International Trade and Finance Speech
By Manny Ramirez
September 23, 2013
Economics is known as the study of the production and consumption of goods and the transfer of wealth to produce and obtain those goods. Today presentation we will be talking about the economy, and the importance of economics and how it can affect the United States. We will also be discussing about the Gross Domestic Product, surplus, and international trade as it relates to macroeconomics and the United States economy.
Surplus of Imports
When the issue of having a surplus of imports brought into the United States, it causes the price of that product to drop. This is due to ...view middle of the document...
” When it comes to international trade and the Domestic market, the more trade internationally means the less domestic production.
How Tariffs and Quotas affect International Relations
Tariffs are taxes that the government places on internationally traded goods. Quotas are quantity limits placed on imports. According to Colander, D. (2010) “Tariffs are the most-used and most-familiar type of trade restriction. They make imported goods relatively more expensive than they otherwise would have been, and thereby encourage the consumption of domestically produced goods.” There will always be advantages and disadvantages when it comes to using imported goods. This creates a domino effect from the factory workers who produces domestic goods, along with the amount of imported items. This will create the factory workers who produce domestic goods, to have their work slowed down due to higher imports of goods. This can results to a higher unemployment rate. For that possible domino effect that is the reason why the United States places a limit on imported goods, it is to help protect the domestic work force.
This affects International Relations, Colander, D. (2010) states “The issues involved with tariffs and quotas can be seen in a slightly different way by assuming that the country being considered is small relative to the world economy and that imports compete with domestic producers.” If a country starts to refuse imports and put restrictions on imports, this can create issues for the future. For example, if the...