Usa Economic Political Cultural Environment

an assessment of USA economic, political, and cultural environments

The economic environment is interpreted as the sum of all economic factors that influence business decisions. Economic factors include unemployment rate in the country, inflation rate in the economy, income distribution across nation and gross domestic product per capita etc. The economic environment is dynamic and rarely static. It is ever-changing with movements and changes in the economy such as new government policies or change in political leadership.

The economic environment is categorized under five main elements, 1) economic conditions 2) economic systems 3) economic policies 4) international economic environment

Economic conditions of the United States of America are measured using a few economic indicators as listed below. United States of America (USA) is currently the 7th richest nation in the world with gross domestic product (PPP) per capita at $46,860[1]. USA is the home to the highest number of billionaires in the world and has the largest economy in the world at $14.66 trillion[2]. These factors point to the fact that USA is still a force to be reckoned with despite its recent downturn. USA is the world’s largest importer of goods and services and the third largest exporter[3]. USA retains its position as industrial power and its prowess signifies that there will have a domino effect on other economies around the world as evident in 2008 global financial crisis. USA has an unemployment rate of 8.2%[4], signifying that there are unutilised resources in the economy. The inflation rate in USA was 1.7% in May 2012[5]. This is lower than the average inflation rate in USA from 1914 to 2012 (3.4%). The interest rate in USA is 0.25 percent[6]. This low interest rate is supported by the expansion of the US government “Operation Twist”, by the US government selling short term and buying long term securities, signifying that the US government has been implementing policies to keep...