In 2012, which category accounted for the largest share of U.S. exports? a. Industrial supplies b. Capital goods c. Services d. Consumer goods
The correct answer and explanation is:
Correct Answer: b. Capital goods
Explanation (300 words):
In 2012, the category that accounted for the largest share of U.S. exports was capital goods. This includes machinery, equipment, aircraft, electrical apparatus, and other industrial tools and systems that are used by businesses to produce other goods and services.
Capital goods differ from consumer goods in that they are not bought for direct consumption but for producing other goods or services. For instance, items like semiconductors, commercial aircraft, and industrial machines are typical capital goods exported from the United States. These goods are high-value and often embody advanced technology, making them highly desirable in global markets.
According to data from the U.S. Department of Commerce and the U.S. Census Bureau, capital goods consistently represented the largest share of exports in that year, accounting for roughly about 40% of the total U.S. merchandise exports. Specific examples of strong capital goods exports in 2012 included civilian aircraft, telecommunications equipment, and industrial machines.
This strong performance in capital goods reflects the United States’ strength in high-tech manufacturing and innovation. American companies like Boeing, Caterpillar, and General Electric were leading exporters in 2012, contributing to the high value of capital goods exports.
While services (like financial, business, and travel services) were also a significant part of total U.S. exports and growing steadily, they did not surpass capital goods in 2012. Industrial supplies (like chemicals, fuel, and metals) and consumer goods (such as medicines, electronics, and clothing) also made up sizable portions, but again, their total dollar values were lower than those of capital goods.
Thus, in 2012, capital goods clearly held the top spot as the largest category of U.S. exports due to their high value, global demand, and the country’s industrial strength.