Gross Domestic Product

• 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 doesn’t the U.S. simply restrict all goods coming in from China? Why can’t the U.S. just minimize the amount of imports coming in from all other countries?

Thank you all for coming.   Today I will be discussing International trade and foreign exchange rates in order to provide a better understanding of what they are and their impact.   Recently, the United States has suffered a large deficit and economic downturn resulting in the 2007-2008 recession, with regard to International trade and foreign exchange what does that mean?   How does that impact international trade with the United States? Let’s first understand at the basics what is foreign exchange?   Foreign exchange is the market in which foreign currency and domestic currency are exchange.   So the next time one of you travel outside the U.S borders and exchange U.S. dollars for the local currency that is foreign exchange.   Now, what is International trade?   International trade is the import and export of goods and services. Many factors impact both of these major components causing them to result in at different levels.   For instance let’s talk about surplus, when the nation experiences large quantity surplus imports the domestic price range in the domestic market will drop.   In recent history, China is a perfect example of an imbalanced trade and there large surplus with the United States. “ In 2007, the United States sent $65.2 billion worth of exports to China, and imported $321.5 billion worth of goods, running up a trade deficit of $256.3 billion, the U.S.’s largest trade deficit ever with a single country.” (Bergesten, 2006).   This causing much price drop within domestic businesses and increased government concern, enough concern to...