General information about the United States оf America

CONTENT

 

 

 

 

 

 

 

 

 

 

 

 

 

INTRODUCTION

 

       The USA is the economically power full country.  A large share of minerals, financial and manpower resources belongs to it.  That’s why studying this country, its language and history we shouldn’t avoid the main economic and industrial branches, their structure, and main tendencies of development.

         By the end 20 century the United States of America are the largest state in the world. The country is located in all climatic belts that favours to agriculture and tourism, has more than hundred kinds of minerals. Having five percent of the world population the country extracts the fifth part of world production of copper, coal and oil. The agriculture of the United States delivers on the world market of 50 % of corn, 20 % of beef, pork, mutton, about one third of wheat. The USA - the largest world buyer (13 % of world import) and the seller (18 % of world import). And, that is characteristic for the American economy, the state enterprises can be counted on fingers (post service and the commission on nuclear researches), even airlines and telephone system in the USA are privatized. The American industry is characterized with a priority of the high technologies creating production on the basis of the high technologies.

         The aim of the research is to study the main aspects of USA economy and industry, to understand its position in the World economy. And the main objectives of the studying are:

1. to describe the economic situation in the USA in the last century,

2. to describe the economic situation nowadays;

3.  to single-out main brunches of industry, paying attention to the service sector and transportation service,

4. to describe agriculture of the USA.

The practical value of the research is to help to study more about the country, the language of witch we learn, with the aim of successful communication and social competence.

   CHAPTER 1. GENERAL INFORMATION ABOUT THE UNITED STATES OF AMERICA

 

The United States is situated in the central part of the North American continent (except for Alaska and Hawaii). It is washed by the Atlantic Ocean in the east and by the Pacific Ocean in the west. In the north it borders Canada and in the south it borders Mexico. The United States is the fourth largest country in the world after Russia, Canada, and China. It has an area of about 10 million square kilometers and its population is over 270 million people. The great majority of the population is English-speaking Americans. There are many ethnic groups in the United States. The largest group is Black Americans (about 12% of the population).

The US consists of 50 states and the District of Columbia. It is a special federal area where the capital of the country, Washington, is situated. The largest state is Alaska. Hawaii is one of the smallest states; it is a group of islands in the Pacific Ocean. California, New-York, Texas, Florida, Pennsylvania, Illinois, Ohio are the most heavily populated states, and Wyoming, Vermont and Alaska are the least populated states. The largest cities are New-York, Los-Angeles, Chicago, San-Francisco and Philadelphia.

The continental part of the USA consists of 4 geographical parts: 2 highland and 2 lowland regions. The highland regions are the Appalachian Mountains in the east and the Cordillera in the west. The Appalachian Mountains are ancient, strongly destroyed mountains of no great height. The valleys between them are rich in coal. It is the oldest mountain system in the US.

Unlike the Appalachian Mountains of the east, the Cordillera is not a continuous chain. It consists of several high ranges, which are the Rocky Mountains on the east and the Sierra Nevada and the Cascade Range on the west. The Rocky Mountains are considered to be young, high, rough, and irregular in shape. Between the Rocky Mountains and the Appalachian Mountains there is the vast Central Plain and the Plateau of Prairies or the Great Plains.

The main rivers of the USA are the Mississippi, the Missouri, the Rio Grande, the Colorado, the Columbia and the Hudson River. The five Great Lakes, between the USA and Canada, include Lake Superior, Lake Michigan, Lake Huron, Lake Erie, and Lake Ontario. They are all joined together by short rivers or canals, and the St. Lawrence River joins them to the Atlantic Ocean. The region around the Great Lakes is known for its changeable weather. In the west of the USA there is another lake called the Great Salt Lake.

The USA has many natural resources, such as coal, petroleum, and natural gas. The economy of the US is based upon free enterprise.

The United States is one of the few countries in the world that has no ’official’ national language. The basic language spoken throughout the country is American English. The second language is Spanish.

 

 

 

 

 

 

 

 

 

 

 

 

 

CHAPTER 2. CHATACTERISTICS OF THE ECONOMY OF THE USA

2.1. 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 changes. Although a private enterprise 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 economy of the United States today is the world's largest national economy. Its nominal GDP was estimated to be $14.3 trillion in 2009, 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 of $46,381, the 6th highest in the world.

Historically, the U.S. economy has kept 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 1870 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 millionaire population reside in the United States (in 2009).[14] Furthermore, 40% of the world's billionaires are American. 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, the New 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 only about 24%.

Since the 1960s, the United States economy absorbed savings from the rest of the world. The phenomenon is subject to discussion among economists. The US is by far the most heavily invested-into country in the world, with foreign investments made in the US measuring almost $2.4 trillion, which is more than twice that of any other country. The US is also by far the largest investor in the world, with US investments in foreign countries totaling over $3.3 trillion, which is almost twice that of any other country. Like other developed countries, the United States faces retiring baby boomers that have already begun withdrawing from their Social Security accounts; however, the American population is young and growing when compared to Europe or Japan. The United States public debt is in excess of $13 trillion and continues to grow at a rate of about $3.83 billion each day. Total public and private debt was $50.2 trillion at the end of the first quarter of 2010, or 3.5 times GDP. Domestic financial assets totaled $131 trillion and domestic financial liabilities totaled $106 trillion

The American labor market has attracted immigrants from all over the world and has one of the world's highest migration rates. The United States is ranked second, down from first in 2008-2009 due to the economic crisis, in the Global Competitiveness Report. The country is one of the world’s largest and most influential financial markets, home to major stock and commodities exchanges like NASDAQ, NYSE, and AMEX.

 

2.2. United States Exports

 

Exports in the United States increased to 193910 USD Million in March of 2014 from 189963 USD Million in February of 2014. Exports in the United States averaged 45133.26 USD Million from 1950 until 2014, reaching an all time high of 194644 USD Million in November of 2013 and a record low of 772 USD Million in March of 1950. Exports in the United States is reported by the U.S. Census Bureau.

Pic, 1 – United States Exports

United States is the world's third largest exporter. Main exports are: Industrial Supplies (34 percent of total exports) and Capital Goods (33 percent). Foods, feeds, and beverages account for 9 percent; Automotive vehicles, parts, and engines for another 9 percent and Consumer goods for 12 percent. Main exports partners are: Canada (19 percent of total exports), European Union (17 percent), Mexico (14 percent), China (7 percent) and Japan (5 percent). This page provides - United States Exports - actual values, historical data, forecast, chart, statistics, economic calendar and news. 

In 2013 exports from America amounted to US$1.579 trillion, up 49.4% since 2009. United States top 10 exports accounted for 68.4% of the overall value of its global shipments.

Based on statistics from the International Monetary Fund’s World Economic Outlook Database, America’s total Gross Domestic Product amounted to $16.724 trillion in 2013.

Therefore, exports accounted for about 9.4% of total US economic output. 
Given America’s population of 316.4 million people, the total $1.579 trillion in 2013 US exports translates to roughly $4,989 for every person in the country. This compares with a benchmark $2,545 in exports per person for the world’s total exports (assuming an estimated global population of 7,095,217,980 per the CIA World Factbook).

United States Top 10 Exports

The following export product groups represent the highest dollar value in American global shipments during 2013. Also shown is the percentage share each export category represents in terms of US overall exports.

1. Machinery: $213,108,199,000 (13.5% of total exports)

2. Electronic equipment: $165,604,449,000 (10.5%)

3. Mineral fuels including oil: $148,426,743,000 (9.4%)

4. Vehicles excluding trains and streetcars: $133,640,479,000 (8.5%)

5. Aircraft and spacecraft: $115,380,944,000 (7.3%)

6. Optical, technical and medical apparatus: $84,281,276,000 (5.3%)

7. Pearls, precious stones, precious metals and coins: $72,830,232,000 (4.6%)

8. Plastics: $60,836,970,000 (3.9%)

9. Organic chemicals: $46,510,903,000 (2.9%)

10. Pharmaceutical products: $39,742,717,000 (2.5%)

Many of the industries supporting these exports, such as manufacturing aircraft and medical apparatus, involve highly sophisticated and advance processes. America’s unemployment rate improved to an estimated 7.3% as of July 2013 compared to an unemployment rate of 8.1% in the rest of world for 2012. It seems logical that scientists, skilled tradespersons and international trade professionals supporting the above exports will be in demand.

Please note that the results listed above are at the 2-digit Harmonized Tariff System code level.

Among the top 10 U.S. exports above, mineral fuels including oil represent the fastest-growing export product posting a 170.2% gain over the five-year period ending in 2013. Pearls, precious stones, precious metals and coins were up 89.6% while vehicles other than trains and streetcars improved 81.6% over the same period.

 

 

2.3. United States Imports

 

Imports in the United States increased to 234288 USD Million in March of 2014 from 231837 USD Million in February of 2014. Imports in the United States averaged 57551 USD Million from 1950 until 2014, reaching an all time high of 234295 USD Million in March of 2012 and a record low of 577 USD Million in March of 1950. Imports in the United States is reported by the U.S. Census Bureau.

Pic. 2 – United States Imports

United States is the world's largest importer. U.S. main imports are Industrial Supplies (32 percent of total imports) with crude oil alone accounting for half of this category. Others include: Capital Goods (24 percent); Automotive vehicles, parts, and engines (13 percent); Consumer Goods (12 percent) and Foods, Feeds, and Beverages (5 percent). Main imports partners are: China (18 percent of total imports), European Union (16 percent), Canada (14 percent), Mexico (12 percent) and Japan (6 percent). This page provides - United States Imports - actual values, historical data, forecast, chart, statistics, economic calendar and news. 

The United States of America is nicknamed the Land of the Free. But when it comes to America’s top import partners at least in North America, perhaps that should be the “Land of Free Trade” given a third of American exports are delivered to Canada and Mexico. The 3 countries are free trade partners under the North American Free Trade Agreement (NAFTA).

The world’s second-largest exporter, the USA shipped US$1.579 trillion worth of products around the globe in 2013. That figure represents 8.7% of worldwide exports estimated at $18.06 trillion for 2012.

America’s Top Import Partners

Below is a list of the USA’s top 15 trade partners that imported the most American shipments by dollar value during 2013. Also shown is each import country’s percentage share of total USA exports.

 

1. Canada: $300,244,595,000 (19% of total American exports)

2. Mexico: $226,152,927,000 (14.3%)

3. China: $122,016,318,000 (7.7%)

4. Japan: $65,144,805,000 (4.1%)

5. Germany: $47,442,249,000 (3%)

6. United Kingdom: $47,355,408,000 (3%)

7. Brazil: $44,115,969,000 (2.8%)

8. Netherlands: $42,654,340,000 (2.7%)

9. Hong Kong: $42,450,374,000 (2.7%)

10. South Korea: $41,555,044,000 (2.6%)

11. France: $34,091,295,000 (2.2%)

12. Belgium: $31,727,047,000 (2%)

13. Singapore: $30,723,872,000 (1.9%)

14. Switzerland: $27,002,011,000 (1.7%)

15. Australia: $26,047,870,000 (1.6%)

Over two-thirds (71.5%) of American exports in 2013 were delivered to the above 15 trade partners.

Among these import nations, the United Kingdom and Germany decreased imports from America by the smallest percentages from 2009 to 2013 — 3.6% for the UK and 9.8% for Germany. The other countries showed a minimum gain of 26.1% for France up to the 101.1% increase for Hong Kong importers. 
Hong Kong has been aggressively moving up the list of America’s top import partners since 2010.

 

 

CHAPTER 3. THE MOST IMPORTANT SECTORS OF THE ECONOMY OF THE USA.

3.1. Productive sector

 

    The industry of the USA takes a special place in the international division of labour. The variety of industries, a wealth wih various raw materials and qualified personnel, advanced research base has allowed the American industry to provide mass production of a various batch production and release of unique devices and the equipment both for internal, and for the world market.

The greatest growth is characteristic for the branches defining  and closely connected with a military production. For last decades in new branches were allocated:

- The rocket industry,

- Manufacture of space technics,

- The semi-conductor industry,

- Manufacture of the computer,

- Scientific instrument making,

- Manufacture of machine tools with programmed control,

- The laser, vacuum, oxygen industry,

- Manufacture of the equipment for prevention of pollution and clearing of environment,

- The industry of fuel elements and others.

On the average in a manufacturing industry each 4 years it is updated not less than 20 % of let out production.

The USA take a visible place on extraction of some the major minerals - coal, oil, natural gas, iron ore, copper, lead, zinc, phosphorites.

But there was not enough own resources, and after 2 world wars of the USA from the exporter have turned to the largest importer of oil, iron ore, nonferrous metals, bauxites, manganous ore, antimony, diamonds, cobalt etc.

In location of the mining industry on areas USA there are the appreciable shifts connected with change of structure of branch, mainly growth of a share of extracted power resources. The South share- the basic area of an oil recovery, coal and gas increases in cost of production of the mining industry. The North and West share where basically ores colour and ferrous metals ores are extracted accordingly decreases.

The mining industry of the USA is closely connected with fuel and energy a complex. In the USA it is developed about 3 bln. in kw-h. the electric power. The power balance structure in comparison with the pre-war period has undergone changes. Oil and gas now prevails. There was a difference between structure of stocks (oil and gas of 7 %, coal of 93 %) and consumption structure (oil and gas approximately 75 %, coal - 25 %) fuel resources of the USA.

     The greatest value for a power economy of the country has oil  industry . The leading role in an oil recovery is played by southwest states - Texas, Louisiana, Oklahoma, New Mexicos delivering about 70 % of oil extracted in the country. Within this area oil is extracted and in a shelf zone of Gulf of Mexico. Large oil fields are available at Pacific coast in the State of California, in mountain state of Wyoming. Last yearsthere begun wide development of deposits on Alaska.

      The USA possesses a powerful petroleum-refining industry. The largest oil refining factories of firms: «Exon corporation» Louisiana and Texas, «Texaco incorporaid» in Texas, «Amoco oil» also in Texas are located in states. Placing of oil refining of the USA considerably differs from an oil recovery. The considerable part of capacities takes places not only in extraction areas, but also in consumption areas, that is in the major industrial knots of the Northeast, in the port centers, on the lines of the main oil pipelines.