American Economy

American Economy

Introduction

This paper intends to explain how American corporations while working with other multinational companies are helping the United States economy to boost. In order to explore this, quotation regarding 'globalization' from United Nations Economic and Social Commission will be analyzed.

Discussion

The quotation from United Nations Economic and Social Commission states that

“Globalization is a widely-used term that can be defined in a number of different ways. When used in an economic context, it refers to the reduction and removal of barriers between national borders in order to facilitate the flow of goods, capital, and services and labor…”

Globalization is known as the process of transforming the local and regional phenomenon to the global ones. Globalization is achieved by the mixture of economic, cultural and technological transformation from one country to another. Economic globalization is one of the most important forms of globalization. In analyzing the impact to United States economy from the perspective of globalization, the initiative of 'Invest in America' is an important one to consider. America has been welcoming foreign direct investment which is a result of the hard work of the Commerce department trying to promote the foreign investors within the country. The United States is supposed to be the World's largest foreign direct investment receiver. The $2.1 trillion invested in FDI at the end of 2008 depicts the importance of FDI in United States economy. This amount of FDI is almost 16% of United States GDP at that time (Harold, 2011).

American corporations with the support of other multinationals are creating immense job opportunities in United States. Around 4000 new projects have created about 630,000 jobs in United States. Foreign companies are accounted for about $364 billion in the United States payroll providing $68,000 per employee as an annual average package of compensation. Manufacturing sector has ...