Exports from the United States continue to increase. They totaled $140 billion last year, and this year they are running at an annual rate of $165 billion. In dollar terms, exports have expanded sevenfold since 1960. Much of the increase is due to inflation. But there has also been a marked increase in real terms-an expansion by nearly three times since 1960. As a proportion of the country's production of goods, exports have more than doubled, advancing from 7.5 percent in 1960 to 15.4 percent in 1978.' Most of this increase has occurred since 1970. Shipments from states of the Seventh Federal Reserve District—Illinois, Indiana, Iowa, Michigan, and Wisconsin-have contributed substantially to this increase.