question help: Explain the relation between trade and world output. - Help.com

Is this a micro economics class? Okay, here goes my shot. Some nations, especially those that aren’t as economically well developed as the U.S. or any industrialized nation for that matter, are in a position only feasible to them in that they could only subsist or sustain their GDP by mass production of consumer products. The U.S. used to be like this prior to WWII, however, thereafter the U.S. has become a more service-oriented economy. Another reason why the U.S. isn’t as production-oriented as less developed nations is because the U.S. concentrates their efforts on areas such as science, medicine, computer technology, military technology, aerospace and other highly-advanced endeavors that keep us ahead of the rest of the world.

The only possible threat that the U.S. faces right now is the rise of the Chinese economy. However, China is a nation that is gradually recognizing the benefits of a free market society, despite their government’s reluctance to it. But likewise to Japan’s bubble economy, China will experience the same fate. The per capita GDP of China is roughly $6,000 USD anually. This is nearly triple what is was a few years back. This demonstrates that China’s economy is growing at exponential rates. However, growth that is too rapid also falls abruptly as well.