International Trade and Finance Speech Essay

The purpose of this paper is to organize a speech that willing be provided to a number of reporters that ar not knowledgeable with economics. In this paper I will put enormousness on international hand and foreign exchange rates and how those tinct the GDP, home(prenominal) markets, and students. I will also outline some of the benefits on goods and services that are imported from other countries and how those contribute to our economic system in the get together States.What happens when there is a surplus of imports brought into the US? When there is a surplus of a product imported into the US, it drives the costs of that particular product down. The fence it drives the prices down is be urinate the owner of the product gets to a point where they need to undetermined out inventory so they sell it at a price get off than originally expected. These companies will go as far as taking a loss on the product just to take up the inventory. This surplus is a plus for the cons umer. (Armadeo, 2013) Car dealerships are a rash example of companies that clean out old inventory at a reduced price. They run end of year specials that are hard to beat. unrivalled dealership had a Chevrolet Malibu for $22,110. The end of year pricing deal they offered was $3000 funds back or 0% interest on a 60 month loan. When deciding which offer is the best, a person must prototypal look at what the percentage of interest is that they would be paying on top of the loan amount. (Mello, 2012) What are the motions of international trade to GDP, domestic markets and university students?The international trade effect on the GDP depends on if it is a surplus or deficit. If the imports are lower than exports this will bewilder a positive effect on the GDP, domestic markets, and university students. A positive effect in the GDP increases the job market. This in turn increases money into the economy and increases sales in the local markets. This also helps the university student find a job to help finance their education. This also allows them to buy supplies for school cheaper, for example, the price of computers become lower when there is a positive effect on all these things. International trade increases options for the consumer to choose from, therefore the price on these items are more competitive. Negative effects will do the perfect(a) opposite. (McTeer, 2008) How do government choices in regards to tariffs and quotas imply international relations and trade?Simply put, tariffs are taxes the government imposes on imports. Quotas are numerical limits clan by the same government imposed on the same imports. If the outlandish imposing the tariffs and quotas set the tariff too high then this could cause future issues between the two countries. If a country wants to have a good relationship with a country they will impose lower tariffs. (The Basics of Tariffs and get by Barriers, 2011) What are foreign exchange rates? How are they determined?A foreig n exchange rate is the cost of converting dissimilar currencies. For example, if the foreign exchange rate for the euro is carbon=$1 then 100 euros equals $1. If it costs 125 euros to exchange for $1, then the euro is not as utile as the dollar. Exchange rates are generated by the volume of currencies acquired and sold. though they are affected in both the short term and dogged term by innumerable factors, currency supply and demand will always, ultimately, determine currency prices in the foreign exchange markets (Sisson, 2012). wherefore doesnt the U.S. simply restrict all goods coming in from China? Why cant the U.S. just minimize the amount of imports coming in from all other countries?If the United States were to restrict all goods coming in from China it would negatively affect our relationship with them. The United States is majorly in debt to China. touch them could cause them to call in all our loans. It will also affect the profitability of Chinas investments and the ir supply in which American companies are operating. The United States cannot decrease the amount of goods coming in from other countries because it would have a huge impact on employment and the cost of items in this country. A variety of items cause them to have more competitive pricing. When you do not have people working, there is less money to be spent back into the economy.All of these reasons greatly impact the United States economy. The United States needs to trade with countries with more promising tariffs and quotas, and try to keep things join between imports and exports to help promote a better GDP.ReferencesMello, T. B. (2012). Sweet closing deals available on some popular cars. Retrieved from http//www.nbcnews.com/business/sweet-year-end-deals-available-some-popular-cars-1C6750390Armadeo, K. (2013). The US Trade Deficit. Retrieved from http//useconomy.about.com/od/tradepolicy/p/Trade_Deficit.htmMcTeer, B. (2008). The Impact of Foreign Trade on the Economy. Retrieved from http//economix.blogs.nytimes.com/2008/12/10/the-impact-of-foreign-trade-on-the-economy/The Basics of Tariffs and Trade Barriers. (2011). Retrieved from http//www.investopedia.com/articles/economics/08/tariff-trade-barrier-basics.aspaxzz2KI2v2hACSisson, N. (2012). ehowmoney. Retrieved from http//www.ehow.com/about_6593199_exchange-determined-markets-foreign-exchange_.htmlColander, D. C. (2010). Macroeconomics. McGraw-Hill.