Eco 372 Wk 5

Automakers are greatly affected by the national debt, deficit, and or surplus. It is because automakers make the second largest employer in manufacturing in the U.S. and contributions have an effect on the economy. Because of the decrease in exchange rates, the low cost, and quality of work, it has become more appealing for automakers to have their products assembled in foreign countries. This is true in other sectors as well. There is a possibility of growth because of a trade agreement between the U.S. and South Korea. “New opportunities for U.S. exporters to sell more Made-in-America goods, services, and agricultural products to Korean customers- and to support more good jobs here at home.” (Office of the U.S. Trade Representatives, 2012). This is positive news for the U.S. and with the “reduction of Korean tariffs and tariff-rate quotas on goods and services alone will add $10 billion to $12 billion to annual U.S. Gross Domestic Product and about $10 billion to annual merchandise exports to Korea.” According to Office of the U.S. Trade Representatives (2012)

The U.S. has a major effect in the global market especially those countries in which it imports and exports to. The success in which the U.S. can import goods can be effected by its debt, deficit, and or surplus. Because the U.S. has been in a declining economy, it is in a trade deficit, meaning there is more imports being purchased than exports being sold. Like the auto making industry, manufacturing and productions are exported to foreign countries for lower cost with the same quality of work. An Italian clothing company would greatly profit from this situation. As the U.S. already imports from foreign countries at a low cost, if a Italian company lowered their costs their quality of product could make a huge impact selling to the U.S.

 Office of the U.S. Trade Representatives. (2012). New Opportunities for U.S. Exporters Under the U.S.-Korea Trade Agreement. Retrieved from...