Every country doesn’t have all the resources it needs inside itself. For example, America and European countries don't have silk; they don’t know how to produce it. This is a country that doesn't have this technique. Another example is that the Caribbean and South American countries produce cocoa beans while China doesn’t. This is because they don’t have the climate. What they do is they “import” things from outside into their country. Import means when we bring products in from another country to our own country. The opposite of importing is exporting. Export means to send goods or services to another country for sale. Every country also needs money, the most important thing to develop. One way to do this is selling other goods to a country which doesn’t have the resources they need. However, countries who are competitors use this as a chance to get advantage.
The United States is a young but a country that developed rapidly. At the start, the people mostly relied on hunting and their resources brought from their home country because the travel system isn't very convenient. From 1700 to 1774, the output of the thirteen colonies increased 12-fold, giving the colonies an economy about 30% the size of Britain's at the time of independence. Population growth was responsible for over three-quarters of the economic growth of the British American colonies. This changed in the three centuries. In 2022, United States was the number 1 economy in the world in terms of GDP (current US$), the number 2 in total exports, the number 1 in total imports, the number 8 economy in terms of GDP per capita (current US$) and the number 10 most complex economy according to the Economic Complexity Index (ECI) .
Since 1995, the value of global trade has nearly increased fivefold, falling just a short peak seen in 2022. From 2023’s statistics, the United States of America is the world’s largest importer of goods; they imported $3.2 trillion in goods, making it the biggest importer globally. Due to its large consumer base and advanced economy, the U.S. is the world’s largest importer of many product categories including cars, electronics, industrial machinery, and pharmaceuticals. Mexico, America’s top trading partner, supplies many of these goods, while Canada is a crucial exporter of crude oil, natural gas, and other resources. On the other hand, China is the world’s largest exporter of goods and resources since 2023. China exported (total value) $3,511,000,000,000 (3.511 trillion US. Dollars). China has many gigantic marine ports and international airports, which includes cargo airports.
There is a central rule that makes the economy develop. It is the Supply and Demand law or economics. In my opinion, I think Supply and Demand economics are good. Before I present my reasons, it is very vital to understand this concept because, despite the changes in prices caused by Supply and Demand, consumers can take advantage of them. If we understand the relationship, we can try to buy things when we believe prices may drop and avoid purchases when prices are higher than they had been. Let's use the most common fruit, apple, as an example. When the apple’s output is normal, the price will be cheap, so we should buy it at that point. However, when there is a fire and lots of apple trees are burned, the price will skyrocket. We shouldn’t buy it at that point.
There is a competition between the largest economy units in the world. Currently, I believe that the United States of America is in the lead. Firstly, I learned that the USA has the largest GDP (Gross Domestic Product) in the whole world. It has a whopping 27.36 trillion US dollars. Secondly, very similar to the first reason, it also has a large GDP per capita (Average money a person has in that country). The US has 81,695.19 USD per average person in 2023. This is a massive amount as China only has 12614.06 USD per person. Lastly, mentioned from previous paragraphs, the USA is the largest country of import. If a country imports consistently, it should have lots of money as the other countries can make the prices higher.
Comentarios