Custom term paper on The United States is the largest economy in the world

1. Buchholz, T. Market shock: 9 economic and social upheavals that will shake your financial future and what to do about them. New York: HarperBusiness, 1999.

To beginning of 1980th the bar of deep crises, related to passing to the new pattern of growth, based on resource-saving technologies, final fixing of science and other elements of innovative complex as main generators of progressive changes and most effective motive forces of growth was completed in the economy of the USA. The processes of re-erecting of a particular branch structure of internal economy were accompanied substantial modification of model of economic co-operation of the USA with their partners.2
Scale changes took place and in a world financial sphere. Beginning of 1980th was marked by the crisis of international debt, which overcame the large group of developing countries and demanded development in relation to the new strategy of economic and financial assistance. In those years there was registration of international financial market as an independent sphere, possessing own potential of development and rendering strong influence on the national monetary systems. The market of eurodollar, which was examined as a generation of deficit of balance of payments of the USA, appeared the kernel of international financial market. Round it the market of Eurobonds began to be formed and also other assets, shown in foreign currencies in relation to countries in which they took place and applied.3
2. Cohen, S. The making of United States international economic policy: principles, problems, and proposals for reform. 5th ed. Westport, Conn: Praeger, 2000.
3. Forman, J. Making America work. Washington, D.C: Urban Institute Press, 2006.

Deep changes, having a place in a national economy in 1970-1980th, meant appearance of new quality of international position of the USA. Character of economic superiority of the United States changed above their partners in the group of the developed countries. In the first decade after World War II this was prevailing of the strongest in an economic plan country above overcoming the weaknesses and by collecting force partners.4 On changing relative superiority of first among strong and more closely associated the economic bonds of participants of world economy came to it. Time of growing «meeting» economic dependence of America came from the partners on all complexes of external economic connections and to the international trading in commodities and services, to the exchange by technologies, to the capital flow. Dependence grew of these partners from the USA with their rich and highly organized market of commodities, services and capital.
To the objective estimation of new position of the United States as one of the main centers of world economic development (and before and in our time) an appearing in 1971 trade balance of country, which grows continuously, deficit mixes. In the USA this deficit was long examined as an annoying rejection which must be corrected due to more effective policy in area of economy and foreign trade. At the beginning of XXI century, when a trade balance deficit was approached on a size to the value of the American exports, the question about its complete removal is not already. But the task of its reduction is examined as extraordinarily custom term paper
4. Kubarych, Roger. “U.S. Economic Situation: Strengths and Weaknesses.” Council on Foreign Relations, August 28, 2002.
It is considered that the modern sizes of deficit carry in itself a threat stability of the American economy. Serious fears are caused by high and various dependence of economy of the USA on a foreign cash inflow. A foreign cash inflow is related to the deficit of foreign trade and balance of current operations, examined as the extraordinary phenomenon. Many analysts consider this influx the form of growing external debt of the United States, bearing a threat for financial and economic stability.
It seems to me that no less serious danger is related to the revival at the beginning of XXI century of deficit of the state budget in large sizes and growing national debt. These tendencies entail dependence on the trouble-free influx of foreign investments in the American promissory assets.
To the noted fears anxiety concerning on the falling of course of dollar and weakening of its positions is added in world currency-financial system. Decline of the last years of course of dollar to the euro and row of other currencies, and also certain reduction of its role on world financial markets (on a background of the growing role of common European currency) generates an alarm in relation to the possible loss of role of leading world currency to a dollar.
Question about that, as far as the noted fears are grounded, requires an address to description of basic aspects of modern model of economic co-operation of the USA with partners on a world economy. We can mention that position of economy of the USA as a main center of world economic development creates a growing market for the American partners. During one and a half last decades the economy of the United States comes forward the main locomotive of world economic growth. For period of 1990th – neither EU nor Japan was able to make beginning of 2000th alternatives of the USA in this role.
Growth of the American economy became the long duration factor of world economic development. In the USA growth of economy rates for the last decade averaged 3,5% in a year, and in the area of euro this index made hardly more than 2%. Japan only in the last 3 years went out on the indexes of increase about 2,5% in a year after the heavy crisis period of 1990-2002. Because of absolute largenesses of economy of the USA every percent of its increase has ponderable value and strongly influences on the economies of other countries through the mechanisms of international economic co-operation.5 The United States come forward the main center of world economic development, which through numerous connections with other partners strongly influences on character of development of their national economies.
The USA produce growing demand on the vast circle of commodities on the line of foreign trade maintenance of which changes under influence of scientific and technical progress and economic activity of the American partners. Although some specialists in the USA and after their limits examine the enormous deficit of American foreign trade as threat stability of economy of the United States, to our opinion, such position is objective investigation of strengthening of world economic leadership of America.
5. Blaszczyk, R. and Scranton, P. Major problems in American business history: documents and essays. Boston: Houghton Mifflin, 2006.

This position requires next explanations. And according to previous information we can say that long duration character and large sizes of point-of-sale deficit of the USA is conditioned by considerable structural changes in the international division of labor, which are caused by fundamental reasons. Growth of import of the United States is a reverse of asset of balance of trade of many point-of-sale partners of the USA for which the sale of commodities at the American market serves to one of main terms of growth and development. The states of EU, Japan, South Korea, China and other states with the export orientation of economy, relate to such countries.
Thus, taking into account all above stated we can conclude that economical growth of the USA and its external and fiscal imbalances affect growth in other parts of the world. Both of these situations influence in different ways on other countries, but their influence shows own essence in different areas of economical growth of various countries.

Works cited
Blaszczyk, R. and Scranton, P. Major problems in American business history: documents and essays. Boston: Houghton Mifflin, 2006.
Buchholz, T. Market shock: 9 economic and social upheavals that will shake your financial future and what to do about them. New York: Harper Business, 1999.
Cohen, S. The making of United States international economic policy: principles, problems, and proposals for reform. 5th ed. Westport, Conn: Praeger, 2000.
Forman, J. Making America work. Washington, D.C: Urban Institute Press, 2006.
Kubarych, Roger. “U.S. Economic Situation: Strengths and Weaknesses.” Council on Foreign Relations, August 28, 2002.
Sobel, R. The age of giant corporations: a microeconomic history of American business, 1914-1992. 3rd ed. Westport, Conn: Greenwood Press, 1993.