Eco/372 International Trade and Finance Speech Essay

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International Trade and Finance Speech

International Trade and Finance Speech

Foreign exchange rates and International trade are important aspects of economics. The United States macroeconomy’s health is determined by these concepts and their factors.
International Trade
Exports and imports are what encompass international trade balance. When there are more exports over imports a trade surplus happens and when there are more imports over exports a trade deficit happens. A country will acquire large quantities of foreign assets when it runs in a trade surplus so it can lend internationally to other countries. A country sells of its assets to other countries and becomes a big debtor nation when it runs on a trade deficit. A
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As a result, their businesses may have a difficult time competing with those particular products made in China. If they match China’s prices, the domestic businesses may have minimal profit at best. Consumers would benefit from the import surplus due to having more choices in the market and allowing for a lower overhead by buying cheaper electrical machinery products.
Impacts of International Trade
International trade may also have an influence on the Gross Domestic Product or GDP, domestic markets, and university students. The GDP is “the total market value of all final goods and services produced in an economy in a one-year period” (Colander, 2010, p. 183). The GDP can contract if the U.S. is consuming more than it produces. As a result, if the imports are greater than the exports, domestic markets may lose earnings because income is being generated in the world market. If the U.S. has more exports than imports, domestic markets can increase their profit margins because of the demand for their products through international trade. University students are also affected by this method of trade because of the jobs that can be created or that are decreased. University students on decided career paths or those who have already began their career, will benefit if there is a trade surplus. With a substantial trade surplus, it can create more job

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