Why is the Merchandise Trade is much low in USA and Japan then in Korea and Singapore?
What is the main reason to be much low for big countries like USA and Japan? USA' merchandise trade is 19% and Japan' is 18%, but Korea' is 60% and Singapore' is more than 90%.
Answer:
First of all, I'm not aware of the figures or whether they are correct, but I will see if I can explain it in the presumption that your facts are broadly accurate.
Generally speaking, as countries develop, their economies go through stages of development, first concentrated on agriculture, then industry, and then services.
It is not that surprising then that the US and Japan, two of the most developed economies in the world, should have relatively low percentage of total trade as merchandise trade.
In the case of Singapore, which is also a highly developed economy, its figure is skewed by the fact that it is one of the major shipping hubs of Asia. Much of the 90% in merchandise trade recorded will be through-traffic coming from China and other countries. If you looked at indigenously sourced trade, I suspect merchandise trade would be a much smaller percentage as well.
In the case of Korea, it's trade is still dominated by the giant conglomerates (chaebol) and these focus on industrial exports such as steel, automobiles, shipping, semi-conductors, mobile phones etc... It's services sector dominates the employment (over 60% of employees work in the services sector) but this sector suffers from very low productivity.
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Answer:
First of all, I'm not aware of the figures or whether they are correct, but I will see if I can explain it in the presumption that your facts are broadly accurate.
Generally speaking, as countries develop, their economies go through stages of development, first concentrated on agriculture, then industry, and then services.
It is not that surprising then that the US and Japan, two of the most developed economies in the world, should have relatively low percentage of total trade as merchandise trade.
In the case of Singapore, which is also a highly developed economy, its figure is skewed by the fact that it is one of the major shipping hubs of Asia. Much of the 90% in merchandise trade recorded will be through-traffic coming from China and other countries. If you looked at indigenously sourced trade, I suspect merchandise trade would be a much smaller percentage as well.
In the case of Korea, it's trade is still dominated by the giant conglomerates (chaebol) and these focus on industrial exports such as steel, automobiles, shipping, semi-conductors, mobile phones etc... It's services sector dominates the employment (over 60% of employees work in the services sector) but this sector suffers from very low productivity.
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