What type of impact do you think the United States economy has on the World economy?

Question

Please help. I don't know much of the economy, but yet my teacher expects me to answer this. Can you help me PLEASE. Please keep your answers very simple and understandable.

What type of impact do you think the United States economy has on the World economy? Explain your answer. Specific examples might include:


References to the impact September 11th (9/11) had on our economy and the resulting effects of the world economy (travel/airlines, etc)

U.S. participation in the World Bank and International Monetary Fund - the U.S. has a large say in how much is loaned and which countries receive loans.

U.S. trade and its importance to the stability and economic development of other countries.

Answer 1

The GDP in 2005 was $12.41 trillion. The World GDP was $61.08 trillion, thus, the US GDP is 20.3% of the world's economy. If the US GDP dropped by 1%, that's 124.1 billion dollars lost. That's greater than New Zealand's GDP, which is 58th out of 180 countries (ranked by the IMF).

2.) The US holds 16.4% of the voting rights at the World Bank, more than any other country. Voting rights are calculated as a combination of being a member plus an amount based on the financial contribution into the Bank. Since the World Bank helps many smaller countries improve their economy, the ability and willingness of the US to fund the World Bank and work with these countries has a huge effect on their economy.

3.) The US exported $800 billion in 2005, and imported $1.5 trillion. $2.3 trillion dollars works out to being 3.78% of the world's GDP - thus US trade is a huge componant of the global economy. More importantly, 49% of US exports are capital goods - defined as goods used to improve an economy and/or infrastructure. That's essentially $400 billion in capital goods that go to other countries that is pumped directly into the economy.

Also, the US gives $6.9 billion in economic aid to other countries. Some states, such as the Palestinian authority, literally live and die by foreign aid (as evidenced when everyone cut aid to them).

Answer 2

In 2003, the U.S. accounted for about 30% of the world's GDP, but only for 12% of worlwide exports and 18% of worldwide imports. So the impact of the U.S. on the world economy is substantial, but not overwhelming...