International Trade and Finance Speech

International Trade and Finance Speech

Surplus is the excess production of a good and occurs when there is more supply then demand. The United States imports many goods from Hong Kong. One major item the United States imports from Hong Kong is toys and sports equipment. In 2011, the United States imported $145 million dollars’ worth of toys and sports equipment from Hong Kong ("U.s. - hong," 2012). The quantity of toys and sports equipment being imported from Hong Kong exceeds the demand for these goods in the United States. Typically, a surplus means a financial loss for a business. This is a result of anticipating a high demand when the demand is truly much lower. The surplus can benefit consumers because the price of goods decrease. When the price decreases it may create a higher demand and get the products off the shelves sooner.
International trade takes place any time there is an exchange of money, goods, or services across international border. For example, when the United States imports goods from China in exchange for money, international trade is taking place. International trade is typically a benefit to both parties. Not every country has all the necessary resources to produce every product or service. International trade allows countries to be part of the global economy and the economy prospers from these trades. International trade increases the GDP. GDP stands for gross domestic product. GDP gives an insight on the health of a county’s economy. International trade increases the GDP because counties profit by trading goods and services they have for goods and services unavailable or limited to them. Domestic markets are also effected by international trade. Domestic markets, or local markets, increase due to international trade because money is pumped into the local economy because the money earned goes into other businesses. International trade can also be negative for local markets because some imports are less expensive then local goods which...