International Trade Speech
Jeffrey D. Randolph, Paul Etuk-Udoh, John Benson, Nathan Delguidice
May 20, 2015
International Trade Speech
Ladies and gentlemen of the press, welcome to the House of Representatives. Today I will discuss some of the more interesting aspects of the United States economy. Economics, of course, is a combination of theories, principles, and models that deal with the distribution of scarce resources, as it relates to human wants and needs (Dictionary, 2015). This is more commonly referred to as Macroeconomics. I will focus on some key areas involving international trade and foreign exchange rates and how all of this can affect the ...view middle of the document...
This was despite higher oil prices, which jumped from an annual average of $74.67 /barrel to $101.16/barrel in two years. Petroleum-related products include crude oil, natural gas, fuel oil and other petroleum-based distillates such as kerosene” (para.2).
International trade can have either a negative or positive impact on GDP. GDP is how much an economy is producing in total goods and services. If imports are greatly exceeding exports the GDP will drop because imports are subtracted because it is not generating income in the United States but in other countries. The more the U.S. exports the higher GDP will be. For domestic markets international trade is beneficial because it gives consumers a larger number of products to choose from. Increase competition between foreign and local parties will force the prices of the items to drop. A negative impact can be seen when local markets lose business to foreign companies because the products are at a lower cost then products produced locally. I can go to the mall and buy a case for my cell phone for roughly $15 or I can order a cell phone case from a foreign country for one dollar. This example shows how international trade can affect a local store in a negative way. Through International Trade university students helps create a large surplus for the United States. Siegmund (n.d.), “U.S. receipts from international students studying in the United States reached $17.8 billion in 2008, the highest amount yet recorded. Those U.S. exports come primarily from travel by international students, who then pay tuition, fees, and living expenses to U.S. institutions” (para. 1). This helps bring down the trade deficit.
Now the speech will explain how the government selections in esteems to tariffs and quotas influence international affairs and trade. According to an article on tariffs, it breaks down the word tariff into a clear viewpoint in other to know everything that applies to the word tariff. At first it says that tariffs are known to be as trade in job. Then goes on to define the two types of tariffs that are charged during trade in. So therefore, it is explained that the first of the two tariffs called specific tariffs is a secured custody representing every single item of things traded in. Secondly the other tariff is called Ad valorem tariffs taxed to be a proportion or division that is calculated to be the value of all goods traded in. Furthermore, it is preferable and believed by a high amount of economist that ad valorem is better than the two tariffs according to some purposes. For example during a change of cost the impact of specific tariffs also changes. The cost of things are increased in the trade in country and might decrease in the distributing country when we think of tariff (Vaidya, 2005). Quotas are a tool of trade mechanism that could be used to limit the amount of trade in within a nation. At times to defend restricted supplies or towards a deep benefit, quotas work as a...