Strategic Analysis essays

Strategic Analysis essays The United States offers a stable economy for the semiconductor industry but one that is not growing as rapidly as some of the other key markets. In 2004 the GDP for the United States was estimated at $11.75 trillion with a GDP growth rate of 4.4%. The United States is not expected to experience a sharp increase in GDP with growth probably hovering around 4% to 5%. What the United States lacks in growth it makes up in stability. The United States provides a stable economy for semiconductor companies in which to operate. The United States also has a relatively low rate of inflation with a 2004 estimate of 2.5%. It is important for a country to have a low inflation rate so that consumer prices remain stable over the years. Investment of businesses in fixed capital such as factories, materials, and equipment is another key economic indicator that affects an industrys external environment. In 2004 15.7% of the GDP consisted of investment by businesses in capital assents. This wa s the lowest rate among the four key markets in which the semiconductor industry operates. This low number is a reflection of the decline in GDP growth that is currently occurring inside the economy of the United States. This rate also reflects that many companies may be investing in capital assents in other countries that are experience faster growth. The unemployment rate in the United States though is among the lowest of the four key markets, with a rate estimated in 2004 to be 5.5%. An unemployment rate in the United States near 5% is understood to mean that the economy is at full employment. It is impossible to have a rate of unemployment of zero due to the nature of employment cycles there will always be some that are unemployed but looking for jobs. A low unemployment rate also represents a strong and stable economy. The United States though is faced with a very large trade deficit, and imports for 2004 were estimated at $1.476 trillion ...