¶ … United States' current international position writing a speech 750 words amateur reporters simple terms concepts. This assignment student evaluate effects surplus imports effects GDP, domestic international markets, students.
United States' current international position
When conducting international trade, the scope of any country is that of maximizing its revenues through exports; nevertheless, in an increasingly open global market place, countries must also open their own boundaries to imports from other regions. The balance between the exports and the imports reveals the country's trade; if the exports exceed the imports, then the country has a trade surplus; if, on the other hand, the country imports more than it exports, then there is a trade deficit.
In a context of a surplus of imports, namely a trade deficit, the country faces several issues. For once, it becomes less able to generate revenues from its own exports and it spends more on paying for the imported products.
Then, there is also an indirect impact on the national currency, in the sense of its weakening. With high imports, the United States sends vast amounts of its dollar to foreign regions, meaning that more dollars come to be controlled by the foreign parties. This generates impacts not only on the stability of the national currency, but also the sensitivity of the entire country to foreign parties, which could decide how to spend the money.
This problem is revealed in several sectors, including the auto parts sector. At this level, the U.S. auto parts industry is suffering and registering financial losses. The domestic products are no longer in demand due to higher prices, which translates into companies being closed down and people downsized (Scott and Wething, 2012). For the consumers however, the effects are positive due to increased competition and access to more cost effective auto parts.
The amount and level of international trade is a crucial dimension in the country's economic stability and this is reflected at multiple levels, including the gross domestic product or the domestic markets. At the level of the domestic markets, the primary impact is reflected at the levels of competition, in the meaning that large exports stimulate competitiveness, whereas large imports reduce the competitiveness. Then, a trade surplus has positive impacts upon the GDP, but a trade deficit has negative impacts upon the total national output. At the level of students, a trade deficit materializes in higher access to foreign products, which might be more competitive price-wise.
In the era of…
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