and Assessing Economic Performance the US and Australia The economy of the United s of America is the largest in the world as well as being the most powerful in terms of technology. The country has a per capita GDP of about $47, 200 trillion. On the other hand, the economy of Australia is about $1.1 trillion dollars. American business corporations enjoy substantial flexibility as compared to their Australian counterparts, in decisions related to laying off of excess workers, expanding capital, and the development of new products (Central Investigation Agency).
In addition, the American businesses experience many obstacles in their attempts to enter the home markets of their competitors than what the foreign businesses face while entering the American markets. This is different from the Australian businesses whereby they find it easy to enter their rival’s markets and vise versa. Companies in the United States are the leading in terms of developments in technology as compared to those of Australia; this is particularly in medical and computers, military and aerospace equipment. The United States is a market-oriented economy, and most of the decisions are made by the private businesses and individuals Central Investigation Agency).
The state and national governments purchase the required services and goods mainly in the private market. In the United States, whereas producers and consumers are entitled to making majority of the decisions as regards to economy, the government has a strong or powerful influence on the economy of the country in at least 4 areas, as it uses a system of capitalism. Australia is among the G7 countries that enjoy the highest living standards.
The economic standing of Australia in the world is a consequence of a dedication to the policy settings of best-practice micro economy, the entrustment of the monetary policy conduct to the independent Australian Reserve Bank, and an extensive acceptance of sensible or practical financial policy where the government intents for financial balance over the cycle of economy. Nevertheless, economic recovery in the nation is strengthening, with the GDP projected to grow by four percent in 2011-2012 and four and half in 2012-2013, resulting to further decrease in the rate of unemployment Central Investigation Agency).
Therefore, in general, the economy of the United States is way far ahead of that of Australia, even though the Australian one is also experiencing a steady growth. Work cited Central Investigation Agency. Nov 30, 2010. Web: https: //www. cia. gov/library/publications/the-world-factbook/geos/us. html, retrieved November 15, 2011.