Environment of international trade: The United States of America

Résumé du document

The United States of America does hold a position of economic supremacy in the world. Its economy is particularly large and complex to define. According to the Central Intelligence Agency's website (C.I.A., 2007), the U.S has the world's largest and most powerful economy with a gross domestic product of U.S. $13.06 trillion. Despite several economic concerns - such as the national debt, important external trade deficits, consumer debt and real estate crisis for example - the country represents the capital of capitalism with its strong market-orientated economy (Russell Duncan and Joseph Goddard, Contemporary America, 2005, p. 218). Indeed, corporations and private individual businesses are free in their economic decision-making, while sometimes they are regulated by the federal government. Here we first provide an overview of the country's development and its current economic profile. Secondly, we will provide a set of scenarios that might occur in the future development of the U.S. and finally, we will determine which scenario is actually the most likely to happen in the future, by relating them with the current driving forces

Extraits

[...] Regarding the environment, we can notice an increasing green thinking. The Kyoto protocol has finally been ratified. Global warming is now recognised as a major concern. As a consequence, the American government is investing a lot in renewable energies. Oil prices have never been so high as international reserves are constantly decreasing and world demand still remains strong. The politic situation is also eventful as the Democrats are progressively bringing back military troops from Iraq. The complex and controversial situation in Iraq was a key element of the presidential elections of 2008. [...]

[...] In 2008, a new president will be elected in the United States. This election will have major consequences for the country, from a national and international view. The economy and social situation will notably be affected. What could happen? The fist scenario is about the election of a republican candidate in 2008 (John McCain, Rudolph Giuliani combined with an economic prosperity. Indeed, the U.S. remain the most powerful country in the world in a stronger globalisation context (better economy for countries participating to globalisation, focus on material aspects of life). [...]

[...] Economic considerations started to play a more important role in international affairs. Multinational networks of finance, communications and trade strongly shaped America's foreign policy interests. In 1994, the N.A.F.T.A. took effect, a trading block between the U.S.A. Mexico and Canada, representing a new force for globalisation (Public Citizen Website, N.A.F.T.A., 2007), and the W.T.O. (former G.A.T.T., 1947) was created in 1995 to promote and regulate free trade. A global economy and the “mass culture” were clearly the new challenges and the new economic order to follow and develop. [...]

[...] However, there are no real additional climate change initiatives. Biggest and most powerful local industries are not really willing to reduce their CO2 emissions as their profit and productivity will be considerably reduced. From a social view, income inequalities are getting more and more important all over the national territory, as well as poverty. The third scenario is about the election of a democrat President (Barack Obama, Hillary Clinton combined with an economic prosperity. The Democrat Party is conducting a kind of mixed economy, a “social- liberalism”. [...]

[...] An economic recession is currently predicted in the country. The changing world will bring new challenges but also concerns such as global warming, new renewable energies and so on. The future election will be clearly decisive and could possibly shape a America. Reference list Central Intelligence Agency (2007), The World Factbook: United States [online]. Available at: [Accessed 14th November 2007]. Public Citizen Website (2007), N.A.F.T.A. Agreement [online]. Available at: [Accessed 25th November 2007]. USINFO.STATE.GOV (2007), U.S. economy ranks as world's most competitive? [online]. [...]