International Economics and U.s. Exports - 1794 Words

Chapter 2 International Flow of Funds Lecture Outline Balance of Payments Current Account Capital and Financial Accounts International Trade Flows Distribution of U.S. Exports and Imports U.S. Balance of Trade Trend International Trade Issues Events That Increase International Trade Trade Friction Factors Affecting International Trade Flows Impact of Inflation Impact of National Income Impact of Government Policies Impact of Exchange Rates Interaction of Factors Correcting a Balance of Trade Deficit Why a Weak Home Currency is not a Perfect Solution International Capital Flows Distribution of DFI by U.S. Firms Distribution of DFI in the U.S. Factors†¦show more content†¦importers would have more seriously considered purchasing their goods in the U.S. if most or all currencies simultaneously strengthened against the dollar. Conversely, if some currencies weaken against the dollar, the U.S. importers may have simply shifted their importing from one foreign country to another. 6. Demand for Exports. A relatively small U.S. balance of trade deficit is commonly attributed to a strong demand for U.S. exports. What do you think is the underlying reason for the strong demand for U.S. exports? ANSWER: The strong demand for U.S. exports is commonly attributed to strong foreign economies or to a weak dollar. 7. Impact on International Trade. Why do you think international trade volume has increased over time? In general, how are inefficient firms affected by the reduction in trade restrictions among countries and the continuous increase in international trade? ANSWER. International trade volume has increased because of the reduction in trade restrictions over time. It may have also increased for many other reasons, such as increased information flow (via Internet etc.) between firms in different countries. Inefficient firms are adversely affected if they have to face tougher competition from foreign firms as a result of a reduction in trade restrictions. 8. Effects of the Euro. Explain how the existence of the euro may affect U.S. international trade. ANSWER: The euro allowed for a single currency among manyShow MoreRelatedU.s. Trade Agreements And Trade Agreement1108 Words   |  5 Pagesrepresents the percentage of the United States exports of goods and services to trade agreement partners. The United States have agreed that the 20 Free Trade Agreement partner countries are the most important market for exports from U.S. Table 1 below lists top seven goods and services, industrial area classification and each of their exported value of goods and services in the dollars (in billions). Table 1 U.S. Goods Exports to FTA Partners-Top 7 Billion U.S. Dollars, 2014 Petroleum Coal ProductsRead MoreThe Change During The 19 Century And Advancement Of Technology954 Words   |  4 PagesThe change during the 19 century and advancement of technology created a gateway for international trade which has become essential for the growth of globalization. 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