The United States : An Advanced Market

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An advanced market is beginning to emerge from a strong drive for cleaner and greener technology, especially in dealing with energy production. Green technology is in the infant stages with several countries competing to create new technology in a competitive, cost effective way. Currently, the United States trails far behind other industrialized countries in the production and implementation of better suited, environmentally friendly technology. If this continues to be a trend, the U.S can lose their comparative advantage in technology to countries who would have access to enhanced and innovative technology to produce at a much cheaper cost. When one country is able to be more efficient in producing one good or service compared to a different country, a comparative advantage has occurred. This usually takes place when a country is able to focus and specialize in a product or service so they will have a stronger dominance in what they do. The United States have exceeded in creativity and innovation, which accounts for the advantage in technology (Macroeconomics, 24-38). The U.S. also has a trade surplus in services and is the forerunner in the worlds’ service exports (Global Trade in Services, 84). The United States technological innovations are evident with computers, military equipment, aerospace, and medical technology. Exports of technology included in capital good and consumer exports total around 64%, with imports of similar goods at 62.4% (World Factbook, CIA).
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