The USA Strengths, Weaknesses, Opportunities, Threats The United States is a federal republic made up of 50 states and one federal district. The country boasts of the largest GDP in the world and is a behemoth of technological and economic development in every sector. Currently, USA is having a difficult time and is feared that it will soon have its GDP overtaken by China. This paper is a SWOT analysis on the country. Strengths The largest and the most imperative market in the world The USA has invested immensely on education and research and development The consumers drive the United States’ economy.
It is because of this reason that it is known as a ‘consumer economy’. It stands out as the biggest driver of the world economy. Places regulations on the private sectors thus controlling or preventing monopolies The country has enormous reserves of Zinc, Phosphates, Lead, Gold, and Uranium (Hooda, 2010). Real Estate, mining, Finance and Insurance, manufacturing, wholesale trade, and transportation make up the largest part of the country’s economic drivers. According to human development, a very insignificant number live below the poverty line The US has some of the most developed technology systems that include medicine, aerospace, military, computers, and so on. Weaknesses Low rates of household saving Very huge disparities in wealth An alarming rate of increase of the federal debt While very few people live under the poverty line, there are still mothers who are unable to provide for their children, which is not a very good picture for the US. The country has the largest fiscal deficit and one that is on an increase.
In the year 2008, is the biggest debtor country. The credit market is weak. Its lack of sustainable supply of money makes it almost impossible to support the economy. Katrina scarred the country by destroying a lot of its resources (Ethridge, 2006).
Commodity shortages and high-energy prices make it very difficult to maintain such a huge economy. Many people still lack insurance posing a threat on the health of the citizens. Opportunities Tax relief can come in handy to relieve the citizens some financial stress Encouraging the consumers financially can go a long way in boosting the economy. The federal reserve can consider deducting rates of interest as this will see more people investing The country can avoid failing in both investment and growth by introducing some adjustment programs to enhance strong national saving (Porter, 2011). Threats The country’s deficit is unsustainable, a threat on the rates of interest and capital markets globally. China is forecasted to overtake the US concerning its economy.
Europe itself is doing better than the United States (Morrison, 2009). Rivalry posing a threat in the international markets Loss of jobs The stock value is going down Rising rates of unemployment Strength The USA has enormous reserves of Zinc, Phosphates, Lead, Gold, and Uranium.
Availability of natural resources determines how well a country fairs economically. This is because exporting the resources earns the country foreign exchange (Hooda, 2010). The minerals can also boost the manufacturing sector if used locally. Weakness Katrina affected a lot of the country’s resources (Ethridge, 2006). As seen above, presence of natural resources, help a lot in terms of economic development. The US was taken aback by the destruction of her resources. Opportunity The US has an opportunity to avoid a decline in both investment and growth. If the country does not work on saving and investment, then its development will be greatly affected and the economic situation will not be alleviated (Porter, 2011). Rising rates of unemployment China is forecasted to overtake the US about its economy.
Currently, there is no country undergoing great transformation in the form of the economy compared to China. If it China overtakes the US, then the latter loses its strategic position in world affairs. The prospects of this will be reduced control and power over the world, which could prove detrimental in the world affairs (Morrison, 2009). References Ethridge, R.
(2006). Bearing witness: Assumptions, realities, and the otherizing of Katrina. American Anthropologist, 108(4), 799-813. Hooda, P. S. (Ed. ). (2010). Trace elements in soils (pp. 1-596). Chichester: Wiley. Morrison, W. M. (2009, December). China's economic conditions. LIBRARY OF CONGRESS WASHINGTON DC CONGRESSIONAL RESEARCH SERVICE. Porter, M. E. (1991). Capital disadvantage: America's failing capital investment system. Harvard business review, 70(5), 65-82.