Global Trade

Question What is International Trade?

Making goods to be sold abroad. Buying goods produced abroad. Doing business in other languages. Trading currencies of different countries.

Making goods to be sold abroad: When Americans make products and sell them to foreign buyers, Americans are exporting goods.

Exports American farmers produce wheat and rice to sell to other nations. Therefore, American farmers export grain abroad.

Exports American Pharmacy Companies export medicines abroad.

Exports American factories export equipment abroad.

Exports American factories export passenger aircraft abroad.

Question What are exports?

Answer Exports are sales of American goods abroad.

Imports Americans import when they buy from abroad.

Imports Americans import many types of products from abroad.

Imports Americans import products like coffee from abroad.

Imports Americans import VCR’s from abroad.

Imports Americans import large quantities of oil from countries abroad, like Venezuela, Saudi Arabia, and Kuwait.

Question What are imports?

Answer Imports are goods that Americans buy from abroad.

Balance of Trade Balance of Trade is the comparison of Exports to Imports.

Balance of Trade When America’s Exports are greater than our Imports, America has a surplus in Balance of Trade.

Balance of Trade When America’s Exports are less than our Imports, America has a deficit in Balance ofTrade.

Question What is Balance of Trade?

Answer Balance of Trade is comparison of Exports to Imports.

Question What happens when Exports exceed Imports?

Answer If Exports exceed Imports, there is a Surplus.

Question What happens when Imports exceed Exports?

Answer If Imports exceed Exports, there is a Deficit.

Balance of Trade Generally it is better if trade remains in balance—Exports = Imports.

Balance of Trade America has had a deficit in Balance of Trade for many years.

Balance of Trade The main cause of the deficit is the large amount of oil America buys from abroad.

Balance of Trade If America wants to balance trade, it must export more, or use less oil.

Global Trade Imports & Exports can bring jobs to Americans

Global Trade Trade can provide us with products we can’t produce ourselves.

Global Trade Trade can create jobs. The Nissan auto plant will hire Mississippians