Why is it important for the U.S. to participate in the Global Economy? Please Answer ASAP?

Question

Also any websites that have some information on this stuff would be very helpfull. THANKS

Answer 1

Estimate Nominal GDP
World GDP = 48.25 trillion
US GDP = 13.2 trillion
The US makes up more than 25% of global GDP, if the US did not participate in the global economy, as far as I can tell, it would be a zero-sum game, in that no one would really be better off. Some may argue that the people working in sweat shops owned by US corporations would be better off because those factories would no longer exist. My response would be, if there was a better alternative for people employed in sweat shops, wouldn't those people would be working somewhere else. I may have deviated slightly from the question, but my point is that many people do not like the role the US plays in the Global System, and people may have good reason for their feelings, however, the alternative of a world without the US participating in the Global Economy is significantly worse. Without the US, who would consume all the products China makes, who would consume all the oil produced? Prices would drop by such an enormous amount that countries would be unable to sell goods for what it costs to produce those goods. Without the US participating in the Global Economy the entire global economic system may well fall apart completely.

Answer 2

Well think about it yourself, the US has an enormous population with high wealth and thus high demand for consumer products. Currently the US is importing A LOT more than it is exporting (it is a net debtor) from countries like China etc. So by participating in the economy it makes other countries better off by constantly importing (that is why China's economy grows every year by 10%+ for instance).

So for now everyone benefits from the US participating; however, the issue is why the US is still a net debtor when it is supposed to be a creditor. That's a different topic though.

Hope this helps
Cheers!

Answer 3

To allow for continued growth in our economy. Our purchasing power is enhanced by having a wide variety to products to chose from. We also have foreign direct investment in other lands which allows our companies to expand their output in markets that have more participants. In some areas our growth or demand has stagnated, these firms can not tap into a whole new consumer base beyond our border.

Answer 4

US has no choice, as any body who is highly in debt.That apart,it's the leading economy in the world and leaders can't sleep when the boys are working.

Answer 5

I don't know anything about economics, but I would think that it's important because the US do business with the rest of the world? That globalisation is a reality?