Peggy68: U.S. International Reserve Position
The Treasury Department today released U.S. reserve assets data for the latest week. As indicated in this table, U.S. reserve assets totaled $118,650 million as of the end of that week, compared to $118,748 million as of the end of the prior week.
Samson: The impact of trade on the global economy
The trade or sale and purchase of goods and services are the cornerstone of every economy in the world, where many countries rely on trade among themselves by exporting their products and import other products, including import brands, and primitive societies have been based mainly in trade on the barter of any replacement of a product or commodity
other place I have used gold and silver as a form of payments in exchange for products from goods and services, either at present doubling of trade much, and the means have changed succession chronicity up to what came to him at the present time where occupies cash resources Of (money) ranked first in terms of trade and commercial transactions between the countries of the world have increased in terms of those countries to increase their exports seek through these processes in order to increase their income from the global currency of the dollar and the euro, which leads to raise the economic level of the country and maintain its financial position between the economies of other countries in the world
It is only to buy and sell goods and services across national and international borders, and that effective trade for thousands of years and continues to evolve to keep pace with progress in other fields, and that continued to modern technology and means of transport facilitated trade and distribution of products and goods all over the world more than it was like it before, there are T-shirts are made in India and games in China and there are electrical devices developed are manufactured in Japan, the goods and services that reported these and many others have become easy to reach all over the world and record time, and all this is due to the preferred development of means of transport and its dependence on technology.
Considered trade and commerce backbone of the global economy in general and the nation’s economy.
That international trade can be subject to more regulation and rationing reverse the internal trade of the state because they include different states, and each state regulates the flow of people, goods and money that pass through in within a single state is usually relatively easy transportation of goods and distribution process, but cross-border transport is usually subject controls immigration or customs.
Reasons for trade
Certainly the international trade provides much greater than the domestic trade market, but there are other reasons that countries pay for commercial exchange and trading with each other:
1. The difference in the availability of goods and products in the state and its lack in another country, for example, the Gulf region where there are an abundance of crude oil and the lack of some countries to him or is available in a small is not sufficient to meet the needs of the labor market has thus given material oil high value and many countries are seeking to import from countries producing, as well as some countries enjoy the resources of a particular nature Kmtlakea huge sources of copper are not owned by other countries.
- variation in performance through the manufacturing of some countries, even if the quality of the imported state then a similar industry from the industry itself, because it prefers to enjoy what is different industries.
3. The difference in costs give an example here, in China, wages are much lower than is the case in Western countries leads this to a decline in the cost of production of goods which is much cheaper to resort countries to increase the import of these products by the countries where the cost of production of goods itself is very expensive.
We give an example of the benefit of the comparison of the production of goods country internally or imported from abroad, depending on the available resources of raw materials and wages of manpower and infrastructure available, for example, that India has the largest and cheaper hands of labor compared with Britain, however, the United Kingdom has a capital of a much larger it also has a machine for each worker so the relative cost of capital is considered cheaper, if can the UK benefit when they specialize in the production of goods rely heavily on capital or that require a lot of machines on the other hand, can benefit greatly from the export of goods It relies heavily on only Lady working because it has large sources of those hands
Currency and Trade
As we discussed in the introduction of trade dependence on foreign currency entering the flow can talk about trade without mentioning the currency is not, that foreign currency affect exchange rates are strongly influenced by the patterns of trade in each country, and that the payment in different currencies process is a distinctive global trade feature, price foreign exchange is the price of one currency against another currency assume that there is a British company imported perfumes from France, this company needs to know how much euros you get for the English pound and the French company also needs to know how much pounds would get against the euro.
In any state of the industrial and commercial supplier States and exported commodities, the economic policy take into account how to deal with fixing the exchange rate or make the exchange value is determined by supply and demand without any interference of the government in that which is called the term floating exchange rates, however, some countries prefer fixed exchange rate under which the government is committed or represented by a central bank to maintain the price range for its currency against other currencies, so the central bank can buy or sell its currency in its quest to maintain a fixed currency.
In addition to what we have mentioned features and benefits of global trade Another advantage is that the countries with the developed economy and good production of goods and services have agreed on a mechanism or laws of trade led to the creation of a global organization concerned and oversees the handling mechanism and trade exchange where he called the Organization for Control World trade which was established since 1995 and the control of this organization 97% of the volume of world trade and includes more than 150 member countries and the objective of its establishment is to establish rules for the multilateral trading system through a system of agreements between countries.
Most of the world’s economies are open economies because they are opening up to world trade, where economists are following what is going on international trade, there are many different things that make up with each other what is known as the balance of payments (trade balance) is the value of minus exports, imports, and the Statistics collection each country’s exports and raised the total value of imports, so if the state exports more than imports, the trade balance is positive, and this is known as the trade surplus, and the opposite is known as a trade deficit and when it exceeds the value of imports, the value of exports, so on Waldo Which you want to live up to its own plans to develop and studied methods to always remain within the countries where the trade surplus.
In summary talk about global trade is through the international trade is the sale of goods and buying between different countries and that the balance of trade is the difference between exports and imports can any country to deal with the deficit in the final and current accounts as long as the other has to prepare countries to finance the deficit in those countries that suffer of the fiscal deficit in the budget.