Produces about 25% of world GDP with less than 5% of world population
Highest of near-highest per capita income
Why are U.S. companies globalizing?
Search for profits- companies looking for cheaper production costs and want to be close to their customers. Most of world’s population lives outside of US
Technology improvement has meant decreasing transportation and communication costs
More free trade treaties- most negotiations are US initiated and lead
What else has caused manufacturing jobs to decrease, besides globalization?
Globalization- the movement to developing countries of some labor-intensive industries
Productivity increases from automation- don't need many workers to produce same output
Why does America create so many service jobs?
Income growth
Hard to automate
Few regulations
Service companies have pursued global opportunities
Competition among service businesses is intense
What are some explanations for growing income
inequality?
Production technology vs. US education system (most important reason)