The World’s Largest Exporters and How They Make Their Money

Mar 29, 2010 Posted on Mar 29, 2010 | 9 comments

The World’s Largest Exporters and How They Make Their Money

Imports and exports are the fuel that drives the world economy. The natural resources a country has at its disposal combined with its skilled labor and trade opportunities determine what that country will have available to export to other nations. In order to better understand the world economy as a whole, it can be helpful to learn about the top producing countries, what products they specialize in exporting and with which countries they frequently trade. Today we overview the ten biggest exporting countries in the world.

China

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China takes first place as the worlds largest exporter of goods, clocking in at $1.20 trillion. The Asian nation specializes in electrical equipment and machinery, power generating equipment, apparel, and iron and steel. China is infamous for having permissive workplace standards and employment laws. Because of this, and also because the American dollar buys much more Chinese labor than it does American labor, clothing companies find they can save a great deal of money by manufacturing in China. This explains why much of the United State’s clothing imports come from the country. China’s top trade partner is the Unites States, followed by Japan and Hong Kong.

Germany

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Exporting $1.12 trillion worth of goods, Germany ranks as the second largest exporter in the world. Exports make up a substantial part of Germany’s economic backbone, accounting for one third of the country’s annual output. Recently, Marketwatch reported that German exports have risen 5.1% in February of this year. Marketwatch quotes Simon Junker, an analyst at Commerzbank AG, who believes German exports will continue to trend upward over the next several months. “German exports will likely continue to grow in coming months, judging by rising foreign orders and companies’ improved export expectations.” he says. Germany’s top export is mechanical engineering, holding 20% of the world market for this service.

United States

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The United States of America ranks the third largest exporter in the world with $1.05 trillion worth of exports leaving the country in 2009. America specializes in exporting capital goods such as engines, boilers and factory components. Recently, CSMonitor reported on President Barack Obama’s plan to increase worldwide demand for American exports. “For the first time, the United States of America is launching a single, comprehensive strategy to promote American exports,” Obama told an annual Import-Export conference. “Ninety-five percent of the world’s customers and the world’s fastest-growing markets are outside our borders. We need to compete for those customers, because other nations are. We need to up our game.”

Japan

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Japan exported $581 billion worth of goods last year, earning them the number four spot on this list. This East Asian nation specializes in passenger cars and car parts, computer accessories, video equipment and industrial machinery. The BBC reported on Japan’s recent growth of exports, proclaiming it to be the first growth in the last 15 months.”Exports hit 5.4 trillion yen ($60 billion), up 12.1% on a year ago. Shipments to Asia rose by almost a third,” claims the BBC, adding that China has overtaken the United States as Japans largest export partner. Shortly after the BBC report, The Journal of Commerce reported that Japanese exports have surged 45.3% in February of this year, the third straight month in a row.

Netherlands

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The Netherlands isn’t very far behind Japan, exporting about $499 billion worth of goods in 2009. Petroleum products are the biggest export from the Netherlands, shipping over $4.2 billion worth to the United States annually. Agricultural products are another big export from the Netherlands, and the farming and agriculture industry employs 4% of the nations workforce. The Netherlands exports a quarter of the worlds tomatoes and a third of its chili peppers.

France

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France places sixth on the list with $475 billion worth of exports in 2009. Machinery, transportation equipment, and aircraft are among for France’s top exports, followed closely by plastics and pharmaceuticals. France’s top trade partners are Germany, Italy, Spain and the United Kingdom. In late 2009, Vox reported that French exports were experiencing a decline that “has been even fiercer than that during the Great Depression.” Vox comments that this drop is is associated with “a sharp deterioration of demand and activity worldwide.”

Italy

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Italy’s exported $405 billion worth of goods in 2009 earning it the number seven place on our list. Italy specializes in producing medicinal, dental and pharmaceutical preparations. The country also supplies the bulk of the world’s Kiwifruit, exporting over 450,000 tons each year. In addition, Italy exports more wine than any other country on earth, over 1,790 tons annually. Recent government figures show that a large sale of fighter jets to Saudi Arabia caused Italy’s arms exports to rise 61% in 2009. DefenseNews reports that Italy’s arms exports rose to $4.9 billion euros in 2009, up from $3 billion in 2008.

Belgium

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Despite being one of the smallest nations in the European Union, Belgium ranks as the 8th biggest exporter in the world. The country exported $370 billion worth of goods in 2009, including diamonds, one of country’s most valuable exports. The United States is large importer of Belgian diamonds, buying $3.2 billion worth of these precious stones in 2008. Belgium has few natural resources, and thus must import many raw materials and a semi-finished goods for further manufacturing. It is for this reason that the country relies heavily on industry and service, which account for about 80% of its total exports.

South Korea

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Taking the ninth place on our list is South Korea, exporting $364 billion worth of good in 2009. The country’s biggest major trade partners are China, The United States, Japan, and Hong Kong. The Asian nation’s economy relies heavily on several key exports, including automobiles, computers, and microprocessors. EconomyWatch.com reports that South Korea has experienced tremendous economic prosperity in the last several years, allowing it to export such high-end goods. “The north-Asian nation was once relatively poor with an unremarkable GDP after World War II,” they remark, “but its quick industrialization, most notably since the 1960s, led to its huge exports.”

United Kingdom

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Clocking in at number ten on our list is the United Kingdom, doing $351 billion worth of exports in 2009. IndexMundi reports that the UK’s top exports include manufactured goods, fuels, chemicals, food, beverages and tobacco. Recent reports show that the UK’s top trade partner is the United States, accounting for 13.9% of its overall exports. Following the US was Germany at 11.5%, and the Netherlands at 75%. The UK owes 41.2% of its GDP to total international trade, which clocked in at $1.1 trillion in 2008.