International Trade and Finance Speech

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International Trade and Finance Speech Ruben Tafoya University of Phoenix July 31, 2012 International Trade and Finance Speech A country prefers to capitalize on profits and take full advantage of the impact of opportunity costs associated with importing and exporting goods and services. The model situation for a country involved in international trade would be the exportation of specialized merchandise that can be efficiently produced. There are a number of advantages and limitations of International Trade. There is a vast scale of exchange among the world’s economies, exports and imports, and the services bought from foreign sources. These are all part of a balancing act that needs to be monitored constantly to ensure that the domestic and national economy stays in good standings. The advantages to international trade can be found evident when the public chooses a good that cannot be produced locally such as coffee which must be brought in from either South American or Colombia. Foreign exchange rates involve one party purchasing a quantity of one currency in exchange for paying a quantity of another. There are a number of influences that affect the foreign exchange rate which are government intervention, relative interest rates, commercial crisis, trade imbalances, and abnormal financial transactions. Trade imbalances refers to a trade deficit between two countries, this can affect those two countries currency exchange rates. The result of this currency imbalance reserves among the trading partners. Government intervention is the importance and value of a country’s currency to its government. Many of the reasons why the value of a country’s currency is vital to the country’s health is because it affects the wealth of its citizens, reflects the competitiveness of domestically produced goods, and the country’s
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