Why are US Exports So Competitive?

This closing case can be used to help students understand why U.S. exports are so competitive, what is unique about U.S. exports, and what has been driving their recent rise in a bleak global economic environment. This closing case provides substantial evidence for the competitiveness of U.S. exports. In 2013, the United States exported a record $1.58 trillion, with an enviable 8.4% annual increase. The United States contributed approximately 89% of the value added of its exports.

U.S. exports have to deliver value, they have to be rare and hard to imitate, and have to organize themselves in a more productive and efficient manner relative to their global rivals to sustain their competitiveness. While the products themselves have to be strong and competitive, Uncle Sam has also helped. At least ten federal agencies offer export assistance, including the departments of Commerce, State, Treasury, Energy, and Agriculture. Going beyond routine export assistance, new initiatives focus on negotiating free trade agreements (FTAs) with trading partners. In addition to FTAs, the U.S. government often negotiates with other foreign governments for better market access and terms of trade for U.S. exporters. Informal norms and values, both at home and abroad, play a role in U.S. exports.

QUESTION - From an institution-based view, explain why US exports are so competitive?