As tensions between countries increase, analysis of trade data will be an integral part of strategic decision-making. Analyzing trade data can help you make better business decisions by providing crucial information about domestic and international markets. US import data can help you understand supply chain for products in terms demand for domestic goods as well as shifts in raw material movement.
Trade analyses are useful for determining local demand estimates for certain items and services, even if production is not estimated. This is known as apparent consumption. This includes both the country’s production as well as its exports.
Applicable Consumption = Domestic production + Exports + Imports
This analysis could be affected if the domestic production data is not reported correctly from government or trade data sources. This analysis can be used to determine the country’s demand for a product.
Knowledge of the Supply Chain
Many times, inputs from other countries are used to create the final product. To identify countries that supply bulk materials and determine the flow of raw material between them, trade analysis can be used.
Trade analysis, for example, can be used to determine where certain materials originated and what value they have been given by different countries. There may be a correlation between raw material flows into a country and exports of final goods or intermediates from that country. Different regions might have different data, which may give more insight into the top exporters of certain goods. These data could be used to help determine the best strategies for acquiring intermediate or raw materials.
US Trade Data can give insight into the general export prices of different countries. These sources, such as , report both value and volume exports. The US International Trade Commission estimates that 48 million kilograms of soybean seed (or $28,000,000) were exported from the United States to Canada in 2017. These metrics can be used to estimate a soybean export cost of $0.60 per kg. These are estimates for the entire HS code. The estimates can be affected by errors in reporting trade flows. These precautions should be known by all users.
Currents
Import Export Data is useful to understand how trade policies affect the regional and global flow of goods during times of rising trade tensions. Trade data can be used to understand the various ways in which different industries use production inputs.
If there is a decline in production capacity, exports could fall to the region. Many industries depend on components from all over the world for their production processes. These countries may be experiencing changes in their trading practices, which could indicate that it is time to reevaluate their sources.
Caveats
There are several caveats to be aware of when interpreting or analysing trade database reports. It is possible to track every shipment with a single HS number, even if multiple goods are involved. This would include additional products, which could lead to an underestimation in trade for that particular item. These additional goods won’t be included in trade flows, and could cause an underestimation in trade between countries. There are many ways to identify the differences.
To identify under-estimated flows, compare production and export data. It is crucial to do initial research with key market players in order to establish the market share for manufactured goods. Estimates of volume and value are used to estimate the export price. The average or estimated price of the goods can be viewed.
