The weaker peseta would stimulate demand for Spanish exports and reduce Spain s imports, which would boost domestic demand and reduce unemployment.

In the US, the weak dollar will be a powerful boost to net exports, and thus to aggregate demand.

China s rebalancing is apparent, first and foremost, in the export sector. Export growth has slowed from its 2001 2008 average of 29 annually to below 10 , making foreign demand a far less critical engine of growth.

But, with budget tightening around the world, demand for Asia s exports is expected to continue to falter.

Devaluation renders exports more competitive, thus substituting external demand for the domestic demand that is being compressed.

Indeed, China s 12th Five Year Plan is aimed at reducing dependence on exports and boosting domestic demand.

That is consistent with the Five Year Plan s goal of basing GDP growth more on domestic demand and less on exports.

Growth was broadly based in most countries, and manufacturing, in particular, benefited from the upturn in the electronics cycle and strong export demand.

Meanwhile, the faltering European economy and slowing GDP growth in China and elsewhere are impeding export demand.

RMB appreciation should have started earlier and at a faster pace, when China s trade surplus was much smaller and its growth was much less dependent on exports.

To escape the crisis, Germany used rapid export growth especially to meet voracious Chinese demand.

But this restructuring will tend to reduce, not increase, import demand, as exports and investment are much more import intensive than consumption.

In the late 19th century, world demand for cocoa tied the economy to commodity exports and led to migrations from the highlands to the agricultural frontier on the coast.

Its future growth will have to be based more on domestic demand than on exports, which will require increases in consumption.

They will also try to lower Japan s dependence on exports and rethink sending production facilities to lower wage countries.

It is necessary because persistently weak global growth is unlikely to provide the solid external demand for Chinese exports that it once did.

When production exceeds domestic demand, producers are compelled to expand exports, creating an export oriented, capital intensive industrial structure that supports rapid economic growth.

Private and public deleveraging can hardly take place at the same time, unless trade partners generate demand for exports.

And yet reliance on external demand remains fundamentally unchanged, even as the contribution of net exports to GDP growth has turned negative.

Indeed, three quarters of Canada s exports go to the US, while foreign demand accounts for a quarter of its GDP.

The ratio of debt to exports was 83.4 per cent, likewise one of the lowest in the region.

It was important to develop transport and communication infrastructure to reduce costs and facilitate exports from LDCs.

Despite all the talk about the coming shift to internal demand, China remains heavily dependent on exports and external demand as major drivers of economic growth.

But 2006 turned out to be a good year for growth in Europe, as surprising strength in exports sparked unexpected increases in domestic demand.

That implies a potential boon to Russia s main gas producers, especially as Europe s energy diversification campaign weakens export demand.

Strong demand growth in Japan and Europe that produces a higher level of American exports would be the most powerful pro trade liberalization force imaginable.

When such demand falters, developing countries find themselves with collapsing export prices, and, too often, a protracted domestic crisis.

However, as we saw in 2004 and 2005, exports are not enough to create substantial growth if domestic demand does not follow.

Making matters worse, African exports to China are even less technology intensive than its exports to the world.

The Israeli Chamber of Commerce estimates that with the boycott Israeli exports are 10 percent less than they would be without the boycott and investment in Israel likewise 10 percent lower.

Export controls

The government had become too dependent on a non renewable resource, and therefore did little to deepen or widen the tax base. Moreover, the manufacturing sector had become too dependent on US driven export demand, and the population had become too dependent on remittances from emigrants working in the US.

As they prepare for the coming Chinese slowdown and seek to minimize the risk of regional destabilization, Asian economies must strengthen domestic demand and reduce excessive reliance on exports to China.

Some part of it may be hoarded, in which case demand may fall short of supply.

Thus, steel products as a group were less dynamic than world exports but slightly more dynamic than commodities.

Decide to provide immediate duty free and quota free market access for all exports from the least developed countries

The news is better on the export side.

Export Controls Legal Regime

An important victim will be Japan, where anemic real income growth is depressing domestic demand and exports to China sustain what little growth there is.

Surely there is at least as much natural demand for commodity bonds as there is for credit default swaps and some of the bizarrely complicated derivatives that are currently traded!

Exchange rates should be realigned in a coordinated fashion to stimulate exports from deficit countries and import demand from surplus countries.

But now growth rates for Chinese exports and related indices in manufacturing have fallen, largely owing to weak external demand, especially in Europe.

The bad news is that Asia seems to be learning little from repeated external demand shocks.

The author points out that the authorities granted the application without problems in his mother's case, as opposed to his father's, and on substantially scarcer evidence.

Since exports and investment account, respectively, for 30 and 40 of China s GDP growth, its economy is particularly vulnerable to weakening external demand and accumulation of non performing loans caused by excessive and wasteful spending on fixed assets.