• Cost of Global Sourcing • Currency Exchange Rates • Organizational and Behavioural Issues • Export Administration Regulations • Foreign Trade Zone

1. Purchasing and Supply Chain Management
by W.C. Benton
Chapter Ten
Global Sourcing

2. Learning Objectives
1. To learn what factors/forces increase foreign trade
2. To learn the basics of global sourcing.
3. To learn how total costs are determined.
4. To understand the hidden costs of global sourcing.
10-2

3. Learning Objectives
5. To understand the quantitative and qualitative
aspects of global sourcing.
6. To learn how to critically analyze various global
sourcing alternatives.
7. To learn how to effectively use foreign trade zones.
8. To learn how to negotiate in different countries.
10-3

4. Global Outsourcing
• As an example, outsourcing is currently perceived as
key to automotive suppliers’ survival, and is being
driven by consumers in the price-pressured global
market.
• Even as different cohorts take different positions on
the overall merit of global outsourcing, the reports
and discussions nevertheless have one theme in
common.
10-4

5. Global Outsourcing
• The focus has been on a single aspect of outsourcing:
the migration of jobs, and, in particular, the
outsourcing of white-collar jobs.
• A few countries, notably India and China, are often
targeted as the ones that are displacing American
workers by offering cheap labor.
• The intense attention on the outflow of work to
overseas locations has generated fear about which
jobs or professions will be outsourced next
10-5

6. Costs of Global Sourcing
• The costs of global sourcing include some of the same
costs found in domestic sourcing; there are also costs
that are different.
• These costs are grouped into the following
categories: administrative, foreign, and common.
• Exclusively foreign costs are those that would not be
incurred if a domestic source were found.
• Examples of these costs are duty charges, customs
fees, import fees, and currency exchange costs.
10-6

7. Costs of Global Sourcing
• Ocean and air freight could be mentioned, but these
are part of the transportation costs of a good that
would be incurred from any source.
• Many of these exclusively foreign costs are established
by governments and are very difficult to avoid.
• Finally, there are those costs that are common to both
global and domestic sourcing.
10-7

8. Common Costs
• Direct labor and materials costs, lead-time costs,
transportation costs, and inventory costs are a part
of both domestic and offshore sourcing.
• Transportation costs, inventory costs, and lead-time
costs tend to be higher when sourcing globally.
• On the other hand, labor and materials costs are
often lower for firms in developing countries.
10-8

9. Currency Exchange Rates
• One of the most important variables to consider is the
exchange rate of currencies.
• Since predicting the fluctuation in currency markets is
extremely difficult, foreign purchases may actually cost more
or less than expected depending on the length of the contract.
10-9

10. Exchange Rates
• Depending on the performance and strength of the
dollar, goods can cost American firms different amounts
from what’s expected.
• When the dollar is weak, the final cost of goods tends to
be relatively more than originally agreed upon.
• When the dollar has a strong performance over the life
of a contract, a firm can realize savings through the
exchange rates.
10-10

11. Organizational and Behavioral Issues
• Firms can run into problems when global sourcing is
introduced into their organizations.
• The resistance of the firm’s buyers to learn to
evaluate global sources is the reason for most of the
problems. An attitude of “if it can’ be bought here in
the U.S.A., it can’t be bought anywhere” can be seen
with some purchasing departments.
10-11

12. Organizational and Behavioral Issues
• Many buyers simply do not want to learn about the other
countries with whom they will be dealing.
• There are many ethical considerations that you must learn in
order to be successful. Many companies hire brokers to do
their sourcing.
• Lead times and delivery times can create problems also.
Longer times can increase inventory needs and drive up
carrying costs.
• The extended lead time also might push back the date at
which a firm is able to introduce new products to the market.
10-12

13. Global Sourcing Issues
• A third problem companies face in global sourcing is
communication. Many times there are delays and confusion
in translations.
• Sending documents via couriers or the postal service is often
time consuming and creates problems of obsolescence, more
confusion, and late or even lost deliveries.
• There has been an increase in the use of the Internet to
eliminate the time delay and confusion.
10-13

14. Global Sourcing Issues
• Global sourcing is the trend of the future.
• Supply management is becoming very important to the
survival of both American and offshore firms.
• In certain industries, using foreign suppliers can reduce total
costs.
• Firms in the apparel and electronics industries that do not use
global sourcing could find themselves out of business when
competing with firms that source globally.
• Global sourcing is by no way expanded to completely replace
domestic sources; however, it is a way to meet a competitor’s
challenge and achieve better value for goods all over the
world. 10-14

15. Global Sourcing as a
Strategic Sourcing Option
• Global sourcing is extremely complicated from a
quantitative and qualitative viewpoint. The total cost
of sourcing is perhaps the most important variable.
• Of course, the costs vary from firm to firm since the
appropriate qualitative components of offshore
sourcing must be considered.
10-15

16. Strategic Sourcing
• For instance, the associated qualitative risk profiles of (1) the
impact of national interest, (2) the ethical consequences of
“sweat shop” labor, and (3) hazardous working conditions in
some foreign countries must be evaluated.
• The quantitative costs are (1) exchange rate uncertainties,
(2) direct costs of importation (transportation costs,
transaction costs), and (3) indirect importation costs
(utilization of fixed assets, pipeline inventories, managerial
time, engineering support).
• Moreover, the general uncertainty associated with the
business cycle makes offshore sourcing a risky proposition.
10-16

17. 10-17

18. 10-18

19. Risk VS. Reward
• The advantages of sourcing offshore must be weighed against
the associated risk.
• This may seem easy enough to accomplish, but there are some
not-so-obvious costs that must be considered.
• The decision process is complicated by additional uncertainty
associated with offshore sourcing.
• The buying professional who is considering offshore sourcing
must be prepared to fully analyze both the qualitative and
quantitative factors..
10-19

20. Global Risk Issues
Some of these issues are distance, communication, time value of
money, quality issues, pipeline problems, staffing issues, and
competition.
1. Distance. The distance between the buying and selling firm is
significant in terms of time zones and physical location. Internet
capabilities usually provide a partial solution.
However, face-to-face contact is preferred for some sensitive issues.
IBM requires the buyer to visit each supplier on a routine basis.
Trips offshore are more expensive and time consuming.
2. Communication. Communication can be described as the glue that
holds together a sourcing relationship.
Without effective communication, global transactions between
buying and selling firms would be futile. In addition to being
absolutely necessary for the completion of the transaction,
communication may also reduce or eliminate uncertainty within the
relationship.
10-20

21. Global Risk Issues
3. Time value of money. Since most offshore deals require the use of a “letter
of credit,” the buying firm loses the use of funds when the letter is
established. Suppose the shipments arrive two weeks after the letter of
credit is established. For a $1.5 million purchase, the buying firm bears a
$60,000 (.02 × 1.5 million × 2 weeks) opportunity cost expense.
4. Quality issues. The buying firm must spend the necessary time to correctly
specify and articulate quality expectations. Then evaluation makes sure that
the sample is from a legitimate production run. Prototypes/lab samples
should not be analyzed.
Remember, the buying firm is interested in the actual production on the
entire batch. In some cases, the buying firm should inspect statistical
process control charts to assess projected defect rates and the
inspection methods. The buyer should renegotiate the agreement
ultimately if the process is out of control. These quality issues can easily
increase costs of offshore sourcing.
10-21

22. Global Risk Issues
5. Pipeline inventory. Pipeline inventory issues will always occur when a third
party (the shipper) is involved. The problems become pronounced when
offshore sourcing is used.
Consequently, pipeline inventory problems can sometimes be next to impossible to
resolve. It is almost impossible to put specific costs on problems associated with
pipeline inventory. The pipeline inventory costs are truly a hidden cost that must
be considered when evaluating offshore quotes.
6. Staffing. If a buying firm is to be effective with an offshore sourcing strategy, it must
either hire experts or develop specialists that are assigned to offshore suppliers.
Ideally, these individuals must have experience in purchasing management, quality
control, and basic accounting. This cost also must be considered in the evaluation
process.
7. The impact of increased competition. The above direct and indirect costs tend
to add unexpected costs to purchased items. However, the significant benefits
associated with offshore sourcing enable the buying firm to gain leverage over
domestic suppliers. Domestic firms are well aware that some firms are
considering offshore firms in their long-term strategies.
10-22

23. Protectionism
• However, in a
survey of U.S.
port operators
and carriers, 77
percent said
they favored a
reduction in U.S.
protectionist
legislation.
• Figure 10.1
shows a distinct
trend of
decreasing tariff
rates for goods
coming into this
country.
10-23

24. There are many industries and products that are currently protected by
such legislation. Although the legal aspects of international sourcing are
beyond the scope of this chapter, two examples are given below:
1. The EU (European Union) has been limited to a market share of 7 percent of U.S. steel
consumption until just recently when 10 years of protectionist legislation expired.
• The U.S. government also has set certain limits on machine tool imports
to protect that industry. In the past 12 months, we have seen increased
public outcry for further protectionism legislation from within the United
States.
2 According to the 1991 Trade Policy Review of the European Communities,
export controls and restrictions may be imposed for a range of specific
purposes including national security; protection of life, health, and the
environment; and the preservation of national treasures.
• The community also readily regulates the importation and exportation of
dangerous chemicals. The governing regulation is CR Number 1734/88.
Authorizations for the import and export of chemicals are still
administered by the individual member states.
10-24

25. Importance of Negotiations
• When negotiating a purchase agreement, there are
certain general attributes in dealing with various
offshore suppliers.
• An attempt will be made to explain the nuances of
negotiating with the people of various Western
European countries and China.
10-25

26. United Kingdom Negotiations
• Typical trading partners • We can’t assume that the
include the United States, English and American
businesses operate in the
Germany, and other
same manner.
countries in the European
Union (EU). Exports include
machinery, transportation • English executives may
appear polite and friendly,
equipment, petroleum, and
but they can be tough and
other manufactured goods. ruthless when appropriate.
10-26

27. The Federal
Republic Negotiations
of Germany • Most of the executives you
encounter will have attended
a university, and 50 percent
hold doctorates. The title
“Dr.” commands instant
respect. Germans tend to be
specialists in one industry
with multiple company
experiences.
• Due to technical expertise,
German negotiators are
extremely cautious. The
opponent should be well
prepared on technical details.
10-27

28. France Negotiations
• When doing business in France,
you will often go through an
intermediary contact whose
credentials are impeccable. Your
choice of intermediary is
important.
• The best contacts are French
people who have ties with the
person you want to contact—
through family status, money, or
schooling.
• Schooling is the most important
aspect because the elite of French
management are linked by having
attended prestigious schools.
10-28

29. China Negotiations
• China is now a major player in the • The major problems when doing
world economy and accounts for business in China are the
more than 6 percent of world language barrier, business
trade. This is remarkable for a practices, and a fluid and diverse
developing economy. There has legal system.
been strong import growth, both
for processing trade and for • A well-specified procurement
domestic consumption. strategy is a basic requirement
when buying from China.
10-29

30. U.S. Export Administration Regulations
Any business or individual wanting to import goods into the United States
will have to work with the Export Administration (EA) of the U.S. Department
of Commerce. For complete details, consult the U.S. Export
Administration Regulations (EAR). Several steps that you will need to be
aware of the following:
1. Determine whether the item (s) in question is subject to the exclusive
jurisdiction of another Federal agency.
2. Determine if the technology or software is publicly available.
3. For an item in a foreign country, the origin of the item must be determined.
4. For items made in a foreign country, determine whether it is a controlled item
in the US.
5. Determine whether the foreign made item is subject to general prohibition.
10-30

31. Foreign Trade Zones
• The FTC Act of 1934 created
trade zones to encourage
exports from foreign countries.
• The act allowed for the storage
of goods within the U.S.
boundaries without payment
until the goods passed to the
buying company
• The foreign trade zones (FTZs)
are operated by the U.S.
customs service. When goods
enter an FTZ, the goods are
classified, inspected, and
placed in storage.
10-31

32. The European Union (EU):
Overview and What It Means To Purchasing
• The creation of a unified European Union will result in both
advantages and problems for the purchasing professional.
• The proposed changes must be considered for future
transactions with any of the 14 nations that could be adopting
the rules proposed by the EU White Paper to the Council of
Ministers.
• Today the EU consists of 25 member countries. Since the
Single European Act (SEA) in 1987, 279 proposals have been
brought forth to eliminate most trade barriers; approximately
90 percent of the 279 proposals are now law.
10-32

33. The EU
• The formulation of the European Union will lead to the elimination of
customs formalities between countries. There also will be tariff
reductions in 4,000 categories of manufactured goods as well as other
schedules for reducing trade barriers.
• In the past, a great deal of cost has been added to products and
components sourced in Europe to cover these multiple custom costs and
tariff fees. The lowering of these costs will once again result in lower
prices offered to purchasers.
• The formation of one European Economic Community has resulted in a
single standard for buying goods. This single market also will result in a
single value-added tax (VAT), not a different one for each country in
which the part is produced.
• Currently, these VAT taxes fluctuate from a low level of 12 percent to
some as high as 25 percent.
10-33

34. Countertrade
• Countertrade is the exchange of goods for goods in full or
partial payment of a sales transaction. Progressive companies
must participate in countertrade or risk of losing market
share.
• Counter trade appears to be flourishing in the current
climate, largely because of the recent changes that have
occurred in the international arms market since the end of
the Cold War.
• These changes have affected both the volume of the trade
and also the means through which it is financed. There are
number of countertrade arrangements. Some of the more
popular forms of counter trade are given
10-34

35. Some of the more popular
forms of counter trade are:
1. Offsets are commercial 2. Indirect offsets occur where products
compensation practices required as or services transferred in an offset
a condition of purchase of goods arrangement are unrelated to the
and services. specific products referred to in the
– Offsets would include specific export agreement.
forms such as co-production, – In many developing countries
licensed production, sub- where the industrial base and
contractor production, and infrastructure are poorly
overseas investment or developed, offsets are more
technology transfer. likely to be of an indirect nature.
– Offsets can be direct or indirect. – As an example, selling military
Examples of direct offsets aircraft to a developing country
include the manufacture of and making arrangements to
German designed naval patrol provide aerospace education for
vessels in South Korean. some of the citizens of the
developing country.
10-35

36. 3. Coproduction: 4. Licensed production: Licensed
This form of agreement involves production is when the recipient
obtains a share of the production
the purchaser being given a work for its own order.
share in the manufacture of a – The agreement may cover the
foreign designed product. assembly of an entire product or
– Coproduction is encouraged service. The agreement may be
by recipients because of the phased so that the local share of
employment and technology production rises over time.
transfer implications. An – As an example, the terms of the
example would be the 1991 South Korean $5.2 billion
coproduction of the British purchase of F-16 fighter aircraft
Harrier aircraft by McDonnell from General Dynamics 12
Douglas in the United States. aircraft were to be bought from
the US plant, a further 36 are to
– Tier I suppliers gain be assembled in South Korea
commercial advantages before, in the final phase, South
under this form of Korea will produce parts and
arrangement when there is a sub-systems for a further 72
high degree of technology aircraft.
transfer.
10-36

37. 5. Sub-contractor production: 6. Technology transfer:
In this case a prime Technology transfers occur
contractor substitutes an as a result of an offset are
existing supplier with one research and development
located in the buying agreements conducted in
country. the buying country.
– As an example, Boeing – Technology transfer can
placed sub-contracts also be commitments for
with several British firms foreign direct
in order to sell the E-3 investment made by the
AWACS aircraft to the selling firm to establish
United Kingdom. or expand a subsidiary
– In some cases this led to or joint venture in the
the elimination of US buying country.
sub-contractors from
Boeing's network of
suppliers.
10-37

38. 7. Barter: The non monetary 8. Counter-purchase: The seller
exchange of goods-for-goods. As exchanges products for
an example the so called oil for Compensatory amounts of
food program between Iraq and commodities.
the EU was designed as a barter – In the context of developing
program. Countries this normally involves
primary commodities.
– However, some of the actual – Daimler-Chrysler, General Motors
deals involved illegal cash and Toyota use counter trade as
transactions between some the method of payment in
United Nation and the Iranian Argentina.
officials. – They established programs that sell
– Another example is a deal its products in exchange for grain.
between the UK and Saudi – The grain is then traded through an
Arabia which included the intermediary for dollars and not in
the heavily devalued peso.
purchase of military aircraft
with associated training and – It is not as simple as that, the car
support, civil aircraft, companies has to negotiate with
the intermediaries and the
helicopters, naval ships and purchaser over not only the
construction projects is a classic quantity of grain, but also its
case of barter. quality, availability and optimum
market price on the day of the sale.
10-38

39. Additional Graphics for
Chapter 10
10-39

40. Table 10.1a
Top U.S. Trade Partners
Ranked by 2008 U.S. Total Export
Value for Goods
10-40

41. $ millions
-
100,000
150,000
200,000
250,000
50,000
1
Canada
2
Mexico
3
China
4
Japan
5
Germany
6
United Kingdom
7
Netherlands
8
Korea
Brazil
France
Belgium
Singapore
Taiwan
Australia
Switzerland
Hong Kong
I ndia
United Arab Emirates
Country (Rank)
I taly
I srael
Malaysia
Venezuela
Saudi Arabia
Top U.S.Trade Partners (Exports)
Spain
Chile
Colombia
Turkey
Russia
Thailand
I reland
9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 -
ASEAN
-
EU-27
10-41

42. Top U.S.Trade Partners (Exports)
$ millions
- 50,000 100,000 150,000 200,000 250,000
Canada
- - 30 29 28 27 26 25 24 23 22 21 20 19 18 17 16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1
Mexico 2006
China
2007
Japan
Germany 2008
United Kingdom
Netherlands
Korea
Brazil
France
Belgium
Singapore
Taiwan
Country (Rank)
Australia
Switzerland
Hong Kong
India
United Arab Emirates
I taly
I srael
Malaysia
Venezuela
Saudi Arabia
Spain
Chile
Colombia
Turkey
Russia
Thailand
I reland
ASEAN
EU-27
10-42

43. % Change
-10.0%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
Canada
Mexico
China
Japan
Germany
United Kingdom
Netherlands
Korea
Brazil
France
Belgium
Singapore
Taiwan
Australia
Switzerland
Hong Kong
I ndia
United Arab Emirates
I taly
Israel
Malaysia
Venezuela
Saudi Arabia
Top U.S.Trade Partners (Exports)
Spain
Chile
Colombia
Turkey
Russia
Thailand
Ireland
ASEAN
1 2 3 4 5 6 7 8 9 10 11 1213 14 15 1617 18 19 2021 22 2324 25 26 2728 29 30 - -
EU-27
Change
Change
10-43
2007-08 %
2006-07 %

44. Top U.S.Trade Partners (Exports)
% Change
-10.0% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0%
Canada
- - 30 29 28 27 26 25 24 23 22 21 20 19 18 17 16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1
Mexico
China
Japan
Germany
United Kingdom 2006-07
Netherlands % Change
Korea
Brazil
France 2007-08
Belgium % Change
Singapore
Taiwan
Australia
Switzerland
Hong Kong
India
United Arab Emirates
Italy
Israel
Malaysia
Venezuela
Saudi Arabia
Spain
Chile
Colombia
Turkey
Russia
Thailand
Ireland
ASEAN
EU-27
10-44

45. Top U.S.Trade Partners (Exports) $ millions
- 50,000 100,000 150,000 200,000 250,000 300,000 350,000
Canada
- 30 29 28 27 26 25 24 23 22 21 20 19 18 17 16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 Mexico
China
Japan
Germany
United Kingdom
Netherlands
Korea
Brazil
France
Belgium
Singapore
Taiwan
Australia
Country (Rank)
Switzerland
2006 Exports
Hong Kong
India 2007 Exports
United Arab Emirates 2008 Exports
Italy 2006 Imports
Israel
2007 Imports
Malaysia
Venezuela 2008 Imports
Saudi Arabia
Spain
Chile
Colombia
Turkey
Russia
Thailand
Ireland
ASEAN
EU-27 10-45
-

46. Top U.S.Trade Partners
% Change
-10.0% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0%
Canada
- - 30 29 28 27 26 25 24 23 22 21 20 19 18 17 16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1
Mexico
China
Japan
Germany
United Kingdom
Netherlands
Korea
Brazil
France
Belgium
Singapore
Taiwan
Australia
Switzerland
Hong Kong
India
United Arab Emirates
Italy
Israel
Malaysia
Venezuela
Saudi Arabia
Spain
Chile
Colombia 2006-07 Export % Change
Turkey
Russia 2007-08 Export % Change
Thailand 2006-07 Import % Change
I reland 2007-08 Import % Change
ASEAN
EU-27
10-46

47. Table 10.1b
Top U.S. Trade Partners
Ranked by 2008 U.S. Total Import Value for
Goods
10-47

48. $ millions
-
100,000
150,000
200,000
250,000
300,000
350,000
50,000
1
China
2
Canada
3
Mexico
4
Japan
5
Germany
6
United Kingdom
7
Saudi Arabia
8
Venezuela
Korea
France
Nigeria
Taiwan
Italy
Ireland
Malaysia
Brazil
Russia
India
Country (Rank)
Thailand
Israel
Iraq
Netherlands
Top U.S.Trade Partners (Imports)
Algeria
Angola
Switzerland
Belgium
Singapore
I ndonesia
Colombia
Vietnam
9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 -
ASEAN
-
EU-27
2008
2007
2006
10-48

49. Top U.S.Trade Partners (I mports)
$ millions
- 50,000 100,000 150,000 200,000 250,000 300,000 350,000
China
- - 30 29 28 27 26 25 24 23 22 21 20 19 18 17 16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 Canada
Mexico
Japan
Germany
United Kingdom
Saudi Arabia
Venezuela
Korea
France
Nigeria
Taiwan
Italy
Country (Rank)
Ireland
Malaysia
Brazil
2006
Russia
I ndia 2007
Thailand 2008
Israel
Iraq
Netherlands
Algeria
Angola
Switzerland
Belgium
Singapore
I ndonesia
Colombia
Vietnam
ASEAN
EU-27
10-49

50. % Change
0.0%
-20.0%
100.0%
20.0%
40.0%
60.0%
80.0%
1
China
2
Canada
3
Mexico
4
Japan
5
Germany
6
United Kingdom
7
Saudi Arabia
8
Venezuela
Korea
France
Nigeria
Taiwan
I taly
I reland
Malaysia
Brazil
Russia
I ndia
Thailand
I srael
I raq
Netherlands
Algeria
Top U.S.Trade Partners (Imports)
Angola
Switzerland
Belgium
Singapore
I ndonesia
Colombia
Vietnam
9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 -
ASEAN
-
EU-27
2007-08 % Change
2006-07 % Change
10-50

51. Top U.S.Trade Partners (Imports) % Change
-20.0% 0.0% 20.0% 40.0% 60.0% 80.0% 100.0%
China
- - 30 29 28 27 26 25 24 23 22 21 20 19 18 17 16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1
Canada
Mexico
Japan
Germany
United Kingdom
Saudi Arabia
Venezuela
Korea
France
Nigeria
Taiwan
Italy 2006-07 % Change
Ireland
Malaysia 2007-08 % Change
Brazil
Russia
India
Thailand
Israel
Iraq
Netherlands
Algeria
Angola
Switzerland
Belgium
Singapore
Indonesia
Colombia
Vietnam
ASEAN
EU-27
10-51

52. Top U.S.Trade Partners (Imports) $ millions
- 50,000 100,000 150,000 200,000 250,000 300,000 350,000
China
- 30 29 28 27 26 25 24 23 22 21 20 19 18 17 16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1
Canada
Mexico
Japan
Germany
United Kingdom
Saudi Arabia
Venezuela
Korea
France
Nigeria
Taiwan
I taly
Country(Rank)
I reland
Malaysia
Brazil 2006 Exports
Russia 2007 Exports
I ndia
2008 Exports
Thailand
I srael 2006 I mports
I raq 2007 I mports
Netherlands
2008 I mports
Algeria
Angola
Switzerland
Belgium
Singapore
I ndonesia
Colombia
Vietnam
ASEAN
EU-27
-
10-52

53. Top U.S.Trade Partners (I mports) % Change
-30.0% -10.0% 10.0% 30.0% 50.0% 70.0% 90.0%
China
- 30 29 28 27 26 25 24 23 22 21 20 19 18 17 16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1
Canada
Mexico
Japan 2006-07 Export % Change
Germany 2007-08 Export % Change
United Kingdom
Saudi Arabia 2006-07 I mport % Change
Venezuela
2007-08 I mport % Change
Korea
France
Nigeria
Taiwan
I taly
I reland
Malaysia
Brazil
Russia
India
Thailand
I srael
I raq
Netherlands
Algeria
Angola
Switzerland
Belgium
Singapore
I ndonesia
Colombia
Vietnam
ASEAN
EU-27 10-53
-

54. Table 10.2
Exchange Rate Indexes
10-54

55. 140 USD
120 EUR
100 GBP
JPY
80
CAD
60 AUD
40 CHF
20 RUB
CNY
0
ZAR
1 USD Inverse (1 1 EUR Inverse (1 1 GBP
USD) EUR) MXN
10-55

56. 140
120
100 1 USD
Inverse (1 USD)
80
1 EUR
60 Inverse (1 EUR)
40 1 GBP
20
0
USD EUR GBP JPY CAD AUD CHF RUB CNY ZAR MXN
10-56

57. 140
120
100
1 USD
Inverse (1 USD)
1 EUR
80 Inverse (1 EUR)
1 GBP
60
40
20
0
USD EUR GBP JPY CAD AUD CHF RUB CNY ZAR MXN
10-57

58. Table 10.5
Average Tariff Rates for the G-20
Countries and Selected Threshold
Countries
10-58

59. Average Tariff Rate (% )
0.0% 5.0% 10.0% 15.0% 20.0% 25.0%
Morocco
Vietnam
Pakistan
I ndia
Malawi
Mexico
Brazil
Republic of Korea
Argentina
Russian Federation
Turkey
Country/ Territory
China
Norway
South Africa
I ndonesia
Chile
Canada
European Communities
Japan
Saudi Arabia
United Arab Emirates
Australia
United States
Singapore
10-59