Practical Exercises on Trade Map

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Benedict Watts
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1 Practical Exercises on Trade Map Go to Click on register to get your free username and password I. PRODUCT APPROACH SELECTING PRODUCTS Select two export products that you want to analyse to familiarise yourself with the product selection search engine Product 1: Product 2: 6-digit HS Code: 6-digit HS Code: Note: Login to Trade Map. On the main selection menu, click on the search box next to Product. As you do this, a drop down menu appears. Type the name of the product in the search box. As you start typing the name of the product, Trade Map searches for the word you have entered in the text describing each code. You can scroll down to view them all. Once you see the appropriate definition, click on it to select it. If you want to delete the product you have selected, click on. Remember to keep the search words you use short and simple and if you can not find a product, try to think of how else it could be described. The code description does not always match the common name of the product. For example, if you are looking for raisins the code is dried grapes. If you had entered raisin, Trade Map would have found jacks and hoists of a kind used for raising vehicles. So you would need to try again calling the raisin differently. Always be careful not to make any spelling or typing errors when entering the word! ANALYSING IMPORT MARKETS AND ASSESSING COMPETITION - with Trade Indicators 2. Analyse the importing markets for one of the products you selected in question 1: 2.1 How much in total of this product is imported in the world? US$ Quantity: tons/units Note: Select the product for which you want to do market research. Select Imports and click on Trade Indicators. 2.2 Which three countries are the largest importers of the product? Country 1: Country 2: Country 3: Value in US$: Value in US$: Value in US$: 2.3 Have imports by country 1 grown or declined in the last 5 years? In value: In quantity: % %

2 2.4 Is there a difference between country 1 s growth rate in value and growth rate in quantity? Explain what this difference could mean. 2.5 What average unit value was paid for the product by country 1, 2 and 3? Country 1: Country 2: Country 3: Value in US$: per ton/unit Value in US$: per ton/unit Value in US$: per ton/unit Note: This average value is calculated simply by dividing the total value by the total number of tons or units. 2.6 What share of world total imports do countries 1, 2 and 3 make up together? % 2.7 Do you think this indicates that the world demand for this product is concentrated? 2.8 Is your own country an exporter of this product? Yes No Note: To easily find your country among all countries listed, click twice on the title of the column entitled Importers. The list of countries will no longer be sorted by Value imported in It will be sorted alphabetically. Click on the numbers located on the top right of the table, below rows per page, to browse through the list. Once you have found the answer to this question, click on the title Value imported in 2006 to sort data again. 2.9 From where does country 1 import? (list the top 5 supplying countries) Note: Click on the name of country 1 - underlined in blue 2.10 Is your country a supplier to country 1? Yes No 2.11 If yes, what is your country s ranking in world exports of this product? Note: Don t forget that if your country is not listed on the first page, you can click on the numbers underlined on the top right hand side of the table Looking at the supplying countries of country 1, which countries do you consider to be competing for a greater market share? Why so? Note: Take a look at the Trade Indicators. Which countries demonstrate both strong growth rates in quantity and low growth rates in terms of value? Which countries show a decline in growth rates in value for the previous year? Do not hesitate to ask the trainer s help to answer this question. - with Time Series Exer-NEW-TMap-En.doc-2

3 2.13 Trade Map allows you to look at Time Series data and growth trends. Go to the Times Series data table, still for the same product and look at the imports of country 1. How have they evolved over the last 5 years? Note: Go back to the list of importers for the selected product by selecting All countries in the secondary selection menu. Select Time Series under other criteria in the secondary selection menu. The new page will feature List of importers for the selected product. Note: Please note that not all countries have reported their data for 2006 yet, and may be listed at the end of the table. However, you can sort the countries in this table by any year desired by clicking on the Imported value for any given year. 3 You can use Trade Map to identify potential markets. Choose three importing country markets that could be interesting for your selected product. Country A: Country B: Country C: Note: Select Trade Indicators under other criteria in the secondary selection menu. Choose on the basis of size of the importing market, growth trends and price level. MARKET ACCESS (WAIT AND SEE) 4 Identify the tariffs and regulations for the three import markets you identified in question 3. Note: Click on the corresponding Tariff equivalent ad valorem applied by the country underlined in blue in the last column for country A, B and C. Country A: Country B: Country C: Would your choice of market change in light of this information? Exer-NEW-TMap-En.doc-3

4 BEYOND THE HARMONISED SYSTEM 5 Analyse product trade flows at the National Tariff Line codes (8, 10 and 12 digits) 5.1 What tariff line codes does the United States have for imports of mangoes (i.e. HS code ) Note: Click on Selection Menu, located on the top left of the screen, next to Home. Type the word mangoe or the HS code in the product search bar. Click and select the relevant 6 digit product description. Select Imports and submit as Trade Indicators. Click on in the first column to access data at the National Tariff Line level for the United States for that specific product. Note: Trade Map will now show the List of products at tariff line level imported by United States of America in The Product labels will have 10 digit figures associated with most of them. First code at the tariff line level (10 digit): Second code at the tariff line level (10 digit): 5.2 What is the main difference between these product codes? Note: Compare the dates of entry for both categories mentioned in the description 5.3 Identify the top three supplying markets to the USA for the product code in Country 1 ; Imported value : in USD thousand Country 2 ; Imported value : in USD thousand Country 3 ; Imported value : in USD thousand 6 Analyse product trade flows at the tariff line level for a country 6.1 For a country like France, what are the product codes at the tariff line level for exports of perfumes and toilet waters (i.e. HS code )? Note: Go back to the Main Selection Menu. Select exports and enter product code in the product search box. Submit with Trade Indicators. Trade Map should now show the list of importing markets for the perfumes and toilet waters. Note: To access information at the national tariff line for France, click on in the first column for that specific product. First code at the tariff line level (8 digit): Second code at the tariff line level (8 digit): 6.2 What is the main difference between these two product codes? 6.3 Identify the top three importing markets for Toilet Waters exported by France. Country 1 ; Imported value : in USD thousand Country 2 ; Imported value : in USD thousand Country 3 ; Imported value : in USD thousand Exer-NEW-TMap-En.doc-4

5 ANALYSING EXPORT FLOWS 7 Analyse the exports of the product you selected in question 1: Note: Select Selection menu to go back to the Main Selection Menu of Trade Map. Make sure you have cancelled your country selection by clicking on next to the Country box. Select one of the products you have selected under question 1. Select Exports and click on Trade Indicators. 7.1 How much in total is exported in the world? US$ Quantity: tons/units 7.2 Which three countries are the largest exporters of the product? Country 1: Value in US$: Country 2: Value in US$: Country 3: Value in US$: 7.3 Have exports by country 1 grown or declined in the last 5 years? In value: In quantity: % % 7.4 Is there a difference between country 1 s growth rate in value and growth rate in quantity? Explain what this difference could mean. 7.5 At what average value was the product sold for by country 1, 2 and 3 respectively. Country 1: Value in US$: per ton/unit Country 2: Value in US$: per ton/unit Country 3: Value in US$: per ton/unit 7.6 What share of world total exports do country 1, 2 and 3 make up together? % 7.7 Do you think this indicates that the world supply for this product is concentrated? 7.8 Is your own country a net exporter of this product? Yes No 7.9 Where does country 1 export? (list the top 5 markets) Note: Click on the name of country Exer-NEW-TMap-En.doc-5

6 7.10 Is your country an importer from country 1? Yes No Note: Don t forget that if your country is not listed on the first page, you can click on the numbers underlined on the top right hand side of the table What was the world s exported value, quantity, growth in value and unit value for the selected product in 2004, 2005 and (or for the last three years for which data is available)? Note: Select All countries and Time Series in the secondary selection menu. Here you will access information for the value exported between The fifth drop down menu in the secondary selection menu indicates Values. If you want to investigate another criteria, click on Values and select another one Export value: US$ 2004 Export quantity: unit 2005 Export value: US$ 2005 Export quantity: unit 2006 Export value: US$ 2006 Export quantity: unit 2004 Growth in value: US$ 2004 Unit Value: unit 2005 Growth in value: US$ 2005 Unit Value: unit 2006 Growth in value: US$ 2006 Unit Value: unit II. COUNTRY APPROACH ANALYSING TRADE PERFORMANCE AT A COUNTRY LEVEL 8 Practice selecting two different countries. Note: On the Main Selection Menu, click on the search box next to Country. As you do this, a drop down menu appears. Type the name of the country in the search box. Once you see the appropriate country name appearing in the drop down menu, click on it to select it. 9 Practice selecting a region. Note: On the Main Selection Menu, select a region by cliking on located next to region and click on the search box. As you do this, a drop down menu appears. Type the name of the region in the search box. Once you see the appropriate region name appearing in the drop down menu, click on it to select it. 10 Now select Guatemala to analyse trade flows to and from Guatemala. Note: Go back to the Main Selection Menu. Select Guatemala, Exports and Trade Indicators. 11 What are Guatemala s top five export products at the National Tariff Line (NTL) in 2006? Note: Click on the box by country and select the option by product under the secondary selection menu. Rather than having the Products at 2 digits under the secondary selection menu, select Products at 10 digits. This generates a table providing information on Guatemala s top exports at the National Tariff Line level. Product 1 : Product 2 : Product 3 : NTL Code : NTL Code : NTL Code : Exer-NEW-TMap-En.doc-6

7 Product 4: Product 5: NTL Code: NTL Code: 12 Which countries with potential does Guatemala not export Product 5 to? Country a Country b Country c Note: Click on the NTL code of the fifth product in the list to access the list of markets importing this good from Guatemala. Which countries import 0 $ of this product from Guatemala? Click on the last digit available on the top right corner of the table These countries import more than 2% of world imports but do not import from Guatemala. They are important options for Guatemala to consider for further market diversification. 13 Which countries are Guatemala s primary export partners? Country A: Country B: Country C: Note: Under the Secondary Selection Menu, select TOTAL All Products. Trade Map shows you Guatemala s trade with the rest of the world for all products. 14 What are Guatemala s top five imported products at HS-6? Note: Click back on your internet page. Under the Secondary Selection Menu, select Imports and Products at 6 digits. Product 1 Product 2 Product 3 Product 4 Product 5 HS Code HS Code HS Code HS Code HS Code 15 Which is the major supplier of milk powder (HS ) to Guatemala? Which supplying country is the most expensive? Note: Scroll down the leading import products until you find and click on this HS code to see who supplies Guatemala. Identify which country supplies Guatemala at the highest unit value. Name of major supplying country Most expensive supplying country Exer-NEW-TMap-En.doc-7

8 III. BILATERAL APPROACH ANALYSING TRADE BETWEEN TWO COUNTRIES 16 When analysing trade between two countries Trade Map allows you to simultaneously see for each product: (1) the actual trade between the two countries; (2) how much the exporting country exports to the world; and (3) how much the importing country imports from the world. Note: These three items shown together give a rough estimate of how much the two countries could theoretically trade, by putting the total demand and total export capacity in isolation. For example: If Guatemala s imports from the world are greater than Nicaragua s exports to the world then the potential for Guatemala to import more from Nicaragua is: Nicaragua s exports to the world less Guatemala s imports from Nicaragua. If Guatemala s imports from the world are less than Nicaragua s exports to the world then the potential for Guatemala to import more from Nicaragua is calculated as: Guatemala s imports from the world less Guatemala s imports from Nicaragua Assess the trade situation concerning Thailand s exports to Australia for all products exported. Note: Return to the Main Selection Menu, under the Country field, enter Australia and click on it to validate your entry. Under Partner, follow the same procedure to select Thailand. Make sure you have selected Exports before you submit the two countries for analysis. Also make sure you have cancelled the product selection In the fish sector (HS-03). Is there scope for Thailand to increase exports to Australia? 16.3 To what other countries does Thailand export fish fillets (HS-0304)? Note: By clicking on, you can view where the respective country is exporting or importing from Does Thailand export more fish fillets (HS-0304) to APEC Countries than to the EU? Note: Under the Secondary Selection Menu, select APEC (G39) under the Partner Group drop down menu. Do the same for the EU. Compare the figures Exer-NEW-TMap-En.doc-8

9 ANALYSE TRADE PERFORMANCE AT THE REGIONAL LEVEL 17 Review the list of countries covered in a regional grouping. Note: Go back to the Main Selection Menu. Select any country and click on Trade Indicators. Under the Secondary Selection Menu, select the European Union (15) under the Partner Group drop down menu. Which countries appear in the data table? Note: 2003 data does not include EU s new member states as of May 1, 2004 (i.e. Cyprus, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia and Slovenia) 17.1 What is the North African Free Trade Agreement s top fruit group import at the HS-4? Note: Select North American Free Trade Agreement (NAFTA) under the Partner Group drop down menu, select Imports and click on Time series. In the page entitled: List of product groups imported by North American Free Trade Agreement (NAFTA, click twice on the column title code and then click on the HS code 08 to view its top fruit imports at the 4-digit HS Product Group HS Code 4 Digit : This group includes : Note: Click on HS0805 to expand the information to the six-digit level Which countries are the top three supplying countries for mandarins imported by the NAFTA? Country 1 Country 2 Country 3 Note: Click on HS to view information on mandarins Identify two other regional groups to which Country 3 exports: Regional group 1 Regional group 2 Note: Click on Country 3 to view other regional groups Exer-NEW-TMap-En.doc-9

10 BUBBLE CHARTS 18 Bubble charts: Note: For this exercise you will have to create bubble charts. Bubble charts illustrate in graphic format the data that is provided by Trade Map. The expression a picture is worth a thousand words illustrates the value of the bubble charts as they summarise on one single page many different trade parameters that you are analysing. To create bubble charts, scroll down the bottom of the Trade Map page you are viewing. Click on Bubble Graph (If you do not see this option, it means the page you are viewing cannot be viewed as a graph.) Note: After clicking on Bubble Graphs, you should click on Bubble.xls with the right click on your mouse. Then click on Save target as and add.xls on the name of the file. For ease of use, save it on the desktop. (You will only need to do this procedure only once for any computer.) Note: if you do not use the right click of your mouse to select save target as, bubble.xls opens automatically in Excel. When this happens the bubble function will not work! If you have done so by mistake already, close Excel, go back to Trade Map and try again with the right click on your mouse and follow the procedure described above. Note: You should then open the document Bubble.xls you have just saved. When this document is open, press the Ctrl and b at the same time. This will install the Trade Map programme in Excel (you will see a new Trade Map button on your Excel menu bar. (You will only need to do this procedure once for any computer.) Go back to the Trade Map page you were viewing on the internet. Save this page (select File then Save as ) under the name you wish. Do not forget to add.xls to the end of the file name. Open the new Excel document you have just saved. Then click on the Trade Map button on the Excel menu bar. This will create bubble graphs automatically. Select the Graph worksheet at the bottom of your screen to show the bubble chart (you may see a prompt saying that the file contains macros. Click on Enable macros ). These instructions can also be viewed by clicking on bubble charts at the bottom of most tables Analyse your country s national export performance: create a bubble graph showing your country s top export sub-sectors (HS4) and top products (HS6) Note: Go back to the Selection Menu page and click on Select a Country. Type the name of the country in the first box and then click on the submit button. Select your country by clicking on the country number underlined in blue. Select export and make sure the product selection and partner country selection boxes are empty and then click on the submit button. Trade Map should now show exports of your country at sector (HS2) level. Scroll down to the bottom of the page to select The leading products (HS6) exported. Now follow the procedure to create a bubble chart for this table as described above. Go back to the HS2 level page to select The leading products (HS4) exported at the bottom of the page to create the HS4 Note: You may find that the labels on the chart are overlapping. Since this is a basic Excel chart, you can alter the label position as you wish What is your interpretation of the chart? Note: Remember to first identify the x axis and the y axis and the scale of the bubbles to simplify your interpretation Your country s leading export sectors/products, how are they performing? Exer-NEW-TMap-En.doc-10

11 18.2 Analyse more Trade Map Bubble Charts: Analyse Malaysia s export performance for surgical rubber gloves: Generate a bubble chart: Prospects for market diversification Note: Go back to the Selection Menu page. Find the exact code for surgical rubber gloves and select it. Select Malaysia under the country selection. Make sure you have cancelled the partner country selection. Select export and click on the submit button. Create a bubble chart for this table. Note that when you are giving a name for the file it is helpful to relate it to the country, product and trade direction, e.g. MAL_GLOVE_EXP.XLS, so that you do not mix up the next files you save. What can you say about the position of each market? Select a product for which Malaysia imports over US$ 3m: Product: HS Code: Generate a bubble chart: Prospects for Supplier diversification Note: (Go back to the Selection Menu page and click on Select a Country. Type Malaysia in the first box and then click on the submit button. Select Malaysia by clicking on the country number underlined in blue. Select Import and make sure the product selection and partner country selection boxes are empty and then click on the submit button. Trade Map should now show imports of your country at sector (HS2) level. Scroll down to the bottom of the page to select The leading products (HS6) imported. Now click on the product that you have chosen to analyse. Trade Map should now show you where Malaysia is importing this product from. Create a bubble chart for this table.) What are the prospects for supplier diversification? How competitive are Malaysia s suppliers? Repeat and for your country Exer-NEW-TMap-En.doc-11

Investment Map GUIDED TOUR

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