Total Quality Marketing: The Key to Regaining Market Shares

By Allan C. Reddy | Go to book overview

CHAPTER 2
Who Is Stealing Market Shares and What Can Be Done about It?

This chapter evaluates import trade from selected countries such as Japan, Germany, the Southeast Asian NICs, and China to identify who is stealing market shares from U.S. firms.

The purpose of the import analysis is to show trends in imports from countries that are actively exporting manufactured goods to the United States. Obviously, a rich country like the United States needs a variety of goods to sustain its standards of living, but excesses can create problems that complicate our economic well-being. The rub is in the excessive imports of manufactured goods from other countries. Therefore, trade deficits must be closely monitored and controlled.

The primary source of data for the analysis is U.S. Foreign Trade Highlights Report 1992, a Department of Commerce publication. Figures are rounded to the nearest whole numbers. The Department of Commerce uses two methods in evaluating imports: (1) Customs value and (2) C.I.F. value (cost, insurance, and freight). The former method is based on value decided by Customs at the port of entry. On the other hand, exporters prepare and report the C.I.F. values. Generally, Customs values tend to be uniform worldwide. Therefore, Customs values are used as the bases for the analyses. Second, imports from certain countries are omitted from the analyses since they do not represent a trade threat at this time. Although Canada is the second largest trading partner after Japan, for example, it is excluded from the analysis. The analysis focuses on the manufactured goods; services, oil, and agricultural imports are excluded.

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