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International Trade Essay

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International Trade and Finance Speech
Valora Hawkins

ECO/372
March 4, 2013
Instructor: Franny Chan, UOP Certified Advanced Facilitator





International trade and finance

      In many ways, both the United States and, the Japanese are seen as the biggest competitors within the international trade market as both of these countries produce many of the same goods. For example, the Toshiba Corporation, which is Japanese engineering and electronics Corporation and Dell incorporated an American engineering and electronics corporation are today’s biggest competitors regarding personal computers.   After the emergence of the world trade organization, the volume of the international trade has increased considerably, and today countries are actively participating within the trade to push their gross domestic product. This active participation in the trade allows them to specialize in what they do best and to enjoy a greater variety of goods and services. During this speech, the information provided will offer a better understanding regarding the comparative advantages, exchange rate risks, and trade barriers within the international trade and finance.

                      Comparative advantage

      The function of the comparative advantage within the international trade is huge. The comparative advantage can be referred to as the capability of a country or company to manufacture a particular product or service at lower prospective cost than that of a competitive country or company. On the other hand what happens if there is a surplus of imports into the U.S.?   Domestic producers competing with imports suffer from lower prices and fewer sales. They have less revenue and resource owners doing the production have less income. However, domestic consumers enjoy the lower price periods. One example is an article written by Sue Kirchhoff, on USAToday.com, entitled “Surplus U.S. food supplies dry up.” As the farm economy collapsed in the 1980s, the U.S....

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