January 17, 2013
International Trade and Finance Speech
This speech will discuss several topics concerning international trade and finance. The first topic of discussion will explain what happens when there is a surplus of imports brought into the United States, and the specific example used will be China trade surplus as it jumped in July 2012. China exports to the United States rose 13.6% to $165.3 billion and their exports to Europe fell 0.8%. The increase in the surplus of imports causes businesses to have more products to offer consumers, lower the prices of the products, and leads to consumers purchasing more products. Purchasing more products increases the revenue for businesses, and causes major movement of money. The next topic that will be discussed is the effects of international trade to GDP, domestic markets, and university students. International Trade helps our government and markets earn income from foreign countries. International Trade affects university students by offering school supplies such as computers more affordable because they are made and sold at a cheaper rate. University students are able to achieve a higher education when the school supplies are produced in a domestic market where the college student resides, and leaves the student more money for tuition. A government choice on tariffs and quotas has different affects on international relations and trade. A tariff is simply explained as a tax that increases the cost of all imported goods. Any country can impose a tariff on any good, for example if China believes that the United States has wronged them they can impose a tariff on shoes imported from the U.S which will raise the price of shoes. An import quota is when a country limits the amount of products on any particular item that is imported. An example of the effects of an import quota is when North Korea test fired a long range missile the U.S...