...International Trade and Finance Speech By: Cleveland Ivery Class: ECO/372 Version 4 Date: 11/23/2013 Instructor: Spyridon Patton Good afternoon ladies and gentlemen of the house. I would like to thank you for the opportunity to speak to you today on such an important topic of our economy. I will attempt to simply address concepts and terms which focus on international trade and foreign exchange rates. Much of the discussion will focus around the surplus of imports brought into the U.S., and the impact it has on the U.S. businesses and consumers involved. I will also describe the effects of the international trade to GDP, domestic markets, and university students. It is important to understand how the government’s choices, in regards to tariffs and quotas, affect international relations and trade; so I will describe the interactive relationship in regards to tariffs and quotas, and how the government’s choices affect international relations and trade. We will also understand how foreign exchange rates are determined, and identify the reasons the U.S. does not restrict goods from China and minimize imports from other countries. The U.S. imports many goods from various countries around the globe; and the trading of these goods plays an important role in the...
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...INTERNATIONAL TRADE & FINANCE SPEECH 1 International Trade & Finance Speech Jose L. Sandoval Jr. ECO/372 September 30, 2013 Howard Blitz INTERNATIONAL TRADE & FINANCE SPEECH 2 International Trade & Finance Speech Good evening Ladies and gentlemen of the press; this evening I will define what economics is and when there is a surplus of imports brought into the U.S, The effects of international trade to Gross Domestic Product (GDP), domestic markets and university students, Government choices in regards to tariffs and quotas affect international relations and trade, What are foreign exchange rates, How are they determined, Why doesn’t the U.S. simply restrict all goods coming in from China, and final Why can’t the U.S. just minimize the amount of imports coming in from all other countries. The economics is the study of how people choose to use resources. Resources are considered as time and talent people have available, the land, buildings, equipment, and other tools on hand, and the knowledge of how to gather them to create useful products and services. The choices that are more important are how much time to devote to work, to school, and time to relax or spend with family. Also what are important are how many money to spend and how much to save, how to put together resources to produce goods and services, and how to vote and shape the level of taxes and the role of government. When a surplus of imports brought into the United State the surplus and deficit in the...
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...International Trade and finance speech International Trade and finance speech It is a general inaccuracy with the meaning of importing goods to America is the expenditure of American jobs. In reality, imports provide many job creations on a huge scale; the increased economic action associated by means of every step of the import advancement millions of jobs in the U.S are helped increase. The Heritage Foundation states that with the intention of this over half of American jobs are maintained by imports like clothing as well toys and other goods from China. These jobs are held in fields like transportation, retail, wholesale, construction, and finance. Appreciative the encouraging is role of imports with revere to jobs, in addition to their supplementary benefits, is critical to adopting the approved trade course of action and as a result to strengthen the economy. According to the Census Bureau, the United States imported just about $382 billion of merchandise from China in 2010, approximately 20% of the entire American imports that year. A number of people quarrels that massive quantities like this imply that the U.S.is losing a lot of employment to China. Variations of this disagreement are found and all are seriously blemished. First they depend on false information; next they get the wrong idea of the fundamental impact of selection and opposition, and finally confuse the impacts of modern trade with a solitary nation (more often than not China) by means of the multi-generation...
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...International Trade and Finance Speech International Trade and Finance Speech Ladies and gentleman, today I will address the state of the U.S. macro economy. The main focus of today’s speech is international trade and foreign exchange rates. Today’s topics include what happens during a surplus of imports, the effects of international trade, government choices in regards to tariffs, how foreign exchange rates are determined, and why the U.S. does not simply restrict all goods coming from China. Surplus of Imports There are different opinions about what happens when there is a trade surplus. Some believe that deficits have little to no impact on economic growth (CATO Institute, 2007). According to the CATO Institute when imports grew by up to 0.5 percent economic growth also grew by an average of 2.1 percent. The most popular belief is a surplus of imports drives down pricing, which is great for consumers but hurts domestic companies. Domestic companies have to cut pricing in order to compete with the prices of foreign companies. Many manufacturing jobs have been eliminated due to the surplus of imports into the U.S. One example is the U.S. auto parts industry. Chinese auto-parts imports to the U.S. increased more than 900 percent from 2000 to 2010 (EPI, 2012). Financially speaking auto parts deficit increased from 9.5 billion in 2000 to 31.2 billion in 2010. This also created a loss of jobs totaling 419,600 in the 10 year span. Effects of International Trade...
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...International Trade and Finance Speech ECO/372 September 23, 2013 International Trade and Finance Speech According to (Colander, 2010, p. 505) a surplus means when a country “produces more than what it consumes.” “Countries that enjoy a trade surplus have more money flowing in than out. This includes both money for the products the country exports and the money spent by foreign visitors” (Wisegeek, 2013, p. 1). The effect of trade surplus in a nation indicates it has more control over its own currency. In some ways the United States and Japan are major competitors in the market of international trade (Encyclopedia of Nations, 2013). Each, country produces many of the same goods, for example Toshiba’s major competitor in personal computers is Dell (Dell computer corporation, 1997). Toshiba is a product Japan imports to the United States. A surplus would be created, depending on the current interest and exchange rate in the United States. After the emergence of the World Trade Organization, and according to their site (WTO, 2013) is designed to “deal with the global rules of trade between nations. Its main function is to ensure that trade flows smoothly, predictably, and as freely as possible.” From inception the volume of international trade has increased and participating countries actively trade to push their product. The intent of this speech will be to explain what happens during a surplus of imports into the United States, the effects of international trade to gross...
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...International Trade and Finance Speech ECO/372 Abstract The enclosed paper is a speech written by myself under the assumption that I have been appointed Speaker of the House and I must deliver a speech about the current state of the United States macroeconomy to amateur reports who are not familiar with economics. As many of you may know, the current state of the United States economy is recovering from a recession. Macroeconomic forces such as interest rates, exchange rates, trade deficits, inflation, and gross domestic products are factors that continue to influence a company’s bottom line and these factors can cause business to be more difficult. International trade and financing play an important role in the growth and continued success of our economy. What happens when there is a surplus of imports brought into the U.S.? Cite a specific example of a product with an import surplus, and the impact that has on the US businesses and consumers involved. When we experience a surplus of imports brought into the United States, local businesses suffer. Sure consumers are happy about the surplus since the product prices will decrease, but this will cause an immediate need for our country to produce more exports to help compensate for the loss. The surplus of imported cars in 2012 exceeded exportation amounts by over $151 billion. Cars only carry a shelf life of one year since new models...
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...International Trade and Finance Speech ECO/372 July 15, 2013 The current state of the U.S. macro economy is made up of a plethora of highly involved processes. I am going to attempt to explain some simple terms and concepts focused on international trade and foreign exchange rates. Foreign Exchange Rates One needs to have a base level understanding of what defines an exchange rate. According to Investopedia, a foreign exchange rate is “The price of one country's currency expressed in another country's currency. In other words, the rate at which one currency can be exchanged for another.”(Investopedia, 2012) The process by which foreign exchange rates are determined is really not any different than any other market function. The supply and demand for different goods determine what their prices are. In this case, substitute currencies for goods. Let us take the case of one foreign currency to understand how this market works. The dollar-rupee exchange rates will depend on how the demand-supply balance moves. When the demand for dollars in India rises and supply does not rise correspondingly, each dollar will cost more rupees to buy. A foreign exchange rate understanding will help one to comprehend how trade between the US and foreign countries affects the GDP. International Trade and GDP First of all, Gross Domestic Product (GDP) is the representation of the total dollar value of...
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...International Trade and Finance Speech Ralna McKenzie ECO 372 December 2, 2013 Dr. Sharon Bush Good morning, and welcome to the United States economic status summit meeting. I am Ralna McKenzie, the Speaker of the House of Representatives for the United States of America. I would like to welcome you all, and I hope you find that the information that you receive in this meeting will answer all or at least most of your questions regarding the importance of international trade and foreign exchange rates and how this helps stimulate our economy as well as the economy of our foreign constituents. I am sure that many of you may understand the importance of international trade and how it affects each country that is involved by providing currency control, which lets you know that “Economic Stability is prevalent at the time”. However when the United States experiences a surplus of imports, this is not the ideal situation for economic stability. This concept can be easily comprehended by understanding “United States or any other country buying more goods (importing), then selling (exporting) will keep us in the deficit.” For example, let’s look at the total amount of imports and exports that the United States has with our neighboring country of Canada. So far for the current year of 2013, Canada has exported $ 323,936,455.00 worth of goods and services to the United States. These key imports consist of crude, other petroleum products and fuel oil. Now let’s look at how much in...
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...International Trade and Finance Speech ECO 372 DO NOT Plagiarize this is simple for guidence International Trade and Finance Speech In the United States international trade is an important aspect when it comes to our nation’s economy. Over the years the nation’s economic responsibility has changed from being creditors to debtors. With this change it has affected the layout of our global economy and with the advancement of our technology it has enhanced the amount of trade done between countries all over the world. With the abundance of goods imported into the United States it has provided us with a surplus. Surplus is typically used to aid in slowing down the economy and balancing out the deficits. When surplus of imports are brought into the United States a deficit is created due the balancing of the trade. According to "United States International Trade Commission" (n.d.), there are three foreign imports that entered into the United States over the years and they are electronic products, transportation equipment and energy-related products. From 2011 to 2013 these three imports from foreign countries have steadily increased. Out of the three imports two of them have been beneficial when there was a change in the economy. During a time period, we had issues within the housing market and agencies were losing money because consumers were unable to afford their mortgages. When it comes to the Gross Domestic Products (GDP) the international...
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...International Trade and Finance Speech Thank you for attending this conference today. My name is _____, and as a Speaker of the House, I will discuss the current state of the United States macroeconomy. I will further explain topics including the current surplus, effects of international trade in the U.S., tariffs and quotas, foreign exchange rates, and why the U.S. imports. United States Imports Surplus International trade and finance are an important part of the United States’ economy, accounting for a large part of the Gross Domestic Product. In the last three decades, the U.S. has incurred a trade deficit from importing more products than it exports (Colander, 2010). The largest sector of imports is industrial supply products representing 32% of total imports Trading Economics, 2014). This includes products such as, crude oil, steel, natural rubber, and other various raw and man-made materials required for industrial and commercial industries (United States Census Bureau, n.d.). The surplus of imports affects U.S. businesses and consumers differently. Domestic companies can be negatively affected if it is unable to remain competitive with their international counterparts. As I mentioned previously, the U.S. imports a large number of raw materials used for industrial supplies. Domestic companies have lost profits and released employees due to lack of demand for their goods or services. This also negatively affects American workers who lose their employment and...
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...International Trade and Finance Speech By: Lauren Peters February 27, 2014 ECO/372 Hello every one today we will be discussing the United States macro economy. I will go into some detailed avenues helping to break down and explain everything into laymen’s terms. I hope from today’s interview you are able to get the information you need for your article. I am going to be discussing the government’s surplus of imports, international trades and affecting the GDP along with domestic markets, and university students, Government choices on tariffs, and quotas, foreign exchange rates, and why we don’t restrict goods imported from China. I will break down into answering and addressing each of these issues, and question that you all are wondering and having questions about. You probably are all wondering what happens when there is a surplus of imports brought into the United States? When we have surplus and a deficit within the economic trading community, it must maintain a balance. When an import surplus happens this creates a trade deficit. This means that the country is consuming more than it produces and exports. Since we are discussing our economy the United States has issues of consuming certain products than what it does in exports. For Example we have a high demand for gasoline within our country. This opens us up to inflation on gasoline prices, and price gouging due to the high demand and consumption of gasoline within this country. Since this type of product is imported...
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...ECO/372 Week5 December 1st, 2013 Eduardo V. Delacruz, MBA 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...
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...Resource: Figure 3-1 in Ch. 3 of Macroeconomics. Part 1 Describe the following terms in your word. Gross domestic product (GDP)- The value of all products and services produced in a country in a certain amount of time (usually yearly) * Real GDP- inflation-adjusted measure that reflects the value of all goods and services produced in a given year, real GDP can account for changes in the price level, so it provides a more accurate figure * Nominal GDP- a (GDP) figure that has not been adjusted for inflation. * Unemployment rate- The number of unemployed workers divided by the total civilian labor force, which includes both the unemployed and those with jobs. * Inflation rate- The increase in the price of goods and services (in percentages), usually annually. Interest rate - The rate that is charged or paid for the use of money. * * Consider the following examples of economic activities: * Purchasing of groceries * Massive layoff of employees * Decrease in taxes Describe how each of these activities affects government, households, and businesses. Describe the flow of resources from one entity to another for each activity. Write a 700- to 1,500-word paper summarizing the results. Contained on the following pages | Fundamentals of Macroeconomics | Penny ColemanECO/372 Principles of Macroeconomics6/4/12J. Carl Bowman | | | | | The business cycle or economic cycle refers to the...
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...Future Social Security and Medicare Users The deficit in the U.S. federal budget is caused by the higher government expenses than the revenues collected for the year. Every year, the deficit in the budget increases the debts greatly as federal government gets loans to meet the deficit in the budget. A form of the loans got by government is the funds, got by social security trust funds and received as government account securities. Government deficits are not affected greatly by these loans as they are in the possession of government, but the baby boomers near their retirements might be affected. At their retirement, people requests for retirement incentives and other benefits that decreases the fund of social security. The funds for older people and social security funds or disability insurance and the insurance trust fund of survivors are not included in the budget of government and obviously not taken as revenues. Department of Treasury is responsible for dealing with these funds under a different account and keeping record and monitoring the funds in and out flow of the funds account of the trust. Moreover, with monitoring funds, the trust also gives automatic disbursement and expending power to play incentive and other welfares to retire-employee (old age) recipients on monthly basis, their families, and to families of late insured employees” (Social Security, 2011). Unemployed Individuals Individual employees are affected by the U.S. deficits, surpluses, and debts...
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...International Trade and Finance Speech ECO/372 International Trade and Finance Speech Macroeconomics consists of the large scale economic factors such as interest rates and national productivity. International trade, finance and exchange rates are a large part of this study. Today, we will dive into the basic definitions and descriptions of simple terms and concepts as they relate to macroeconomics. “The trade balance is the difference between a country’s exports and imports” (Colander, 2010). When a country is exporting more than they are importing a surplus is created, so there is more production than consumption. The opposite is true for a trade deficit. A country that imports more than it exports is running in a deficit; consumption is more than production. An example of a product in the United States with a surplus is oil. Seven years ago the U.S. imported about two-thirds of their oil consumption. By 2014 it is expected that the U.S. will only import 6 billion barrels of crude oil per day; this is about one-third of what the country uses and by 2020 U.S. oil production will exceed Saudi Arabia’s (Phillips, 2010). The problem is that the oil produced in the U.S. is high-quality crude and the oil imported is heavy, sour oil. Since the refineries are currently equipped to refine the heavier oil the U.S. has a surplus of the high-quality crude. One would expect lower oil prices with the surplus, but as the current gas prices reflect this is not the case. While the process...
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