International Trade and Finance Speech
International Trade and Finance Speech
ECO/372
March 10, 2014
International Trade and Finance Speech
Good evening ladies and gentlemen:
Today I will be speaking to you about international trade and foreign exchange rates. This has been something has been going on throughout history and over the years there have been many market structures and international trades. As all of you already know, imports can be brought in from many countries. During the process, the government will usually set a price ceiling and price floor for producers to protect them as a whole. For example, if there are farmers importing tomatoes from multiple countries into the United States, there will be a surplus. There is a surplus when the supply of the imported goods is greater than the demand. As a result, a country export and import levels should be controlled by government policies. If there were no trade regulations applied to imports, the surplus may turns into deficit, negative affecting farmers who will lose money because of the decrease on the Gross Domestic Product. Another example is the automobile industry in the United States. It has advances into the largest industry in the nation as a result of the extent of the domestic marketplace and the usage of mass production. To comprehend worldwide trade it is significant to identify what the aspects of global trade have on the gross domestic product (GDP), domestic marketplaces and university students. International trade comprises exports and imports, the net result of which affects our GDP. Since our imports exceed our exports, our GDP would be impacted by our net exports or deficits. “The rippling effect of financing deficits is an increase in interest rates from selling bonds that reduces investments and growth. This further reduces GDP” (Colander. 2010). Domestic markets flourish when there is a demand for local products overseas. If the domestic markets have to compete with imported products it could be a
ECO/372
March 10, 2014
International Trade and Finance Speech
Good evening ladies and gentlemen:
Today I will be speaking to you about international trade and foreign exchange rates. This has been something has been going on throughout history and over the years there have been many market structures and international trades. As all of you already know, imports can be brought in from many countries. During the process, the government will usually set a price ceiling and price floor for producers to protect them as a whole. For example, if there are farmers importing tomatoes from multiple countries into the United States, there will be a surplus. There is a surplus when the supply of the imported goods is greater than the demand. As a result, a country export and import levels should be controlled by government policies. If there were no trade regulations applied to imports, the surplus may turns into deficit, negative affecting farmers who will lose money because of the decrease on the Gross Domestic Product. Another example is the automobile industry in the United States. It has advances into the largest industry in the nation as a result of the extent of the domestic marketplace and the usage of mass production. To comprehend worldwide trade it is significant to identify what the aspects of global trade have on the gross domestic product (GDP), domestic marketplaces and university students. International trade comprises exports and imports, the net result of which affects our GDP. Since our imports exceed our exports, our GDP would be impacted by our net exports or deficits. “The rippling effect of financing deficits is an increase in interest rates from selling bonds that reduces investments and growth. This further reduces GDP” (Colander. 2010). Domestic markets flourish when there is a demand for local products overseas. If the domestic markets have to compete with imported products it could be a
References: Colander, D. C. (2010). Macroeconomics (8th ed.). Boston, MA: McGraw Hill/Irwin. Department of Commerce. (2012). The International Trade Commission. Retrieved from: http://trade.gov/ U.S.China Trade Facts. Basic Economics. (2014). Retrieved from http://www.basiceconomics.info/international-business-and-trade.php What Determines an Exchange Rate. (2014). Retrieved from http://economics.about.com/od/purchasingpowerparity/p/exchange_rate.htm