Question

Discuss the economic environment (economic system, main products and services, economic risk) in USA.

Answer 1

U.S. economy has a mixed economy. It works according to a mixed Economic system, which includes capitalisation and socialism as well.

TheUnited States is the world's largest economy, ahead of China. The GDP grew 2% in 2019 - and expected to fall to almost -6% in 2020 due to the outbreak of the COVID-19 and pick up to higher in 2021. Because usa is a develop country the recession period will not hold it longer.

The country faces growing inequalities and outdated infrastructures, which results in slow down its GDP growth. The U.S. has earned its position of being the world's largest economy since 1871. The size of the U.S. economy was huge since then.

The US-China trade war also seems to affect investors, and, the economy as a whole.

Economic system of US - US has the mixed economic system, because privately owned businesses and government both play important roles. .., Americans believe, supply and demand determine the prices of goods and services. It refers to use the terms like free enterprise, free market, or capitalism ans socialism. A free enterprise economy has five important characteristics. 1)economic freedom, 2)voluntary exchange, 3)private property rights, 4)the profit motive, and 5)competition.

Main products and services - Planes, choppers, and spacecraft, Refined petroleum, Cars, integrated circuits, Real Estate, Renting, and Leasing,

State And Local Government, Finance and Insurance, Health and Social Care,Durable Manufacturing, Retail Trade,Wholesale Trade. Nondurable Manufacturing and all kinds of products and services.

Economic Risk - › Economic risk leads on macroeconomic circumstances which may result in huge loss for a business. These conditions may include exchange rates, new government regulations, inflation and other potentialdecisions that may adversely affect profits and economy of the US.

Along with all other countries USA has officially entered a recession amid the pandemic, It may seem obvious, with double-digit unemployment and plunging economic output in coming days.

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