American Business and Economics Paper for United States

Topics: International trade, United States, Economy of the United States Pages: 2 (690 words) Published: September 11, 2010
The economy of the United States is the world's largest. Its nominal GDP was estimated to be $14.3 trillion in 2009, almost three times the size of the economy of Japan. In purchasing power parity terms, it is larger than the economy of the People's Republic of China. Notwithstanding, the U.S. economy also maintains a very high level of output per capita. Because of such a large economy, it has a great impact on the entire world. Trading, buying, and selling international goods are essential fuel in driving our economy to success. Without foreign trade in our lives, we would in irregular in governing any commerce in the country. A central feature of the U.S. economy is the economic freedom afforded to the private sector by allowing the private sector to make the majority of economic decisions in determining the direction and scale of what the U.S. economy produces. What they produce can then be sold to other countries, or traded in some type of international relation. The number of workers and, more importantly, their productivity help determine the health of the U.S. economy. Throughout its history, the United States has experienced steady growth in the labor force, a phenomenon that is both cause and effect of almost constant economic expansion with other countries. In addition to being the world’s largest economy, The United States is the world's largest trading nation. Since it is the world's leading importer, there are many U.S. dollars in circulation all around the planet. The dollar is also used as the standard unit of currency in international markets for commodities such as gold and petroleum. Large foreign economies such as China, Japan, Arab states of the Persian Gulf, and the EU own huge dollar reserves so there is a fear that they will move away from the dollar. China's reserves are more than $2 trillion, the worlds largest. China owns an estimated $1.6 trillion of U.S. securities. In 2008, the total U.S. trade deficit was $695.9 billion, which...
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