|
| Details |
| Case Code: CLIBE012 |
| Case Length: 2 pages |
| Period: -- |
| Pub Date: 2005 |
| Teaching Note: Not Available |
| Subject :Business Environment |
| Price:Rs.50 |
| Organization :-- |
| Industry :-- |
| Countries : -- |
|
|
|
|
U.S Economy in Trouble * |
|
|
|
|
|
|
| The caselet gives an overview of the economic crisis in the U.S in the early 2000s and goes into the reasons for the crisis. It describes how the rise in trade deficit is a major area of concern for the US economy. |
| Buy Now |
| To download this case click on the button below, and select the case from the list of available cases: |
OR
 |
|
|
Issues: |
 |
- U.S facing shortage of funds.
|
|
- Reasons for increased trade deficit in the US.
|
|
- Increased concern of private investors who have been investing in U.S.
|
|
| Introduction |
In the early 2000s, the US economy was in serious trouble. With huge trade deficits, enormous under-funded liabilities and the growing Asian markets threatening its supremacy, an economic crisis seemed inevitable.
The US was no longer the number one destination for foreign direct investment and according to the figures released by the Paris-based Organization for Economic Cooperation and Development (OECD) in 2003, China was the number one destination and France secured the second position, pushing the US to the third.
The US has lost to China mainly because China offers a huge market opportunity...
|
| Questions |
1. Analysts feel that the economic crisis in the US is not due to unfair trade policies or declining industrial competitiveness in other countries as its leaders say, but due to low savings rates and a disregard for both economic and diplomatic fundamentals. Comment.
2.Suggest some measures that the Bush administration can take to lower trade deficit and attract FDI.
|
Keywords |
|
Organization for Economic Cooperation and Development (OECD), The Federal Reserve, FDI, US economy, Allan Greenspan
* This caselet is intended for use only in class discussions.
** More comprehensive case studies are priced at Rs.200 to Rs.700 (US $5 to US
$16) per copy.
|
|
|
|
