March 21, 2013
Good evening everyone! It is a pleasure to be here. This evening I will first briefly review the International trade and Financial state of our economy…..
What happens when there is a surplus of imports brought into the U.S Domestic producers competing with imports suffer from lower prices and fewer sales. They have less revenue and resource owners doing the production have less income. However, Domestic consumers enjoy lower prices! Whenever there is a surplus of products, regardless of origin, the price drops. Even to the point of selling at a loss, the holder has already paid the invoice and taxes, but still has to pay storage, the longer it holds the product the more money it costs, selling at a loss moves the product out of storage and clears the store front for another product. Take the case of car sales, do you really think that cutting $10,000 of the price of a $40K car makes sense if you can sell it for $40K. *
What are the effects of international trade to GDP, domestic markets and university student’s. International Trade to GDP
In order to understand international trade it is important to recognize what the effects of international trade have on the GDP, domestic markets and university students. 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 may also import goods and services from other countries into their own. There have been exceptional achievements with technology, which have made it much easier to trade on an international level. The communication, as a result of these technology advancements, has improved exponentially and it has truly simplified this process. With that being said it can be confirmed that...