November 08, 2012
International Trade and Finance Speech
What happens when there is a surplus of imports brought into the U.S.? Cite a specific example of a product with an import surplus, and the impact that has on the U.S. businesses and consumers involved. Anytime there is a surplus of specifics imports brought into the U.S., American companies suffer because of enlarged foreign competition. A specific product that is an import surplus is crude oil. According to the Wall Street Journal’s 2011 report, they predicted that United States would encounter an oil surplus. The reason the U.S. had a surplus of oil was that the U.S. continued to import as much oil as they produced domestically. The impact having an oil surplus might have is that consumers think that by having too much oil might be good, but in turn it actually hurts the refineries because of over-inventory. (Colander, 2010)
What are the effects of international trade to GDP, domestic markets and university students?
The best to describe the effects of international trade to GDP is through example:
1. Allows us to utilize trade between Mexico and the U.S.
2. American demand for Mexican imports rises
3. Increases demand for pesos
4. United States demand for Mexican currency raised the peso price in dollars 5. When the U.S. imports more from Mexico, employment and GDP will therefore decrease. 6. U.S. exports to Mexico will reverse the trend and will also reverse the effect on American exports. 7. Domestic markets will suffer from lack of productivity and from potential layoffs. 8. The effect on university students is that there might be less money available.
How do government choices in regards to tariffs and quotas affect international relations and trade?
Government choices in regards to tariffs and quotas affect international trade and relations...