Analyzing trade data will become an integral part strategic decision-making as tensions between countries rise. By providing vital information about the domestic and international markets, analysing trade data can help improve business decisions. US import data can help to understand the supply chain for products, both in terms of domestic demand and shifts in raw materials movement.
Even though production estimates are not available, trade analyses can be used to estimate local demand for certain products and services. This is called apparent consumption. It includes both exports and production.
Applicable Consumption = Domestic production + Exports + Imports
If the production data for domestic goods is incorrectly reported from trade or government data sources, this could affect the analysis. This analysis can be used for determining the country's need for a product.
KNOWLEDGE OF THE SUPPLY CHAIN
In many cases, the final product is created using inputs from other nations. Trade analysis is a useful tool to identify countries that supply bulk material and determine the flow between them.
For example, trade analysis can be used to determine the origin of certain materials and their value. It is possible to find a correlation between the flow of raw materials into a country and the exports of final goods, intermediates or finished goods from that country. This could help you decide the best strategy for acquiring raw or intermediate materials.
US Trade Data provides insight into the export prices for different countries. These sources, like, can report both volume and value exports. According to the US International Trade Commission, 48 million kilograms (or $28,000,000) of soybean seed were exported from the United States into Canada in 2017. These metrics can be used for estimating a soybean export price of $0.60 per kilogram. These estimates are for the entire HS Code. Errors in reporting trade flows can affect estimates. All users should be aware of these precautions.
CURRENTS
It is important to understand how trade policies impact the global and regional flow of goods in times of rising trade tensions. Trade data can help you understand how different industries use production inputs.
Exports to the region could drop if there is a decrease in production capacity. Exports could fall to the region if there is a decline in production capacity.
CAVEATS
When analysing or interpreting trade database reports, there are several things to keep in mind. Even if there are multiple goods involved, it is possible to track each shipment using a single HS number. Additional products could be included, which could cause an underestimation of trade for the item. These additional goods will not be included in trade flows and could lead to an underestimation of trade between countries. There are many ways to determine the differences.
Compare production and export data to identify under-estimated flows. To identify under-estimated flows, it is important to conduct initial research with key market participants in order to establish market share for manufactured products.
A single source of truth is a central and controlled source of data from which the entire organization can draw.
It is the master data.
When you lack such data and employee can pull down apparently the same metrics from disperse systems, unavoidably those systems will produce different numbers.
You get into a he-said-she-said situation, each player drawing and defending their position with their version of the ‘truth’.
Or even worse, some teams may naively leverage stale, low-quality, or otherwise incorrect data/metrics and make bad decisions, when they could have leveraged a better source.
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