The rising volume of trade-more goods and services shuttling in and out of the United States-is good news for many sectors. Companies engaged in shipping, trucking, rail freight, delivery, and logistics have all been reporting better than expected results. The rising numbers signify growing vitality in foreign markets-when we import more stuff, it puts more cash in the hands of people around the world, and U.S. exports are rising because more foreigners have the ability to buy the things we produce and market. ③The rising tide of trade is also good news for people who work in trade-sensitive businesses, especially those that produce commodities for which global demand sets the price-agricultural goods, mining, metals, oil.
And while exports always seem to lag, U.S. companies are becoming more involved in the global economy with each passing month. General Motors sells as many cars in China as it does in the United States each month. While that may not do much for imports, it does help GMs balance sheet-and hence makes the jobs of U.S.-based executives more stable.
④One great challenge for the U.S. economy is slack domestic consumer demand. Americans are paying down debt, saving more, and spending more carefully. Thats to be expected, given what weve been through. But theres a bigger challenge. Can U.S.-based businesses, large and small, figure out how to get a piece of growing global demand? Unless you want to pick up and move to India, or Brazil, or China, the best way to do that is through trade. It may seem obvious, but its no longer enough simply to do business with our friends and neighbors here at home.
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