International Trade Speech - Essay Example

International Trade Speech International Trade Speech The current of the US macroeconomic situation is worrying going by the latest economic trends. The nation is operating under huge deficits and debts that are created due to lack of policy guidelines on certain aspects of international trade and government programs. The nation is also witnessing severe imbalance of trade whose resulting effects jeopardizes the economic growth and sustainability (Mankiw, 2014). In particular, the nation’s trade imbalance threatens to erode the gains made over the years in terms of GDP performance and currency strength.

It also threatens to affect business activities as it benefits consumers at the expense of traders. As the legislature, we have to be worried that the country’s current importation rate surpasses export capacity, meaning the nation’s inflows of foreign currency are higher than the outflows. For instance, in the year 2012 the nation imported more cars compared to the exported figure. The importation value surpassed the exportation value by over $152 billion (Mankiw, 2014). The huge differences between the import and export values have created a balance of trade deficit in the nation.

The balance of trade deficit has in turn presented severe consequences to the economy, and drastic measures must be taken to mitigate the situation. Among the challenges, the condition has created include weakening of the domestic market, reduction of the GDP of the nation, reduced value of the US currency, and investments. It has also led to the increased interest rates levied by the financial institutions on loans and selling of bonds (Mankiw, 2014). The imbalance is benefiting consumers who presently can access goods cheaply while businesses are hurting due to unfair competition.

From the speaker’s position, it is apparent that this kind of imbalance is not healthy for sustaining the economy of a great nation such as US. Therefore, it is time the trade imbalance is corrected through the development of effective international trade policy guidelines. The idea is to improve fairness and equity in business activities through creation of a favorable environment where business owners’ record fair returns and customers get value for their money. To correct this, the house seeks to make an amendment in the international trade Act to regulate importation and exportation activities in a bid to cushioning the nation from experiencing economic difficulties generated by an imbalance of trade.

ReferencesMankiw, N. (2014). Principles of Macroeconomics. New York NY: Cengage Learning.