Unit 4: an overview of US economy

Unit 4 An overview of England US Economy An Overview of the US Economy Facts and Figures A free enterprise economy Economic Sectors US Import and Export Challenges facing US Economy Facts and Figures The worlds most powerful economy Facts and Figures Main industries Petroleum, Steel, Motor vehicles, Aerospace, Telecommunications, Chemicals, Electronics, Food processing, Consumer goods, Lumber, Mining Facts and Figures World’s leading producer of goods and services World’s leading industrial and.

US Economy

An Overview of the US Economy

• Facts and Figures

• A free enterprise economy

• Economic Sectors

• US Import and Export

• Challenges facing US Economy

Facts and Figures

The world's most powerful economy

Facts and Figures

Main industries:

Petroleum, Steel, Motor vehicles, Aerospace, Telecommunications, Chemicals, Electronics, Food processing, Consumer goods,

Lumber, Mining

Facts and Figures

• World’s leading producer of goods and services

• World’s leading industrial and

technological products such as

Aluminum, Copper and Sulphur

• Farming is highly merchandized and

commercialized => produce 15% of the world’s food needs

Facts and Figures

• Major products are machinery,

automotive products, aircraft and

Facts and Figures

• Labor: 151.8m( includes

unemployed) (2006)

• Labor force by occupation:

– managerial and professional

US Economy: A Free

Enterprise

American economy: a free enterprise system, which allows private business the freedom to operate for profit with minimum government interference and regulation

Laissez Faire (leave it alone):

individuals, motivated by self interest, are allowed to pursue profit freely, the result is good for all of society

Adam Smith (1723 – 1790)

US Economy: A Free

Enterprise

The role of the Government:

In 19 th Century: minimum government intervention

From 1930s, government regulation exists in many areas of business

Generally, the idea of “free” private enterprise is strongly supported

US Economic Sectors

Changes in the Economic

Sectors

US Import Export balance

equipment, motor vehicle

parts, office machines,

• The promise of high wages brings many highly skilled workers from around the world to the United States

• The number of available workers and, more importantly, their productivity help

Manufacturing and investment

• The corporation has emerged as an

association of owners, known as

stockholders, who form a business

enterprise governed by a complex set of rules and customs

• American investors and corporations

have influence all over the world

Challenges facing US Economy: Budget Deficit

Challenges facing US

Economy: Budget Deficit

BUDGET DEFICIT More money is spent than taken in since 1930

UNEMPLOYMENT

HIGH INTEREST

RATE INFLATION

Challenges facing US

Economy

2008 Economic Crisis:

- High oil price

- High food price

- Global inflation

- Credit crisis

- Unemployment

Stop and Check

Fill in the blank with ONE word or figure:

1 The American economy is described as a

_ system which allows

private business the freedom to operate for profit.

2 The founding father of American economic

system philosophy is _

Free Enterprise

Adam Smith (1723 – 1790)

Stop and Check

favorable conditions include: Labor, Manufacturing and investment, and _

4 The direct outcomes of US budget deficit since 1930 are: , High interest rate and Unemployment

Natural resources

Inflation

The Characteristics of American Business

- American Business means private and profit

- Businesses are directly or indirectly

owned and operated by private

individuals in order to make a profit

Traditional American values

Competition

The Characteristics of American Business

- Entrepreneurs are those who built up great industries: steel, railroads, oil

refining, etc

- They start with almost nothing and end

up with virtually everything

- They are everyone’s perfect heroes as they reflect the American dream in its purest meaning

Key Figures

The American businessman from Texas, who is best known for seeking the office of President of the United States in 1992 and 1996.

Perot founded Electronic Data Systems (EDS) in 1962, sold the company to General Motors in 1984, and founded Perot Systems in 1988

With an estimated net worth of around US$ 5 billion in 2008, he is

ranked by Forbes as the 72nd-richest

person in America.

Henry Ross Perot

(born June 27 1930)

Key Figures

An American business magnate, philanthropist, the world's third richest person, and chairman of Microsoft, the software company he founded with Paul Allen

Gates was the richest person in the world for 15 consecutive years During his career at Microsoft, Gates held the positions of CEO and chief software architect

He has also authored or co-authored several books.

William "Bill" Gates

(born October 28, 1955)

Organization man/woman

• They run the businesses that are

already established by others

• With have power and wealth, they are also models of success in US

• But they do not have a strong hero

image as entrepreneurs

Key Figures

The son of Malcolm Forbes and the editor-in-chief of business magazine

Forbes as well as president and chief

executive officer of its publisher, Forbes Inc.

He was a Republican candidate in the U.S Presidential primaries in

1996 and 2000 He is the grandson

of B.C Forbes, founder of Forbes magazine.

Malcolm Stevenson

"Steve" Forbes Jr

(born July 18, 1947)

Key Figures

The American businessman most commonly known for his revival of the Chrysler Corporation in the 1980s, serving as President and CEO from 1978 and additionally

as chairman from 1979, until his retirement at the end of 1992

Among the most widely recognized businessmen in the world, he was a passionate

advocate of U.S business exports during the 1980s

Lido "Lee" Iacocca

(born October 15, 1924)

Stop and Check

Decide whether the following statements are

True or False:

1 It is believed that competition is the key to

the success of many American businesses _

2 Business institutions receive higher prestige

in American society than any other

organizations

TRUE

TRUE

Stop and Check

3 Entrepreneurs are often more

successful and wealthy than business man/women _

4 Ross Perot and Steve Forbes are two examples of organization men who

successfully carry on the business left behind by their fathers _

FALSE

FALSE

TOPICS for DISCUSSION

1 Why is US called a land of

opportunities?

2 How are the American traditional

beliefs and values mirrored in the US economic system and how much do they make contribution to the

American economic growth?

TOPICS for DISCUSSION

3 What are the economic achievements that the US has reached so far and

what are the challenges it is now

facing?

4 Discuss the role of US in this

globalization context