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Posted by: Michael Mandel on October 21
In 2000, Japan had a $42 billion trade surplus in motor vehicles and parts with the U.S. In 2007, Japan’s motor vehicle trade surplus with the U.S. was
a) $18 billion
b) $35 billion
c) $43 billion
d) $55 billion
(answer beneath the fold)
The answer is (d) $55 billion. Despite Honda's and Toyota's assembly plants in the U.S., the U.S. trade deficit with Japan in motor vehicles and parts was $55 billion in 2007.
Here's how the 2007 trade deficit breaks down, by NAICS code. I'm surprised that the motor vehicle trade deficit is so high.
|trade balance, 2007|
|billions of dollars|
|oil and natural gas||-272|
|motor vehicles and parts||-124|
|apparel and textiles||-113|
|misc (including toys and jewelry)||-44|
The oil and gas deficit will fall as prices decline. What other categories of the trade deficit are likely to decline?
Michael Mandel, BW's award-winning chief economist, provides his unique perspective on the hot economic issues of the day. From globalization to the future of work to the ups and downs of the financial markets, Mandel-named 2006 economic journalist of the year by the World Leadership Forum-offers cutting edge analysis and commentary.