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International Trade & Finance Principles of Macroeconomics ECO372 Dr. Wu

International Trade & Finance Principles of Macroeconomics ECO372 Dr. Wu. Learning Team A M. Alvarado, L. Errico, A. Grunewald, P. Hays, C. Knight, & M. McKinnis. Surplus of Imports. The top import in the U.S. is oil at $389.3 billion per year (16.7% of total U.S. imports)

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International Trade & Finance Principles of Macroeconomics ECO372 Dr. Wu

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  1. International Trade & FinancePrinciples of MacroeconomicsECO372Dr. Wu Learning Team A M. Alvarado, L. Errico, A. Grunewald, P. Hays, C. Knight, & M. McKinnis

  2. Surplus of Imports • The top import in the U.S. isoilat $389.3 billion per year (16.7% of total U.S. imports) • Machines, engines, pumps: $311.2 billion (13.4%) • Americais the world’srichest country and the largest importer. • In 2013 the total imports is up 45.5% since 2009.

  3. Tariffs and Quotas • The United States tariffs and quotas have an impact on worldwide affairs and trade. • Nations in trade agreements will levy tariffs or quotas on imports to safeguard the country’s local manufacture. • There must be an equilibrium between imported and manufactured locally, global relations and trades could be tense. • The United States cannot decrease imports arriving in from all nations for the reason that the trade arrangements amongst the U.S. and the other nation’s fluctuates.

  4. Effects of International Trade(GDP, Domestic Markets, and Students) • Gross domestic product GDP: Determination on how many goods and services a country is producing. • Imports subtract from the GDP and exports add to the GDP. • Importing offers different products to different countries. • Exporting generates more money for country offering services or goods. • Domestic Markets • International goods and services have a world price. • Without competitive pricing, producers cannot compete in the domestic market. • Economic problems create higher unemployment rates. • Students • Students prefer to study in the United States • United States are very competitive in education services • Higher tuition could have an impact on those comparing education options

  5. Foreign Exchange Rates • Exchange rate: price of one country's currency in terms of another country's money. • Fluctuating exchange rates can effect organizations who export or import goods/services . • Effects stockholders from creating international funds. • Pivot on currency values. • Price of commodity increases, currency raises. • Currency exchange required for importing. • Inflation can decrease the currency value. Demand for domestic currency Price of commodity Investment Exchange rate

  6. Restricted Goods • Chad

  7. Reference • http://www.forbes.com/fdc/welcome_mjx.shtml). • http://thismatter.com/economics/economic-benefits-of-international-trade.htm). • http://trade.gov/press/publications/newsletters/ita_0909/higher_0909.asp).

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