Individual International Trade and Finance Speech

Individual International Trade and Finance Speech

Understanding international trade can be a bit tricky. It is very important to know certain key terms that are frequently used within the economic discussion regarding international trade. As I address specific topics such as what happens when there is a surplus of imports brought into the U.S., what are the effects of international trade to GDP, domestic markets and university students, how do government choices in regards to tariffs and quotas affect international relations and trade, what are foreign exchange rates? How are they determined, why doesn’t the U.S. simply restrict all goods coming in from China, and why can’t the U.S. just minimize the amount of imports coming in from all other countries? These topics are pertinent and essential to understanding international trade and finance.

What happens when there is a surplus of imports brought into the U.S.? Cite a specific example of a product with an import surplus, and the impact that has on the U.S. businesses and consumers involved.

What is a surplus of imports? A surplus of imports is having too much of that particular import that it over exceeds the demand of the import. One popular import into the United States are toys. Since 1995, China has supplied the United States with 51% or more of its toys (WEBSITE1). Many large organizations such as Wal-Mart and Sears purchase imports such as toys from China to supply to their customers (WEBSITE1). For example, in 2003, Wal-Mart spent $15 billion on Chinese products, nearly one eighth of all the products exported by China to the United States (Website1). How does this surplus of toys impact the United States? Well there are several unique toy companies in the United States who are pleading for Americans to buy their products. When other companies receive imports from Countries such as China, they are hurting the American toy companies. How are they hurting the American toy companies, well to begin the lack of support? If companies would buy the toys made in America then many companies could hire staff to full fill the orders. This will help the United States overall when looking at the jobs it would create for people working at toy manufactures within the United States. Consumers