How does the UN Commodity Trade Statistics Database limit its trade tracking?

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The UN Commodity Trade Statistics Database limits its trade tracking by focusing on the harmonized system of commodity classification, specifically using codes that typically have six digits. This standardization allows for the consistent categorization of traded goods across different countries, enabling reliable tracking and analysis of international trade patterns. By utilizing a six-digit harmonized code, the database can provide detailed and comparable trade statistics. However, such a limitation means that analysis may not capture finer details that could be available with longer codes, which might include further subcategories of goods.

This approach is beneficial for maintaining consistency and ensuring that data can be aggregated across different nations; however, it can restrict the granularity of the data available for certain types of trade analysis. Other options, such as tracking only exports or focusing on specific regions, do not describe the operational limitations of the database accurately in terms of its primary functionality, which encompasses both exports and imports across a comprehensive range of regions. Additionally, the idea that it restricts tracking to large corporations does not align with the database's purpose, as it is designed to capture trade data across all sizes and types of trade entities.

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