchandise trade. BRIC contribute around 17% of global trade led by China. Various developing country are slowly become an even more dominant force in global trade.
  • Oil continues to play a very important role in balance of payment. Petroleum Imports Drive the Trade Deficit. Most of the trade deficit countries are heavily depended on Crude Oil . For example,  America’s dependence on foreign oil drives the trade deficit. In 2012, the U.S. imported $313 billion in petroleum-related products.  The Russia , Saudi Arabia and other Opec countries are net exporters basically due to Oil.
  • The vulnerability of oil-importing countries to higher oil prices varies markedly depending on the degree to which they are net importers and the oil intensity of their economies. This is due to their economies are more dependent on imported oil and more energy-intensive, and because energy is used less efficiently.
  • China has emerged as biggest gainer in last decade. Continue to play a prominent role in days to come. They continue to dominate in low-end manufactured segment.
  • On EU , Germany continue to dominate the export market. However, lost market share.

Future Trend

  • Developing country particularly China will drive global trade apart from US and Eurozone in days to come. Asia is a must, specifically China and India
  • Rapid-growth economies are making significant improvements to the operating environment for businesses.
  • Lower trade barriers along with advances in global transportation and communications technology make it increasingly viable for different stages of production to take place in separate locations
  • ON FDI front, we have noticed that many companies are shifting base ( Head office)  to emerging economy. In addition, more of those companies that are located in emerging markets are also joining the ranks of the top companies in the world

Source

1)     http://www.mckinsey.com/insights/urbanization/urban_world_the_shifting_global_business_landscape)

2)     http://en.wikipedia.org/wiki/List_of_sovereign_states_by_current_account_balance

 

 

 

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One Comment to Global Trade Balance

  1. […] trade happens. Most of the oil producing countries till yesterday dominated Global trade (Global Trade Balance) which is certainly going to change in days to […]

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