Trading Partners with the US

Related BrainMass Solutions

• An Explanation of Exchange Rate

  As exporters from such trading partners are worried about their export volumes and trade relationships, they are averse to raising the prices of their goods along with currency movements.

• Trade controls: Tariffs, Subsidies, and Quotas/Flex Exchange

  The effect of tariffs on the relationship of trading partners is to reduce competition from foreign producers. It is a negative effect.

• Floating exchange rates

  59406 Floating exchange rate effects Assume that economic growth is slower in the United States than in its trading partners.

• Growing economic powers in Southeast Asia

  Vietnam has grown with its open trading with the United States and other trading partners, but mostly through the efforts of reconciliation with the US.

• The Leontief paradox

  Thus goods that require abundant capital to produce in the US in fact require abundant labor if produced elsewhere. Thus the Leontief paradox would be explained. However, it would not apply to all trading partners.

• factors that such a change would affect

  The U.S. trade deficit was financed by a gold (specie) outflow to its trading partners, reducing the monetary gold stock in the United States.

• Change Toward an Export-Driven Economy

  However, in terms of monetary policy, a more export driven economy would mean keeping interest rates low relative to trading partners to keep the value of the low such that trading partners can buy more of U.S. goods.

• Strong Dollar

  its power against the currencies of its trading partners: The US is committed to a strong dollar policy!

• The WTO & American Global Involvement

  For instance, US embargos on trade can force countries to rethink their actions and policies as trade with the US is seen as essential by all its current and potential trading partners.