MBN's Dr. TOMAS HULT, shared this as an OPINION CONTRIBUTOR — 07/27/18 for the publication THE HILL
The value of world trade has grown consistently faster than the growth rate in the world economy since 1960, and it has been much higher since the turn of the century. Since 2000, trade across country borders has been at least double the total production of all countries combined.
These numbers may appear strange. Surely, we can’t trade more than we make, and of course we don’t. Instead what accounts for this trade growth is the combined trade of raw materials, work-in-process (e.g., component parts) and finished products. Unfortunately, when we talk about trade, oftentimes we think about finished products only.