Preview

International Trade and Finance Speech

Good Essays
Open Document
Open Document
930 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
International Trade and Finance Speech
International Trade and Finance Speech ECO/372 – Principals of Macroeconomics February 18, 2013

International Trade and Finance Speech This speech delivered by the Speaker of the House to a group of reporters surrounding the topics of international trade, foreign exchange rates, import surplus and how they each impact different constituencies. It will also explain why the government would not be able to restrict importation of goods from China, or if wanted to impose tariffs. The Economy and international Trade The United States was once the highest exporter in all the world. Today, the United States has a negative balance of trade, because of the fact that we now import more goods than we export goods. An example of an import would be oil. The oil that we have imported impacts our businesses and our consumers by making gasoline and other oil derivatives more expensive. This makes prices increase because consumers will have to pay for goods from the fact that the cost of driving will go up. This is a major reason why the government is trying to encourage the development of alternate forms of energy such as coal or natural gas. The goods that the United States imports are not always negative. American consumers have benefited greatly from the imports such as electronics or apparel that is made mostly in Asia. The cost of production for these goods are lower in China and most other Asian countries, making it much cheaper for Americans to buy these types of goods that are being manufactured overseas. The reality of international trade is that production will naturally shift to places where goods can be manufactured more efficiently and at a lower price. What the United States has to focus on is developing new technologies and products of higher quality. With a focus based on innovation and quality instead of labor costs. International trade has an impact on the



References: Colander, D. C. (2010). Macroeconomics (8th Ed.). Boston, MA: McGraw-Hill/Irwin International Trade, ISSN 0020-7810, 2011, Volume 45, Issue 1, p. 79 The Journal of Economics, ISSN 0895-3309, 2007, Volume 21, Issue 3, p. 105 Foreign Policy, ISSN 0015-7228, 11/2003, Issue 139, p. 20 The American Foreign Trade, ISSN 0002-8282, 12/1928, Volume 18, Issue 4, pp. 706 - 713

You May Also Find These Documents Helpful

  • Good Essays

    International trade is essentially when two or more countries exchange goods and services. Many countries export their goods and services to other countries and in turn, they can also import goods and services from other countries to into their own. Advancements with technology have made it a lot easier for international trade to take place. Communication between countries is a good example. Communicating has vastly improved and helped to simplify the trading process. Some technologically advanced countries, like Japan and China have bountiful natural resources and that has a heavy impact on us. The United States is one of the largest contributors to international trade. Our GDP (Gross Domestic Product), is greatly impacted due to being huge import consumers. The United States relies heavily on products from other countries and we import much more than we export. Not only does this impact our GDP by lowering it as we import more than export, is also has an impact on our domestic markets because we are buying more from other countries.…

    • 1144 Words
    • 5 Pages
    Good Essays
  • Satisfactory Essays

    American Jobs Paper

    • 494 Words
    • 2 Pages

    Secondly, the economic crisis has likely declined in the United Stated, manufacturing needs to collaborate with low-wage foreign competition like China, India and Vietnam. Their wages are less than $1.00 per hour; therefore American people lose their jobs. Whenever I go to shopping, I see almost all the materials are made in China, India, Vietnam, and Mexico. I barely see clothes that made in USA. For me, I can just only afford to buy items that are cheap, and all the cheap items are produced outside the U.S. On the other hand, some countries are unable to buy U.S. items so that they just eventually start making and using their own products.…

    • 494 Words
    • 2 Pages
    Satisfactory Essays
  • Better Essays

    Trade and Finance

    • 970 Words
    • 4 Pages

    Since 1980 the U.S. unemployment rate had been declining whereas, the value of total imports steadily increased; a trend that remained in effect until the recession happened in 2008. The U.S. in a net exporter of services, and it exported $630.4 billion in services while only importing $434.6 billion. This caused a trade surplus in services of $195.8 billion. The services that exported were Intellectual property, as measured by royalties and license fees, and financial services, and the other was travel-related services (“Us Economy”). When there is a surplus of imports the price drops, and it can be good for…

    • 970 Words
    • 4 Pages
    Better Essays
  • Good Essays

    Hello ladies and gentlemen hope you day is going well so fair. My name is Linda, I wanted to come out and speak with about the International trade and finance I will be handing out a booklet that show you what I will talking about if you should have an question write the down and I will try address them all after my speech. In many ways the United States and Japanese are the leading opponents in the international trade since both countries manufacture numerous amounts of the same goods. For instance, Toshiba’s major competitor in the personal computer is Dell. Subsequently to the materialization of the world trade organization the quantity of the international trade has boosted too the largest and countries are enthusiastically partake in the trade to push their gross domestic product. In addition, to this active contribution in the trade this permits them to focus on what they know how to do best alone with enjoy a greater variety of goods and services. This paper will observe more intensely about the comparative advantages, exchange rate risks and trade barriers in the international trade and finance this will give the reader a better understanding on how the trade world works.…

    • 903 Words
    • 4 Pages
    Good Essays
  • Better Essays

    In the United States, the Census Bureau says, “The Nations international trade deficit in goods and services decreased to $38.8 billion in March from $ 43.6 billion (revised) in February, as imports decreased more than exports” (United States Census Bureau, 2013). An example of a surplus of import of the U.S. is electrical machinery. Which by itself, is the largest import category between the U.S and China. According to the office of the United States Trade Representative, 411 billion in 2011, a 9.4 % increase ($34.4 billion) from 2010, and up 299% since 2000” (Office of the United States Trade Representative, 2012). Through…

    • 1262 Words
    • 6 Pages
    Better Essays
  • Good Essays

    Week 5 Indv Paper ECO/372

    • 956 Words
    • 4 Pages

    When the dollar value of goods and services imported into the United States exceeds the dollar value of goods and services exported to other countries from the U.S., it creates what is called a surplus. When there is a surplus of imports that are brought into the United States, a deficit is created from the trade balance that occurs. Having a surplus of desired imports can create a lower price for the U.S. consumer and have a positive effect on the employment rate within the country where the goods were imported from. This has an effect due to the fact it will keep their citizens working.…

    • 956 Words
    • 4 Pages
    Good Essays
  • Good Essays

    The United States is one of world’s leaders in international trade for oil, natural resources, and many other items. Various trade organizations and tax treaties have been established worldwide among various countries because the potential amount of business that can be done with various countries is growing in product and dollar amounts every day. For this very reason of products specialization that each country produces and boost this makes these trade agreements and organizations that much more valuable to the global economy and United States’ economy. This speech will tackle in depth comparative advantage, exchange rates, and trade barriers in the eyes of international trade and finance.…

    • 1004 Words
    • 5 Pages
    Good Essays
  • Satisfactory Essays

    International Trade

    • 508 Words
    • 3 Pages

    IBE Week 2 Review – Chapter 2 – International Trade and Foreign Direct Investment Questions and Answers…..…

    • 508 Words
    • 3 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Eco 212 Week 1 Dq1

    • 254 Words
    • 2 Pages

    McTeer,B (2008, December 10). The Impact of Foreign Trade on the Economy . New York Times. Retrieved from http://…

    • 254 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    america a world power

    • 1465 Words
    • 6 Pages

    The United States has a First World trade profile (massive exports of consumer and technology goods and imports of natural resources).…

    • 1465 Words
    • 6 Pages
    Powerful Essays
  • Good Essays

    2. Is the experience of the United States, as described in the case, consistent with the predictions of international trade theory?…

    • 795 Words
    • 4 Pages
    Good Essays
  • Good Essays

    B1. Question # 1 of Ch 2 (8th ed. of the textbook) Canada and Australia are (mainly) English-speaking countries with populations that are not too different in size (Canada’s is 60 percent larger). But Canadian trade is twice as large, relative to GDP, as Australia’s. Why should this be the case? We saw that not only is GDP important in explaining how much two countries trade, but also, distance is crucial. Given its remoteness, Australia faces relatively high costs of transporting imports and exports, thereby reducing the attractiveness of trade. Since Canada has a border with a large economy (the U.S.) and Australia is not near any other major economy, it makes sense that Canada would be more open and Australia more selfreliant. B2. Question # 2 of Ch 2 (8th ed. of the textbook) Mexico and Brazil have very different trading patterns. Mexico trades mainly with the United States, Brazil trades about equally with the United States and with the European Union; Mexico does much more trade relative to its GDP. Explain these differences using the gravity model. Mexico is quite close to the U.S., but it is far from the European Union (EU). So it makes sense that it trades largely with the U.S. Brazil is far from both, so its trade is split between the two. Mexico trades more than Brazil in part because it is so close to a major economy (the U.S.) and in part because it is a member of a free trade agreement with a large economy (NAFTA). Brazil is farther away from any large economy and is in a free trade agreement with relatively small countries.…

    • 4170 Words
    • 17 Pages
    Good Essays
  • Satisfactory Essays

    This work will examine the emerging trends in International Trade and the role of economic…

    • 499 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    During these last decades, the world economy has experienced rapid growth. This growth has been fueled in part by the more rapid growth of international trade. Trade growth, in turn, results from both technological developments and concerted efforts to reduce barriers to trade. Some developing countries have opened their economies to take full advantage of opportunities for economic development through trade, but many are those who abstained. Trade barriers that persist in industrialized countries are concentrated on agricultural products and manufacturing intensive labor, for which developing countries have a comparative advantage. The pursuit of trade liberalization, particularly in these areas, both industrialized and developing countries, help the poorest out of extreme poverty while also benefiting the industrialized countries themselves.…

    • 978 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    Announcing a Foreign Trade Policy in this economic climate is indeed a daunting task. We cannot remain oblivious to declining demand in the developed world and we need to set in motion strategies and policy measures…

    • 5304 Words
    • 22 Pages
    Powerful Essays

Related Topics