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The Change During The 19 Century And Advancement Of Technology

Decent Essays
The change during the 19 century and advancement of technology created a gateway for international trade which has become essential for the growth of globalization. Although some constricted interests may be hindering, the overall benefits to economic growth is substantial. Nations with strong international trade have become prosperous and have the power to control the world economy through technological growth. Since the second half of the nineteenth century, Japan’s productivity growth has become the other major industrialized economy. The United States collaboration with Japan has structural changed. Japan’s superior performance has shown rapid economic growth has coincided with labor markets, capital markets, and product markets whose…show more content…
While, the U.S. and Japanese economies have similar features, there are several difference between the two. They both have large industrialized economies that require a high standard of living, yet, the U.S. economy is twice as large as Japan. Japan is a major foreign foundation of financing for U.S. national debt and seems to remain mentors in the future, as the increasing U.S. public debt requirements and domestic savings remains inadequate. Japan is also a significant source of foreign investment in the United States, and the United States is the origin of much of the foreign investment in Japan. However, due to the 2011 earthquake and tsunami, the political leaders have concluded on reducing the economic stability provided to the United States as Japan struggles to sustain its economy. Although Japan continually exceeds the U.S. in savings, the trade savings is created a deficit in the United States putting the trade partnership at a halt. Furthermore, the restrictions to international trade would limit the nation’s services and goods produced within its territories, and that creates a valuable loss of revenue from the global trade and a considerable decline in trade.
The decline in our trade deficit in recent years resulted primarily from the depreciation of the dollar, since most countries were growing concurrently with the U.S. and thus partially neutralized the influence of differential growth rates.
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