Trade & Finance

Trade and Finance Speech

ECO 372

Trade and Finance Speech

Welcome, as the Speaker of the House it is my duty and honor to inform you of the current state of our country’s macro-economy. The proceeding will cover when there is a surplus of imports brought into the U.S. and its impact is has on the U.S. businesses and consumers involved. How government choices regarding tariffs and quotas affect international relations and trade. Foreign exchange rates, and how are they determined. Finally, import policy and procedure.

When there is a surplus of imports brought into the United States the local economy suffers because the price of imports are lower and compete with the local brand. For example, the Chinese auto part industry has received heavy subsidies for doing business in the United States; as a result have increased their imports to our country. The heavy surplus has caused a major offset in the price of imports in comparison to domestic parts. As a result, American dollars are still going overseas instead of remaining on domestic soil.

The automobile business is on an upswing but still cannot recoup the 400,000 jobs lost as a result of this recession. Instead it only has recouped approximately 60,000 out of the 29.1 percent sales increase. The local economy suffers and takes longer to stabilize because of the amount of money leaving the country (Economic Policy Institute, 2012.)

The GDP is the formula for gross domestic product is the total market value of all final goods and services produced in an economy in a one-year period. It is composed of four expenditure categories consumption, investment, government spending, and net exports. If net exports are positive, the nation's GDP increases. If they are negative, GDP decreases. All nations want their GDP to be higher rather than lower, so all nations want their net exports to be positive. If export sales are high the American dollar gains strength as well as the economy (Colander, 2010.)

The...