Suppose the United States eliminates tariffs on German ten-speed bicycles. As a result, we would expect the price of German bicycles to decline in the United States. The United States makes a unilateral tariff reduction on imported goods. General Motors pays a dividend to a Swiss stockholder. The United States cuts back on American military personnel stationed in Germany.
Russian vodka becomes increasingly popular in the United States.
United States tourists travel in large numbers to Europe. Assume that, under a system of floating exchange rates, Mexicans decide to increase their investments in the United States. As a result Americans will want to buy fewer Mexican goods at the new exchange rate. Nike, the U.S. athletic shoe company, builds a new plant in Thailand. Thai sporting good store buys Nike shoes.