The US import and export data are important to understand if you are a business person planning to enter or expand your business in the USA. It is not just a tool for economic researches and statistical studies, it is a vital document that helps businesses in decision making. For instance, a businessman is scouting for raw materials from overseas, he should have some idea about the prevailing rates in different places. Moreover, knowing this information will help him strike a profitable deal in the future. This article provides a brief insight into some of the main functions of US import export data.

US imports and exports are among the most reliable economic indicators. However, they are helpful only for a limited time frame i.e., a maximum of five years. After that, the data ceases to be useful as the trend of the nation’s economy changes.

Import Export Data
Import Export Data

What does the US import export data provides?

The US import and export data provide vital information about the balance of trade between the nation and its external partners. Importing nations have to ship their goods to another country while exporting nations have to re-sell these goods to other foreign countries. To facilitate this business process, the government has to develop a detailed strategy which covers all aspects of trading relations between the two parties. For example, it includes the current price level of exports and imports, the current dollar exchange rate, and expected number of shipments and purchases. This strategy is reviewed periodically and altered as circumstances change.

One of the most effective ways to study the impact of imports and exports is to evaluate the relationship between imports and exports using the US import and export data. The analysis reports to determine which factors cause the price of an exportable good to vary in relation to the price of the same good imported from another nation. For instance, there are three fundamental factors responsible for determining the price of exports.

The first factor is a change in the foreign currency value

Economic or political developments around the world have a profound effect on the value of national currencies. A major portion of US import prices are determined by changes in the value of the dollar, which are widely reported in intelligence reports and published news. Data on present or expected changes in foreign exchange rates help traders and investors to evaluate the potential impact of trade with other nations. Economic and political developments in November 2021 are likely to affect the value of the euro, yen, pound, and the Australian dollar.

The second factor is the strength and weakness of a trading partner. US exporters rely on information provided by their trading partners to optimize their production and minimize risks. US import export data, released quarterly by the US Department of Commerce, allow the evaluation of the performance of trading partners. Gathering information about trading partners is an important component of the assessment of trade performance.

The third factor is the size and revenue of the largest export market. Data on the largest export market provide information for every country that has signed an agreement with the US to export goods and services. Analysis of the largest export markets allows importers and exporters to establish realistic goals and develop appropriate strategies.

The fourth and fifth largest exporters in the US are Australia and Singapore. Both of these countries’ exports exceed the US dollar on a yearly basis. While it may be challenging to obtain access to data on these two countries, which do not export solely goods, the availability of US import and export statistics are helpful in assessing the performance of US companies in the global supply chain. In addition to US companies, the availability of data on the second largest exporter country is critical to global trade analysis and policymaking. One can simply purchase the US import export data from online agencies like importkey.com.