ANALYSIS OF BEEF EXPORTS TO INDONESIA: 1973-1997
This research analyzes Indonesia and an export market for beef from the United States. The findings of this analysis are presented within the contexts of (1) problem identification, (2) theory background, (3) methodology, (4) literature review, (5) empirical research findings, and (6) conclusion.
The agricultural industry has been a leading export earner for the United States for several decades. The globalization of the economy has encouraged the industry to seek further growth through exploiting export markets. The recent economic collapse in many southeast Asian countries, however, has begun to take its toll on American exports.
This research examines one export market for the American agricultural industry in this period of economic uncertainty. The market is beef exports. The focus country for this analysis is Indonesia.
National economies around the world are more dependent on one another than at any time in the past. The increasing globalization of the economic sphere of life has ushered in a period wherein economic policies implemented by a major industrial power affect not only the national economy of that specific country, but also affect the level and character of economic activity in all other countries.
Neoclassical economic theory holds that trade is an engine of economic growth. Demands for products overseas will generate more jobs at home. In a period of de-industrialization, the export of manufactured products is seen as an essential part of global competitiveness. To illustrate this contention, neoclassical economic analysts note that the boom in American exports since 1987, "triggered by the 1985 Plaza agreement driving down the value of the dollar to make U.S. exports more competitive, has accounted for about 50 percent of U.S. growth and produced 2 million new jobs in manufacturing." World trade grew faster than global economic output betwee...