Eco Final Exam Paper
International Trade and Finance Speech
Nicholas Imbimbo
ECO/372
5/6/2013 Carol Szerszen
International Trade and Finance Speech
International trade is experienced between countries in which they share in trading goods and services. By trading amongst countries, we all can experience goods and services that are not native to one another countries. In addition, trading is done to generate revenue for ones country. Trading also contributes to ones economy by increasing employment. If a country is exporting a lot of goods in a given period of time then this would create employment within the economy because the country would need an extensive workforce to support the export of these goods. I will discuss further the benefits and obstacles a country faces when they are involved in the international trade organization.
What happens when there is a surplus of imports brought into the U.S.?
International trade is the exporting and importing of goods from country to country. The countries benefit by receiving domestic currency for the goods they are exporting. However, if a country experiences more imports than their exports this could lead to a devastation of an economy. This act could lead to devaluation of the country’s currency which would eventually lead to a financial crisis within the economy. First you must determine where you presently are in the business cycle and measure the trade balance. “The trade balance subtracts imports from exports. Imports are any goods and services that are made in a foreign country and bought by a country 's residents.” (Amadeo) When a country imports more than it exports, the countries own businesses suffer as the exports are suffering which will mean a slow-down in industrial and economic growth. The following is an example of the US, “Up until 1982, the foreign trade deficit was not a serious problem for the United States. The trade deficit started rising dramatically in 1983, from about $38 billion in 1982
Nicholas Imbimbo
ECO/372
5/6/2013 Carol Szerszen
International Trade and Finance Speech
International trade is experienced between countries in which they share in trading goods and services. By trading amongst countries, we all can experience goods and services that are not native to one another countries. In addition, trading is done to generate revenue for ones country. Trading also contributes to ones economy by increasing employment. If a country is exporting a lot of goods in a given period of time then this would create employment within the economy because the country would need an extensive workforce to support the export of these goods. I will discuss further the benefits and obstacles a country faces when they are involved in the international trade organization.
What happens when there is a surplus of imports brought into the U.S.?
International trade is the exporting and importing of goods from country to country. The countries benefit by receiving domestic currency for the goods they are exporting. However, if a country experiences more imports than their exports this could lead to a devastation of an economy. This act could lead to devaluation of the country’s currency which would eventually lead to a financial crisis within the economy. First you must determine where you presently are in the business cycle and measure the trade balance. “The trade balance subtracts imports from exports. Imports are any goods and services that are made in a foreign country and bought by a country 's residents.” (Amadeo) When a country imports more than it exports, the countries own businesses suffer as the exports are suffering which will mean a slow-down in industrial and economic growth. The following is an example of the US, “Up until 1982, the foreign trade deficit was not a serious problem for the United States. The trade deficit started rising dramatically in 1983, from about $38 billion in 1982
Bibliography: (n.d.). Amadeo, K. (n.d.). about.com. Retrieved 2013, from about.com: http://useconomy.about.com/od/tradepolicy/g/Balance-of-Trade.htm Assem-Braz. (2013). The Balance of Trade ( Encyclopedia of Business, 2nd ed). Investopedia. (n.d.). How are international exchange rates set? . Moffatt, M. (n.d.). The Economic Effect of Tariffs .