The Costs of Top Three U.S. Imports

It's almost impossible to ignore the fluctuating prices of oil and many capital goods in the U.S.. The markets can be unpredictable. For the world's largest import based economy with a gross domestic product of around $15684 billion, inflation stands as an everyday hurdle. So, what are the costs for being the world's largest importer?




Import Values:

As the top import of the U.S., crude oil and other industrial products account for about 30% of import costs in the economy. The U.S. pays around $36000 million annually for crude oil alone. Capital goods such as automotive vehicles and parts including engines take another 24%.

Then, Consumer goods such as food products account for another 12% of import costs. Many food products consumed in the U.S. come from Mexico, one of the main exporters to the U.S..


Gross Domestic Product:

With a gross domestic product as large as the annual total for the United States, national income and output must remain stable. An indicator of the sum of the value of imports added at every stage of production in all industries, the GDP for the U.S. aids in the forecasting of market activity.

The market controls prices. The economy guarantees the distribution of goods and services.


Issues:

Is it reasonable to expect a decline in imports and GDP in the future? What are the effects of a decline? Who will be the next largest importer?








                                                                    SOURCES:
                                      -http://www.tradingeconomics.com/united-states/imports
                                      -http://www.bls.gov/news.release/pdf/ximpim.pdf

                                                                    KEYWORDS:
                                                imports; capital goods; gross domestic product