International Trade and Finance Speech
Whenever there is a surplus of imports brought into the United States the price of the product tends to drop. There may be a point where the products may have to be sold at a loss just to get rid of it. The purchaser has already paid for the product and still has to pay for the storage of that item. The more they have to pay for the storage, the more they have to pay for the product. If they were to sell at a loss it moves the product so they can get more products. China has become the largest exporter to the United States, accounting for about a third of the growth in commodity imports over the 1997 to 2007 period (Houseman, 2011). An example of imported goods that are very popular in the United States would be electronics such as computers and televisions. Computer and electronic products account for most of the output and productivity growth in manufacturing during the period of 1997 to 2007 (Houseman, 2011).
With the way that technology is constantly changing the impact on the U.S. businesses and consumer is affected greatly. They are affected by price mostly because these are popular products used daily by businesses and consumer. Every time the product gets upgraded they are more likely to upgrade that product. Without these popular products it is believed that it would hurt the United States with the money they make off the product. If consumers and businesses did not use these products they would not be able to grow as a business.
International trade is the exchange of services, goods, and capital among various countries and regions (Colander, 2010). Over many years international trade has been very useful because of the benefits it can provide to many countries across the globe. International trade also helps the country’s gross domestic product and is one of the most important sources of the revenue in developing the country. International trade affects domestic markets because of the trade products at a...