Foreign content share
Foreign content share = imported input value / total factory cost
Whenever a question asks how globalized a product's production is, or asks what happens to that when a supplier is moved. Recompute the denominator whenever the total cost changes.
- Imported input value
- Cost of every component and service bought abroad
- Total factory cost
- Foreign plus domestic content, in the same currency
Re-export margin
Re-export margin = re-export value - original import value
When goods are imported and sent on without significant processing. Gross trade rises by the sum of both flows while value added is only the margin.
- Re-export value
- Price at which the unaltered goods leave the country
- Import value
- Price at which they entered