Why Is International Trade Important for Growing Your Business?
International trade has been an important aspect of human civilization for centuries. Discover why it's essential for growing your business.
Importing refers to the goods and services that a country purchases from the rest of the world rather than producing/procuring them domestically. Importing causes an outflow of funds since it involves making transactions with sellers in other countries.
Exporting is the opposite. It’s the process of selling goods and services produced domestically to customers residing in the rest of the world. Exports cause an inflow of funds to the seller’s country since transactions involve selling items to foreign buyers.
This export sector entails agriculture, food, and related industries. In the US, the export industry has contributed bout 5.2% of the total GDP in 2019. Of the total Gross Domestic Product, this is only 5%. And, while it may seem like a small figure at one quick look, realizing that the percentage translates to $1.109 Trillion shows just how huge the industry and its magnitude is in the US economy.
The US food and beverage industries are extremely profitable with a major amount of US land and resources used primarily for growing crops/agriculture and creating food products.
Soybean is amongst the top 10 US exports from the food and beverage category. Mid-west is the largest grower of soybeans. The crop is also used for producing other varieties of food products.
Corn grows in abundance in the US. This is why it’s the second on the list of top US exports. Over $116.6 billion worth of corn crops have been subsidized by the US Government since 1995.
Corn is exported in both natural states as well as used in processed items like high-fructose corn syrup.
Nuts such as pecans, almonds, walnuts, and pistachios are major agricultural US exports. Primary export countries include Asia (China and India) and Europe. The US is the biggest supplier in the global nut market.
In the US you can find a variety of wheat grown across different regions in different places. It’s yet another major export item.
Pork is the most produced meat in the US. In 2019, almost a third of all the pork produced domestically was exported. Experts believe that the pork industry contributes to roughly $23.4 billion of the entire US Gross Domestic Product.
US poultry industry has been criticized in the past for using hormones and antibiotics to produce large chickens for export purposes. In more recent years, stricter regulations are coming in place to ensure healthy poultry and farming practices.
Food oils are another major export from the US. Soybean is the top food oil that the country produces and exports. It also goes by ‘vegetable oil’ for those who don’t recognize the term ‘soybean oil’.
Dairy products in the US mostly refer to cow milk-based products. However, sometimes eggs also fall into this category. Over the years, US dairy production has been booming. In times of pandemic, this came as a relief for the country’s economy.
After pork, beef is the second major meat export from the US. Farmers in Oklahoma, Missouri, and Texas raise the most beef cattle in the country.
Grains are major cash crops in the country. Among the top grains - oats, barley, and sorghum are the big ones. They are exported in both raw and milled form to create other varieties of products.
According to the quarterly trade forecast by the US Department of Agriculture, the agricultural exports of the country are likely to continue rising at a record-breaking rate for FY 2021. But, for the fiscal year 2022, the records are likely to eclipse the previous year.
Looking ahead, the US food and farm exports are projected to cross a record-breaking $177.5 billion. This tops the previous year’s forecasted revenue by a whopping 4 billion dollars. The credit goes to a rise in the exports of horticultural products, dairy products, sorghum, and soybean.
Due to the increasing prices of soybean, the exports are predicted to record $39 million. Most of this export goes to China. There’s also a strong demand for cotton and sorghum. China continues to remain the biggest export market for the United States with Mexico and Canada in 2nd and 3rd spot.
ATI or the American Trading International, Inc. is a service-based company that deals with export trades. It provides both internal and domestic companies a platform to import and export products by exposing them to existing as well as new markets.
ATI was established in 1995 and is based in Los Angeles, California. The company acts as an intermediary between American manufacturers and other international counterparts to serve the interests and needs of all the involved parties.
The organization staffs international professionals from diverse educational and cultural backgrounds. In this way, ATI has a unique place to maximize trade opportunities while lowering the impact of cultural differences, making trade effective and efficient.
In January 2017, the US Department of Agriculture appointed ATI to serve as the private sector advisory committee for the US trading of food and beverages. American Trading International received the ‘E’ Star Award - a presidential honor.
It was given on behalf of Donal Trump (the US President at the time). The ‘E’ Star Award holds the highest recognition among any US-based entity allowing them to expand the US exports by making major contributions.
ATI has been working with more than 80 countries since 1995, helping them import American foods and beverages.
ATI is the representative of myriad brand names/products from across the world. It deals with thousands of manufacturers internationally. The organization maintains healthy business relationships with key market players.
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