The main similarities and differences between the Economic System of the USA and the United Kingdom

The love of economy is the root of all virtue. George Bernard Shaw

The economic system in the USA and the UK is very developed and these two countries have a leading position in addition to economy of the other countries. I will highlight in this essay the main similarities and differences between the economy of these two major unions. Both countries have a market economy, which means that individuals and businesses can make their own choices about what to buy and sell. The freedom people have to try to make money has enriched these countries. The Industry Sectors in both countries are and similar and different. The leading industries in the USA are petroleum, steel, transportation equipment, chemicals, electronics, food processing, telecommunications, consumer goods, lumber and mining. On the other hand in the UK the list of industries include machine tools, electric power equipment, automation equipment, railroad equipment, shipbuilding, aircraft, motor vehicles and parts, electronics and communications equipment, metals, chemicals, coal, petroleum, paper and paper products, food processing, textiles, clothing and other consumer goods. We see that some industries are common in both countries but the production of automotive or aerospace equipment is a major contributor to the UK industry. The natural resources are also and similar and different, from one country to another. Apart from having the worlds largest proven reserves of coal, 22.6 % of the worlds total, the US also possesses the 14th largest proven oil reserves and the 6th largest proven natural gas reserves. Other natural resources include copper, leas, molybdenum, phosphates, uranium, bauxite, gold, iron, mercury, nickel, potash, silver, tungsten, zinc, and timber. In contrast to the USA, the UK is considered to be arable land. Also it has a healthy supply of natural resources. Coal and iron was a major player in the UK economy. In 1981, the UK was the 4th largest coal producing nation in the world today the UK is ranked 15th. The primary exports commodities in the UK are manufactured goods, fuels, chemicals, food, beverages, tobacco; and the primary exports partners are US (14.71%), Germany (11.06%), France (8%), Netherlands (7.79%), Ireland (6.89%), Belgium (4.65%), Spain (4%). In the USA the exports commodities are agricultural products, chemicals, transistors, aircraft, motor vehicle parts, computers, telecommunications equipment, automobiles, medicines; and the exports partners are Canada (20.1%), Mexico (11.7%), China (5.5%), Japan (5.1%), Germany (4.2%), UK (4.1%). The imports commodities in the USA are agricultural products, industrial supplies, computers, telecommunications equipment, motor vehicle parts, electric power machinery, automobiles, clothing, medicines, furniture, toys; and the imports partners are China

(16.5%), Canada (15.7%), Mexico (10.1%), Japan (6.6%), Germany (4.6%). In the UK the primary imports commodities are manufactured goods, machinery, fuels, foodstuffs; and the primary imports partners are Germany (12.87%), US (9.74%), China (8.88%), Netherlands (6.94%), France (6.64%), Belgium (4.86%), Norway (4.84%), Ireland (4.01%), Italy (3.99%). The national currency in the USA is $, but in the UK is . As a conclusion I can mention that both countries are different from the geographical point of view but similar from the economical point of view. I think that I could highlight the main similarities and differences in the economic system between the UK and the USA.

Wrote by: Ciobanu Elena, gr.252L