Victory for the ACT Student Text 15e

160 • R EADING

SOCIAL SCIENCE: This passage discusses the relationship between the US economy and international commerce. International commerce is woven thoroughly into the fabric of the American economy. Exports and imports amounted to more than 11 percent of the US gross domestic product (GDP) in 1991. This was up †”ƒƒ–‹…ƒŽŽ› ˆ”‘ ͹Ǥͷ ’‡”…‡– Œ—•– ϐ‹˜‡ ›‡ƒ”• before. More than 7 million American jobs are related to exports. Millions more depend on the overall economic activity generated by export trade. Export-related jobs pay more— almost 17 percent more—than the average American job. Exports are vital to the economic health of many key sectors of the manufacturing economy. For instance, makers of computers, heavy earthmoving equipment, and farm implements are increasingly dependent on export markets. For these exports, slow growth abroad translates to declining vitality at home. The same picture is true of agriculture. Roughly one in four farm acres is now harvested for the export market. International sales of business-related •‡”˜‹…‡•Ȅ…‘•–”—…–‹‘ǡ ϐ‹ƒ…‡ǡ ‹•—”ƒ…‡ǡ and engineering, among others—amount to tens of billions of dollars each year. In the early years of the post-World War II era, the United States stood virtually alone as the industrial and technological leader of the world. At that time, the US produced almost half of the world’s GDP. This included much of the world’s manufactured goods. The US also had roughly 80 percent of the world’s hard currency reserves. Today, while the US remains the world’s leading economy, its share of world GDP has shrunk to about 24 percent. Its share of world manufacturers is even lower. Experts agree that, relative to the size of the economy and the diversity of its industrial and technological base, the US has lagged far behind its export potential. Meanwhile, the potential for growth in US exports is enormous. Markets in Europe and Japan are huge and stable. There is growing promise in Asia’s $5.7 trillion economy and Latin America’s $1 trillion economy. These markets are generating a rapidly growing Passage VI

demand for infrastructure investment, aircraft, and high-technology capital goods—all areas in which the United States has real or potential strengths. In addition, new entrants into the ™‘”Ž† ‡…‘‘›ǡ •—…Š ƒ• ‡–”ƒŽ ƒ† ƒ•–‡” Europe and the countries of the former Soviet Union, show real promise as potential markets for US exports. Growing world markets, however, do not automatically translate into US export •ƒŽ‡•Ǥ Š‡ ϐ‹‡”…‡…‘’‡–‹–‹‘ ˆ‘” ‹–‡”ƒ–‹‘ƒŽ markets comes primarily from the more ‹‘˜ƒ–‹˜‡ ϐ‹”• ‹ —”‘’‡ ƒ† ƒ’ƒǤ  particular, Japanese companies have set the pace with a mix of aggressive business practices and an economy-wide commitment to quality, rapid time to market, ongoing innovation, and customer satisfaction. American companies are beginning to try to meet the competition abroad, as well as to view their success as a benchmark for ‹’”‘˜‡‡–ǡ ™Š‡–Š‡” –Šƒ– „‡•– ‹• ‹ Š‹…ƒ‰‘ǡ Frankfurt, or Osaka. The new realities of international competition yield lessons for the US government as well. Economic diplomacy and high-level advocacy, competitive and ˆ‘…—•‡† ‡š’‘”– ϐ‹ƒ…‹‰ǡ ƒ† ‹’”‘˜‡† efforts at information-gathering have become necessary components of an export promotion policy. Many foreign governments have been more aggressive and more focused than the ‰‘˜‡”‡– ‹ ™‘”‹‰ ™‹–Š –Š‡‹” ϐ‹”• to secure export sales. Senior government ‘ˆϐ‹…‹ƒŽ•ǡ —’ –‘ ƒ† ‹…Ž—†‹‰ –Š‡ ”‡•‹†‡– ‘” Prime Minister, often will travel to support the sale of their home country’s goods and services. The US government needs to begin to measure its export strategy against the ϐŽ‡š‹„‹Ž‹–› ƒ† ‡ˆˆ‡…–‹˜‡‡•• ‘ˆ –Š‡…‘’‡–‹–‹‘Ǥ Exports are central to growth, jobs, and a rising standard of living for all Americans. Our role in building a better America at home and acting as an economic leader abroad is dependent on our ability to develop a coherent, aggressive, and effective national export strategy.

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