Term Project MicroeconomicsTerm Project Microeconomics
Department:Department: Bachelors of BusinessBachelors of Business
Topic:Topic: ‘‘Economic Structure of USA’Economic Structure of USA’
• The United States is the world's largest national economy,
representing 22% of nominal global GDP and 17% of global
Capital of USA: Washington DC
President: Barack Obama
Currency: US$ (USD)
Fiscal year: October 1, 2014 –
September 30, 2015
GDP: $17.5 trillion (2014)
• USA is the second-largest trading nation in the world as well
as the world's second largest manufacturer, representing a fifth
of the global manufacturing output.
• US six largest trading partners are Canada, China, Japan,
Germany and South Korea.
• US has abundant natural resources, a well-developed
infrastructure, and high productivity.
• US is the world's largest producer of oil and natural gas.
• Of the world's 500 largest companies, 128 are headquartered
in the US.
Major Exports of USA
$1.6 trillion (2013)
Capital goods =28%
Industrial Supplies and Materials (except oil fuels) = 25%
Consumer goods (except automotive) = 12%
Automotive Vehicles and Components = 9.4%
Food, Animal Feed, and Beverages = 8.6%
Fuel Oil and Petroleum Products = 7.6%
Aircraft and Components = 6%
Other = 4%.
Main export partners
United Kingdom 3%
Main industries of US:
Petroleum, Steel, Motor Vehicles,
Chemicals, Electronics, Food
Processing, Consumer Goods,
Lumber, Mining e.t.c.
Economic Sectors of USA
• Any national economy can be broadly classified into three
productive economic sectors:
• Primary Sector: It involves the harvesting and extraction of
natural resources. Industries in the primary sector include
agriculture, commercial fishing, mining, and the timber
• Secondary Sector: It includes manufacturing industries such
as aerospace, automobile production, the chemical industry,
petroleum refining, the pharmaceutical industry and
electronics production. It also includes the construction of
buildings and highways and utilities such as those that
generate and distribute electricity.
• Tertiary Sector: It includes services such as transportation,
marketing, and retailing of physical goods. It also includes
direct services without the distribution of any physical goods,
such as consulting, education, technology, administration, and
tourism. Tertiary sector is also known as the service sector
because it involves the provision of services rather than
Interesting Features of US Economy
• US is an economically developed country.
• US is the back bone of the world economy with a large portion
of GDP invested into other countries.
• The US economy has faced a lot of up and downs over 150
• Initially US was dependent of its agriculture sector but now
the major strength of the US economy is the industrial sector.
• The economy was built up based on several indigenous
reforms by Presidents with the help of economists.
Positive Features of US Economy
• Political stability reduces uncertainty in the markets:
Even with debt ceiling crisis that pushed the country to the
brink, U.S. remains a safe haven compared to other nations
where ruling parties have been toppled and federal
governments head towards delinquency.
• Little corruption lets businesses operate efficiently:
Corruption takes a massive toll on small businesses overseas;
think police and politician payoffs and long procedural hurdles
for approval. In Transparency.org's annual rankings of
countries, the U.S. placed 22, between Belgium and
France. Transparency.org looks at bribery in the public and
private spheres and asks both experts and residents to weigh in.
• USAID (United States Agency of International Development):
USAID is US international development program. By USAID,
US provides financial aid to less developed and developing
nations. Types of aid provided by USAID include disaster
relief, technical assistance, poverty alleviation and economic
Negative Features of US Economy
• Wages are Falling:
The recession caused a giant drop in consumer demand, but
the culprit wasn't just a loss of housing wealth. Wages for
most workers are declining. In fact, real median wages fell by
about 2.8% between 2009 and 2012. That's bad for workers
and bad for the economy.
• American’s don’t Pay Taxes:
A reported 47% of Americans pay nothing in federal income
taxes. This also have negative effects on the economic
structure of any country.
• Military Cuts:
US is spending a lot on its military. After 9/11, it’s been 14
years since US military forces are playing a major role in war
against terror which has badly affected their economic
Economic growth signals are still positive and
consumption is apparently rebounding, while
corporate earnings are strong.
Unemployment, Housing, Interest Rates, and Oil
all loom as potential caution flags that could
reverse the good news story
Government debt and overall debt are not
going away as major issues that could reduce
long term growth and lead to unpleasant