Word: exportability
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...Japanese companies actually have done well under the restrictions. Since they could export only a limited number of autos, they began shipping more expensive premium models rather than small economy ones. In addition, Japanese firms could raise prices on their small cars because they were often in short supply. If there were no restraints, one U.S. study said, the average Japanese car would have cost $1,300 less...
Before long, the Colombian cocaine kings had created the largest chemical export operation in South American history. Overseeing the business as if they were heads of a multinational firm, the coqueros transformed a once chaotic industry into a vertically integrated consortium. For the transportation of drugs, they used well-established smuggling pipelines; for their distribution, a North American syndicate stretching from Miami to Vancouver. Escobar united the coqueros into a cartel and even organized a fund to serve as a kind of insurance in the event of raids or losses. The drug dons were also shrewd enough to invest their...
America's trade balance has deteriorated badly on both sides of the ledger. Between 1981 and 1984, exports fell 7% while imports surged 25%. Last year the U.S. had a record-shattering trade deficit of $123 billion. The rush to import takes profits away from U.S. companies and paychecks from American workers. The impact must be measured not only by layoffs and closed plants but by factories not built and expansions not made. C. Fred Bergsten, director of the Institute for International Economics in Washington, estimates that by 1986 the U.S. will have lost 3 million jobs in industries that...
...loss of export sales, combined with the drop in land values, makes it harder than ever for farmers to pay off their suddenly crushing debts. Under Secretary of Agriculture Frank Naylor estimates that perhaps 40,000 farmers have debts equal to 70% or more of their shrinking assets. "They are not necessarily out of business," he says, "but they will have to do something to improve their position this year in order to be able to operate next year. It may be selling off a piece of land or a piece of machinery. Depending on how good they...
...budget would also dissolve the Export-Import Bank, which helps finance foreign trade by U.S. corporations. The Administration wants the private financial community, not the taxpayer, to help companies like General Electric, Bechtel Group and Westinghouse finance their sales abroad. The ^ financial community contends that the end of ExportImport would hamper international traders who are struggling against a strong dollar, subsidized foreign competition, and a growing U.S. trade deficit...