Multinational Companies in United States International Trade: A Statistical and Analytical Sourcebook

By F. Steb Hipple | Go to book overview

CHAPTER 12
TOTAL PRODUCT TRADE
Total Product trade provides the third overview of the trade role of multinational companies. From this perspective, MNC affiliate trade accounts for a 54% share of total trade, and MNC intrafirm trade has a 39% share. Wholesale affiliates are the dominant industry group, followed by manufacturing affiliates.
DEFINITION OF TOTAL PRODUCT TRADE
Total Product trade, along with Total Merchandise trade and Total Geographic trade, provide three different perspectives on the role of multinational companies in total trade. Total Product trade is an aggregate of twelve individual categories of product trade.For its trade categories, the Bureau of Economic Analysis employs product groups based on the Standard International Trade Classification (SITC) system [ BEA 1990 21-24]. The twelve BEA product groups are inclusive, thus Total Product trade consists of all SITC 0-9 categories.
Food (Raw and Prepared) and Live Animals Chiefly for Food (SITC code 0)
Beverages and Tobacco (SITC code 1)
Crude Materials, Inedible, Except Fuels (SITC code 2)
Petroleum and Products, Mineral Waxes, Natural and Manufactured Gas (ITC codes 33-34)

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