Global Economic and Political Issues – Issues with Exporting According to Mr Crooks

According to the article, the economy of the United States has collapsed but there are still hopes for a brighter future. Some political leaders and American enterprises believe that they can rebuild employment and growth by reducing debts, imports, and consumption while increasing manufacturing, production, and exports. Additionally, American political leaders believe that the international imbalances that contribute to national economic instability can be corrected through industrial revival. Even though exporting is seen as one of the ways through which the growth of the United States can be rebuilt, Crooks (2011), claims that several companies in the United States have issues with exporting.

First, American citizens provide ready market for many companies in the country. For this reason, majority of American organizations are used to selling their products locally, with only approximately 1 percent of them exporting their goods. According to the commerce department, approximately 55 percent of American businesses that export their products only do business with not more than one country. This means that American companies are not robust exporters and it is highly likely that they will not respond positively to exporting (Crooks, 2011).

Second, when compared with other countries, the United States has signed less trade agreements that are meant to facilitate international trade. Out of 262 trade agreements and 100 trade negotiations, the United States has only signed 17 and it is currently involved in only one talk. It will therefore be difficult for American businesses to export their products to many countries across the world. Third, United States manufacturers will be compelled to close their production lines in the near future because of an insufficiently skilled and incompetent workforce. American companies are running out of skilled labor and they will not be able to produces sufficient products for export in the near future (Crooks, 2011).

Fourth, emerging businesses in America are interested in outsourcing modern skills and facilities from other countries. This means that they will be less involved in production than companies that are currently in operation. Since modern American companies will not produce enough products, they will have nothing to export. Fifth, the most important issue with exporting in the United States is the fact that majority of large companies in the country are interested in producing goods in the markets where they sell. American companies move to other countries to invest and sell their products in the foreign markets. According to the Chamber of Commerce, in 2008, the United States earned close to 50,000 billion United States dollars from foreign investments, which is almost three times the value earned from exportation of goods and services. This large variation between revenues earned from foreign investments and earnings from exports is likely to discourage American businesses from exporting.

Personally, I agree with Crooks’ views concerning some of the reasons why exporting will be an issue for American businesses. It is true that many American companies are used to selling their products locally with only a few of them being involved in exporting. Additionally, the few trade agreements that the United States has signed with other countries will not assist the country to realize substantial growth from exporting. Therefore, a lot of effort must be made to encourage American companies to export their products before the United States can reap maximum benefits from exporting.

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