UNITED STATES ECONOMY Lecture 10 It is

UNITED STATES ECONOMY Lecture 10

It is the world's largest single national economy. The United States' nominal GDP was estimated to be $16. 8 trillion as of 2013, approximately a quarter of nominal global GDP. Its GDP at purchasing power parity is also the largest of any single country in the world, approximately a fifth of the global total. The United States has a mixed economy and has maintained a stable overall GDP growth rate, a moderate unemployment rate, and high levels of research and capital investment. Its five largest trading partners are Canada, China, Mexico, Japan, and Germany.

The US has the largest and most technologically powerful economy in the world, with a per capita GDP of $49, 800. In this marketoriented economy, private individuals and business firms make most of the decisions, and the federal and state governments buy needed goods and services predominantly in the private marketplace. US business firms enjoy greater flexibility than their counterparts in Western Europe and Japan in decisions to expand capital plant, to lay off surplus workers, and to develop new products.

Currency The United States dollar is the unit of currency of the United States. According to American constitution the Congress has the power to coin money. The U. S. dollar is the currency most used in international transactions. The U. S. dollar has maintained its position as the world's primary reserve currency, although it is gradually being challenged in that role. Almost two-thirds of currency reserves held around the world are held in US dollars, compared to around 25% for the next most popular currency, the Euro.

USA economy is one of the top performing economies in the world. It is considered first in the index of IT industry at global level. It is one of the most influential financial countries in the world. When we talk about the capitalization and investments then New York Stock market is the largest stock exchange of the world. The investment is nearly $2. 4 trillion which is twice nearly any other country in the world.

Employment Government is the largest employment sector with 22 million. Small businesses are the largest employer in the country representing 53% of US workers. The second largest share of employment belongs to large businesses that employ 38% of the US workforce.

Deterioration of the housing market, soaring oil prices caused a drop in the value of the dollar and a deterioration in the US merchandise trade deficit, which peaked at $840 billion in 2008. The sub-prime mortgage crisis, falling home prices, investment bank failures, tight credit, and the global economic downturn pushed the United States into a recession by mid-2008. GDP contracted until the third quarter of 2009, making this the deepest and longest downturn since the Great Depression.

Industry of USA means textile, auto, chemical, mechanical and electronics because they are highly demanded products in the country. There is no compromise on the quality of the product so people love to buy it. USA is popular in heavy machinery, autos, aero plane, textile and weapons so these things are manufactured here in the country. It has been a good market for the product of other countries of the world.

The Industry in USA plays a vital role in the economy of the country for a long time. The industry of the country started to emerge in last two or three decades. USA consists of heavy industry and light industry at the same time. Industry of USA consists of AT&T, i. Phone, Microsoft and many other car manufacturers play the role of the backbone for the country. The development of the industry has been started from 1950 while the constant development brought it to the current level of the industry.

Agriculture is a major industry in the United States, and the country is a net exporter of food. Corn, turkeys, tomatoes, potatoes, peanuts, and sunflower seeds constitute some of the major holdovers from the agricultural endowment of the Americas.

Progress in technology and crop yields has made the United States among the most productive agricultural producers in the world. The United States produces about half of the world's corn and 10 percent of its wheat. It also accounts for 20 percent of the globe's beef, pork, and lamb. With such progress in increasing output and the efficiency of agriculture, food prices for American consumers have had little increase over the past 20 years. Americans spend less on food, as a proportion of their income, than any other nation in the world. U. S. consumers spent 10. 9 percent of their income on food. In comparison, the average British consumer spent 11. 2 percent, the French 14. 8 percent, the Japanese 17. 6 percent, and Indians spent 51. 3 percent.

Natural resources: coal, copper, lead, molybdenum, phosphates, rare earth elements, uranium, bauxite, gold, iron, mercury, nickel, potash, silver, tungsten, zinc, petroleum, natural gas, timber. The US has the world's largest coal reserves with 491 billion short tons accounting for 27% of the world's total.

Tourism -is a large industry that serves millions of international and domestic tourists yearly. Tourists visit the US to see natural wonders, cities, historic landmarks, and entertainment venues. Americans seek similar attractions, as well as recreation and vacation areas. Tourists spend more money in the United States than any other country, while attracting the second-highest number of tourists after France.

Tourism in the United States grew rapidly in the form of urban tourism during the late nineteenth and early twentieth centuries. By the 1850 s, tourism in the United States was well established both as a cultural activity and as an industry. New York, Chicago, Boston, Philadelphia, Washington, D. C. , and San Francisco, all major US cities, attracted a large number of tourists by the 1890 s. By 1915, city touring had marked significant shifts in the way Americans perceived, organized, and moved around in urban environments. In the US, tourism is either the first, second, or third largest employer in 29 states, employing 7. 3 million in 2004, to take care of 1. 19 billion trips tourists took in the US in 2005. As of 2007, there are 2, 462 registered National Historic Landmarks (NHL) recognized by the United States government. As of 2008, the most visited tourist attraction in the US is Times Square in Manhattan, New York City which attracts approximately 35 million visitors yearly.

Kazakhstan US Relations The United States is one of the largest and fastestgrowing trade partners of Kazakhstan. In 2011, the trade turnover volume between Kazakhstan and the US amounted to $2. 743 billion, an increase of 26% as compared to the previous year ($2. 181 billion).

The United States pays great attention to energy cooperation. The leading positions in Kazakhstan’s market are held by such American companies as Chevron, Texaco, Exxon Mobil, Conoco. Phillips, and Kerr-Mc. Gee/Oryx. The presence of American companies is practically seen in all large projects, such as Tenghizchevroil (TCO), AGIP KCO, Caspian Pipeline Consortium, Karachaganak Integrated Organization. Since 1993, the volume of gross inflow of the U. S. direct investments to Kazakhstan has amounted to more than $22 billion ($1. 039 billion in 2011). The basic sectors of the US investment are: *mining • real estate operations • rent and services for enterprises • transport and communication • trade, repair services • electric energy • gas and water production and distribution.