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U.S. Economy

U.S. Economy


Introduction

The future of the United States economy will be considered from the perspective of the future of its corporations.

The following five questions will be answered:
1) Why do corporations operate as the core of the U.S. economy?
2) How has the globalization of the economy made many corporations much larger?
3) What are conglomerates?
4) The growing influence of multinational corporations will dominate the world economy by the middle of 21-st century.
5) Will dominance of world economy by multinational corporations be benefitial to people?
Why do corporations operate as the core of the U.S. economy?

Corporations are the core of the United States economy for several reasons. The large size of each corporation allows for employment of very many people at a time and retention of workers over a long time period. Corporations produce goods and services needed in both the domestic and international markets. Furthermore American corporations through payment of corporate taxes and other levies to both state and federal governments, contribute substantially to the budgets of these governments. Taken together, American corporations form the engine room of American economy.

How has the globalization of the economy made many corporations much larger?
The globalization of the United States economy has had a great effect in promoting American business abroad. American corporations have grown by leaps and bounds, to become the behemoths which they are today. The removal of suffocating restrictions and excessive import tariffs by our trading partners has helped in no small measure to give American corporations the impetus to grow and expand their operations throughout the world.
What are conglomerates?

Conglomerates are corporations consisting of a number of different companies operating in diversified fields. Conglomerates are formed by agglomeration of companies and corporations to form very large entities. Conglomerates which emerge from mergers of large corporations are often referred to as multinational corporations. Through diversification and integration of their diverse operations, conglomerates are able to optimize staff efficiency and productivity, while at the same time maximizing profit from their many operations.

Since the growing influence of multinational corporations will extend beyond the immediate geographical boundaries of the country of their incorporation, their continued dominance over those areas of their business operations is a foregone conclusion.
Is this good for the world's people? Why or why not?

The growth of Multinational corporations have both good and bad effects on people in countries where they operate. The good effects include the provision of basic needs like potable water and electricity to communites in the developing countries where these multinational corporations have their operations. There is thus improvement in quality of life of people in these countries. On the other hand, the multinational corporations tend to want to dictate policy directions to governments of the third world countries, in order to further promote their business to the detriment of the local people.




WORKS CITED

Bagley, Edward R. Beyond the Conglomerates: The Impact of the Supercorporation on the Future of Life and Business. New York: AMACOM, 1975.

"Dreaming the dream" – The US economy is powered by the multinational enterprise. http://www.brandeis.edu/global/courses_fall_2005/fin244f2 (Accessed June 26, 2007).

Posted by: Jeffrey M.

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