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CH 21] Business 101 21-3

balance of payments 21
Flow of money into or
out of a country.
Conducting business on
a worldwide basis
generates a large portion
of United Technologies
Corporation's total sales
and profits. UTC derives
29.5 percent of its total
revenues and 49.7
percent of its total
operating profits from
international operations.
The firm provides
products and services to
customers in the
aerospace and defense,
building, and automotive
industries. Its Otis
elevators, escalators,
and moving wallways
and shuttle systems
Concepts of International Business move one billion people
The main patterns of international business result from a combination of every day in more than
160 countries. The Hong
economic and political factors. To understand trade and world business, it is essential Kong and Shanghai
to become familiar with such political concepts as balance of trade, balance of Banking Corporation, an
payments, and exchange rates. Otis customer for over
50 years, purchased 28
Balance of Trade Otis elevators and 62
A country's balance of trade is the difference between its exports and imports. If escalators for its new
headquarters building in
a country exports more than it imports, it has a favorable balance of trade, called a Hong Kong shown here.
trade surplus. If it imports more than it exports, it has an unfavorable balance of
trade, or a trade deficit. In 2020, the United States had a trade deficit of $67.1 billion.
Chemicals were the United States' leading export in a recent year, while
automobiles were the leading import. Interestingly, automobiles were also the second balance of trade
Relationship between a
-leading American export. Table 21.1 outlines the top 6 exports and imports. country's exports and imports.

Table 21.1 Leading U.S. Exports and Imports

Value (in billions)
Top Exports
1. Transportation equipment $278.0
2. Computer Electronics 208.0
3. Chemicals 193.0
4. Aerospace Products and Parts 135.0
5. Machinery 135.0
6. Petroleum & Coal 84.0

Top Imports
1. Machinery $367.0
2. Electrical Machinery 367.0
3. Vehicles and Automobiles 307.0
4. Minerals, Fuels, and Oils 241.0
5. Pharmaceuticals 116.0
6. Medical Equipment & Supplies 93.0

Source: Statistical Abstract of the United States: 2019
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