Based on your textbook material and the discussions/work online, give us your assessment of how the economy is doing today and what are the expectations for the near future. Use data and add links to articles you have used.
Limit = 300 words
discussion1：
- How fast has the U.S. GDP grown in the past 4 years or so and look at what industries played an important part in that growth, or reasons why growth was slow.
The growth of the United States GDP has been fluctuating quarterly over the last four years. For example, in 2015, the GDP was low and it increased in 2016, where the fluctuation through the four quarters was minimal. The consistency continued into 2017, where the GDP ranged between 2.0% – 2.3%. However, the last two quarters of 2017 experienced a rise in the GDP to 3.5%. Although it reduced to 2.5% for a short period, its consistence rose to around 3% until the end of 2018. 2019 experienced an improvement in the GDP to 3.1% and later a reduction in the second quarter of 2019 to 2% (United States Bureau of Economic Analysis, 2019).
(SEE THE PICTURE WHICH IS POSTED)(United States Bureau of Economic Analysis, 2019).
Various industries such as health care, retail business, social assistance, insurance and finance are among the few sectors that contributed significantly towards the economic growth of United States, and its 3.1% increase in GDP in the beginning of 2019. Retail business and trade industry registered the highest impact to the 2019, by having a 12% contribution to the country’s GDP. It was a rise from 2018 2.5% decline. Insurance and finance industries were second in impacting the U.S GDP by 9.5%, thus seen as an improvement from 6.2$ decline in the last quarter of 2018. During the same period, the health care industry had a 6.2% impact. The information and education sectors each registered a 4% increase, while the manufacturing industry had an 8% contribution to the country’s GDP (United States Bureau of Economic Analysis, 2019).
- Pick a country and analyze their growth, how has the government helped/hindered, how do they relate to the US economy.
China is a country that has relied on technology and innovation. Since technology and automation has steadily developed, China’s GDP has been rising in a similar manner. Moreover, the country is highly populated, thus the many people provide adequate workforce for the manufacturing and processing industry, making China a large exporter of its goods and services to other parts of the world. China’s GDP is also boosted by the revenue generated by products taxes as well as the tax remissions each individual pay. With the assistance of technology, the country does not suffer from tax evasion problems that lessens the revenue generated by the government. The Chinese Government to some extent has helped significantly in the growth and development of the economy and the gross domestic product as well. Its implementation of policies has made it easy for foreign companies to set base in China and manufacture their products in the country, thus the country’s population gets employment. Moreover, the foreign companies pay taxes while operating in China, thus increasing the country’s GDP.
However, in the recent past, China the United States have had a rocky relationship which has negatively affected the two economies. Both has been increasing each other’s tariffs and discouraging foreign U.S. companies from operating in China. Similarly, China has been experiencing losses when paying hefty taxes as it exports goods to the United States, one of its major markets (Morrison, 2013). The administration in China and the Unites States have equally contributed to the economic hardships currently being experienced as one government retaliates equally after imports tariffs have been raised, making international trade between the U.S. and China significantly expensive.
- How important is international trade to the US GDP? How will the trade negotiations impact the US GDP?
International trade is significant to the United States as it increases its gross domestic product by around 2%-8%. United States is a major exporter of bother technology and goods to the international market, hence earn foreign exchange. U.S. enjoys international trade significantly as it benefits from products and services that it can produce locally. China is known for its advanced technology and artificial intelligence, and countries such as the United States import technology-based products from China, South Korea, and Japan. International trade enables American companies to produce goods and services from foreign countries at a cheaper cost due to the availability of labor and resources in the foreign markets.
Trade negotiations would positively impact the United States as they would make the process of importation and exportation easier of all countries. Moreover, trade negotiations would lower tariffs and embargos making it possible for all countries to conduct trade to foreign countries thus earn foreign exchange. It also benefits the United States and other countries as they are able to products and services that they are good at, thus advancing their expertise in producing better and quality products. Trade negotiation improves relations among countries, thus population in the United States and other parts of the country are able to access any products and services that would otherwise be impossible to acquire. Therefore, the standards of living are improved. The gross domestic product, as well as the balance of trade in the United States and other countries is improved, hence promoting growth and development of the global economies.
References
Morrison, W. M. (2013). China’s economic rise: history, trends, challenges, and implications for the United States (pp. 20-22). Washington, DC: Congressional Research Service.
United States Bureau of Economic Analysis. (2019). Gross Domestic Product, Second Quarter 2019 (Third Estimate); Corporate Profits, Second Quarter 2019 (Revised). Retrieved from https://www.bea.gov/news/2019/gross-domestic-product-2nd-quarter 2019-third-estimate-corporate-profits-2nd-quarter-2019How fast has the U.S. GDP grown in the past 4 years or so and look at what industries played an important part in that growth, or reasons why growth was slow.
The growth of the United States GDP has been fluctuating quarterly over the last four years. For example, in 2015, the GDP was low and it increased in 2016, where the fluctuation through the four quarters was minimal. The consistency continued into 2017, where the GDP ranged between 2.0% – 2.3%. However, the last two quarters of 2017 experienced a rise in the GDP to 3.5%. Although it reduced to 2.5% for a short period, its consistence rose to around 3% until the end of 2018. 2019 experienced an improvement in the GDP to 3.1% and later a reduction in the second quarter of 2019 to 2% (United States Bureau of Economic Analysis, 2019).
(SEE THE PICTURE WHICH IS POSTED)(United States Bureau of Economic Analysis, 2019).
Various industries such as health care, retail business, social assistance, insurance and finance are among the few sectors that contributed significantly towards the economic growth of United States, and its 3.1% increase in GDP in the beginning of 2019. Retail business and trade industry registered the highest impact to the 2019, by having a 12% contribution to the country’s GDP. It was a rise from 2018 2.5% decline. Insurance and finance industries were second in impacting the U.S GDP by 9.5%, thus seen as an improvement from 6.2$ decline in the last quarter of 2018. During the same period, the health care industry had a 6.2% impact. The information and education sectors each registered a 4% increase, while the manufacturing industry had an 8% contribution to the country’s GDP (United States Bureau of Economic Analysis, 2019).
Pick a country and analyze their growth, how has the government helped/hindered, how do they relate to the US economy.
China is a country that has relied on technology and innovation. Since technology and automation has steadily developed, China’s GDP has been rising in a similar manner. Moreover, the country is highly populated, thus the many people provide adequate workforce for the manufacturing and processing industry, making China a large exporter of its goods and services to other parts of the world. China’s GDP is also boosted by the revenue generated by products taxes as well as the tax remissions each individual pay. With the assistance of technology, the country does not suffer from tax evasion problems that lessens the revenue generated by the government. The Chinese Government to some extent has helped significantly in the growth and development of the economy and the gross domestic product as well. Its implementation of policies has made it easy for foreign companies to set base in China and manufacture their products in the country, thus the country’s population gets employment. Moreover, the foreign companies pay taxes while operating in China, thus increasing the country’s GDP.
However, in the recent past, China the United States have had a rocky relationship which has negatively affected the two economies. Both has been increasing each other’s tariffs and discouraging foreign U.S. companies from operating in China. Similarly, China has been experiencing losses when paying hefty taxes as it exports goods to the United States, one of its major markets (Morrison, 2013). The administration in China and the Unites States have equally contributed to the economic hardships currently being experienced as one government retaliates equally after imports tariffs have been raised, making international trade between the U.S. and China significantly expensive.
How important is international trade to the US GDP? How will the trade negotiations impact the US GDP?
International trade is significant to the United States as it increases its gross domestic product by around 2%-8%. United States is a major exporter of bother technology and goods to the international market, hence earn foreign exchange. U.S. enjoys international trade significantly as it benefits from products and services that it can produce locally. China is known for its advanced technology and artificial intelligence, and countries such as the United States import technology-based products from China, South Korea, and Japan. International trade enables American companies to produce goods and services from foreign countries at a cheaper cost due to the availability of labor and resources in the foreign markets.
Trade negotiations would positively impact the United States as they would make the process of importation and exportation easier of all countries. Moreover, trade negotiations would lower tariffs and embargos making it possible for all countries to conduct trade to foreign countries thus earn foreign exchange. It also benefits the United States and other countries as they are able to products and services that they are good at, thus advancing their expertise in producing better and quality products. Trade negotiation improves relations among countries, thus population in the United States and other parts of the country are able to access any products and services that would otherwise be impossible to acquire. Therefore, the standards of living are improved. The gross domestic product, as well as the balance of trade in the United States and other countries is improved, hence promoting growth and development of the global economies.
References
Morrison, W. M. (2013). China’s economic rise: history, trends, challenges, and implications for the United States (pp. 20-22). Washington, DC: Congressional Research Service.
United States Bureau of Economic Analysis. (2019). Gross Domestic Product, Second Quarter 2019 (Third Estimate); Corporate Profits, Second Quarter 2019 (Revised). Retrieved from
https://www.bea.gov/news/2019/gross-domestic-produ… 2019-third-estimate-corporate-profits-2nd-quarter-2019
discussion 2:
Introduction
Trade is paramount for the very existence of any nation. Every nation can’t produce all the goods and services it requires. Even if a country is capable, it will be costly to deliver all products and services it needs as nations have a different resource and labor endowments. Trade makes it easier for a country to acquire goods and services efficiently and cheaply. The discussion entails the importance of trade to the USA.
Trade partners of the USA
The USA is the world’s largest economy. Global trade anchors the USA economy. Mexico is the largest trading partner of the USA, followed by Canada and then China. The report is according to the USA Census for the first six months of 2019 (Kopf, 2019).
The percentage of GDP accounted for by international trade.
The USA’s percentage of the GDP accounted for by trade in the USA is about 29%. The USA does not depend much on external trade to satisfy its internal population (“Balance of payments and international trade,” 2018).
The Main exports and Imports of the USA
The main exports of the USA are food products, aircraft, and aircraft engines (Isidore, 2019). The plane is for the majority of nations across the globe. Food products are mainly for Canada and China. The main imports of the USA are Oil, electronic equipment, and vehicles. The oil from the middle east. The electronic equipment is mainly imported from China, while Vehicles are from Japan.
The effect of trade on employment and prices of the USA
Trade lowers the prices of goods and services. It increases the supply of products and services. When the amount rises, the equilibrium quantity will increase, but the equilibrium price will decrease. However, employment opportunities will diminish if imports are more than export because goods and services will be from abroad and the reverse is true.
References
(2019). Retrieved 3 November 2019, from https://www.oecd-ilibrary.org/docserver/9789264084…
Balance of payments and international trade. (2018). OECD Quarterly International Trade Statistics, 2017(4), 7-19. doi: 10.1787/int_trade-v2017-4-2-en
Isidore, C. (2019). These are the top US exports. Retrieved 3 November 2019, from https://money.cnn.com/2018/03/07/news/economy/top-…
Kopf, D. (2019). Mexico is now the number-one trading partner for the US. Retrieved 3 November 2019, from https://qz.com/1682861/mexico-is-now-americas-numb…
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