ECONOMIES, MARKETS AND STRATEGIC DECISIONS

Economies, Markets and Strategic Decisions

United States of America

The economy of the United States is the world's largest national economy. Its nominal GDP was estimated to be nearly $14.7 trillion in 2010,approximately a quarter of nominal global GDP. Its GDP at purchasing power parity was also the largest in the world, approximately a fifth of global GDP at purchasing power parity. The U.S. economy also maintains a very high level of output per capita. In 2009, it was estimated to have a per capita GDP (PPP) of $46,381, the 6th highest in the world.

The U.S is the largest trading nation in the world. Its three largest trading partners as of 2010 are Canada, China and Mexico. istorically, the U.S. economy has maintained a stable overall GDP growth rate, a low unemployment rate, and high levels of research and capital investment funded by both national and, because of decreasing saving rates, increasingly by foreign investors. It has been the world's largest national economy since the 1870s and remains the world's largest manufacturer, representing 19% of the world's manufacturing output. In 2009, consumer spending, coupled with government health care spending constituted 70% of the American economy. About 30% of the entire world's millionairepopulation reside in the United States (in 2009). Furthermore, 34% of the world's billionaires are American (in 2011). The US is also home to the world's largest stock exchange, the New York Stock Exchange. It also boasts the world's largest gold reserves and the world's largest gold depository, theNew York Federal Reserve Bank. The United States is also home to 139 of the world's 500 largest companies, which is almost twice that of any other country. A large contributor to the country's success has also been a very strong and stable currency. The US dollar holds about 60% of world reserves, as compared to its top competitor, the euro, which controls about 24%.

Macroeconomic Performance over the Last Three Years

According to newest US economic review for final quarter of 2008 economy of United States is slowly getting back to normal after suffering from horrific after effects of ongoing global financial downturn. 

Latest US economic reviews have also suggested that amount of debts owed in USA by various entities is on a downward curve. This is a bright sign especially in context of present economic conditions.  (Jomo , 2004, 6)

If economic review of US is to be believed, credit markets in USA are at present pretty weak and are lacking in amount of stability that is necessary for them to make any concrete contribution to national economy as such. 

Economic review in US has also revealed that a decent amount of treasury bills are being sold in order to generate money for governmental coffers to be filled up. These are debt financing instruments that are supposed to provide US government with money that could be used in other economic activities. 

International Trade Performance

Americans' views of international trade are complex and cannot be explained as a simple preference for free trade or protectionism. A strong majority of Americans views trade, in principle, as something positive and as having significant benefits for the US economy. However, the majority also has major reservations about how trade has been put into practice: Americans show strong ...