International Trade and Finance Speech Essay

This speech delivered by the Speaker of the domicil to a group of reporters surrounding the topics of international manage, foreign put back rates, event surplus and how they each impact different constituencies. It ordain also explain why the government would not be able to restrict outcome of goods from China, or if wanted to impose tariffs.The Economy and international TradeThe linked States was once the highest exportationer in all the world. Today, the joined States has a negative residue of trade, because of the fact that we now result more goods than we export goods. An manakin of an import would be oil. The oil that we have imported impacts our businesses and our consumers by making flatulency and other(a) oil derivatives more expensive. This makes prices increase because consumers bequeath have to recompense for goods from the fact that the damage of driving will go up. This is a major(ip) reason why the government is hard to encourage the development of set up forms of energy such(prenominal) as coal or natural gas.The goods that the joined States imports are not always negative. American consumers have benefited greatly from the imports such as electronics or apparel that is made mostly in Asia. The cost of production for these goods are lower in China and most other Asian countries, making it much cheaper for Americans to buy these types of goods that are being manufacture overseas.The reality of international trade is that production will naturally flip to places where goods can be manufactured more efficiently and at a lower price. What the United States has to focus on is developing new technologies and products of higher(prenominal) quality. With a focus based on innovation and quality instead of labor costs.International trade has an impact on the coarses GDP, the financial markets, and importantly university students. The GDP of the United States becomes stronger when we export goods more than we import goods. If negati ve trade balances become consistent it can lead to deficits, which will in turn cause the government to borrow more. If the government borrows more this will have an impact on the financial markets which could in while make it more costly for the United States to cover all its deficits. We get hold of to promote our exports in order to help the GDP and make our country more impressive to investors. A healthier economy will constrain enough employment for those needed, especially university graduates that will be trained for the field.The quotas and tariffs regarding the governments choices has a direct impact on our trade and the traffic that we have with other countries. Reducing tariffs and participating in free trade harmonys helps our export businesses. This is a reason why our government has in the prehistorical worked for establishing trade agreements with countries as South Korea, Panama, and Colombia. When a free trade agreement takes place the trading partners will er ase their quotas or tariffs against products from America, this makes it easier for us to take aim our products to those countries. Trade is a two way engagement, where both are determination a way to benefit, with consumers benefiting as well and our exports getting higher.Foreign exchange rates are the rates of one type of coin converted to another. Such as the rate for exchange between American dollars and japans Yen which is 76 Yen per dollar. Some currencies are immovable with others. The rates of floating currency is determined by the supply and demand. An example is if the European demand for the dollar increases, the supply and demand congressship between them will cause the price to increase of the dollar in relation to the euro. There are many factors that affect exchange rates that take on interest rates, unemployment, political instability, inflation, and GDP. When our GDP becomes higher and our exports become level with our imports, the stronger our currency will be and we will have a better general financial health.There are some people that believe in protectionist policies that include restricting goods that are coming in from China and some(prenominal) other countries, including imposing tariffs that would increase costs for purchasing of goods in the United States. This kind of policy would be populist and fueled with the good intentions of trying to protect our American jobs, its actual consequences would be an elevating trade war with an turnaround instal. History proves that when governments have attempted to restrict trade and enforced protectionist measures, other countries will attempt to retaliate and adopt similar policies. An example is the Smoot-Hawley obligation Act of 1930, which broke records by increasing tariffs on 25,000 goods which had an end effect of reducing imports and exports by 50% as trade partners began with similar elbow room tariffs. This will translate into more unemployment as companies that will expor t their goods will see a drastic demand drop. Restricting imports from China would accept drastic measures from the Chinese government, and our companies would struggle as they would be unable to export goods to that part of the world.ReferencesColander, D. C. (2010). Macroeconomics (8th Ed.). Boston, MA McGraw-Hill/IrwinInternational Trade, ISSN 0020-7810, 2011, Volume 45, Issue 1, p. 79The ledger of Economics, ISSN 0895-3309, 2007, Volume 21, Issue 3, p. 105 Foreign Policy, ISSN 0015-7228, 11/2003, Issue 139, p. 20The American Foreign Trade, ISSN 0002-8282, 12/1928, Volume 18, Issue 4, pp. 706 713