International Trade and Finance Paper
What happens when there is a surplus of imports brought into the U.S.? Cite a specific example of a product with an import surplus, and the impact that has on the U.S. businesses and consumers involved. When there is a surplus of imports brought into the U.S. the cost of the product will still have to drop. The cost behind a product to the seller is defined by the amount of money it cost to introduce the item, the amount of money to store the item and the shipping to stores and establishments. When the items are in excess it will have more supply then demand and the items have to be sold at a lower cost to get the items sold, this also affects other similar products by forcing prices to have to drop to equal sales needed. China has a large trade surplus with the United States that has grown since the late 1980’s. When large imports are acquired and the money is not returned or able to be paid back the national debt will increase to make up for the difference and the result of t...