The document discusses the need for the United States to increase exports to address its large trade deficit and high unemployment rate. It notes that only a small percentage of American firms currently export, with existing firms that export existing products playing a larger role than new firms exporting new products. The document suggests America focus on sectors where it has a clear competitive advantage like microprocessors, engineering, oil production and services. It provides examples of American service exports like financial services, oil drilling and architecture that have increased. The document uses the example of Apple iPods, which are produced in China but where the US accounts for most of the engineering, software and distribution wages involved.
10. Yet Export to emerging markets constantly rising - from 35% to 53% in 20 years
11. Who? Existing firms with existing products New firms with new products play a minor role
12. Suggestion America should stick to sectors in which it has a clear competitive advantadge microprocessors - Intel engineering oil-production services
13. Service export Service exports gradually increased to almost 33 % of the whole export Emphasis on financial services (before the crash) - not a very good idea oil-drilling film architecture (Kohn Pedersen Fox)
15. Apple iPod Production in China - accounts for only 2 % of the wages involved in its manufacture USA around 70 % (engineering, software, distribution)
