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International Trade and Finance Speech

International Trade and Finance Speech
The United States’ macroeconomy both affects and is affected by international trade and exchange rates; exactly how this happens can be summed up to cause and effect. Every shift in trade policy or foreign relations causes a major movement on the global scale. According to the World Trade Organization, as of 2012 the United States is ranked highest in both imports and exports of commercial services and highest in merchandise imports, second highest in merchandise exports (World Trade Organization, 2014). Because the United States is such a major player in international trade it is essential for every citizen to understand how international trade and exchange rates operate.
To comprehend the finer points of international trade and finance we first need to look at the basics and that would be exchange rates. Exchange rates are the rate that one country’s currency can be traded for another. These rates are determined by the foreign exchange market or forex market and how the forex market decides what the exchange rates are is through supply and …

 

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