The amount and kind of trade between nations can help us understand many things, including what countries value, the structure and strength of their economies, and the condition of relations between nations. The following five facts provide a quick, big picture of the amount and kind of trade going on worldwide as well as the biggest traders.
Thanks to Learning Life intern Ian Ballfor researching and drafting these five facts.
Total Global Trade
In 2014, the total value of merchandise exports worldwide was estimated at $19 trillion. Merchandise trade is the import or export of tangible goods, and does not account for the import or export of commercial services.
In 2014, mineral fuels, oils, and their derivatives made up the largest fraction of merchandise exports at $3.1 trillion. These derivatives, which include petroleum, natural gas, and coal, are used to provide heating, electricity, and transportation fuel around the world. Electrical equipment (generators, cables and other electricity tools) ranked second, making up $2.4 trillion of merchandise exports.
A country’s exports are the goods and services they sell to other countries. China led the world in total exports in 2015 at $2.27 trillion. The USA ranked a close second with $2.26 trillion in total exports, followed by Germany at $1.29 trillion and Japan at $624 billion.
A country’s imports are the goods and services they buy from other countries. The USA led the world in total imports in 2015 at $2.35 trillion. China ranked second with $1.60 trillion in total imports, followed by Germany at $984 billion and Japan at $625 billion.
Nations with the Highest and Lowest Account Balances
As of 2015 China has the highest account balance, which is the difference between money made from exports and money spent on imports. In that year, China had a trade surplus of $348 billion. The same year, the USA had the lowest account balance with a trade deficit of -$461 billion.
A trade surplus is not necessarily a good thing, and a trade deficit is not always a bad thing. If a country is exporting more than it is importing, it can indicate that its people cannot afford to consume enough commodities, and have a lower standard of living. Conversely, if a country can import more than it exports, it can indicate that its people can afford to consume more, and have a higher standard of living.
This is the third of three spotlights on our spring semester 2016 student interns. Learning Life’s interns this spring are focused mostly on building our new Citizen Diplomacy Initiative, which will connect American families in Washington D.C. with families in other parts of the world through live online video-dialogue. Arianna and our other interns are conducting research and making contacts locally and abroad to grow the Initiative. We are thankful for their work.
Where were you born and raised?
I am from Tucson, Arizona.
What school do you attend, and what is your year and major there?
I am a sophomore in the Elliott School of International Affairs at the George Washington University. I am majoring in Latin American & Hemispheric Studies and Spanish with a minor in Women’s Studies.
What do you like to do in your free time?
In my free time, my friends and I like to make breakfast food at all times of the day. In addition, I play lots of sand volleyball when the weather is nice out.
What is the most beautiful place you have seen on Earth, and why is it so beautiful?
About 4 years ago, I spent a couple weeks in British Columbia for a family vacation. During that time, we stayed in a cabin in the Banff National Park where I saw the most beautiful lakes and mountains. They were so pristine and untouched that they just seemed like another world compared to here.
Is there a particular life experience you have had that has shaped you as a person? If so, what was it, and how has it shaped who you are?
The summer before my senior year of high school, I went to a Global Youth Leadership Conference in Berlin, Vienna, and Prague. This shaped my experience because I started learning about other cultures and how to interact with different types of people. I made a couple good friends from Israel and Lebanon, which were both nations that I had little to no practical knowledge about. It helped me to realize that I want to work internationally and spend time traveling and learning.
Why did you choose to intern with Learning Life?
I thought Learning Life presented a great opportunity to work with a blossoming initiative (the Citizen Diplomacy Initiative) with potential to help so many people. I wanted to be able to spend my time helping people learn and improve their life situations, especially in developing countries.
What are your career plans?
I want to work with NGO’s (non-governmental organizations) in Latin America that are focused on human rights, specifically women’s rights, so that I can help improve their situations.
Five Ways World Affairs Affect Us All
Thanks to Learning Life intern, Ian Ball, for helping to research and write these five facts.
Entertainment: Internet access and sharing technology has enabled people to experience culture and art from around the world. Korean music artist PSY became a global sensation when his song “Gangnam Style” went “viral” on Youtube. One version of the Youtube video has received over 2.5 billion views worldwide.
Travel:International terrorism has had a significant impact on travel. Airport security measures have slowed the pace of processing in airports across the world, and it has became more difficult for students, workers and tourists to obtain travel visas.
Pollution: The environmental policies of one country can affect air quality in other countries near and far. For instance, almost one third of the air pollution in the American city of San Francisco comes from Chinese coal-fired power plants across the Pacific Ocean. (Still, per capita, the USA is and has long been the world’s biggest polluter.)
Prices: International affairs affect the prices of things we buy and use everyday. For example, when oil-producing countries like the USA, Saudi Arabia, Russia, China and Canada increase oil production, the price we pay for gasoline tends to fall. Conversely, when oil demand rises, or when terrorism or war disrupts oil production, gasoline prices tend to rise.
Jobs: The movement of companies across national borders affects the availability of jobs in nations throughout the world. For example, big American companies like Walmart, Ford and Apple have “outsourced” or moved jobs to China, Mexico and other nations where wages are lower in order to increase company profits. This benefits the country that gets the jobs, and hurts the country that loses the jobs.
AMERICANS’ SPENDING & SAVINGS
Why should one know about Americans’ savings and spending? How much, and on what Americans spend and save affects the whole world because Americans are among the most prolific consumers in the world. Americans’ spending and savings thus affects the availability and price of goods and services, the supply of capital (savings) for investment, and the productivity of economies worldwide, among other conditions. On a personal and household level, Americans’ spending and savings shapes their present and future economic security and well-being. Knowing more about larger saving and spending patterns can offer people better perspective on their own habits.
The World’s Most Traded Commodities
