American Manufacturing and the U.S Economy Essay - 702 Words

For over half a century, American manufacturing has dominated the globe. During this period, many great American businesses and corporations began. Companies like General Motors, Levi, and Ford became widely known and promoted. American manufacturing became synonymous with quality, greatness, and reliability. However, manufacturing in the U.S has started to plummet as the economy has begun this recession. It may seem as if the country that used to make everything is really on the edge of making virtually nothing. U.S. jobs in manufacturing have been vanishing at a fast rate and unemployment percent is on the rise, but despite the vanishing jobs Americans’ productivity is on the rise and Americans still lead the†¦show more content†¦Even with the misfortune with unemployment, Americans still lead the world in manufacturing. But there is a counterbalance to the drop in total employment, the dramatic rise in productivity. According to the National Association of Manufacturers, over the past two decades manufacturing productivity has grown by 94%, which is considerably faster than the rest of the U.S. business sector, where productivity grew by 38% over the same time period. Another concept that is brought up by the article is international trade and business. There are a number of gains to be obtained from international trade, such as lower prices, greater choice, and a variety of resources. Many of the millions of laid-off workers in recent years ended up shifting into lower-salaried service jobs, while U.S. manufacturers relocated production facilities to low-cost countries. The U.S has established great economic trade connections with the rest of the world, and that has lead to U.S. based plants shifting work over to foreign competitors, such as China, so that they can have cheap labor. It is much cheaper to have workers overseas however there is the danger of unemployment. The United States needs to protect the economy from imports, so sometimes a tariff is applied. A tariff is a tax that is charged on imported goods. Any taxShow MoreRelatedProblems Faced By Japanese Foreign Investments Relations Between U.s. And Japan1135 Words   |  5 Pagesglobal economy, the foreign investments relations between the U.S. and Japan have been one sided due to the inter-Asian business models of the Japanese markets. Japan has traditionally been cooperative with the United States in allowing its products to be manufactured and sold in the United States, which has provided some manufacturing jobs in the U.S. This causes problems for the U.S. because they are disadvantaged by one-sided trade agreements that decrease job opportunities for American workersRead MoreU.s. Trade And Economy1293 Words   |  6 Pages US TRADE AND ECONOMY Then and Now Oshin Nandal 1001111637 EXECUTIVE SUMMARY As we know US went from being a net exporter to a net importer in a short span of time. 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