The U. S Economy and Its Impact on the Transportation and Logistics Introduction/Background The United States of America is undisputedly the world’s largest national-level economy. The economy accounts for about seventeen percent of worldwide Gross Domestic Product (GDP) and a staggering twenty two percent of nominal global Gross Domestic Product. Statistics show that, as of the first quarter of 2014, the United States GDP was over $17.7 trillion. The county’s national currency, the dollar, is the most widespread currency worldwide and as such, is involved in several international transactions. The United States of America’s largest trading partners include Canada, Korea, Mexico, Japan, Germany and China.
The six are the nation’s largest trading partners and, therefore, contribute significantly to the rise of the U. S economy. The U. S has a vast array of natural resources, high productivity and a well-developed infrastructure. The transportation sector encompasses such services as freight forwarding, logistics provision, private transportation and maintenance of vehicles. Logistic services provided in the economy include warehousing, material handling, order fulfillment, demand and supply planning, fleet management and inventory handling. An expansion of the U. S economy will improve the transportation and logistics management sector.
An economic expansion implies that supply increases due to a rise in aggregate demand in the economy. An increase in aggregate demand leads to an increase in the movement of goods and services within the country. The result is a rise in income generated from transport and logistics management-related services. The continual rise of electronic commerce in the country will positively influence express parcels carriers (“How Will Logistics Benefit From the 2014 Economic Upturn? " - Supply Chain 24/7, 2014). Objectives of the study General Objective To investigate the impact of the U. S economy on the transport and logistics management sector. Specific Objectives To establish the relationship between the transportation sector and logistics management. To establish the contribution of the transport and logistics management to the U. S economy. Justification Statistics from the U. S National Income and Product Accounts show that in 2001, hire-for-transportation industries, value of equipment used for transportation, fuels and in-house transportation expenditure contributed up to $306 billion of the U. S.
GDP. The freight transportation sector contributed about sixty eight percent of the money. Previous academic research work has not covered the impact of the U. S economy on the transportation and logistics management adequately and as such, this research project work is rightfully justified.
Reference List "How Will Logistics Benefit From the 2014 Economic Upturn? " - Supply Chain 24/7. 3 Feb. 2014. Web. 8 Mar. 2015..