Speech Ladies and Gentlemen
Speech Ladies and Gentlemen
Thank you all for coming here today. As I come here today, I will explain to you the current state of the United States macro economy. In this press conference, we will be discussing some of the questions and concerns. Afterwards, if there are any more questions, we will answer them then. Macroeconomics can be simply explained as stating it is the way that the economy is examined. It helps us understand how a part of the economy grows and why sometimes it does not. It can also give us reason of fluctuations, and what indicators cause the performance in our economy. What are the effects of having a surplus of imports in the U.S. One thing I would like to discuss is the surplus. A surplus is when we as a nation are importing more than we are exporting. At any time the United States has a surplus of any manufactured goods, it loses its value. This can make it where the good have to be sold, where there is no money that can be made from it.
For an example, in the car industry, if there is an abundance of cars being imported it does not help us. Importing too many cars from other countries does not help the cars manufactures being built. The consumers are happy because the cars will sold for less, but our businesses will suffer the loss of money. How does international trade affect the countries GDP, domestic markets and university students? First we need to have a little understanding of how GDP affects a country. Gross Domestic Product is the value of all goods and services produced by a country in a given period of time (About.com). It adds another component to our GDP. The United States is only a small amount of consumers. If we traded only within ourselves we would not have a large customer base. This is where international trade helps us. It helps us increase our export and increase or competitiveness in the open market. We import more than we export, which lowers our GDP which affects are domestic markets because we continue to purchase more outside of our country. This affects a student who goes into business and has to worry about the strong contenders that are overseas.
How does the government choices in regards to tariffs and quotas affect international trade? It is imperative to know that tariffs and quotas are set to inspire the government to determine the amount they will import and export and the taxes they will collect so that the goods or services are not thrown out. Tariffs are also a way of controlling the trade, so they play an extremely important role in international dealings. They do this by lowering or raising the tariffs. For example, if a government of a wealthy country wanted to promote trade with a country that is not as developed, it could lower its tariffs on the import for that country.
This would make businesses want to trade with that country because the cost of importing would be cheaper. The same goes for quotas when there is a set number on certain things that can be imported. What are foreign exchange rates and how are they determined? Foreign exchange rates are defined as the value of two or more countries currency against each other. For example, when you purchase an import from another country, they have their rate for the U.S. rate. Japan can purchase our dollar for 91 cents. The rate does not stay the same for very long. It is determined by the foreign exchange market where currency is continuously being bought and sold. Why doesn’t the U.S. simply restrict all goods coming in from China? Why can’t the U.S. just minimize the amount of imports coming in from all countries?
At this time, our economy needs help. Therefore we cannot restrict certain countries imports, nor can we restrict China imports. As everyday consumers, we are always requiring or wanting services from other countries. Our first thought is how fast I can get it. For example, other countries usually get products before they are released to the United States. Therefore, to satisfy these needs from the other countries, the government has to allow for an easy trade, which allows us to earn revenue on the taxes on the imports, which helps our economy. That is key to our success. Thank you, for your cooperation, I will now be willing to answer any remaining questions for further details.
About.com. 2013. Definition of GDP. Retrieved from economic.about.com on February 10, 2013.
University/College: University of California
Type of paper: Thesis/Dissertation Chapter
Date: 9 January 2017
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