Trading analysis is essential to strategic decision-making as tensions rise in the international arena and there are more tariffs. Us trade data analysis can provide key insights into domestic and international markets that will help you make better business decisions. Trade data can help to understand the dynamics of supply chain, domestic demand, and shifts in movement of raw materials.
Accessing trade information
Consumption evident
Even if there are not estimates of the production of certain items, trade analysis can be used for local demand. “Apprent consumption” is a measure of the demand for a product within a country. It considers both Import Export Data.
Analyse of the supply chain
In many cases, inputs from other countries are used to create the final product. Trade analysis can be used to identify which countries supply bulk materials, and determine the flow of raw material between them.
Trade analysis can be used to identify the origins and value of raw materials in different countries. It is possible to see a correlation between raw materials flowing into a country and exports of final goods or intermediate products. Different regions may have different data that could give additional insight into top exporters of certain products. This information can be used to help determine future strategies for acquiring intermediate or raw materials.
Data that provides both volume and value exports can provide insight into the general export prices of different countries. According to the US International Trade Commission, 48 million kilograms (or $28million) of soybean seed were exported from the United States into Canada in 2017. These numbers can be used to estimate a rough export price for soybean seeds at $0.60 per kg. This is an estimate of the entire HHS code. The estimates could be affected by errors in trade flow reporting. All users of the system should understand these steps.
Trends over time
Trade tensions are increasing. Data on imports and exports can help you analyze how trade policies affect global and regional movements of goods in this current time. Trade data can be used to understand the production processes of different industries.
If there is an increase in production capacity, exports to other countries may decrease. Many industries depend on components that can be sourced from around the globe for their production processes. These countries’ trade practices could indicate the need to reexamine the source.
Caveats
Users should be aware that there are many possible caveats when interpreting or analysing trade database reports. When multiple items are included in shipments, they can all be tracked using the same HS number. This could mean that additional items are included in shipments and cause an underestimation for the product’s trade volume. These extra items won’t be taken into account in trade flows, which could lead to an underestimation of trade volume between countries. There are many ways to spot discrepancies.
- Compare exports and production data to see if flow is underestimated.
- Primary research with market participants to determine the average trade shares for manufactured goods
- Estimates of volume and value can be used to approximate the export price. Compare the average or estimated price of goods.
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