International Trade and Finance Speech
International Trade and Finance Speech
What happens when there is a surplus of imports into the U S? A surplus of imports is good for consumers but bad for local business. We have to produce and manufacture in order to export. As our export trade shrinks, so does our workforce and economy. The surplus of imported cars for 2012 has exceeded the exportation by $152 billion. Also the shelf life of cars is 1 year. Every year at the end of the cycle the existing models are sold off at huge discounts to make room for the new models, which is good for the consumer.
What are the effects of international trade to GDP, domestic markets, 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 struggle. However jobs can be created for the advertising, sales, and distribution of foreign imports. The effect of international trade on university students has recently brought about an awareness of a vibrant industry in the education services. Of the 35 billion dollar worldwide market for international students, the U S was able to capture a market share of 45%, showing a healthy surplus of $12.6 Billion in higher education. How do government choices in regards to tariffs and quotas affect international relations and trade? Tariffs in this context are essentially a tax on imports coming from foreign countries. The federal government see a huge chunk of its revenue come from tariffs, so it plays an important role in international relations. The government is able to control trade with
What happens when there is a surplus of imports into the U S? A surplus of imports is good for consumers but bad for local business. We have to produce and manufacture in order to export. As our export trade shrinks, so does our workforce and economy. The surplus of imported cars for 2012 has exceeded the exportation by $152 billion. Also the shelf life of cars is 1 year. Every year at the end of the cycle the existing models are sold off at huge discounts to make room for the new models, which is good for the consumer.
What are the effects of international trade to GDP, domestic markets, 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 struggle. However jobs can be created for the advertising, sales, and distribution of foreign imports. The effect of international trade on university students has recently brought about an awareness of a vibrant industry in the education services. Of the 35 billion dollar worldwide market for international students, the U S was able to capture a market share of 45%, showing a healthy surplus of $12.6 Billion in higher education. How do government choices in regards to tariffs and quotas affect international relations and trade? Tariffs in this context are essentially a tax on imports coming from foreign countries. The federal government see a huge chunk of its revenue come from tariffs, so it plays an important role in international relations. The government is able to control trade with
References: Chen, B. (2012, Feb). China Is America 's Biggest Opportunity. Forbes, (), . Retrieved from http://www.forbes.com/sites/forbesleadershipforum/2012/02/17/china-is-americas-biggest-opportunity/ MacEachern, A. (2011, May). How are international exchange rates set? Investopedia , (), . Retrieved from http://www.investopedia.com/ask/answers/forex/how-forex-exchange-rates-set.asp David C. Colander. (2010). Macroeconomics. Retrieved from David C. Colander, UOPX ECO/372 website.