Concepts of International Trade and Foreign Exchange Rates ECO372 Outline Effects Effect of Surplus Import of International Trade on GDP Tariffs and International Trade Foreign Exchange Rates Foreign Trade Relations Effects of Surplus Import ("International Car Shipping", 2013). ("Montway", 2013). Effects of Surplus Import What Happens? Competition: Domestic Vs Foreign Effects of Surplus Import Auto Imports into U.S. in 2013 – 295 billion U.S exports 2013 – 146 billion 149 billion dollar gap As of November 2014: Imports hit 241 billion Exports climbed to 197 billion 44 billion dollar gap ("About News", 2015). ("Bea Hompage", 2014). Surplus Of Imports Brought Into The U.S. The Impact Effect of International Trade on GDP Provides a rise to the global economy Allows consumers and countries an opportunity to obtain goods Increased efficiency of resources International Trade Effects on Domestic Markets The role of trade Exports & Imports Loss of Jobs International Trade effects on University Students Higher Education Advantages of Education to a Nation Training & Workforce Tariffs and International Trade What is a tariff? Why are tariffs and trade barriers used? The effect on international trade. Who benefits? Conclusion Foreign Exchange Rates Currency exchange Rate Examples $1 = 0.86 Euros $1 = $57.86 Afghanis $1 = $11.59 Zars $1 = 0.66 British Pound $1 = $119 Japanese Yen Restricting China Foreign Trade Relations >Restricting China America’s 3rd largest export market Jobs would not come back to America Major America companies rely on China for finished products and goods. Increase cost of product / lower standard of living America needs China more than China needs America Foreign Trade Relations >Limiting Imports Jobs would not come back to America Major America companies rely on foreign countries for finished products and goods. Increase cost of product / lower standard of living Major European companies employee US citizens ? QUESTIONS? Reference • BEA hompage. (2014). Retrieved from http://blog.bea.gov/category/trade-deficit/ • China Is America's Biggest Opportunity. (2012, February 17). Retrieved from Show More
