The Analysis Of The Economic Activity Of The USA - Essay Example

The Analysis Of The Economic Activity Of The USA The country chosen for discussing the economic activity of the country is United States of America and Gross Domestic product is selected as an element for discussing the economic activity of the country (Arnold, 2008).The Gross Domestic product is used for measuring the output and the national income of the economy of the country. The Gross domestic product is considered equal to the total expenditure of the country that is incurred for producing the final goods and services of the country within a definite period of time (Mankiw, 2002). United States has plenty of natural resources and is experiencing a highly developed infrastructure and also increasing or high rate of productivity. United States is considered as the largest economy of the world and it is recognized as the largest producer of oil and natural gas in the world (Abel. and Ben, 2005). Figure 1: Gross Domestic Product. The gross domestic product in the United States has been valued for the worth of 16800 US billion dollars in the year 2013. The value of the Gross domestic product of United States includes mainly 27.10 % of the total world economy (Sexton, 2007). United States is considered as the most technologically advanced and diversified economies of the world. Insurance, rental, leasing, health care, educational services, business, real estate and finance contribute to around 40 % of the GDP. The retail and the wholesale sector contribute to around 12 % of the total GDP of United States. The government and the related services contribute to around 13 % of the total GDP of United States (Czinkota and Ronkainen, 2007). The agriculture sector contributes to around 1.5 % of the total GDP of the United States. Figure 2: GDP growth rate of United States When the Gross Domestic product of United States is compared with the other countries in the rest of economy it has been observed that US is considered as the most technologically advanced country when compared with the other countries of the world. The business firms of United States generally experiences and enjoys greater flexibility as compared to its counterparts in Japan and Europe (McEachern, 2008). The GDP of United States when compared with Japan can be explained by the fact that the worth of the Gross domestic product of Japan is 4901 billion US dollar in the year 2013. Japan contributes around 7.90 % whereas in case of United States it contributes around 27.10 % of the total world economy. The difference in the GDP of United States and Japan can be explained with the help of the following diagram (Gottheil, 2013). Figure 3: Comparison of GDP between United States and Japan. The United States has experienced a mixed economy and it has maintained a overall growth rate of GDP that is stable and it has been recognized as the sixth largest partner in trading with countries which includes Mexico, Canada, China, Germany, South Korea and Japan. The GDP per capita of the United States is 51540.74 in terms of US dollar which is obtained by adjusting the purchasing power parity with the total population Position Paper Committee: International Labor Organization Country: Germany Delegate: labor Market Economist Topic: Youth unemployment as a socio-economic challenge The increasing rate of unemployment has resulted in the increase of misfortune for the individuals as well as the lack of opportunity for the critical global and national development of the economy. The rate of unemployment of the youth has a deep and long life effect or influence on the employment and income stability of the economy (Jenerette and Wu, 2001). In this developing world the increase in the unemployment among the young youth generation has lead to the decrease in the potential for the national transformation of the economy and the increase in the economically frustrated youth will lead to the instability in the society. Germany is experiencing unemployment of about 2.2 million individuals (Tylianakis, Didham, Bascompte, and Wardle, 2008). The consequences of the youth unemployment in Germany can be explained by emphasizing on the fact that the increase in the unemployment has resulted in the waste of the resources in the economy (Van de and Mijs, 2010). The poor youth market that is experienced in Germany has caused or created a barrier in realizing the benefit or the advantages of the labour intensive strategies for growth and development. The underemployment of the youth in Germany has contributed towards the fiscal challenges of the country and the unemployment has increased the risk of social pathologies for the youth of Germany (Zimmermann, Biavaschi, Eichhorst, Giulietti, Kendzia, Muravyev and Schmidl, 2014) The solution for mitigating the problem are in response to the unemployment problem of Germany it is required to restructure in a way that it increases the self interest and also increasing the long term growth and development of the country and it is required to establish talent search perspective for providing sustainable solution for solving and overcoming the situation of unemployment in the economy. Germany has faced a talent shortage in the current year as compared to the previous year. The solution that has been adopted by Germany is engaging them in dual training and it is 8.6 % in Germany (Zimmermann, 2013). Seminar The countries that participated in the debate are India, Germany, United States, United Kingdom, Korea and Japan. The topic that were discussed in the discussion that is conducted or carried out among the member countries is by debating on the fact that the rate of unemployment among the youth generation is higher as compared to the unemployment rate of the adult population (Pastore, 2015). The characteristic and the feature of the unemployment and the relationship between the adult and the youth unemployment were discussed in the seminar. Korea and Japan has focused more on the causes of the unemployment in the economy. United States has emphasized on the factors that are responsible for the fluctuations in the youth unemployment (Buchholz, Hofäcker, Mills, Blossfeld, Kurz, and Hofmeister, 2009). The solutions that were suggested or advised by the delegates are that it is required to establish or develop a new talent based economy for increasing the opportunities for the enterprise, personal, and the national growth and development of the economy. US have made an attempt for promotion of full employment that is to be provided to the individuals. Germany has adopted various initiatives for improving and developing the outcome of the youth employment (Smith, & Jenkins, 2013). The resolution adopted by each country had its own justification but by comparing the resolution it was found that after voting the resolution that is adopted by United States have been accepted. Position Paper Committee: WWF International Board. Country: India Delegate: Member of NGO’s Topic: Global poverty. In spite of the increase in the GDP of the country the rate of poverty is still increasing in India. The rate of poverty is more prevalent rural areas of India and it has been found to be around 70%. India is considered as the fastest growing economy of the world but the riches of the country are not proportionately distributed across India. The poverty that is prevalent in India is measured in terms or on the basis of the poverty line in India. United Nations have played a major role for the eradication of poverty it has introduced a index of the development program for the human development that will measure the aggregate per capita income in relation to the health and educational outcomes of the country (Koren, 2010). The issues that are related to the rise in poverty in India are the increase in the growth of population which has resulted in the increase in illiteracy, lack of access to various financial resources and the availability of poor health treatment facilities. The increase in the population has resulted in reducing the per capita income of the country (Hulme, 2010). The impact and the effect of social and economic in equality have resulted in the situation of poverty in the economy. The outcome indicators of poverty are influenced by the mortality, life expectancy and morbidity. Inequality in income is directly related to the poverty in the economy. The slow and the inequality in the social mobilization in different parts of India have resulted in the uneven growth and development of the economy (Glenn, 2007). Seminar The countries that participated in the debate are Burundi, Pakistan, Cambodia and Sudan. The topic of discussion in the seminar is global poverty India, the steps undertaken for improvement of the poverty situation and efforts in reducing the gap between the poor and wealthy people. The topic mainly focussed on the role of the united nation in reducing the poverty in India and it was found that different programs have been adopted by United Nation in controlling the poverty. The various steps or program that has been introduced for the reduction of poverty in India includes training provided to the rural youth for development, national rural employment program, integration of the rural development program and the jawahar rozgar yojana (Jain, Ohri and Majhi, 2008). The debate also focussed and emphasized on the role of the businesses in reducing the gap that exist between the rich and the poor people and the member countries pointed that since the social and economic disparity is prevalent in the third world war countries therefore the most efficient technique in reducing of the poverty in India is through imparting of education to the younger mass and the adoption of various population control measures because increase in population results in the situation of inequality in income and the increase in the cost of health care treatment and also leads to the situation of unemployment in the economy (Isaak, 2007). Summary The discussion or the debate signifies that Global poverty is the cause of concern for the whole world as it reduces the per capita income of the country and affects negatively and severely in the economy therefore it is required to eradicate the poverty in the economy by finding out the root cause of poverty and then formulating various steps or measures for the eradication of poverty. The debate was conducted for discussing the situation of poverty that is prevalent in India and the reason or the causes of generation of poverty and finding out various measures for its eradication. Globalization has minimized the rate of poverty in India since it has bought stability in the economy. The situation of poverty has resulted in the economic and social inequality in the society or in the economy. Global Population change Till date the birth rate and the death rate were almost same in United States. The people who has large number of children died before the age of 6. The reason or the factors contributing towards the global population change in the economy can be explained by considering the three important issues such as the increase in the production and distribution of food, advancement in the medical technology which included the vaccines and antibiotics together with the gain or improving the living standard and education of the people in the country and improving or developing the health of the public by improving the sanitation and water facility that is provided to the people of the country (Coats, 1971). The food production and the distribution of the agricultural products have improved in the United States for the last two centuries. The technology of United States have improved a broader perspective by improving the various techniques for producing new kinds of pesticides, chemical fertilizers and also sophisticated machinery. But on the perspective of the food production and distribution of United States when it is compared with the other countries such as Africa and Kenya it has been observed that Africa and Kenya has decreased in its food production and distribution system but the population of this two countries has increased. In United States with the improvement in the food production and distribution system the problem of shortage of food has been mitigated and United States have become self sufficient in fulfilling all its needs and requirements whereas in case of Africa and Kenya the problem of malnourishment and poverty existed (Bergstrom, 2007). The improvement in the public health in case of United States has lead to the increase in the adequate housing and the growth and development of population and when it is compared with Africa and Kenya the people are forced to survive in the poorest community where they are subjected to exploitation. In these countries with the increase in population the extent or the degree of poverty is also increasing (Kolpin and Singell, 1996). The improvement in the medical technology such as the introduction of vaccination has reduced or decreased the rate of diseases which includes polio, influenza, small pox and rubella. With the use of vaccination in the United States the rate of the infectious diseases has decreased and also the death rate has also reduced in the country. Therefore the advancement and the progress in the medical science has lead to the increase in the population in the country whereas when it is compared with that of Africa and Kenya it has been observed that they are experiencing shorter lives and also increase in the rate of high death of the infants due to the lack of advancement in medical science and technology. Therefore it is found that United States has been developed and therefore it has undergone population change in the economy (Bell and Morse, 2013). 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