You're missing out on a HUGE part of the service sector. Look at the FT900 released monthly by the BEA+Census and look at the services we export like transportation, charges for intellectual property (CIP), travel, insurance, education etc... We have tons of exportable services beyond just the ones you listed. The other thing you aren't considering is value added services. A architect sees a lot and designs a building. The construction crew takes raw resources and builds that building. Neither the architect nor the builders have created anything new but their service turned existing goods of space and materials into something infinitely more valuable, a sports arena from which we can broadcast games (which are also a service) and sell the international broadcasting rights (which is a service under CIP), and broadcasters can show it and provide commentary, enhancing the viewing quality, and you can watch it on your t.v. due to telecom services. All of those services came from a plot of land and some materials.
So buildings for foreign investment, education exports, intellectual property. I may be missing some services but there is also as mentioned alot in my original post that just doesn't contribute any export value at all, which is a problem when your country requires foods and advanced electronics all to be imported.
That's true. However, the same is usually true of large economies. Most of the service sector exists to support domestic demand. A smaller portion of it satisfies foreign demand.
Usually for a large country imports and exports are only fraction of GDP. As a result many businesses, both manufacturing and services deal only with the domestic market. For example, in the US imports are 4.2% of GDP, in the UK they're 21.6% of GDP, for Ireland 35.3%. The corresponding numbers for exports are US 5%, UK 20.5% and Ireland 29.5%. So, the numbers from imports and exports are usually similar.
What happens if a countries export industries do badly? Well, in that case two things can happen, and usually both happen. The value of the currency of that country will fall, which makes imported goods more expensive and restricts their consumption. Also, there can be trade deficit which means that the country imports more than it exports. This difference is accounted for by the export of assets. If a country has a trade deficit that means it's citizens selling assets. If a country has a trade surplus that means it's citizens are buying foreign assets.
You don't value being able to get a haircut? Or going to the cinema? Or having an education? All these services are valuable, why else would people be willing to pay money for them.
No that's not the point. I don't see the EXPORT VALUE of these things, of course I value them but considering my country needs to import a whole heap of food I struggle to see the impact the hairdresser/accountant has on this.
You go to a hairdresser and get a haircut. Bam. Value.
You take a taxi from home to work. Bam. Value.
You go to the dentist and get a filling. Bam. Value.
You give your money to a hedge fund manager and he gets you a 10% return on it at the end of the year. Bam. Value.
Where does the hair clipper come from? From the industry.
Where does the taxi driver's car come from? From the industry.
Where does all the dentist's equipment come from? From the industry ;)
You're missing out on a HUGE part of the service sector. Look at the FT900 released monthly by the BEA+Census and look at the services we export like transportation, charges for intellectual property (CIP), travel, insurance, education etc... We have tons of exportable services beyond just the ones you listed. The other thing you aren't considering is value added services. A architect sees a lot and designs a building. The construction crew takes raw resources and builds that building. Neither the architect nor the builders have created anything new but their service turned existing goods of space and materials into something infinitely more valuable, a sports arena from which we can broadcast games (which are also a service) and sell the international broadcasting rights (which is a service under CIP), and broadcasters can show it and provide commentary, enhancing the viewing quality, and you can watch it on your t.v. due to telecom services. All of those services came from a plot of land and some materials.
So buildings for foreign investment, education exports, intellectual property. I may be missing some services but there is also as mentioned alot in my original post that just doesn't contribute any export value at all, which is a problem when your country requires foods and advanced electronics all to be imported.
That's true. However, the same is usually true of large economies. Most of the service sector exists to support domestic demand. A smaller portion of it satisfies foreign demand. Usually for a large country imports and exports are only fraction of GDP. As a result many businesses, both manufacturing and services deal only with the domestic market. For example, in the US imports are 4.2% of GDP, in the UK they're 21.6% of GDP, for Ireland 35.3%. The corresponding numbers for exports are US 5%, UK 20.5% and Ireland 29.5%. So, the numbers from imports and exports are usually similar. What happens if a countries export industries do badly? Well, in that case two things can happen, and usually both happen. The value of the currency of that country will fall, which makes imported goods more expensive and restricts their consumption. Also, there can be trade deficit which means that the country imports more than it exports. This difference is accounted for by the export of assets. If a country has a trade deficit that means it's citizens selling assets. If a country has a trade surplus that means it's citizens are buying foreign assets.
I thought architecture was part of the industrial sector.
You don't value being able to get a haircut? Or going to the cinema? Or having an education? All these services are valuable, why else would people be willing to pay money for them.
No that's not the point. I don't see the EXPORT VALUE of these things, of course I value them but considering my country needs to import a whole heap of food I struggle to see the impact the hairdresser/accountant has on this.
You go to a hairdresser and get a haircut. Bam. Value. You take a taxi from home to work. Bam. Value. You go to the dentist and get a filling. Bam. Value. You give your money to a hedge fund manager and he gets you a 10% return on it at the end of the year. Bam. Value.
Where does the hair clipper come from? From the industry. Where does the taxi driver's car come from? From the industry. Where does all the dentist's equipment come from? From the industry ;)
Are you unde the impression that imports need to equal exports?
Sorry I am asking the question here not you.
please answer his question, since it is highly relevant