economics
The purpose of this paper is to prepare a speech that will be provided to a number of reporters that are not well versed with economics. In this paper I will put emphasis on international trade and foreign exchange rates and how those affect the GDP, domestic markets, and students. I will also outline some of the benefits on goods and services that are imported from other countries and how those contribute to our economy in the United States.
What happens when the dollar-value of goods and services imported into the U.S. exceeds the dollar-value of goods and services exported from the U.S. to other countries? Cite a specific example of a good or service that is imported into the U.S. in greater dollar values than is exported from the U.S. and discuss the effects on U.S. businesses and consumers when imports exceed exports for that specific good or service.
Imports are goods and services purchased and brought into a certain country from another country. A surplus is something in quantity or amount in excess of what is required. If there is a surplus of imports brought into the U.S. and not as much exports, this will create a balance of trade deficit. Also, when imports exceed exports, foreign demand for U.S. goods and services become less than U.S. demand of other countries. Therefore, this will create a net negative demand for U.S. goods and services from abroad. This net negative foreign demand reduces aggregate demand for U.S. goods and services (Reference for Business Encyclopedia of Business, 2012). An example of a product with an import surplus is imported dairy ingredients. Increasing imports on dairy ingredients and proteins has caused the domestic demand for U.S. produced farm milk has seriously dropped. California among other dairy states has seen the shortage of their processing capacity (Hardin, 2009).
International Trade to GDP
In order to understand international trade it is important to recognize what the effects of international trade have on
What happens when the dollar-value of goods and services imported into the U.S. exceeds the dollar-value of goods and services exported from the U.S. to other countries? Cite a specific example of a good or service that is imported into the U.S. in greater dollar values than is exported from the U.S. and discuss the effects on U.S. businesses and consumers when imports exceed exports for that specific good or service.
Imports are goods and services purchased and brought into a certain country from another country. A surplus is something in quantity or amount in excess of what is required. If there is a surplus of imports brought into the U.S. and not as much exports, this will create a balance of trade deficit. Also, when imports exceed exports, foreign demand for U.S. goods and services become less than U.S. demand of other countries. Therefore, this will create a net negative demand for U.S. goods and services from abroad. This net negative foreign demand reduces aggregate demand for U.S. goods and services (Reference for Business Encyclopedia of Business, 2012). An example of a product with an import surplus is imported dairy ingredients. Increasing imports on dairy ingredients and proteins has caused the domestic demand for U.S. produced farm milk has seriously dropped. California among other dairy states has seen the shortage of their processing capacity (Hardin, 2009).
International Trade to GDP
In order to understand international trade it is important to recognize what the effects of international trade have on
References: Colander, D.C. (2010). Macroeconomics. (8th ed.). Boston, MA: McGraw-Hill/Irwin. United States Department of Labor. (n.d.). Bureau of Labor Statistics. Retrieved from http://www.bls.gov/eag/eag.us.htm. Trading Economics. (2012). United States Consumer Confidence. Retrieved from http://www.tradingeconomics.com/united-states/consumer-confidence. CBS NEWS. (n.d.). US Consumer Spending Up, but Income Lags. Retrieved from http://www.cbsnews.com/8301-500395_162-57406993/us-consumer-spending-up-but-income-lags/. Appelbaum, B. (March 2012). The New York Times: As Fed Officials Prepare to Meet, They Await Clearer Economic Signals. Retrieved from http://www.nytimes.com/2012/03/12/business/as-fed-meeting-nears-it-awaits-clearer-economic-signals.html?ref=interestrates.