Global Trade

Question

What is International Trade?

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.

ImportsAmericans 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 TradeWhen America’s

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

Balance of TradeWhen America’s

Exports are less than our Imports, America has a deficit in Balance ofTrade.

Question

What is Balance of Trade?

AnswerBalance of

Trade is comparison of Exports to Imports.

QuestionWhat

happens when Exports exceed Imports?

AnswerIf Exports

exceed Imports, there is a Surplus.

QuestionWhat

happens when Imports exceed Exports?

AnswerIf 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 TradeIf 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