ABSTRACT
As the world continues to develop into a homogenized global marketplace the growth in world merchandise trade has outpaced the growth in both global production and the worldwide economy. In 2006, world merchandise trade increased 8%, while the global economy rose only 3.7%.* Globalization has dramatically shied where logistics dollars are spent as developing countries now account for over one-third of world merchandise exports. Increased world trade means higher demand for logistics services to deliver the goods. Expenditures for logistics worldwide are estimated at well over $4 trillion in 2006 and now account for about 15% to 20% of nished goods cost.† Growth in world merchandise trade, measured as export volume, has exceeded the growth in the worldwide economy, as measured by Gross Domestic Product (GDP), for close to two decades. Although the worldwide economy slowed to some extent in late 2006 and early 2007, trade volumes are predicted to continue to rise well into the next decade.
