write a 250-word summary identifying two major economic strengths and two major

ID: 1148490 • Letter: W

Question

write a 250-word summary identifying two major economic strengths and two major weaknesses for your selected country. Focus on identifying factors that contribute to the country's overall performance and support the growth of the economy as a whole. For example, has the country grown primarily through export promotion or domestic growth? Finally, point out any significant differences you observe between your selected country and the United States. Use the matrix you have developed and the readings from The Economist to support your analysis. The other country will be Israel

Explanation / Answer

Country Analysis Matrix

Economic Metric

United States

Selected Country(INDIA)

Per Capita GDP

$1349

$850

Misery Index

150

GINI Index

0.6

0.1

Economic Freedom Index Overall Ranking

Human Development Index

Overall Ranking

103

Current Account Balance

-389,525,000,000

-31,288,847,935

Budget Balance as % of GDP

92%

68%

The U.S economy has shown many signs of positive growth and development since last five years. As we know that U.S was suffering from recession in 2007-08, thereafter the economy went almost into a slump. The broadest measure of economic growth – GDP growth rate has shown positive signs and now it has reached to 5 per cent. It is basically due to rise in the production activities in the manufacturing and the service sector in the U.S economy. Apart from that, the unemployment rate has fall down to 5.8 per cent in the year 2015 with mild consumer inflation. In U.S, there is high level of technology used which makes it highly capital intensive country. At the same time, the problems of long unemployment and less participation rates appear to be a structural problem of the economy rather than cyclical issue in the economy. In India, there is lot of social problems and economic issues. That is why; it is far behind the U.S economy in terms of the above mentioned growth and development indicators. The government policies are very restrictive in India, because of which there is very less FDI. It reduces the aggregate demand in turn which is not the case of U.S. The strength of Indian economy is that it has too many labors available which makes it quite cheap in India. Moreover, there is huge market in India. It adds up to the value of new produced goods and there is instant demand for those goods.