International Trade and Finance Speech Essay

IntroductionToday I would the like to discuss, with you, the actual state of the U.S. macro economy. I give attempt to exactly address concepts and terms which focus on international championship and overseas turn rates. Much of the discussion will focus around the otiose of imports brought into the U.S., and the impact it has on the U.S. businesses and consumers complex. I will too describe the effect of the international bargain to gross domestic product, domestic markets, and university students. It is great to understand how the governments choices, in regards to tariffs and quotas, affect international relations and slyness so I will describe the interactive relationship in regards to tariffs and quotas, and how the governments choices affect international relations and trade. We will also understand how unlike transpose rates ar determined, and identify the reasons the U.S. does not restrict grievouss from chinaw atomic number 18 and minimize imports from ot her countries.Imports in the U.S.The U.S. imports many goods from various countries around the human race and the trading of these goods plays an important role in the st powerfulness of economic present for the U.S. The U.S. imports goods or products from other countries such as mainland mainland chinaware and if the U.S. has a surplus of imports it means there is an increase in the trade deficit, which is not good for the U.S. because trade deficits unremarkably increase unemployment. Examples of products with an import surplus in the U.S. ar Chinas auto-parts. The U.S. auto-parts industry is at risk of lost jobs because of the rapid growth of auto-parts imported from China. The Chinese government unfairly subsidizes and trades auto-parts to the U.S. which in return jeopardizes jobs related to the auto-parts industry in the U.S. Exports from the U.S. support jobs, but imports supplant issue which would other support U.S. employment.The U.S. auto-parts trade deficit incre ased from $9.5 billion in the year 2000 to $31.2 billion in the year 2010. During the year 2010, Chinas exports of auto-parts exceeded their imports of U.S. products by 725 percent. The impact of this discrepancy amidst the two countries forces consumers and businesses, in the U.S., to measure out which products are worth buying. umpteen times Chinas products are manufactured just as thoroughly as their counterparts in the U.S., and they are often much cheaper to purchase. In order to save money, many U.S. companies and consumers will purchase goods from China, and also establish businesses and create jobs in that country which would otherwise benefit domestic employment (Economic Policy Institute, 2012).GDPI would like to coterminous address the effects of international trade to the GDP, domestic markets, and university students. International trade has become important to the U.S. economy in recent years, and the benefits of a world(prenominal) market improve the U.S. standar d of living. The difficulty for the U.S. is the contraction of the GDP because of reduced exports and higher imports. The outflow of domestic notes to foreign markets can decrease the currency of the dollar, and make imports more high-priced to purchase.If the currency of the dollar decreases, domestic markets will suffer because now goods appeal more to purchase. Domestic markets can also be affected by international trade. If imports are cheaper than domestic company products, then domestic markets whitethorn suffer because the imports are cheaper to purchase. Many international students and public and private institutions also benefit from the effects of international trade. The revenues generated by international students are important because they usually pay out-of-state tuition, and the education sector usually benefits from a trade surplus ( production line Day, 2013).Tariffs and QuotasThe governments choices, in regards to tariffs and quotas, usually gift a big effect on international trade and relations. Many countries rely on net exports to maximize their achievements companies. When quotas and tariffs are introduced to the world(a) market, it can affect the flow of goods and products to consumer nations and can negatively impact the production companies. Because it is usually beneficial for international companies to maximize production, tariffs and quotas can potentially transmission line international relations and trade.Exchange RatesI would like to next address foreign exchange rates and what determines them. Most of us are aware that currency has a value attached to it. The difference between the two countrys currency value, and the rate for what they will be exchanged for each other is known as the foreign exchange rate. The exchange rates are determined in the foreign exchange market, which determines the local demand for foreign currencies (Businessdictionary.com, 2013).Goods in the U.S.The question is often asked, if China has restr ictions on U.S. imports, then why does the U.S. not restrict goods coming in from China? To answer the question simply, Chinese imports are important to the U.S. because China has the fastest growing markets in the world. If the U.S. were to stop imports from China, then accordingly China would stop imports for the U.S., and we would not have access that important market. It is vital to have relationships with the global market, because those trade relationships keep the U.S. relevant in the global economy. Many economists agree if the U.S. were to stop trading with foreign countries, then the entire global economy would collapse, which would result in the entire globe going into a depression.ConclusionIn conclusion I would like to state that I hope I have addressed all of you questions about the current state of the U.S. macro economy. It is important to understand the importance of all countries involved with foreign trade, and how their imports and our exports directly affect the U.S. economy and our jobs. While we would like to be independent from a lot of foreign goods, the idea of total liberty from foreign trade is virtually impossible. As we discussed earlier, the reason is because of our trade deficits and their countries ability to invest in the U.S.ReferencesEconomic Policy Institute. (2012). Retrieved from http//www.epi.org/publication/bp336-us-china-auto-parts-industry/ Businessdictionary.com. (2013). Retrieved fromhttp//www.businessdictionary.com/definition/foreign-exchange-rate.html Business Day. (2013). Retrieved from http//economix.blogs.nytimes.com/2008/12/10/the-impact-of-foreign-trade-on-the-economy/