Impact Of U.S on Economy Of the Pakistan

Globalization is curse or blessing:

Globalization is curse or sometimes the blessing for the economy of the Pakistan. The country selected for the justifying the above statement is (US) America.

 Impact Of U.S on Economy Of the Pakistan

Introduction Of American Economy:

The United States of America is a union of fifty states in North America. It is the world’s third largest economy in the world.  (Amadeo, 2018). The U.S. economy is dominated by services oriented companies in areas such as technology, financial services, healthcare and retail.  Moreover, according to the IMF, the U.S. has the sixth highest per capita GDP. Foreigners continue to invest in U.S. assets and companies, and so the net international investment position of the United States has grown over time. The U.S. is the 2nd leading exporter of goods and services in the world and the number one leading importer. The U.S. dollar is often referred to as the world’s currency because it is by far the most used currency in international transactions and also the most widely held reserve currency. Almost two thirds of currency reserves held throughout the world are in U.S. dollars. (Peng & Kerey, 2011).The U.S. economy grew 2.3% last year ago, according to figures released Friday. That's the best growth in two years. (Gillespie, 2018).

Ø  List of major industries having advantages over the world of economies.

·         Telecom Industry

·         Household Appliance

·         Textile

·         Iron & Steel (Kenney, 2004)

·         Commercial & Service Industry

·         Leather Industry(Pakistan)

·         Media Industry

·         Aerospace Industry

·         IT Industry(China)

·         Engineering & Manufacturing Industry (Japan)  (T.Macher & David, 2014)

Favorable impact on Economy of Pakistan:

·         U.S Pakistan Business Council members recognize that at the center of the relationship between the United States and Pakistan is a shared commitment to improving security and political stability in South Asia. However, we believe that the expansion of bilateral economic cooperation is essential to achieve both countries security goals. (Alan, 2009)

·         Many U.S. companies have worked in Pakistan for more than five decades and have contributed to the country’s economic development through investment and the creation of high-skilled jobs. With a population of 170 million and a labor force of 51 million, Pakistan has a large pool of consumers and workers. The United States has been Pakistan’s largest investor, providing approximately one-third of the country’s total foreign direct investment (FDI) since 1990. (Collins, 2009)

·         A balance of payments crisis and the government’s inability to secure lending and development aid from friendly nations forced Pakistan in October 2008 to seek emergency assistance from the International Monetary Fund (IMF) to avoid defaulting on its sovereign debt.

·         Press the international community to help Pakistan attract the financial assistance needed to stabilize its economy in the long term.

·         In 2016, the U.S. exported machinery, aircraft, cotton, iron and steel and agricultural products to Pakistan, while the U.S. imported textiles, knit apparel, and leather products from Pakistan. (Jones, 2018)

                                                                 

Unfavorable impact of USA on Pakistan Economy:

·         The negative impact of the US is cut off the aid due to the better relation of China and Pakistan, it will have the unfavorable impact on the long-term military programs of Pakistan. (Alumin)

·         Cancellation of US Aid likely would strain the certain investors and businessmen, to invest the funds in the Pakistan.

·         The recent unreasonable behavior of the president of U.S has the negative impact on the economy of the Pakistan. He could impose the restrictions on the Pakistan.

·         Simply pouring money into the government will buy only limited time, and could encourage the Pakistanis to delay making the serious effort needed to put their country on a sustainable path. (Bhattacharya, 2016)

·         The principal goal of the US was to use the Pakistan to achieve its own goals.

·         Half of Pakistan’s exports are textiles and apparel, which face high tariffs in the United States and in other developed countries. The politics of trade are nasty in the United States, and making changes in trade policy is always more difficult than extending aid. (Teresita, 2011)

Conclusion:

                     It is concluded from the topic that America has positive and negative both impact on the economy of the Pakistan. There must be stable relations between Pakistan & US. The positive relations between both the countries have positive impact on the economy of the Pakistan. Better trade between the countries makes the economy strong. Many industries took the advantage of the globalization and now have the competitive the others.

Bibliography:

Alan, K. (2009). Pakistan U.S relations. International Research Services , 101.

Alumin, J. (n.d.). Cut off US AIDS to Pakistan .

Amadeo, K. (2018). What Exactly IS the US Economy? The Balance .

Bhattacharya, D. S. (2016). US-Pakistan Relations in the context of 21st century. US Foreign Policy: Rise & Decline , 10.

Collins, J. (2009). U.S PAK Eco Partnership. US. PAK Business Council , 16.

Gillespie, P. (2018). Why America's economy is so healthy. CNN Money.

Jones, D. S. (2018). U.S.-Pakistan Relations. Center for Strategic and International Studies (CSIS) , 16.

Kenney, M. (2004). Advantage of global locating . Industrial Dynamic in global economy , 15.

Peng & Kerey. (2011). Does Globalization Benefit USA. Springer-Verlag Berlin Heidelberg , 12.

T.Macher & David. (2014). Inovation in global Industries. National Research .

Teresita, S. (2011). Pakistan’s broken economy. The South Asia Channel , 15.