World Perspectives

Infrastructure Lacks Correlation to Trade

The Biden Administration has said it is not interested in negotiating new trade agreements until the U.S. makes investments in things like infrastructure to better enable Americans to compete. However, the data does not support such conditionality. China makes an outsized investment in infrastructure at over 5.5 percent of GDP but has a trade surplus that is only about half the size of Germany’s despite the latter investing just one-eighth as much GDP into infrastructure. Italy invests a smaller share of GDP into infrastructure than the U.S., and yet runs a trade surplus versus America with the largest trade deficit in the world. Looking at the countries with some of the largest trade surpluses and trade deficits, the correlation to...

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From WPI Consulting

Weighing in on strategic realignment

WPI’s team was retained by the governing board of a U.S. industry organization to review a decision, reached by vote, to invest significant assets into the development and management of an export trading company. WPI’s team conducted a formal review of this decision and concluded that the current level of market saturation would limit the benefits of the investment. Based on WPI’s analysis and recommended actions, the board subsequently reversed its decision and undertook a strategic planning effort to identify more impactful investments. On behalf of numerous clients, WPI has not only assisted in identifying strategic paths but also advised their implementation.

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