Eco 372 Week 5 Individual International Trade And Finance

International Trade SpeechStudent NameInstructorCourseDate23rd June 2015Aarush: Commissioner for TradeLadies and gentleman,Today we are going to discuss various concepts that focus on international trade and foreign exchange rates. These concepts are:When the U.S. imports more of a product that it produces locally, it is said to be experiencing a surplus of imports. Often, this situation occurs when a foreign country possess a competitive advantage over suppliers in the United States. A common example of a surplus import in the United States is the importation of crude oil. Petroleum imports itself represent the largest part of the United States’ trade deficit. This is because of countries like Nigeria and Saudi Arabia being in a position to produce oil at a very low operational cost. The producers of oil in the United States have to seek oil wells and shale oils that are offshore at a much higher price, due to depletion of most of the traditional wells (Alesina, 2000). Recently, there has been a massive increase in production of oil leading to decrease in surplus of imports that the United States has with other overseas suppliers.The United States operates at a trade deficit and this has