price floor of $ 4.38 per bushel. In fact, one of the justifications of the target price program in recent years has been that it does contribute to lower prices for US crops, thereby increasing the ability of US producers to compete with foreign competitors in international commodity markets. However, because of the acreage restrictions that go along with the program, prices can be higher than would be the case.farmers in this way therefore transfers income from taxpayers in general to farmers, but it does not necessarily result in lower commodity prices to consumers compared to those that would prevail in a free market The United States Is not the only nation that subsidizes farmers in ways that increase quantities supplied. Other nations have their own subsidy programs that tend to raise prices received by their farmers above the equilibrium level. The result of these programs has in recent years has been a glut of grain on international markets, sharply reducing prices. Farmers in nations without subsidy programs have suffered. For example, in Canada where farm subsidies are below those in other nations, many farmers have been forced out of business.are also other examples. The policy of encouragement of the domestic manufacturers of sugar in the advanced countries damages to a number of the developing countries, whose climate is best suited for sugar production. The surplus of sugar in the advanced countries because of price thresholds on surpluses causes the sugar exports from these countries. And it means, that the developing countries should compete with them at the world markets. Thus policy of support of sugar manufacturers in the advanced countries results in decrease of the producers incomes in the less advanced countries. The same situation develops with other branches of agroindustrial manufacture. The support of the prices on rice in the USA damages to the rice producers in Thailand. The creation of favorable conditions for the manufacturers of cotton in USA results in decrease of the incomes in Egypt and Mexico. experience of state regulation of agroindustrial manufacture in market economy of USA shows, that the state is an effective mechanism of modern economy. The activity of the state depends on the development of the market, its infrastructure, degree of involving of national economy in the international relations. An effective utilization in USA of such tools as: the competition, tax system, budget and credit system, frequently even to the detriment of other countries - promotes development of market economy in the country, induces development of domestic branches of the national economy and at the end increases competitiveness of production of domestic manufacture in the world market. Export import industry economy USA
CONCLUSION
The American economy is described as a free enterprise system, which allows private business the freedom to operate for profit with minimum government regulation. The theoretical foundation of the American economic system was provided by Adam Smith whose economic ideas of so called laissez-faireї or free competition influenced the development of capitalism. From his standpoint the more people manufacture and trade the greater the competition. Competition benefits society by allowing the consumer to search for the best available product at the lowest price. Thus market forces, which Smith termed the invisible hands, control the allocation of goods while each participant in the market is seeking for his own self-interest. Throughout the nineteen century market operated with a minimum government regulations. Since the 1930-s American capitalism has undergone a radical change. Although private enterprises flourishes, government regulation now exists in many areas of business ranging from product safety to labor conditions. Political conservatives complain of too much government regulation while the liberals are out for the enhance of government role in business and economy. The country s reliance on private initiative and enterprise has produced imdivssive growth. It is the most affluent nation in the world.60% of all families and individuals are in the middle-income or high-income rank.is common knowledge that the USA is the leading economic power. This fact can be confirmed. The status of the dollar as the world s chief international currency. The dollar until recently (until the time of emission of the EURO) is used for most international trading. But the divsent times dollar shares with the EURO its status of the international currency which points to the declining of the US economic power. However high volatility of the American dollar continue to create instability on the world-wide trade markets. The balance of trade. As I said before The USA has experienced massive trade deficit. This trade imbalance has promoted growth in the rest o...
