Trade and Finance Speech
Leaders of the United States have common considerations when it comes to the economy of the nation and on the priorities of those considerations the international trade is a major one. Throughout the last fifty years or more the role of the United States in the economy has changed, going from being a creditor to becoming a debtor. That transition has influence and created changes in the global economy. Another element that has become very active is technology; the advancements in that area have directly affected the trade among countries. Even with the security concerns it brings to the users reality is that its usage has increased the trade worldwide. When United States has experienced surplus has been as a result of many imported goods that have been received from other countries. In order to slow down economy and offset to deficit can be created with the surplus. This is part of the trade balance, which happens when a surplus of imports exits creating a deficit. According to the “U.S. Department of Agriculture (2013) website the U.S. agricultural exports have been larger than U.S. agricultural imports since 1960, generating a surplus in U.S. agricultural trade.
Based on U.S. Consumption Spent on Foreign Imported Goods (2011), “the transportation equipment ranks the highest on the list of a huge flow of foreign imports that entered the United States from 2006 to 2010 and energy related products ranked in third”. These two markets of imports have held themselves strong even when the housing market began to decline. The imports and exports operations impact the Gross Domestic Products (GDP) by contracting or adding to it. This affects employment and consumer spending, for example when the trading of goods generates a gap between imports and exports resulting in a small negative effect to the GDP which promotes the growth of the economy (McTeer, 2008). Consumer spending is also directly linked to trading. The trading deficit...