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Journey To World Economy:What is Economics

4 min read
world economy

” What is economics ” Development of a country is based on its economy. It is interrelated with production and consumption activities. As well as it determines how scare resources are allocated efficiently. World economy change minute by minute. Therefore, it is important to know about current status of world’s economy. This article discusses about the countries who is owing to world largest economy.

The United Status of America takes the world largest and important economy while China, Japan and Germany take second, third and fourth palaces respectively. GDP per capita measures country’s gross domestic production. USA takes highest GDP per capita than that of other three countries and lowest GDP per capita takes China while Germany and Japan take second and third places. This all economics are majoring by services-oriented companies such as technology, healthcare, retail and financial sector.

What is economics

When talk about What is economics, it is important to discuss about balance of payments, trade structure, exports and imports.

What is economics :Balance of Payments

Current account balance of any country highly influenced by international trade flows. If there is a deficit, that means earnings from particular country’s assets and investments are very small in their current account. If there is surplus county can earn more money from abroad through their assets and investments.

When talking about,What is economics,We have to compare current account/Balance of payments in USA, Japan, German and China. United Status shows a deficit in their current account. They use net capital inflows to finance their current account deficit. Ehen it comes into Japan, they show continuous surplus in their current account since 1981. In 2011 to 2015 Japan’s surplus has decreased. But by 2016, reduction of energy prices helped to return the trade balance back to surplus. Germany shows surplus in their current account by 2018. But Assets balanced has declined slightly for merchandise trade. China shows surplus in their current account. In 2018 USD 54.6 billion can be seen in their current account. And also, it is important to highlight that Chinese government enact lack of freedom to covert local financial assets into foreign financial assets.

What is economics

Do you know What is economics Trade Structure

United States takes the second world biggest exporter and number one leading importer and Germany has become third largest importer and exporter while the Japan takes fourth place. United States plays a vital role in international trade why because they have reduced the barriers in trade agreements while highly promoting free trade agreements such as the North American Free Trade Agreement (NAFTA) .Major trading partners of the United States are, Canada, China, Mexico and Japan. Canada is the major export partner in U.S as well as China is the major import partner in United Status. Top Exporter in Japan is China and United states takes top destination for imports. After became a member of World Trade Organization, China shows rapid increment in international trade. The purpose of enter to the new markets in world China has engaged bilateral and multilateral trade agreements.

Do you know What is economics Exports and Imports

Talking about ” What is economics ”…..we can say…..United states mainly export material goods , machinery, airplanes, mortar vehicles and chemicals. As you know there is know other country who is leading in export sector non-other than United States. They also export services such as knowledge, business services, travel and tourism much more. When consider about Japan they mainly export cars, vehicle parts, industrial printers. China mainly export garment products, equipment, and materials. Germany export motor vehicles, machinery, chemicals, pharmaceuticals and much more. They mainly export their products to European union, China, Switzerland and China.

What is economics,Imports are also play vital role in economy in a country. United States has lack of oil resources. Therefore, they largely import crude oil, fuel oil and petroleum products. As well as computers and computer accessories, pharmaceutical products so on. Crude petroleum, Petroleum gas, Coal briquettes, Integrated circuits are main import item that japan import from other countries. China import basically commodities, oil , iron core, copper as well as cereals. Their major importing countries are Asian countries, Africa, Australia, Middle East and South America. Germany primary import machinery, data processing equipment, vehicles, chemicals, oil, gas, food stuff and much more. European Union, China, Switzerland and Russia are the major import partners in Germany.

When talk about economy nowadays Green Economy has become prominent one. For the purpose of improve well being of human , to build social equality and to reduce environmental risks as well as scarcity Green Economy concept has introduced. Through this concept every county can increase GDP. Korea, China, Mexico City are the countries who has taken leadership to promote this concept throughout the world. Korea Rep. has invested in several sectors such as renewable energy, clean technology and water. Not only that but also,talking about What is economics, Mexico City has given a greater effort to promote Bus Rapid Transit. As well as China has invested more money to renew energy .

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