International Trade Market Essay

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International Trade and Finance Speech
May Jones
ECO 372: Principles of Macroeconnomics
June 17, 2013
Instructor: Alexander Heil

The Economics Status of Our nation

Presented by the Speaker of the House

The Honorable May M. Jones

I, The Speaker of The House, May M. Jones, have been asked to answer some key question on the current status of our country economy and the direct we are going. I, by no means am an authority on the subject and I will try explaining these concepts in terms where we both can understand. First, the area I will cover will be surplus goods, its impact on the American business and the consumer. Second, I will cover the effects of the international trade to our GDP (Gross Domestic Product), our domestic market and university students. Third, explain the effects of tariffs and quotas on international relation and trade community. Fourth, what is the foreign exchange rate and how they are determine. Last, in respect to China, why haven’t we just simply restrict goods or minimize the amount coming in to economy. Let’s first start with the imbalance of goods brought into this country by China. We have had a trade deficit with China since the late 1980 and the numbers have been climbing since. Most of the products are foot wear and toys. These are products that our consumer craves and China has a large low- wage population that can turn out an enormous supply causing a trade surplus. On the other hand, these saving are passed on to the consumer, however, our businesses cannot compete pace with this high volume production that floor our markets. Moreover, this scenario, become a disadvantage when China restrict the amount of our export creating a trade deficit. Also, the products we export are more skilled product such as machinery, iron ore and petroleum. Secondly, I will address the effects of international trade on our GDP, our domestic market and how that affects university students. We need to recognize the profound effects that international trade have on our economy. In addition we are one of the primary import consumers in the world. We import protolium, clothing, agriculture, and microelectronic parts from through the worldwide. The problem is we import much more than we export causing a trade deficit and we are all to blame. On an international forum, we cannot compete with other countries with cheaper labor. Many of these countries are in violation of the child labor laws and other human labor violation. Our domestic market is union driven and our wages cannot compete with the cheaper labor market worldwide. Thirdly, the Obama administration and my fellow member of Congress will have to consider if tariffs and quotas will have to be instituted in order to protect our American businesses and consider the impact this will have on consumer prices and the trade deficit. In this age of globalization, traffics and quotas would limit the availability of various good our consumer would have available to them. The great thing about being an American, we can all agree, is the great products and services we can enjoy from around the world. However, there is a price to be paid for the flow of good readily available in our society and I am talking about the legal ones. The problem is that it can create trade deficits and that will affect pricing. To add a tariff to imported products would increase the price of those products, since a tariff is a tax. Quotas on the other hand limit the number of a product that is available. These two weapons can be used to protect domestic protects, therefore assisting with employment, protect consumer from defective products, and can be used as a punitive measure to counter other foreign countries policy. An example would be to punish some society who may violate certain human rights. However it can take away from our foreign exchange and add to consumer price increase for those imported products. Next, we will look at the…