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International Trade Speech

In: Business and Management

Submitted By tygany
Words 1077
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International Trade Speech
ECO/372
April 27, 2015

International Trade Speech
When you think about trade or precisely international trade, what do you see? Is it a group of people meeting out on a boat in the middle of the ocean trading scarves for leather? Is it maybe business conducted on an airplane somewhere between two countries and the plane doesn't land until an agreement is reached? Things like this people might wonder about when looking into international trade. What is it really? How does it happen? What is the cost? Why is it that the United States (U.S.) does not trade with some of the biggest countries?
Tariffs and Quotas
For every action or policy that a government makes, there is a reaction or result. The government is responsible for setting policies on foreign trade that directly affects international relations. Some of these decisions have a positive effect while others result in a negative feeling. Tariffs and quotas are some of the tools that the government uses to control international relations and trade.
Tariffs are a fee in the form of a tax on foreign goods that the government charges the importer (Colander, 2013). This allows goods to come into the country but raises the price of those goods slightly. Quotas are another choice that the government can enforce that affects international relations and trade. Quotas are a limit placed on the quantity of imports coming into the country (Colander, 2013). Both quotas and tariffs are used to control imports and pricing while protecting domestic employment (Colander, 2013).
The question remains, how do these restrictions affect international relations and trade? As with any other relationship, there is give and take. Every relationship has to have a balance. Imposing controls protects a country to find balance within the international trade community. This may mean weighing all options

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