185). Components for these products may be manufactured and put together in branches in various countries throughout the world. Thailand, Malaysia, Singapore, and Hong Kong were involved in the earliest types of production sharing, which included assembling electronic components manufactured in other countries. Production sharing, one World Bank study determined, currently contributes to approximately 30% of manufacturers' total global trade. Foreign affiliates' international exports approach over 7% of global GDP, approximately $2 trillion.
The World Trade Organization (WTO), which came into being in 1995, the only worldwide international organization that deals with rules of trade between countries, maintains their goal to be to assist producers and manufacturers of services; goods; exporters; importers in carry out business. ("What..., 2006, para. 1) "One of the youngest of the international organizations, the WTO is the successor to the General Agreement on Tariffs and Trade (GATT) established in the wake of the Second World War " ("Multilateral...," 2006, para.1). During the past 50 years, exports by world manufactures have reportedly experienced an extraordinary growth of approximately 6% each year. In 2000, the total international trade was 22 times more than in 1950.
Currently, as the primary exporters of services (75 per cent), developed countries, i.e., the U.S.; Europe; Japan are also the principle users and purveyors of services. Developing countries (21 per cent) follow. Next, in line are transition economies (4 per cent). "In developed countries, services may represent as much as 60 per cent of the GNP. In the United States, they account for 80 per cent of the GNP, and in Korea and Brazil, respectively, represent 50 per cent and 64 per cent of the GNP" (Landau, 2004, p. 46). The U.S. leads in the realms of telecommunications, transports, as well as in, computers and information. Great Britain, Japan and Canada follow the U.S. In these areas, while Great Britain claims insurance prominence. In the insurance arena, The U.S., Canada and Italy fall behind Great Brittan. In financial spheres, the U.S. And Great Britain take the lead. China, Hong Kong, Singapore and Brazil are included with the top ten global exporters. Some of the smaller emerging international trade contenders include countries of Latin America and the Caribbean, as their current exports of services contribute greatly to their employment and foreign currency. In the realm of the U.S. economic dominance in Asia, China is eroding the more than 50 years of American lead. China is reigning in an abundance of this continent's new foreign investment, as it exports a collage of cheaply made products, "imports higher-tech products from Singapore and Japan, and launches diplomatic efforts to establish a free trade zone in East Asia, now the fastest growing trading region in the world" (Du Boff, 2003). As the United States' leverage in the international trade market is expected to decline, Europe challenges the U.S. In Latin America. During 2000, fourteen of the twenty-five largest foreign companies in this county were European; eleven were American.
Du Boff, (2003) reports, that to date, "the global investor class has seemed willing to finance America's external deficits, but it may not be forever." Deficits drag the dollar down and as the dollar looses value, dollar-dominated foreign investors' returns on assets decline. Some foreign investors discontinue investing in U.S. when concern arises regarding more currency risk exist in the U.S. than in Europe and other countries. As foreign investors "crayfish," and decrease investments in U.S. manufacturers or sell their dollar holdings, the dollar's value falls. In turn, U.S. interest rates in could start to surge, which could make it more difficult to borrow money. This in turn could cause price increases for imported goods, and ultimately drain income from purchases in the U.S. And negatively impact the economy. "A dollar rout could cause skittish investors to dump U.S. stocks and bonds, sending Wall Street into a dive. In any event the dollar is now perceived to be as risky an asset as the euro and possibly two or three other currencies (yen, sterling, Swiss franc) (Du Boff, 2003). In the end, this could just be the culmination of more bad news, or on the other hand, depending on other contributing components, including foreign and domestic investments, the start of good news regarding international trade.
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