General information about the United States оf America

The central areas of concentration of oil refining factories are:

- Coast of Gulf of Mexico (a strip in width of 200-300 km on the territory of states Texas, Louisiana, Mississipi),

- Southern and the Central California,

- A strip of the Atlantic coast from New York to Baltimore (mainly a mouth of the rivers Hudsons and Delaware).

     Areas of deposits of natural gas basically coincide with petroliferous pools. On a share of 5 states - Texas, Louisiana, Oklahoma, New Mexico and Kansas is necessary over 90 % of extraction.

     The considerable part of oil, gas and mineral oil arrives from southwest states of the country in areas of the industrial North of the USA. Total length main petroleum about 300 thousand km, gas pipelines - more than 350 thousand  km. Distributive pipelines form especially dense inner network at coast of Gulf of Mexico, connecting gas - and petrocrafts with oil refining and gas & petrol factories, petrochemical factories and ports.

     On a coal mining of the USA occupies 1 place in the world (1 billion t. per year). As a result of an energy crisis and sharp increase of the prices for oil, both on external, and internal market in the USA  big attention began to be given to working out of profitable ways of production of liquid fuel from coal. It is typical, that the active role in these researches is played by leading oil monopolies of the country.

     The electric power industry is among most quickly developing branches of economy of the USA. The largest state electricity supply system of the USA is the system hydraulic and thermal power plants in the pool of the rivers Tennessee and Cumberland, operated river Tennessee Administration. But about 80 % of all electric power  are developed in the USA in the private power plants, including 4 % -power plants of the industrial enterprises.

The hydroelectric power station’s share in the electric power manufacture steadily decreases, though hydropower constructions use less than 35 % of potential resources of all rivers. About 60 % of all electric power developed on hydroelectric power stations in the West states including 48 % - on Pacific states. Large hydroelectric power plants are constructed in the USA also on Niagara, Tennessee and in the river Missouri headwaters. Unlike thermal power plant all largest hydroelectric power plants of the USA belong to the state or local authorities. Their number concern: Grand Coulee on the river Colombia, John-Day on the same river, Robert-Mozes on the river Niagara and others. Projects of expansion of capacities of the largest hydroelectric power plants of the Pacific Northwest are developed.

     Over 80 % of the electric power in the USA it is made at thermal plants. The share of the thermal power plant, using as a fuel coal, gives 54 % of capacities, natural gas - 27 %, black oil - 19 %. In connection with crisis in the markets of liquid fuel a number of plants using black oil are changed last years for coal.In the location of electric power industry of the USA the tendency of gradual strengthening of value of southern states, in particular South Atlantic, and the Southwest centre is distinctly observed.

     From the middle of 60th years of 20 centuries in the USA development of nuclear power  was sharply accelerated. The basic areas of concentration of the atomic power plants - the Northeast centre and the South Atlantic states. But now the atomic power plants locate on country territory already in regular more intervals and basically tend to large industrially-city agglomerations.

     The important feature of  location of a manufacturing industry of the USA - practically universal strengthening of rates of its suburbanization, that is the shift of industrial production from the central parts of agglomerations in their residential suburbs. Here  the factories demanding the big floor spaces and the developed  infrastructure (automobile, aviation, cement, chemical, oil refining, heavy mechanical engineering etc.), as a rule, take places.. To the factors which are "pushing out" the industry in suburbs, concern: higher price for the ground areas in the central parts of city agglomerations, necessity of creation of extensive platforms for parking of cars (the area of such parking near new factories come nearer in the sizes to the area of the enterprise), action of laws on preservation of the environment in cities, «crisis of the big cities» where the central parts are overpopulated by rather poor population.

      The machine engineering industry enterprises locates on country territory extremely non-uniformly - more than 60 % of them are located in the industrial centers of the North and at Pacific coast, and the share of these areas in cost of the production makes 80 %. The major centers of mechanical engineering and metal working of the USA: Los Angeles, Chicago, Detroit, New York, Philadelphia, Cleveland, Boston, Saint Louis, Milwaukee, Dallas - Fort Worth on which share it is necessary over 40 % conditionally-net production mechanical engineering and metal working.

The largest branchtransport  mechanical engineering of the USA - motor industry. Cars - the basic vehicle for one million Americans, and cargo automobile transportations take the important place in transport  to country system. In manufacture of cars, their sale and commercial operation it is occupied about 20 million persons, that is every sixth working American direct or indirect  is connected with motor industry. Release of cars is in the USA at high level; however this branch is extremely subjected to tactical fluctuations and recessions which directly affect both motor industry, and allied industries: metallurgical, chemical and a rubber industry, machine-tool construction etc., causing lack of  capacities and unemployment. In the American market the competition from foreign cars delivered mainly by Japan  and Germany grows. The successful competition of these cars was promoted by an energy crisis and sharp increase of the prices for fuel.

    Motor industry - one of the most monopolised branches of mechanical engineering of the USA. The share of "the big three» -of the concerns «General motors», "Ford", and "Crysler" - is about 97 % of national manufacture of automobile and 85 % of lorries. Outside of the USA these monopolies supervise almost 25 % of world production of cars.

For motor industry placing considerable concentration of manufacture in Lake-districts - 60 % of conditionally-net production branch is typical. Only to one State of Michigan belong over 30 % of production of the motor industry which basic part is developed in Detroit and its vicinities, and also in nearby cities Flint, Lansing and Ann Arbor. So considerable concentration of motor industry in the south of Michigan is explained by the wealth of area with qualified personnel, the metallurgical, metal cutting and machine-tool constructing enterprises, a favourable geographical position in centre Lake-districts, a capacious commodity market, and also historical traditions. However the tendency which has outlined still to 2 world war to expanding car assembly factories and to their approach to peripheral commodity markets amplifies.

The aviation industry of the country – which has grown in days of 2 world wars, with development of military rocket production and expansion of space programs to the USA has turned in essence to new branch of the industry. Aviarocket monopolies "Makdonnel-Duglas",  "Boeing", «Rockwell», «Hughes aircraft», for many years take the first places in the sizes of the governmental military orders and represent a basis of a military-industrial complex of the USA. The appreciable place in the country aircraft industries occupies release of the civil aviation vehicles, including liners, easy planes, the helicopters which considerable part is exported.

Leading area this industry – is the Pacific coast with the main centres Los Angeles, Seattle, San Diego, San Jose. Over 60 % of all manufacture of aviation engines, the devices, completing knots and details it is concentrated to the Industrial East of the USA (the basic centres - Cincinnati, Indianapolis, Hartford, New York, Boston, Buffalow). In the West Phoenix, Los Angeles concern number of the large centres engine-building in the aerospace industry Sacramento.

       The ship-building industry of the country undergoes the period of long stagnation. Building of the military ships both on private shipyards, and on shipyards of Naval Forces of the country has the considerable sizes only. The basic types of the floated military ships - aircraft carriers, nuclear submarines, patrol ships. The largest shipyards of the private companies at the Atlantic coast the countries are located in Newport-Njuse (state of Virginia, firm «Newport-news ship-building and dry dock») and Gronte (the State of Connecticut, the firm «General dynamics») - the leading centre of designing and building of nuclear submarines; large shipyards are available also in Boston, Baltimore, Philadelphia, New York. At coast of Gulf of Mexico (Mississipi), New Orleans and Mobile (Alabama); at the  Pacific coast large shipyards are in San Francisco, Seattle, San Diego, Los Angeles.

One of the basic branches of a machine engineering industry of the USA - the general mechanical engineering - represents in essence the whole conglomerate of various branches. The American statistics includes the machine-tool constructing and tool industry, agricultural mechanical engineering, manufacture in the general mechanical engineering  and hoisting-and-transport mechanisms, the process equipment for polygraphic, food, light and other industries, manufacture of turbines and internal combustion engines, the trading and municipal equipment, office equipment, the various common industrial equipment (including bearings, pumps and compressors, power transmissions, industrial furnaces etc.) . The general mechanical engineering - the most traditional branch of a machine engineering industry of the country; the general drawing of its placing throughout many decades is conservative also. On a share of industrial states of the North it is necessary about 80 % of all occupied in branch; including over 40 % Ohio and Michigan concentrates in Lake - districts, mainly in Illinois.

Most quickly growing branch of mechanical engineering of the USA - manufacture of radio-electronic equipment and a communication facility. According to the  shipments of the electronic equipment  the USA  3-4 times advance the basic competitors - Japan and Germany. The share of the American firms  is  40 % of all manufacture of the computers in the developed countries. Prevalence of the USA in release of the computers industrial and military-oriented is especially sufficient; at the same time in manufacture of household electronics the American companies do not maintain a competition to Japanese and other South Asian countries, in some cases even in home market.

     The radio-electronic industry takes places on country territory as a whole a little in regular more intervals, than other large branches mechanical engineering.  Chicago, New York, Boston concern the major centres of the radio-electronic industry of the countryThe largest enterprise for release of the computers the firm “International business machines» is located in Pockipsy (New York), the telephone and cable equipment of firm «Western the electrician» - in Chicago.

The chemical industry is along with mechanical engineering is one of leading industries of the USA. On the rates of growth the chemical industry considerably advances a manufacturing industry as a whole, conceding only to radio electronics. Manufacture of chemical production in the USA doubles for each 10-12 years. Technical progress promoted sharp increase in demand at synthetic chemicals with in advance set properties, first of all on polymeric materials (chemical fibres, plastic, synthetic pitches) which mostly are synthesised on the basis of petrochemical raw materials. Value of some technical gases (oxygen, hydrogen, nitrogen and its connections, helium), processes used for an intensification in metallurgy and chemical technology, in the form of components rocket fuel, for space research etc. has sharply amplified for last years

     The South enterprises make over half of all technical chemicals developed in the country (that is the chemical semiproducts arriving for the further processing within the same branch or used in other industries, in building and on transport), 60 % of polymeric materials, over 50 % of fertilizers and pesticides etc., that is rather cheap and large-tonnage products.

     The north where the overwhelming part of the population of the USA is concentrated and the enterprises of a manufacturing industry of the country, remains the basic area of manufacture and consumption of chemicals in the USA. However about 60 % made in the north of chemical production (in cost expression) make ready to the use low-tonnage and expensive chemicals: medicines, soap and washing-up liquids, perfumery-cosmetic products, dyes. The most part of specified production is consumed within area, however export expensive and low-tonnage chemicals in southern and the West defines North specialisation in a territorial division of labour in the chemical industry of the country. Inorganic in the north inorganic and organic technical chemicals do not satisfy local demand, and their considerable part is imported from southern states. The major centres of the chemical industry of area are New York, Chicago, Philadelphia, Cincinnati, Saint Louis, Indianapolis. About 20 % of all tyres it is developed in the USA in the largest centre of a rubber industry - the city of Akron (Ohio).

     The nuclear industry having huge military value is closely connected with the chemical industry. In a complex of the enterprises of this branch the major place is occupied with factories on manufacture nuclear combustible (uranium 235, трития, plutonium), constructed during 2 world wars by the government of the USA, and then transferred in operation to private concerns. The centres of manufacture of split materials are Oak Ridge (Tennessee), Paducah (Kentucky), Savanna  (South Carolina), Portsmouth (Ohio), Hanford (Washington).

The important place in a national economy is occupied with light industry branches among which are allocated textile both especially sewing and knitted though rates of growth of these branches are low also their relative role in industrial production decreases. In the textile industry the structure of release of fabrics after 2 world war has considerably changed - the share of the fabrics developed on the basis of artificial and synthetic fibres, and also the combined fabrics has grown, having made almost half of all production of branch. At the same time manufacture of cotton fabrics was reduced to a half , and manufacture woollen - almost in 8 times. It is necessary to underline, that manufacture of synthetic and artificial fibres is carried out at the specialised factories included by the American statistics in structure of the chemical industry, and release of fabrics on their basis is actually textile manufacture.

Placing of the textile industry of the USA from the beginning of 20 centuries has undergone considerable changes. In a current of several decades the branch has in essence moved from traditional textile area - New England - to the South Atlantic states, where a cheap labour and closeness to a cotton belt of the country. After 2 world war in this area and the next Southeast centre the largest enterprises of the USA for release of synthetic fibres have been constructed practically: kapron, nylon,dacron, fibers. To the share of southern states belongs 80 % of release of cotton fabrics and fabrics on the basis of chemical fibres. The largest centres of the South are Greensboro - Winston-Salem - High Point (Northern Carolina), Charlotte (Northern Carolina), Greenville (South Carolina), Columbus (Georgia).

      In clothing industry shift on the South also is swept up. To the share of the enterprises of the South (mainly small factories which are letting out inexpensive men's wear) belongs over 40 % conditionally-net production to branch. However value of the old centres of a clothing industry in the Northeast USA, despite absolute and relative decrease in output, is still great enough. One of national legislators of a fashion Los Angeles which promotion is connected with manufacture of a female dress under Hollywood "film standards" became the considerable centre last years.

     The big development has received in the USA the flavoring industry. The branch share makes 12 %. The major branches of the food-processing industry of the USA concern meat, dairy, manufacture alcoholic and soft drinks, canning and flour-grinding. In connection with a rise in prices for articles of food in the USA the big attention is given to the manufacture of various sorts of substitutes of natural products, the aromatic substances added in a foodstuff. Manufacture of the frozen foodstuff (including snack, national dishes, dessert products, creams etc.) and various canned food develops.

     Food-processing industry placing on country territory in a whole differs relative uniformity. Large cities, as a rule, are the leading centres of branch. However areas of concentration of the enterprises of the flour-grinding industry is in the Northwest centre and along coast of Great Lakes (the leading centres are allocated: Minneapolis - Saint Paul, Kansas City, Буффало); the meat industry - is in Chicago, Kansas City and Omaha (Nebraska); dairy and cheese-making –is in states Wisconsin and Minnesota; canning – is in California. The largest centres of manufacture of confectionery products are New York and Chicago; whisky - Louisville (Kentucky); Coca-Colas - Atlanta; beer - Saint Louis and Milwaukee.

Manufacture of cigarettes basically is concentrated within Piedmont and Kentucky. The basic centres are - Greensboro - Winston-Salem - High Point and Durham in Northern Carolina, Richmond in Virginia and Louisville in Kentucky. Release of cigars from the American tobacco concentrates in the Northeast (the basic centre - Philadelphia).

3.2. The service sector

   The service sector- is the largest sector of economy of the USA. In 1997 it has given 4,43 bln. dollars, or 54 % of gross national product, and 4/5 workplaces in the country.The service sector includes set of various branches and trades. A complex of business, professional and personal services - the greatest and most diverse group - includes educational and medical services, social service, hotel business, the advertising industry, management, agencies in public relations, and also the numerous enterprises of the household services given to corporations or separate citizens: laundries, dry-cleaners, the car-care centre, etc. In 1996 all this service complex has given more than 1 bln. dollars, i.e. approximately 15 % of gross national product, and in it 45 % of all labour of sector of services have been occupied. The contribution of financial and insurance institutes and real estate agencies too has made 15 % of gross national product, however in them 8 % of workers of sphere of services are occupied only. This group includes banks, loan-and-savings associations, the credit unions and other financial organisations, commodity and stock exchanges, agencies on operations with the real estate. Other largest sector of sphere of services - the enterprises of wholesale and retail trade, it includes restaurants and bars, firms of wholesale trade, shops, and companies dealing with vehicles sale. In 1996 almost 30 % of workers of sphere of service have been occupied in trade, and to their share it was approximately 1/6 costs of all made services. Workers of public sector have made 11 % of all services occupied in the sector and have made 1/8 gross national products. At last, to a share of the enterprises of transport, communication and municipal services in 1996 belonged approximately 9 % of cost of services and approximately 6,5 % of all occupied in service sphere. Automobile, railway and air transport, telecommunication companies, radio-and TV-broadcasting corporations, and also the public service enterprises arehere.

Rates of growth of employment in sphere of services have surpassed all other branches and during the period with 1979 on 1995 have made 2,3 % a year that has led to creation in the country of 24 million new workplaces. Rates of growth of employment as a whole on the country for the same period have made only 1,4 % a year. As a result employment has increased in sphere of services from 70 % almost to 80 % from the general number of the working. As the wages (together with privileges) make workers of sphere of services approximately 75 % of wages on manufacture, labour outflow in the industry of service from 1979 on 1995 has led to the general decrease in a payment approximately on 10 %.

3.3. Agriculture of USA

Almost 21mln. people or about 17 % of all population works in the agriculture of USA. Nearly 3 millions independent farms deliver feed products to the American consumers. The area of an average farm in the USA makes about 400 acres. In 1984 there were more than 2.3 million farms in the country. However, the very large farms -those with 1000 acres and more account for more than 40% of farm acreage. The largest manufacturers of grains making up 2,3% of total of farms, produce about 50 % of wheat in the country. Similarly, the largest 2 % of the manufacturers of chickens - broilers own 70 % of market sales.

Number of firms producing selected products in the USA. 1980es. 
Product Numbers of firms producing  
this product 
Wheat 446075 
Corn 937704 
Rice 11445 
Soy-bean 511229 
Tobacco 179141 
Pea-nuts 23046 
Dairy products 197269 
Cattle 1354309

There is therefore some concentrations of agricultural production in hands of the largest manufacturers in the USA. But even largest agricultural manufacturers accept the established prices for production. For example, 2 % of the manufacturers of grain, that make up 50 % of grain production in the USA, are represented by 27000 independent firms. The new firms can also penetrate into the majority of agricultural branches with relative ease. There are special branches - exceptions. For example, there have been state regulation that have limited for many years the number of tobacco producers. However, even domestic manufacturer, who are protected against entry must compete for sales to the foreign manufacturers in the export markets.

State tax regulation plays important roll in encouraging of farm development in USA. Since 1988 the tax rates on profit in an agriculture have been established at a rate of 15 and 28% whereas earlier they ranged from 11 up to 50 % with the intermediate rates. Farms with the income up to 50000 dollars pay tax at the 15 % rate, and every next 25000 dollars at - 28% rate. Since 1989 the size of the tax-free profit has increased up to 2000, and since 1990 - up to 5000 dollars.  
Calculation of surtax in USA agroindustrial complex has a number of peculiarities, each of which can represent a tax privilege. The USA tax laws gives the farmers the right to subtract the costs connected with some works in agriculture and cattle breeding from the tax paid. Work on soil preservation, water resources protection, soil preparation for farming are of thus kind. The tax discount works for the incomes and losses suffered by the farmers in connection with the sale of cattle or forages. These losses are subtracted from the farmer's charges and the more favorable taxation mode is used for profit, than for income taxation. The farmers, who are engaged in cattle feeding use a tax privilege as a delay of income getting, that is all expenses are estimated per one year, and all incomes on his(its) realization the next year. Besides the farmers have the right to apply methods of accelerated amortization of agricultural machines and equipment on higher rates. It allows them to considerably reduce the sizes of the taxed income, that is to pay the taxes on the lower rates. As a result, the more machines, equipment, the farmer gets, the less taxes he pays this year and in the following period of amortization. The farmers are given alternative to use new amortization rules to reduce the taxed income or to make allocation by equal shares for 3-45 years depending on the kind of property.

The tax rules for corporations limit the sizes of the allowed allocation from the taxed income connected with expenses for fodder, seeds and fertilizer. The farmer corporation can receive the right for discounts only after actual complete consumption of materials.

The special tax privileges are given to farmer cooperative societies. Thus, fruit growing cooperative societies? marketing, and also those purchasing farm machines are released from surtax payment.