ECO 372 Week 5

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ECO 372 Week 5

Individual Final Examination

Individual International Trade and Finance Speech

Assume that you have been appointed as the Speaker of the House. You must deliver a speech about the current state of the U.S. macroeconomy to a number of amateur reporters who are unfamiliar with economics.

Prepare a 750- to 1,050-word speech in simple terms and concepts that focus on international trade and foreign exchange rates.

Integrate a summary of your answers to the following questions and cite external research to further justify your facts:

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 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 doesnt the U.S. simply restrict all goods coming in from China? Why cant the U.S. just minimize the amount of imports coming in from all other countries?

Learning Team Fiscal Policy Paper

Discuss within your Learning Team how and why the U.S.s deficit, surplus and debt have an effect on the following:

Tax payers

Future Social Security and Medicare users

Unemployed individuals

University of Phoenix student

The United States financial reputation on an international level

A domestic automotive manufacturing (exporter)

An Italian clothing company (importer)

GDP

Write a 750- to 1,050-word paper summarizing the results.

Discussion Questions

Explain how foreign exchange rates are determined. How do changes in interest rates, inflation, productivity, and income affect exchange rates? What are the advantages and disadvantages of a weak versus a strong dollar for imports, exports, international and domestic markets?

Who benefits from a tariff or quota? Who loses? Why would domestic markets benefit from protectionist trade policies? How do protectionist trade policies affect a governments wealth and fiscal policy?

What is the effect of a trade surplus? What is the effect of a trade deficit? How do trade deficits and surpluses affect the industry in which you work?

Why are trade agreements important for the various countries involved? How is international trade related to the U.S. standard of living as opposed to the standard of living of a small industrial nation or a developing nation? How does international trade affect a countrys standard of living? What impact does it have on the way Americans live life, spend, consume, and so on.?

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