International Trade Market Essay

Submitted By jazzayin
Words: 1107
Pages: 5
Open Document
International Trade and Finance Speech
May Jones
ECO 372: Principles of Macroeconnomics
June 17, 2013
Instructor: Alexander Heil

The Economics Status of Our nation

Presented by the Speaker of the House

The Honorable May M. Jones

I, The Speaker of The House, May M. Jones, have been asked to answer some key question on the current status of our country economy and the direct we are going. I, by no means am an authority on the subject and I will try explaining these concepts in terms where we both can understand. First, the area I will cover will be surplus goods, its impact on the American business and the consumer. Second, I will cover the effects of the international trade to our GDP (Gross Domestic Product), our domestic market and university students. Third, explain the effects of tariffs and quotas on international relation and trade community. Fourth, what is the foreign exchange rate and how they are determine. Last, in respect to China, why haven’t we just simply restrict goods or minimize the amount coming in to economy. Let’s first start with the imbalance of goods brought into this country by China. We have had a trade deficit with China since the late 1980 and the numbers have been climbing since. Most of the products are foot wear and toys. These are products that our consumer craves and China has a large low- wage population that can turn out an enormous supply causing a trade surplus. On the other hand, these saving are passed on to the consumer, however, our businesses cannot compete pace with this high volume production that floor our markets. Moreover, this scenario, become a disadvantage when China restrict the amount of our export creating a trade deficit. Also, the products we export are more skilled product such as machinery, iron ore and petroleum. Secondly, I will address the effects of international trade on our GDP, our domestic market and how that affects university students. We need to recognize the profound effects that international trade have on our economy. In addition we are one of the primary import consumers in the world. We import protolium, clothing, agriculture, and microelectronic parts from through the worldwide. The problem is we import much more than we export causing a trade deficit and we are all to blame. On an international forum, we cannot compete with other countries with cheaper labor. Many of these countries are in violation of the child labor laws and other human labor violation. Our domestic market is union driven and our wages cannot compete with the cheaper labor market worldwide. Thirdly, the Obama administration and my fellow member of Congress will have to consider if tariffs and quotas will have to be instituted in order to protect our American businesses and consider the impact this will have on consumer prices and the trade deficit. In this age of globalization, traffics and quotas would limit the availability of various good our consumer would have available to them. The great thing about being an American, we can all agree, is the great products and services we can enjoy from around the world. However, there is a price to be paid for the flow of good readily available in our society and I am talking about the legal ones. The problem is that it can create trade deficits and that will affect pricing. To add a tariff to imported products would increase the price of those products, since a tariff is a tax. Quotas on the other hand limit the number of a product that is available. These two weapons can be used to protect domestic protects, therefore assisting with employment, protect consumer from defective products, and can be used as a punitive measure to counter other foreign countries policy. An example would be to punish some society who may violate certain human rights. However it can take away from our foreign exchange and add to consumer price increase for those imported products. Next, we will look at the
Show More

Related Documents: International Trade Market Essay

The Competitiveness Of A Location And The Availability Of Resources

Product Life Cycle Theory and Intra-industry Trade in three steps and use several examples to support these theory. In the first step, elaborated perspectives that the direct cause of international trade is regional trade or international trade price difference and the absolute difference between the cost of international. Resources of each country are not the same and rational use of resources will be able to bring a competitive advantage in the market. In the second step, This essay pointed out…

Words 3540 - Pages 15

International Trade Concepts Simulation

International Trade Concepts Simulation Regina Carter University of Phoenix – Houston ECO/365–Principles of Macroeconomic Gordon Myer May 19, 2008 International Trade Concepts The concept of International Trade is the simple activity of the exchange of good and/or services between countries. These exchanges can involve two or more countries. Trade between two or more countries is called multilateral trade and Trade between two countries is called bilateral trade. Trade…

Words 1423 - Pages 6

The Impact Of Trade Agreements On Health Policy In Canada

HSCI 305 week 12 Trade agreements do affect health policy both in Canada & internationally International trade agreements have a significant impact on health policy in Canada Most obvious area is Canada’s drug policy They provide extensive patent protection to the pharmaceutical industry They protect foreign investments in health service sectors They encourage expansion of the TRADE agreements determine the price of pharmaceuticals by guaranteeing patent protection for drug companies, promote…

Words 1805 - Pages 8

The Role Of Trade Flows In Globalization

1. Describe the role of trade flows in globalisation. ! ! Trade is integral to the process of globalisation. Increased trade flows have brought large benefits to many countries and citizens. Trade has allowed economies to benefit from specialisation and economies to produce at a more efficient scale. It has accelerated productivity, supported the technological advancements and increased the goods and services available to consumers. As trade flows involve exports and imports of goods and services…

Words 537 - Pages 3

Export and International Trade Essay

International Trade is the exchange goods and services among countries. International trade is important part of the economy of a country because it helps to grow its economy and increase the wealth. There is no doubt that developed and developing countries are the big economies in the world, and these countries benefit from the advantages of international trade, however, disadvantages of international trade needs to be discussed, too. One of the advantages of the international trade is that it…

Words 535 - Pages 3

Is An International Firm Just A Domestic Firm Also Doing Business Across National Borders?

Is an international firm just a domestic firm also doing business across national borders? Discuss and fully support your arguments. Friedman (2005) argues, “The world is flat!” Friedman’s research highlighted the fact that the barriers, which limited trading across the world, had been demolished. He further argued that with the introduction of new technology and the advancement in transportation meant that trading internationally had become commonplace. As a result organisations now face…

Words 2142 - Pages 9

Management Essay 2

Introduction With the increasingly development of internationalisation, global finance and business have been interlinked so strong that the consequences of the financial crisis have been more and more serious and widely spreading. Thus international business is very often affected and attacked under financial crisis. Two financial crisis Charles Kindleberger (2011) argued that financial crisis occurs periodically and regularly in the business cycle. It is then documented by Reinhart and Rogoff…

Words 2001 - Pages 9

Globalization and the International Political Economy Essays

Integration Introduction Various theories and perspectives have been proposed by theorists and international relations observers in explaining International Political Economy (IPE). The most salient among these perspectives are Realism, Liberalism, and Marxism. These paradigms or ways of looking at IPE enables international relations students to study the forces at work in the international realm and analyze how these factors interact to create the state of affairs of the IPE. Through these…

Words 3605 - Pages 15

International Business Essay

Chapter 1 • What is international business? International business – refers to the performance of trade and investment activities by firms across national borders. Value adding activities – include sourcing, manufacturing, marketing performed internationally (a.k.a. firms conduct these value adding activities on an international scale). International trade involves an exchange of physical and intellectual assets such as products, services, capital, technology, know-how, labor. Firms internationalize…

Words 945 - Pages 4

Essay on Knowledge Economy

are not only beneficial to individual nations in the international community, but that a free market necessitates careful regulation and enforcement of international intellectual property rights in order to foster growth and provide a fair international market with open and mutually beneficial international trade. • Poorly enforced or loose regulation of international property rights can also reduce the beneficial effects of a free market. • Firms that have operated internationally tend to…

Words 966 - Pages 4