WSJ ARTICLE ON THE UNITED STATES EXPORTS 4
WSJArticle on the United States Exports
WSJArticle on the United States Exports
Thenews article on the Wall Street Journal (WSJ) examines the eventwhere the export levels of the United States were announced to be ona decline, which makes the issue a current event. Since the report,the exports of the United States have been on the decline. Thearticle therefore explores the state of the United States economy inregard to two main economic aspects, foreign trade, foreign exchangeand economic growth. The article is written by the authors, Petersand Leubsdorf who explore the decline of the American export levels.The two authors identify the reasons for the reduced exports to be asa result of two factors strengthening of the dollar and the globaleconomic strain. The review of the article seeks to understand theeconomic aspects discussed and the lessons from the events covered.
Indiscussing the current events and facts, Peters and Leubsdorf take acritical evaluation of the target set by the president, Barack Obamaof doubling the exports of the United States in five years. Petersand Leubsdorf observe that the export levels are on a decliningtrack. In this way, the article reports the announcing of a 3.5%decline in the level of exports in July 2015. This is in comparisonwith the same month last year (Peters & Leubsdorf, 2015). Petersand Leubsdorf cite the Commerce Department data, which reported thatthere was also a 3.2% decline in the volume of American exports forthe month of august 2015 (Peters & Leubsdorf, 2015). Moreover,Peters and Leubsdorf cite economist Jim O’Sullivan that thereduction in exports is as a result of weak foreign demand.
Thisrelates to global economic strain, as the second factor that hascontributed to the decline in the exports which impacts on the growthof the U.S economy. The strained economic growth in the globaleconomies is beyond the control of the American policies. Therefore,the export levels will be affected despite the valid and ambitiousexport goals set by the United States. Peters and Leubsdorf cite theCommerce Department officials explaining the catalytic impact of theexport goals, but strained by the global economy (Peters &Leubsdorf, 2015). By admitting the effect of the global economy, theofficials confirm the view that the macroeconomic impact of theglobal economy has a direct impact on the macroeconomic fundamentalsof a single country.
Toexplore the economic event of reduced exports, Peters and Leubsdorfillustrate cite the export statistics of the companies in Portland,Oregon. In the United States, firms like Columbia Green Technologieson the recent past have recorded a decline in exports. This isnoticed because a notable percentage of their sales are exports(Peters & Leubsdorf, 2015). The policy makers of the state alsoset the target to double exports in five years for the largerPortland. However, the state had to shelf the goals because of thestrained economic status in the world. The Commerce Department showsa reduction in exports from Portland as reported by Peters andLeubsdorf. In light of these events in Portland, Peters and Leubsdorfbase their argument on the strengthening of the dollar. This affectedthe export levels of Portland and the United States because ithappened after the country set its goal.
Thisarticle relates to economic concepts of the global economic statusand the strengthening of the dollar. Peters and Leubsdorf exploreglobal competition and domestic demand as variables to the U.Seconomic growth. By taking the case of Portland and reporting on theeconomic reports and events of the months of July and august 2015,the article shows the impact of the economic concepts on thecountry’s economy. According to the article, the export levels areaffected by the impact of the strengthening of the dollar and theeffect of the global economic strains.
Peters,M., & Leubsdorf, B. (2015). U.S.Export Weakness Hampers Growth.Retrieved, From, Wall Street Journal,<http://www.wsj.com/articles/u-s-export-weakness-hampers-growth-1443576283>7 December, 2015