US Role in Economic System

US Role in Economic System

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Economic is a social science that is concerned with proper use and allotment of resources to achieve and maintain growth and stability. While economic system which is also a social institution, it deals with the production, supply and consumption of goods and services in a particular community. As a system it is composed of individuals, institutions and their relationship and it does address economic problems such as scarcity and allotment of resources. This essay will analyze the role of United States in economic system, as leader, collegialmember, and sometimes a self-interested player in a competitive world economy and the impact it has in the world.

Since the end of World War II, the United States has been in the lead in promoting the establishment of international trade rules and the reduction of trade barriers. After the signing of the General Agreement on Tariffs and Trade (GATT) in 1948, the United States has been promoting tariffs and nontariff redaction trade barriers that have served to maintain deliberation. The G20 countries are expected to have followed up meetings that are hosted by the trade ministers and it was promised by the G20 leaders in September 2009 at their Pittsburgh Summit, has had weak support from the United States officials (mbanotesworld.in, 2008). In spite of this the United States did attain a solid gain in GDP increase of $16.9 billion after being in the forefront in promotion of tariff reduction.

According to Stewart (2007), the United States being the greatest beneficiary in trading it has the responsibility to give back from its benefiting system. The United States does not only have the interest in ensuring that it nurtures freedom, fairness and global economy to its society but it also crosses the boarders to other part of the world. It promotes ethical and fair trade practices, expansion of stake holders rights a civil society that is globally strong. In spite of its responsibility being fair it is best for the worlds most resource consumers. The United States cannot be a leader in companies that produce ethical goods for trade; companies do enforce standards that are within their company and their suppliers. This initiative defines corporate responsibility, good labour practices and a business model that benefits the people in the whole planet. A trading system that is health is sustained and trade Peace Corps has put the American to be in the lead in free market system.

Trade policies that are made by the United States should remember that trade is for the sole reason to improve the lives of people and a deliberation is required when trade barriers are being applied, embargos and sanctions. These are the tools that are inaccurate in the achievement of a broad security goal. For example the policy towards North Korea is thought to be choice between human rights or a regime that is proliferal and sometimes both. Instead there has been nuclear proliferals and famine despite the political gratification to the United States trade embargo (Stewart, 2007).

It is therefore necessary for United States to justify its leadership in trade, it should ensure that the whole world does benefits and access globalization. This can be achieved by first starting with promulgating of more and thoughtful trade approach, one that is neither free market fundamentalist nor protectionist. At the time the United States finds a middle road between the extremes it will then realize its own dream freedom and the world at large.

Reference

Economics (2008). Retrieved on November 29, 2010 from

<http://www.mbanotesworld.in/2008/01/define-and-explain-economics-with-views.htmInternational trade. Retrieved on November 29, 2010 from

<http://www.americans-world.org/digest/global_issues/intertrade/tradepolicy.cfmStewart, D.T., (2007). United States Must Redefine “Fair Trade”. Policy innovation. Retrieved

on November 29, 2010 from http://www.policyinnovations.org/ideas/commentary/data/Golden_Mean