Value of Trade

http://www.nationalreview.com/buckley/wfb200503021122.asp
http://www.nationalreview.com/nrof_bartlett/bartlett091703.asp
http://www.epinet.org/content.cfm/webfeatures_snapshots_12162004

The first site extols Trade, the second extols the benefit of Trade, and the third expresses the concern with the Current Accounts deficit. None actually treat with the real effects of Trade, though all three Positions hold wide support, inside Economics and among the Public.

The Author first must state that Trade, like any economic factor, can be beneficial or Hazardeous to one or both parties; the first argument bases itself on an absolutism which does not exist. Tariffs, by like measure, may also be harmful or corrective; so the automatic comparative advantage of the second argument fails of impact. The third argument simply provides worry about the Current Accounts deficit, and does not directly discuss Trade; though it implies Asian central banks are subsidizing Asian Exports to this Country by purchase of U.S. Treasuries and Private American debt. None are essentially convincing, though All present effective data to the argument on Trade.

Major Elements of Trade Value:

1) Parity
2) Trade Volume
3) Transportation and Distribution Costs
4) Consumption and Production Pattern of Trade
5) Financing of Trade.

Parity asks the basic question: Does Trade actually provide benefit to both Parties, or to only one party, or to neither Party? The Author is currently contemplating a Economic model of evaluation of Trade Parity(which means he has not a clue as yet of all the necessary components of consideration--He's working, He's working). It will be the work of another Post--if ever!

Trade Volume remains unconsidered in most Economic analysis of Trade, but it is an overwhelming component of Trade. Trade benefit will magnify under conditions of higher volume than lower volume. Likewise will be the effect of Trade disadvantage of volume levels. These volumes must be considered as percentages of the several GDPs, not just of the Trading partners, but also of Suppliers of Substitute Goods.

Transportation and Distribution Costs eat up the real Profits of Trade, and include the Infrastructure Costs of such Trade. The major factors here as Energy Cost, and whether Depreciation Cost of Transport infrastructure exceed real factor Profits of Trade.

Consumption and Production patterns outlines Who exactly benefits, and Who suffers, from the existence of the Trade. Major components here is Who gains employment, Who loses Employment, Where does Consumption take place, Where does Production take place, and Where does the standard of living rise or decline from the existence of Trade.

Explanation of the financing of Trade requires the skill equal to the task of tracking Drug money. It demands another Post, as does each element of Trade. lgl