Chapter 18-mike solomich

Chapter 18-mike solomich - Chapter 18 1-13 Mike Solomich...

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Chapter 18 1-13 Mike Solomich 2/9/09 1. The U.S. balance of payments has shown deficits for more than a decade, and this has caused the U.S. government to reevaluate its foreign policy and to institute certain necessary adjustments to help reduce these deficits. As one adjustment, the government has enlarged its existing federal export expansion program to encourage exports by manufacturers not currently exporting and to expand sales among manufacturers currently exporting. 2. We are increasingly involved in a true world economy as products from overseas are commonplace. Many foreign suppliers and manufacturers are locating facilities in the United States or buying former U.S. firms. Trying to buy only goods made in America is becoming very difficult to do. If U.S. citizens buy more foreign goods than are sold by U.S. firms to purchasers overseas, the balance of payments account shows a deficit, that is, there is a net loss of spending. 3. Any nation’s economy and business climate are directly influenced by the attitudes and policies of its government. A government’s political orientation, whether right or left, also affects its economic policy and the degree to which it regulates both internal commerce and external commerce. Likewise, export credit executives must be alert to and understand the general economic situation in any
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Chapter 18-mike solomich - Chapter 18 1-13 Mike Solomich...

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