International Trade and Finance Speech

International Trade and Finance Speech

A surplus to international trading is something the United States is very familiar with. A surplus during the trade balance mean exports will exceed imports. Therefore, production outweighs consumption. The United States is collecting more money compared to the amount of money going out (Colander, 2010, p. 505). Some would prefer a trade deficit that includes cost rather than a trade surplus that is not without benefits. A surplus comes with control over a huge portion of its currency that reduce the risk of another nation selling the currency which will cost a lost in value, it then becomes more expensive to purchase imports to produce a greater imbalance (MacEachern, 2011).

An abundant portion of imports from foreign countries will cripple United States businesses in competition with other importers such as Japan, the third world’s largest importer after the United States and European Union (United States Department of Agriculture, 2013). Japan importing too much wheat to the United States will put enough strain on local Japanese farmers to end up dramatically reducing their prices or in worst case put Japanese farmers out of business. This is not good for the United States because our own local farmers have to get their wheat or butter from somewhere else outside of Japan since the supplier can no longer imports goods. In this case, consumers will enjoy the lower or more affordable prices but American farmers will also face multiple threats for how their business will continue.

The effects of international trade to GDP, domestic markets, and students contains both imports and exports that will produce a positive or negative result. The net outcome will crash into GDP. The United States imports surpassing its exports will cause an increase to GDP. GDP includes consumption, government expenditures, and investments. It is preferred to have more exports versus imports. However, this creates a direct...