The Rise of U.S. Exports to East Asia and Latin America

Exports have become an increasingly important source of revenue for both national and regional firms in the United States. U.S. exports are rising rapidly, especially from the Midwest. As a result, national and district firms must be ever more attentive to changes in U.S. export markets. One such change is the rapid growth of U.S. export markets in the developing nations of East Asia and Latin America. This article analyzes current trends in the geographic distribution of U.S. exports and identifies the primary growth markets for U.S. exports in the years ahead. The analysis suggests the developing nations in East Asia and Latin America will soon rival today’s industrialized nations as the most important U.S. trading partners. This finding presents U.S. firms with a significant challenge. To take advantage of these growing markets, U.S. firms must establish new distribution networks, learn foreign regulations and customs, and train sales personnel in these developing geographic regions. Because such tasks require commitments of time and investment, firms must be able to forecast where the future demand for U.S. exports will be concentrated. The first section of this article gives an overview of the rapid growth of U.S. exports and their geographic shift toward developing nations. To assess the prospects for U.S. export growth in developed and developing nations, the second section analyzes recent trends and uses a statistical model to predict future U.S. export patterns.