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8 October, 08:53

What is a drawback to U. S. participation in the global economy? The United States is more affected by downturns in other parts of the world. The United States produces more manufactured goods than other countries import. American businesses have not been successful in moving operations overseas.

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  1. 8 October, 09:01
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    A drawback to U. S. participation in the global economy is that the United States is more affected by downturns in other parts of the world.

    Explanation:

    The United States is the main economic power in the world, and its companies are the main investors worldwide, establishing factories and branches in different countries of the world. Thus, technology companies like Motorola or Apple produce in places as remote as China, Vietnam or Mexico, clothing companies like Nike in Bangladesh, and automobile manufacturers like Ford or General Motors in places like Brazil or Argentina. All of this makes the United States have a very strong economic presence throughout the world geographic spectrum. But this situation can become a negative situation in certain cases: in some situations, these companies incur in large losses of money as a consequence of the internal economic crises of the countries in which they produce, which indirectly affects the possibility of the federal government of collecting taxes, and therefore momentarily reduces the economic capacity of the country.
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