Global demand for imported goods and services are impacted by the global economic recession. Protectionism, in turn, is not always produced from the policies of national governments, but from national market-demands becoming more selective and more frugal in an economic downturn. Albert Einstein said, "Reality is merely an illusion, albeit a very persistent one." I would argue that high rates of lay-offs and pay-cuts makes frugality and preference for local fare a rational response to a reduction in available resources. Increased productivity, resourcefulness, innovation, and efficiency in the operation of households and businesses will mark those who will weather the 2009 global economic storm.
The World Bank projected that global trade would decline by 2.1% this year. A global trade contraction last occurred of this magnitude in 1982. The trade decline in the U.S. has effectively cut its trade deficit to $40.4 billion from $56.7 billion as of October 2008. This was a five-year low. If the reduction continues in the next three quarters at this rate, it will in effect greatly support the predicted fourth-quarter economic rebound.
DISCLAIMER: Because of the generality of this update, the information provided here may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations. This profile may constitute attorney advertising. Prior results do not guarantee a similar outcome. Any correspondence with this blog does not constitute a client/attorney relationship. Neither the content on this blog nor transmissions between you and the blogger through this blog are intended to provide legal or other advice or to create an attorney-client relationship.
The World Bank projected that global trade would decline by 2.1% this year. A global trade contraction last occurred of this magnitude in 1982. The trade decline in the U.S. has effectively cut its trade deficit to $40.4 billion from $56.7 billion as of October 2008. This was a five-year low. If the reduction continues in the next three quarters at this rate, it will in effect greatly support the predicted fourth-quarter economic rebound.
DISCLAIMER: Because of the generality of this update, the information provided here may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations. This profile may constitute attorney advertising. Prior results do not guarantee a similar outcome. Any correspondence with this blog does not constitute a client/attorney relationship. Neither the content on this blog nor transmissions between you and the blogger through this blog are intended to provide legal or other advice or to create an attorney-client relationship.
