Comparative and Absolute Advantage
The following three tables presents statistical data of several macroeconomic indicators for three chosen countries the US, Canada, and China:
United States
2009
2016
Real GDP (billion)
$14,541
$16,813
CPI
210
237
Real Exports (trillion)
$1,587
$2,128
Real Imports (trillion)
$1,61
$2,33
Unemployment rate
9,30%
4,90%
Industrial Production
-15%
-3%
Canada
2009
2016
Real GDP (billion)
$1371,15
$1550,54
CPI
113
126
Real Exports of Goods and services (billion)
$299
$390
Real Imports (billion)
$302
$405
Unemployment rate
8%
7,30%
Industrial Production
-15%
-1%
China
2009
2016
Real GDP (billion)
$5109,95
$11007,72
CPI
98
102
Real Exports of Goods and services (billion
$1,201
$2,342
Real Imports (billion)
$590
$1,340
Unemployment rate
4,30%
4,05%
Industrial Production
11,30%
6%
Tables above suggest that the economic growth varies among three countries. For instance, the US economy has improved in terms of GDP, industrial production rate and a decrease in the unemployment rate. However, trade balance at the end of FY 2009 was negative, caused by a number of imports exceeding exports. Trade deficit might cause the currency to decrease in value and therefore increase the cost of imports.
Canada displays stable growth of GDP, and at the same time slight change in unemployment rates. Canada’s trade deficit smaller in quantity, comparing to the US, but can still affect national currency rates. In addition, industrial production rates have improved significantly.
Chinese economy is well-known for its skyrocketing period of GDP growth. Through 2009 to 2016, the economy has managed to double its gross domestic output, while sustaining a mild increase in CPI, therefore signifying that consumer prices did not increase significantly, as it happened in the above countries. The Chinese economy is mostly supported by manufacturing capabilities, so the decrease in industrial production can be interpreted as a negative result. In addition, Chinese trade balance has worsened due to increased amount of imports. However, Chinese economy has managed to double its trading capabilities.
Works Cited
"Data | The World Bank". Data.Worldbank.Org, 2017, http://data.worldbank.org/.
"OEC - Canada (CAN) Exports, Imports, And Trade Partners". Atlas.Media.Mit.Edu, 2017, http://atlas.media.mit.edu/en/profile/country/can/.
"Real Gross Domestic Product". Fred.Stlouisfed.Org, 2017, https://fred.stlouisfed.org/series/GDPC1.
"United States Consumer Price Index (CPI)". Tradingeconomics.Com, 2017, …
