Besides agricultural products, the most part of the U. S. export occupies machinery, automotive products, aircraft and chemicals. The leading U. S. imports are petroleum products, food and beverages machinery, iron and steel products. The USA is the world's largest importer and exporter. Despite its huge domestic production, the economy of America depends heavily on foreign imports. Until recently the US exported more goods than it imported. However the present situation is the declining competitiveness of American goods in the world market first of all due to poor quality, which was indicated by the trade deficit, which is called in economic theory a negative balance of foreign trade. Foreign manufacturers are now selling about 50% inside the country more than Americans are exporting abroad.
It should be specially emphasized that the condition of the U. S. economy depends to a vast extent on the worldwide oil prices. If they are at a low-rate American economy prospers, otherwise it is in a decline. This phenomenon can seem the reason for the economic crisis of the USA nowadays. That is why America has an urge to control the oil field in Iraq which will give it an opportunity to control also over the world one. In fact the predictable war in Iraq is only one aspect of its policy, aimed at retention its specific role in international economics. In this case the economic interests of the USA coincide with its political ones.
1. What are the leading USA imports?
2. What are the main export products of the USA?
3. What does the US economy depend on?
Text 9. The basis of the US economy
The American economy is described as a free enterprise system, which allows private business the freedom to operate for profit with minimum government regulation. The theoretical foundation of the American economic system was provided by Adam Smith whose economic ideas of free competition influenced the development of capitalism. From his standpoint the more people manufacture and trade the greater the competition. Competition benefits society by allowing the consumer to search for the best available product at the lowest price. Thus market forces, which Smith termed the invisible hands, control the allocation of goods while each participant in the market is seeking for his own self-interest.
Throughout the nineteen century, market operated with a minimum government regulations. Since the 1930-s American capitalism has undergone a radical change. Although private enterprises flourishes, government regulation now exists in many areas of business ranging from product safety to labor conditions. Political conservatives complain of too much government regulation while the liberals are out for the enhance of government role in business and economy.
The country's reliance on private initiative and enterprise has produced impressive growth. The USA today is a leading economic power with a high standard of living and enormous productivity in industry and agriculture.
The USA remains the world's leading producer of goods and services, although its margin of superiority is diminishing as other countries become more competitive in the world's market.
Industrial and technological position of the states is very high. The USA is the leading producer of electrical energy, aluminum, copper, paper, and one of the top producers of natural gas and automobiles. No other nation exports as much high technology as the USA.
1. Who provided the theoretical foundation of the American economic system?
2. Why does the USA remain the world's leading producer of goods and services?
3. What types of goods does the nation produce?
