Figure 1-21 



U.S. Trade Balance with Selected 

 Nations in R&D-lntensive Manufactured 

 Products, 1966-73 



(Billions of Dollars) 

 7 



1966 67 '68 69 70 



SOURCE U S, Department of Commetce- 



71 72 73 



The importance of the positive trade balance 

 in R&D-intensive prciducts is illustrated by the 

 fact that the net exports of such products in 1974 

 ($23.6 billion) were large enough to offset the 

 negative balance in petroleum products ($23.4 

 billion) for that same year.^" 



Agriculture is an additional component of 

 foreign trade which is significantly affected by 

 the position of U.S. technology. The leading role 

 of U.S. agriculture is due at least in part to the 

 contributions of science and technology in such 

 areas as the development of new hybrids; the 

 utilization of irrigation techniques; the improve- 

 ment of fertilizers, pesticides, and herbicides; 

 and the widespread mechanization of produc- 

 tion." In 1974, the United States exported $22.3 

 billion of agricultural commodities (with es- 

 pecially high volume in wheat, soybeans, and 

 corn), and had a positive trade balance of $11.9 

 billion in agricultural commodities as a whole. "^ 



The preceding examination of foreign trade 

 was restricted, for the purposes of this report, to 

 those aspects which provide relatively direct 

 indices of the position and performance of U.S. 

 technology. As a result, such topics as foreign 

 direct investment, sales of U.S. subsidiaries 

 abroad, and the impact of multinational cor- 

 porations were not discussed. ■»° 



United States have a significant net export 

 position with respect to Japan. (It might be noted 

 that the United States also has a negative trade 

 balance with Japan in non-R&D-intensive 

 products). 



■*" Overseas Bu^mfss Reports, Department of Commerce, 

 Domestic and International Business Administration (OBR 

 75-22). 



" Agriculluml Proiiuclion Efficiency, National Academy of 

 Sciences, Washington, D.C., 1975. 



^'' For further treatment of these topics see the hiernaliormi 

 Eionanui Report of the President, Council on International 

 Economic Policy, 1975. 



27 



