California's Exports Expected To Grow In 1996.SAN FRANCISCO--(BUSINESS WIRE)--Dec. 7, 1995--California's exports are forecast to reach $110 billion in 1996, up 16 percent from this year, as reported in the December 1995 Export Forecast produced by Bank of America's International Trade Bank. Further strong economic expansion in the Asia/Pacific region is a major reason for this growth. Growth is expected in 1996 largely as a result of improving economic conditions in Japan, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. co-authors Richard H. Courtney, vice president and director of East Asia East Asia A region of Asia coextensive with the Far East. East Asian adj. & n. research, and Howard L. Roth, vice president and director of regional economics for Bank of America
Bank of America (NYSE: BAC TYO: 8648 ) is the largest commercial bank in the United States in terms of deposits, and the largest company of its kind in the world. . California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). is the top exporting state in the nation, accounting for 15 percent of total U.S. exports, they noted. Overall, nine of California's 15 most important export markets are in the Asia/Pacific region. Countries in this region are experiencing more rapid economic expansion than any other region, which is boosting per capita incomes Noun 1. per capita income - the total national income divided by the number of people in the nation income - the financial gain (earned or unearned) accruing over a given period of time and making these countries even more important markets for California's high-value-added products. California's exporters are positioned to capitalize on Cap´i`tal`ize on` v. t. 1. To turn (an opportunity) to one's advantage; to take advantage of (a situation); to profit from; as, to capitalize on an opponent's mistakes s>. the continuing economic expansion in Asia, according to Federico Sacasa, group executive vice president and head of the International Trade Bank at Bank of America. "The state's proximity to the region offers a clear advantage, as evidenced by the rising level of Asian trade activity through California's major ports." he noted in the report. "In addition, we see a much greater opportunity for small- and medium-sized companies to participate in this growth." Leading exports by industry California's exports are concentrated in electronics and electrical equipment A piece of electrical equipment is a machine, powered by electricity and usually consists of an enclosure, a variety of electrical components and often a power switch. Examples of Electrical Equipment
2. Nature has divided the kindred of every one into three principal classes. 1. His children, and their descendants. 2. His father, mother, and other ascendants. 3. products, and agricultural production-crops. Combined, these six categories account for more than three-fourths of California's total exports. Demand for California-produced electronic and electrical equipment and components should remain high in 1996, as both the Japanese and Mexican economies continue to improve and the Southeast Asia Southeast Asia, region of Asia (1990 est. pop. 442,500,000), c.1,740,000 sq mi (4,506,600 sq km), bounded roughly by the Indian subcontinent on the west, China on the north, and the Pacific Ocean on the east. economies maintain their strong rate of growth. Industrial machinery exports should also show growth in 1996, fueled by several trends: 1) growing manufacturing sectors in the Asia/Pacific region; 2) investing in personal computers and associated equipment by businesses in the Asian countries Noun 1. Asian country - any one of the nations occupying the Asian continent Asian nation country, land, state - the territory occupied by a nation; "he returned to the land of his birth"; "he visited several European countries" ; and 3) an expanding market for construction equipment made in California, resulting from the substantial need for public infrastructure development in many Asian countries. Exports in transportation equipment should improve in 1996 as a result of the airline industry's return to profitability and a recent pickup Pickup A gain in yield made by selling one bond and buying another. Also referred to as "yield pickup." Notes: When the present yield is relatively low compared to the longer-term yields, pickups will be done by investors trying to increase the yield and duration of their in orders. Outlook The outlook for California's exports is bright for a number of reasons, according to the report. First, California's exports are dominated by capital equipment, for which demand will remain strong. Second, the Asia/Pacific region will continue to be home to some of the fastest growing economies in the world. Third, the economies of Japan and Mexico, which are California's first and third most important trading partners, should improve in 1996. Lastly, the successful completion of the Uruguay round
The World Trade Organization conducts negotiations through what are called rounds. of GATT See General Agreement on Tariffs and Trade. GATT See General Agreement on Tariffs and Trade (GATT). and the North American Free Trade Agreement North American Free Trade Agreement (NAFTA), accord establishing a free-trade zone in North America; it was signed in 1992 by Canada, Mexico, and the United States and took effect on Jan. 1, 1994. has lowered and will continue to lower tariffs This is a list of tariffs and trade legislation:
Increased business activity will result in a further expansion of global trade in 1996 that will benefit California-based companies, the report concluded. With net exports increasing more rapidly than California's overall economy, the international trade sector will continue to exert a positive influence on the state's economic and job growth. -0-
Table 1
CALIFORNIA'S LEADING ASIA/PACIFIC
EXPORT MARKETS
1994 Total Percentage
Country Value of Exports of Total
Exports
(Bil. dollars)
Japan 13.3 16.4 South Korea 5.5 6.8 Taiwan 5.3 6.5 Singapore 3.9 4.8 Hong Kong 3.2 3.9 Malaysia 2.2 2.7 Australia 2.0 2.5 Thailand 1.7 2.1 China 1.6 2.0 Philippines 1.3 1.6 Top Ten Asian Countries 40.0 49.3 All Countries 81.2 100.0 Table 2
CALIFORNIA'S LEADING EXPORTS
BY INDUSTRY
1994 Total Percentage
Industry Value of Exports of Total
Exports
(Bil. dollars)
Electronic and other 21.2 26.1 electrical equipment and components Industrial Machinery and 19.0 23.4 Computer Equipment Transportation Equipment 9.4 11.6 Instruments and related 5.9 7.2 equipment Food and Kindred Products 5.1 6.3 Agricultural Production - Crops 3.4 4.2 All Industries 81.2 100.0 -0- CONTACT: Bank of America Lisa Lewis, 415/622-2645 |
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