I. Introduction The Environment of International Business Patterns of U.S. - World Trade –Recent Growth for the U.S. –The Top 10 U.S. Global Markets –The Nationality of the World’s Largest Industrial Corporation 1

Introduction –Major Participants in Global Trade: The Triangle The European Community North America (NAFTA) Asia Pacific 2

Introduction “By 2015, we will live in an intensely customer-centric market dominated by global mega banks and densely populated by specialist financial services providers. Fierce competition, global regulation and technology will reshape bank and non-bank structures” Mark Greene, Banking 2015, IBM Study Nov

Drivers of Change in Banking 4

The Nationality of the World’s Largest Corporations CountryNumber of Firms –United States32 –Japan23 –Germany14 –France 6 –Britain 4 –Italy 4 5

Top 10 Countries for U.S. Exports (2005) CanadaCanada... US$211.9 billion (up 31.7% from 2002) MexicoMexico... $120.4 billion (up 23.5%) JapanJapan... $55.5 billion (up 7.8%) ChinaChina... $41.9 billion (up 89.6%) United KingdomUnited Kingdom...$38.6 billion (up 16.3%) GermanyGermany... $34.2 billion (up 28.6%) South KoreaSouth Korea... $27.8 billion (up 23%) NetherlandsNetherlands... $26.5 billion (up 44.8%) FranceFrance... $22.4 billion (up 17.9%) TaiwanTaiwan... $22.1 billion (up 20.1%) 6

Top 10 Countries U.S. Imports (2005) CanadaCanada... US$290.4 billion (up 38.9% from 2002) ChinaChina... $243.5 billion (up 94.5%) MexicoMexico... $170.1 billion (up 26.4%) JapanJapan... $138 billion (up 13.7%) GermanyGermany...$84.8 billion (up 35.7%) United KingdomUnited Kingdom... $51 billion (up 25.3%) South KoreaSouth Korea... $43.8 billion (up 23%) Taiwan... $34.8 billion (up 8.4%) Venezuela... $34 billion (up 125.2%) FranceFrance... $33.8 billion (up 19.9%) 7

TOP TEN U.S. MARKETS Canada, China, Japan and Mexico supplied more than half of U.S. imports in Oil-producer Venezuela showed the highest percentage gain in its exports to the U.S. However, China's exports to the U.S. almost doubled since 2002, and account for a much higher share of world exports to the U.S. when compared to the smaller number for Venezuelan exports 8

US Trade Trends The top 4 nations in the following list were responsible for 54% of America's total trade deficit in Trade deficit = Exports - Imports 9

Top 10 Countries Contributing to U.S. Trade Deficit (2005) China... -$201.5 billion (up 95.4% from 2002) Japan... -$82.5 billion (up 17.9%) Canada... -$78.5 billion (up 62.9%) Germany... -$50.6 billion (up 40.9%) Mexico... -$49.7 billion (up 33.6%) Venezuela... -$27.6 billion (up 157.9%) Malaysia... -$23.2 billion (up 69.3%) NigeriaNigeria... -$22.6 billion (up 361.2%) Saudi Arabia... -$20.4 billion (up 142.9%) ItalyItaly... -$19.5 billion (up 37.3%) 10

US Trade Trends 2007 The total value of U.S. exported goods to the rest of the world: US$1.16 trillion A 12.2% gain since 2006 rate that exceeds the 5.4% gain in overall American imports for the same period 11

Fastest-Growing U.S. Exports American exports that experienced the highest percentage gains in 2007: Business machines excluding computers... US$5.4 billion (up 99.6% from 2006, up 179.8% from 2003) Wheat: $8.5 billion (up 99%, up 111.6%) Sorghum, barley and oats: $1.2 billion (up 74.7%, up 82.4%) Dairy products and eggs: 2.5 billion (up 64.2%, up 229.1%) Oilseeds and food oils: $2 billion (up 53.1%, up 43.4%) Nonmonetary gold: $13.3 billion (up 51.7%, up 178.2%) 12

US Trade Trends The list for the fastest-growing exports from the United States 2007 Business machines wheat barley oats 13

US Trade Trends Fastest-declining exports from the U.S. blank audio and video media metalworking machine tools computer accessories manufactured tobacco 14

America’s leading Exports in Top 6 U.S. Exports Semiconductors: US$50.2 billion (4.3% of US total Exports, down 4.3% from 2006) Complete civilian aircraft: $48.8 billion (4.2%, up 19.6%) Automotive parts/accessories: $44.2 billion (3.8%, up 2%) New/used passenger cars: $43.7 billion (3.8%, up 28.6%) Other industrial machines: $38.3 billion (3.3%, up 17.1%) Pharmaceutical preparations: $35 billion (3%, up 13.2%) 15

Fastest-Declining U.S. Exports American product categories for exports with the greatest percentage declines last year. Audio and video media... US$584.3 million (down 67.5% from 2006, down 56.6% from 2003) Metalworking machine tools... $6.7 billion (down 29.3%, down 27.8%) Computer accessories... $29.4 billion (down 18.7%, down 6.1%) Manufactured tobacco... $1.2 billion (down 15.1%, down 38.5%) Complete military aircraft... $4 billion (down 10.5%, up 85%) Textile apparel and household goods... $4.7 billion (down 9.3%, down 20.5%) 16

“Waiting in the Wings” Big Emerging Markets –Brazil- China –Mexico- Indonesia –Poland- South Africa –Argentina- India 17

TRADE WEBSITES

By Next Class Your Group Knows: Who the members are ( s, cell, etc) Country to export or import from Three potential products the group will trade Group contribution to relevant websites 19