Significance of Trade Between The United States and Hong Kong, Singapore, Taiwan and South Korea Singapore United States Jeff Beck Pisit Khumon John Lepore David Wright Hon ng Taiwan Sou rea

Top 20 Partners in Total U.S. Trade *Values are in millions of dollars

Top 20 Purchasers of U.S. Exports *Values are in millions of dollars

Top 12 Purchasers of U.S. Manufactured Products *Values are in millions of dollars

Top 20 Suppliers of U.S. Imports *Values are in millions of dollars

Hong Kong: Overview of the Economy GDP by Sector Industries Exports Imports

Hong Kong’s Partners in Export

Hong Kong’s Partners in Import

Hong Kong’s Import Policy No tariffs and few government imposed obstacles to hinder U.S. Imports No preferential or discriminatory export and import policies affect foreign investors One of the reasons that make Hong Kong become a No tariffs and few government imposed obstacles hinder U.S. imports. No preferential or discriminatory export and import policies affect foreign investors.

Singapore: Overview of the Economy GDP by Sector Industries Exports Imports

Singapore’s Partners in Export

Singapore’s Partners in Import

Singapore’s Import Policy Tariffs and taxes: more than 96 percent of imports enter Singapore duty-free Licensing: generally no licensing requirements

Taiwan: Overview of the Economy GDP by Sector Industries Exports Imports

Taiwan’s Partners in Export

Taiwan’s Partners in Import

Taiwan’s Import Policy TARIFFS: moderate but declining tariffs, average rate of 7.5%; 5% VAT; 0.5% harbor tax on ocean freight LICENSING: import licenses required on certain products; bans on selected imports; restrictions on selected services; generally an open market

South Korea: Overview of the Economy GDP by Sector Industries Exports Imports

South Korea’s Partners In Export

South Korea’s Partners in Import

South Korea’s Import Policy Tariffs & taxes: average tariff rate is 8%; taxes assessed on imports include: l0% VAT, special consumption taxes on certain luxury items Licensing: approximately 5% of import categories are subject to licensing restrictions

U.S. Total Trade Balances With Individual Countries *Values are in millions of dollars

Balance of Payments: U.S. And Hong Kong

Balance of Payments: U.S. And S. Korea

Balance of Payments: U.S. And Singapore

Balance of Payments: U.S. And Taiwan

Potential Sites of Influence of The Tigers in the U.S. Corporate America Stock market American Worker Trade and Inflation - Corporate America could be affected because some some corporations are going to see weaker profits because they can’t sell to or compete with Asian populations that are rapidly becoming less prosperous and lower paid. -This intern will effect the stock market because as profits weaken, the stock prices likely will. -The next thing that could be effected is the American worker. The American worker could be effected because as Asia’s currency drops, wages decline, which could eventually result in the loss of American jobs as production is shifted overseas for lower wages. -At the same time some long term effects may be good, such as trade and inflation. Cheaper goods from Asia will help keep inflation in check and will also slow the growth rate of the US economy. This means that both short term and long term interests rates will go down.

Strategies for an Economic Turn-Around for the Tigers Bubble economy Write off bad loans Education Technology -Most experts say that the current crisis in Asia is due to a bubble economy. The bubble economy works something like this: Economic growth results in higher stock prices, allowing the stock to be used as collateral for loans. With borrowed money, investors could bid up the price of assets such as real estate and to even finance further stock purchases. This economy can work so long as an economy grows forever. As Asia’s economy slowed stock prices dropped and loans began to go into default. The banks however, have not written off the bad loans because there are so many bad loans that some banks would be put out of buisness. - The key for Asia to pull out of this crisis is to for government authorities to take decisive action to resolve the fiscal crisis. In the absence of major structural reform, it will be difficult for the Asian banks to achieve sufficient levels of profitability to rebuild balance sheets and restore credit worthiness. - The Asian countries must also keep making further advancements in education. In the US the average American has 17 years of education where as the average Asian Tiger has 13 years of education. If Asia wants to pull out of the recession and expand their economy they must further the education of their people. -The Asians must also make advancements in technology. The common theory is that the Asian copy technology and advance on it. Now they must start creating their own technology to further advance and create a new market for their economy.

Projected Trade Levels (in Billions $)