The Federal Reserve Bank of the United States affects both short term and long term interest rates by manipulating money supply through open market operations, changing reserve requirements for banks, or changing the rate at which it loans out money to banks. 2. Propose two (2) strategies that the federal government could implement that would encourage people to spend more money in order to create employment opportunities. Cutting taxes is one of the strongest strategies that government could implement to encourage people to spend. Increased government revenue is one almost immediate symptom, as the tax cut encourages people to buy more products and services, stimulating the economy and creating more jobs.
International Trade ECO 372 University of Phoenix There are many contributing factors to the stabilization and prosperity of our global market. We, the United States, are living in a time of severe trade deficit, meaning that we are importing many more goods than we are exporting. While it is nice to be able to buy foreign products at a lower price, there is risk in doing so. When we purchase foreign goods over domestic at lower prices it forces our domestic companies to sell their goods at lower prices to remain competitive. These lower prices may lend to making enough profit to sustain the current workforce.
Trade Most goods we buy have a label on them. This ‘made in’ label tells us where the items have been produced and therefore from where they were imported from. The exchange of goods and services between nations is trade. International trade is based on a country specializing in producing a surplus of gods it can produce most efficiently in order to gain a competitive advantage. Trade allows for: businesses to grow and create more jobs, a wider choice of goods and services often at cheaper prices, economic growth and the strengthening of strategic and political ties between nations.
In a highly competitive business world, on a firm’s priority list is the subject of increasing profit and reducing cost. One might than pose the question, has this put them out of business (mom and pop store)? The answer is absolutely not, but rather, they too benefit from cheaper prices as they continue to buy in bulk and continue to operate as the name suggest, convenient
1: Tariffs encourage Americans to buy U.S.-made products. (Points: 13) I find this position to be valid. Tariffs are basically taxes on imports, thus making imported goods more expensive to buy (Nickels, McHugh & McHugh, 2008, p. 75). Protective tariffs are designed to raise the retail price of imported products so that domestic goods are more competitively priced (Nickels, McHugh & McHugh, 2008, p. 76). Therefore, if when a consumer enters a store and sees similarly priced products, one imported and one made domestically, they can choose a US made product without feeling as if they are overpaying for the same product.
Innovation impacts the cost of production as well. Even the innovation helps in lowering the cost of production and making economies more efficient – producing more outputs with the same number of inputs. Technology affects market structure. In today’s market world, technology advances more rapidly because individuals gain incentives, in the form of profits, to discover new and cheaper ways of doing things. Even the dynamic efficiency refers to a market’s ability to promote cost-reducing or product-enhancing technological change.
International Trade Simulation Darlene Traci Kepner XECO/212 June 17, 2012 Jim Vernon International Trade Simulation I am advising International trade recommendations for the President of Rodamia. The advantages of international trade and investments imports will create a wider variety of products which will give them a choice in price and quality. Domestic producers can expand and sell their products to other countries creating jobs, capital, and new investments, increasing the economy. When trading you have to look at the opportunity of cost production this is what defines the comparative advantage in which a country can produce a particular good or service at a lower marginal price, compared to another country; basically a choice
This will allow different parts of the world to enjoy merchandise that is specific to one country. Throughout the past it has been proven that by introducing industries’ and the use of globalization has strengthened a country’s economy. I am a pro economic globalization because I feel that we need to change the way of the past if nothing seems raise the economic standards. Hopefully we will be able to realize that economic globalization is working so we can help countries quickly and efficiently. Economic globalization has attracted much debate throughout society today.
(2002) Although the United States economy experiences a great deal of negative effects based on international trade, there are some benefits to foreign trade. The United States economy drastically improves because of a wider variety of goods imported from other countries. When Americans buy more products, the economy is stimulated. When foreign countries demand American made goods, this causes an increase in productions of those demanded goods, causing the United States labor force to go to work. On the other hand, the United States receives exotic goods within a reasonable time and price range due to foreign trade.
Governments institute monetary policies and other laws to ensure a favorable environment for economic growth. Minimum wage is a common economic practice in many nations and is a price control that sets a floor on employee wages. Companies must abide by minimum wage laws when compensating employees for their services. As with many government policies, minimum wage has several negative economic effects. Minimum wage represents a government involvement in a nation economy, although businesses are often wary about the prospect of the government making major economic decisions.