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Introduction
The macroeconomics 2301 class enrolled at Tarrant County College Southeast has
organized three research teams under the direction of Dr. Bob McKizzie to focus this research
toward closing the gap between two countries that have a germane recourse. One country will be
established as the prototype for performing best practices in the production, the distribution, the
consumption of a comparable recourse and its affect on the prototype country¶s GDP growth and
efficiency. The comparable country will be proven by data to be the under-performing country;
therefore, the function of the research teams is to close the gap in findings that will enable the
The research teams seek to answer the following questions. The first question is why is
the prototype country performing better than the comparable country in regards to its germane
resource? The second question is, what is the magnitude of the need for the investigation of the
germane resource on economic growth? The third question is what is the potential for enabling
further economic growth due to the effects of the germane resource? The fourth question is, what
The research will enable more awareness of the two countries germane resource effect on
their gross domestic product. The research will provide investigators with additional information
regarding further enhancement of the country¶s gross domestic product. The research will
provide more information in investigating the likelihood of more efficient use of the germane
resource.
1. ^hat factors of production of the germane resource in each country were different in
^ithin the production of vehicles there are different components that all compile to
become a part of one of the greatest industries in the entire world. In comparing both the United
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States and the United Kingdom¶s different resources available the statistics leans more toward
the US having a greater importance in this industry. The United States has the world¶s main
consumer and producer of the automobile industry. (Automotive Components, Online) It must
also be noted that the United States has just a little over 6.6 million jobs that are to current
workers. This all ties in with the contribution American automotive¶s provided for the 10% out
of the United States 10 trillion dollars within the whole economy. It is apparent with all the data
that the United States has had a steady stable rate within the automotive industry. (Automotive
Components, Online) In comparison to the United Kingdom, though the industry is relatively
smaller it has increased this past year even after it dropped within 2008 and 2009. (Sedghi, 2011,
Online) Also mentioned in the Automotive Components and Parts overview it states that the
United Kingdom is a part of the largest region where automotive production, especially
2.rom historical data, which country¶s germane resource has a greater impact on change in
rom the historical data, when comparing the United States and United Kingdom¶s
automotive industry production it has a significant correlation. ^ithin the United Kingdom it
was mentioned previously that there was a drop from 2008 to 2009 within the
automotiveindustry, which is inversely related to the GDP growth rate percentage being -.060 in
2008 and -4.8950 in 2009. Though this is onlya quick comparison between different sets of data,
it can be noted that the United Kingdom¶s automotive industry may have been a cause to this
negative GDP growth rate. However in the United States, there is the same sort of lower ended
GDP growth rate being 0 in 2008 and -2.6320 in 2009. It was directed by the statistics that this
happened in both economies in relation to the decline with autos throughout the whole world
thus affecting the GDP in 2008 and 2009. (Country ^atch, Online) It was also noted in the
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Country ^atch that the United States underwent a ³global financial crisis in 2008 had a drastic
impact on the car market as more than 80 percent of auto consumers relied on financing.´ This
all again inversely relates to the GDP growth rate found within the macroeconomic data from
Country ^atch. inally, The data found for both countries on the GDP growth and efficiency
for the United States in relation to the United Kingdom is that the United States did not have a
great impact like the United Kingdom had within their economy (Country ^atch, 2011, Online).
3.How does the germane resource that influenced change in the past warrant a re-plan when
compared to today?
^ithin the automotive industry there are various other sources that are used in order to
have a proper automobile being able to work well. or instance, oil is a needed resource that both
the United States and United Kingdom must have being imported. rom the Central intelligence
Agency actbook it is noted that the United States is the number one country that consumes the
most and also imports, 11.31 million bbl/day (^orld actbook, 2011, Online). Though most of
the oil is being consumed primarily here at the United States, within the United Kingdoms
boundaries they are the 13th country to import oil at 1.491 million bbl/day (Central Intelligence
The Central Intelligence Agency stated that the United States predominately is leading
the world in ³high-technology´ and also ³the second largest industrial output in [the] world.´
Other related resources that go hand in hand with the automobile industry are petroleum, steel,
and electronics. ^ithin the many resources that have developed in the United States we cannot
forget the basis of how our country started in its younger years. Before technology became our
nations central focus, coal used to be the primary resource that the United States would help
supply energy. Until the 1930¶s coal would supply the main energy source the Unites States
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needed, until oil was discovered. To this day, coal fuels 50% of the United State¶s electricity
production and provides 25% of the country¶s total energy. ^ith all of these different attributes
that have brought this country a long way, it has helped stimulate the economy in tremendous
ways, both good and bad. Similarly, the United Kingdom has more man-made resources unlike
the United States that has both steel and petroleum. These man-made resources from the United
Kingdom consist of machine tools, automation equipment, motor vehicle parts, and electronics.
Though within all these man-made resources in particular two natural sources from United
Kingdom would be both coal and petroleum that are both needed in the automobile industry.
In regards to both nations having similarity, both countries have in comparison the value
of tourism being apart of their economy. The United States had a total of 11.7 billion dollars that
was spent from ³international visitors´ who spent it on ³tourism-related activities.´ (Central
Intelligence Agency, 2011, Online) ^ithin the United Kingdom¶s statistics on tourism expenses
spent on touristic attractions ranged from 22.835 million to 32.713 million. In 2010 this past year
it rose to 29.637 million dollars, which was the ³inbound tourism to the UK.´ (Visit Britain,
2011, Online) Both have a decent amount of travel to their countries attractions, though once
5.^hat is the internal capacity of the United States and the United Kingdom?
The overall internal capacity that the United States has in relation to people is
313,233,044 ranking third within the world (Central Intelligence Agency, 2011, Online). In
comparison to the population from the United Kingdom, which is less, the current number of
citizens is 62,698,362 ranking 22nd within the world (Central Intelligence Agency, 2011,
Online). Now also a related piece of information is the population growth rate. The United States
has a .963% rate while the United Kingdom has .557% rate.
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6.^ho are the other countries that may partner with the comparable countries and adopt an
effective plan that may enable further GDP growth and efficiency?
The United Kingdom has a declared ³global force´ that is attracting other ³worlds major
automotive companies´ thus helping the GDP 1.1% and opening 221,000 jobs. (Driving orce:
Success and Sustainability in the UK automotive, 2011, Online) This partnership with various
other countries around Europe has helped stimulate ³the 3% worldwide vehicle output and 9% of
European assembly, ranking it fourth in Europe and ninth globally.´ (Driving orce: Success and
Sustainability in the UK automotive, 2011, Online). In Conclusion, with all of this community
participation within the United Kingdom, it helps increase the GDP growth but also helps the
growth within the other various countries as well. In the United States there is a group of
communication with other national laboratories which have helped establish a partnership that
allows the ³development and production of affordable, fuel-efficient, low-emission vehicles that
meet all customers needs.´ This again all inversely relates to the same stimulus the United
Kingdom had within the GDP growth due to the proper automobile industry efficiency.
Production Problem
1. The Major Industries of the United States compared to the United Kingdom.
The United States consists of numerous industries that allow for further expansion in
goods and services throughout the country. Some of the major industries that are included in the
United States are: petroleum, steel, motor vehicles, aerospace, telecommunications, chemicals,
electronics, food processing, consumer goods, lumber, and mining. ^ith the characteristics of
being highly diversified, world leading, and a high-technology innovator, the United States is the
second largest industrial output in the world with 172.7 billion exported as of March 2011
(Trading Economics, 2011, Online). The total United States business sales for March 2011 were
$1,200.1 billion, which is 2.2% higher than in the month of ebruary (U.S. Census Bureau, 2011,
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Online). urthermore, the United Kingdom is more known for their equipment industries. These
industries consist of: machine tools, electric power equipment, automation equipment, railroad
equipment, shipbuilding, aircraft, motor vehicles, metals, chemicals, coal, petroleum, food
processing, textiles, clothing, and other consumer goods. The total UK disability equipment
market has been estimated at 1.46 billion for 2008, compared with 1.34 billion the previous year
(DL, 2010, Online). Sales of disabled equipment in the UK have increased by 92.6% over the
last 10 years, and the total market size has increased by 9.2% since 2010 (DL, 2010, Online).
After looking at both countries¶ industries, we can see that the United States and the United
Kingdom have both helped in GDP growth, but with the United States being the largest and most
technologically powerful economy in the world, this labels them with the overall better industry.
2. The Countries incentive programs for industries of the United States compared to the United
Kingdom.
r Both the United States and the United Kingdom both vary in opportunities compared to
one another. One of the incentive programs that the U.S. offers is the EPA (Environmental
Protection Agency). This program conducts environmental assessments, research, and education,
with their primary responsibility for setting and enforcing national standards under
environmental laws. The EPA employs 17,000 people in headquarters offices, 10 regional
offices, and 27 laboratories across the country (Earth Techling, 2011, Online). A few of the other
incentive programs that the United States offers include the EDI (Early Detective Industry), and
the NRCS Conservation programs (Natural Resources Conservation Services). One of the
incentive programs that the UK offers is their RHI (Renewable Heat Incentive) program. This
program adds heating efficiency upgrades in homes and businesses. Up to 25,000 installations
will be supported by the RHI, which will include solar thermal panels, renewable heat pumps,
and biomass boilers (Earth Techling, 2011, Online). Both the United States and the United
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Kingdom both have incentive programs that encourage specific actions. Overall, the United
States has more successful incentive programs to offer than the United Kingdom.
3. The labor force development programs for the United States compared to the United
Kingdom.
The United States and the United Kingdom also have labor force development programs,
in which better the opportunities for each separate population. ^ith the United States being
ranked number four for its available workforce, this gives opportunity to population with labor
programs across the country for better employment. The United States has many labor
programs located through the United States. One of the United States¶ labor programs includes
the LED (Louisiana Economic Development). This program main goal is to reposition
Louisiana as the next great American state for business investment, quality of life, economic
opportunity, and to lead economic development for the state of Louisiana (Louisiana
Economic Development, 2011, Online). As for the United Kingdom, their rank is 18th overall,
and their unemployment rate stands at 7.8%. They have also had 29.23 million people working
since December 2010 (Hrm Guide: Human Resource Management, 2011, Online). Due to the
fact that people enter and leave out of their programs has left them struggling for work
programs. This is a factor because it explains why they do not have as many as the United
States does. Overall, the United States has a better labor force population compared to the
United Kingdom.
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Between the United States and United Kingdom, there are some major and minor
problems that can be changed in order for an overall more productive country. Even though the
United States suffers from a 9.7% unemployment rate, it still ranks number four overall for its
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available labor force (Central Intelligence Agency, 2011, Online). or the United States to fix
their unemployment rate, they could create more labor force development programs in different
states across the country. This would then increase the job opportunities more for the population,
which could eventually lead to the U.S. ranking number one overall for its available labor force.
Most importantly, this would increase their GDP. The United States¶ major industries and
incentive programs could improve, but are solid for the most part due to the recent success over
the past years. As for the United Kingdom, they also need to lower their unemployment rate. The
United Kingdom is not as populated as the United States, but they also can create more labor
force development programs, and incentive programs to make a bigger impact economically for
their country, which would increase its GDP. Both the United States and the United Kingdom
have solid industries that they can build upon from to create the economy they choose to have.
Distribution Problem
1. United States job training programs as compared to the United Kingdom¶s job training
program.
The United States offers so many programs for individuals who are needy. Some are
government funded and some are funded by private organizations. Or simply for individuals who
are interested in expanding their knowledge and skills into the outer world. ^hether it¶s on the
job training or being trained in companies overseas. The most familiar programs, and the ones
most active, are the ones to support a cleaner earth. It could be preventing automobile pollution,
conserving energy, or even keeping the oceans clean. The United States on average spent 2%
more of their budget on training this past 2010 than 2009 meaning about $682 spent per learner.
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(Employment Law Daily, 2010) There is a high demand in technology workers. As technology
advances and more jobs are being opened, people are becoming more aware of these issues we
face every day. The more advanced they are in their findings, the higher the demand in the work
force. The UK offers on the job training in these categories and specialties: computers, human
resources, Internet, languages, and sales. Like the US, technology is advancing worldwide. There
are high demands in any type of technological workforce. ^hether it being in a hospital, schools,
or in the higher workforce, there is always a job open. But with these advances, people are
expecting to get paid a higher salary. Some companies are able to fulfill these needs, but some
cannot.
companies or organizations. They could go from trade agencies, international development, and
professional development. The UK also offers a wide range of programs. They offer the
In both the US and in the UK, they are both striving to keep things in order to maintain a safe
way to communicate while in the work force and with others worldwide.
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r In the United States the basis of trade is a free economy. The basis for international trade
is that a nation can import a particular good or service at a lower cost than if it were produced
domestically. In other words, if you can buy it cheaper than you can make it, you buy it. This is
where specialization and exchange take place. If the USA specializes in making American made
cars like, ord, Dodge, and Chrysler, then we ship them out to other countries. As for the United
Kingdom, their British car industry exists only to provide primarily other countries car models.
There are still nominally British marques such as Jaguar, Land Rover that design and build all of
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their models in the UK. There are foreign cars made in the UK like Nissan, Toyota, ord, BM^,
Jaguar, and Honda to name a few. Therefore, the UK doesn¶t actually have their own brand of
cars and simply manufactures other countries cars. They have other countries imported vehicle
components, which are essential sources, needed at manufacturing companies. Various countries,
like Japan, have helped their own automotive industry by allowing the United Kingdom to
manufacture their cars in their manufacturing plants. or instance in the Driving orce: Success
and Sustainability in the UK Automotive Industry article it was noted that the Honda car
business in Britain rose by 50% while it only increased 30% in the European whole entire car
sales. The United Kingdom may lack different natural resources to produce cars, but thankfully
through the partnership with other countries they are able to maintain their automobile industry a
float. inally, the United Kingdom is increasing greatly in this industry and has a great positive
affect on the GDP growth. Through their committed ³world-class productivity´ (Driving orce:
success and Sustainability in the UK automotive industry, 2006, Online) the United Kingdom
will show a significant positive growth to their total economies GDP growth and efficiency.r
Consumption Problem
1.The cost of living in the United States as compared to the cost of living in the United
Kingdom.
The cost of living in the United States differs depending on location and lifestyle.
According to the 2008-2009 interview of the Consumer Expenditure Survey, an average person
spends 26,753-26,567 dollars. Younger singles between the ages of 27-29 spend money on food,
alcohol and education whereas married couples spend their money on transportation, healthcare,
mortgages, personal insurance and pensions. (US department of housing and development,
Online, 2007) An average of $655 per person per year on groceries, $465 per person per year at
restaurants and an average of $3,800 on housing for married couples62 percent accounts for
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home ownerships and car payments. On average a lot of people spent about 457 dollars a person
at restaurants, fast foods and groceries. (The ONS Consumer Prices, Online) Tin comparison, the
cost of frequently bought items within the United Kingdom such as food, fuel and milk eggs and,
bread has recently gone up. Clothing and electronic prices are low. Council taxes have recently
increased from 50 ± 200 pounds per person. Healthcare insurance for approximately 2 adults and
2 children per month is 1000 pounds per year .Gas and electricity costs 1,020 pounds per year
and 1300 for bill payments. Larger families spend about 90 pounds a week in groceries.ONS
reports an increase for food prices from 5.3- 8.5 in the last decade.
2. The United States economic development information as compared to United Kingdom¶s
About 100 cities in the United States are participating in the GIS (Geographical
collaboration with all levels of government and private sector. Citizens are also participating
in federal, state and local government taxations. Also in the United Kingdom, transportation
and communication has increased from an annual percent of 1.7 to 1.8. Public railing
currently priced at 1.04 pounds per 4 litters. (U.S. Bureau of Labor Statistics, Online, 2011)
3.Occupations of residents who live in the United States as compared to the occupation of
There are diverse occupations in the United States but according to the data by BLS,
some of the occupations that lead in the GDP growth include: healthcare, Law enforcement,
Network systems, Sales and Marketing.BLS (Bureau of labor and statistics) reports that
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healthcare industry has grown rapidly in the past decade and that occupations in healthcare
have exceeded 11 per cent. During the current recession in the United States, healthcare has
added 555,000 jobs since December 2007.The data show the nation¶s 266,410 pharmacists,
over 2.5 million registered nurses and about 1,500,000 non-licensed healthcare workers.
Civilian labor force is projected to reach 166.9 million by 2018, which is an increase of 8.2 per
cent compared with the preceding decade. The male labor force is also projected to grow by
7.5 percent in the year 2008-2018 compared with 9 percent for the female labor force. In the
network systems occupations, currently there are approximately 120,400 computer systems
to the demand and supply of new technologies, this occupation has a projection growth of 30%
in2008-2018. This occupation is growing much faster than average for all
occupations.Another leading occupation is the sales and marketing industry. In the US there
are about 50,100 advertising and public relations services. According to BLS this industry
employment is about 433,000 and has an estimated growth of 7-13 percent by the year 2008-
2018.Projected job openings are 142,300 within the United Kingdom. Also, the service sectors
or service industry produces services instead of end goods and this is the leading dominant
the country¶s GDP.Sales and marketing is another leading occupation in the United Kingdom.
This occupation emphasis is to offer knowledge and time to improve productivity, potential
performance and sustainability.It is the largest and fastest growing sector in the Great Britain.
Healthcare is another occupation with a rapid growth as indicated by the UK BLS.An increase
in registered nurses shows approximately over 210,000 nurses increase annually and about
1500 occupational therapist yearly. Other occupations in the Great Britain include:
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housekeeping, function managers, teaching profession, cashiers and drivers for the public
transportation sector.
Both the United States and United Kingdom can impact their citizens by encouraging
family and friends to share living quarters as a way of sharing costs. Also establishing realistic
spending habits such as cutting down on fast food and restaurant food to economies expenditure.
Knowledge of efficient index and competitive purchasing power will also help shoppers to
compare prices and settle for the best deals. Use of public transportations and car pulling will
also help cut costs on fuel. Introduction of affordable fuel-efficient vehicles can be a benefit to
many. Exercising, walking and healthy eating choices will produce better health results and
therefore reduce healthcare costs. Also use of preventive methods in the healthcare systems will
reduce hospitalizations.
The solutions regarding the United States production problem, distribution problem, and
consumption problem all focus on job and labor growth and efficiency, creating more labor force
development, bringing the unemployment rate down, and overall increasing their GDP. ^ith the
recession out of the way the unemployment rate in the U.S. will drop below 9% and the GDP
will rise. The U.S. really needs to focus on exporting more goods. ^hen a country exports more
than imports that shows them as a leader, especially in the auto industry. These days in the auto
industry Asian company¶s like Honda and Toyota have assembly lines in the U.S. to avoid
import taxes, so the U.S. does not import as many automobiles as people might think, although
we still import a lot of parts. The U.S. does have three major car companies, which are GM,
ord, and Chrysler, and if we started exporting a lot more of our automobiles that will definitely
increase our GDP and lower our unemployment rate. GM held the No. 1 spot from 1932 until
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2008, until Toyota took it in 2009, but GM is sure to get it back in years to come. (Detroit ree
Press, 2011, Online.) The United States auto industry is way bigger than Great Britain¶s we
import more cars and export more. As for Great Britain solutions for production distribution and
consumption focus mainly on labor and distribution. Great Britain needs to produce more
automobiles, which will create more jobs, lower the unemployment rate, increase their GDP, and
then they can focus on distributing more of their automobiles. If one of the UK¶s automakers
would make some cars that everyone could afford and enjoy and not just Rolls Royce, Jaguar,
and Bentley then their economy would be flourishing. In a scenario that should sound eerily
familiar to watchers of the decline of the U.S. auto industry, the management of Great Britain¶s
largest carmakers proved slow to adapt to changing markets and were handcuffed by their
workers as well. Output at over manned plants was hit by constant labor disputes from the 1950s,
making them unproductive and unprofitable. British firms lacked the flexibility to compete
abroad even as European manufacturers began targeting the U.K.market with exports of right-
hand drive models. inally, British vehicles often failed the technical standards set by export
Recommendations
^ith the increasing rise within both the United States and United Kingdom economy
boosting from the recession, the automobile industry has a great impact with the efficiency and
GDP growth-taking place annually. Global Community proposes to the United States to continue
embracing the imports coming from other countries automobile industries but also increase the
taxes placed on everything they are exporting out. Through the government higher tariff
revenues should be placed on imported cars, which would thus increase a higher amount of
money that the government can use to balance the economy. Not only this, but decreasing their
own manufactured cars taxes can help stimulate a better chance that the people would buy an
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American car over an internationally made car. Global community also believe that the United
Kingdom has been applying different forces on a ³global´ perspective which helps build the
automotive manufacturing industry and at the same time helps build their own nation¶s economy
as well. or example, the United Kingdom has begun to have a deeper ³understanding of
globalization and an ability to continuously evolve´ plus with the ³streamlining of production
processes, elimination of waste and focus on quality, costs and delivery´ has helped (Driving
orce: Success and Sustainability in the UK Automotive Industry, 2006, Online) bringing ³1.1%
GDP [and] adding 9.8 billion euros of value.´ The atmosphere of work force that is enticing
³world¶s major automotive companies´ should continue to be apart of the United Kingdom¶s
fresh automobile industry motto (Driving orce: Success and Sustainability in the UK
Summary
leads the federal economic development agenda by promoting competiveness and preparing
American regions for growth and success in the worldwide economy (Economic Development
Administration, 2011, Online). This enables the U.S. to generate more jobs, help retain existing
jobs, and create more industrial and commercial growth in the United States. Results of the EDA
can be seen through the United States being ranked second overall in available labor force, and
also explains why immigrants from other countries come to the U.S. looking for job availability.
As for the United Kingdom, they also have an economic development program in the IED, or the
Institute of Economic Development. The IED¶s main task is to represent the interests of
economic development practitioners throughout the United Kingdom, and ensure that their views
are widely expressed (Institute of Economic Development, 2011, Online). The program also
helps enhance the status and competence of practitioners through education and training by
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teaching information on technical knowledge. The results of the IED have not been seen yet due
to the UK¶s low availability in the labor force, but with continuing assistance from the IEDand
other economic development programs, the economy¶s GDP could certainly rise within the next
year.
In further analyzing both the United States and the United Kingdom had to have a union
between their imports and exports that they all would benefit but also help the economies of
other countries. Through the automobile industry these two countries have been able to learn
from their experiences how drastic GDP growth can change if one industry, or all industries
begin to fail. The United States though #1 as of now and the United Kingdom being #9, even
though both countries may have a slight gap within their total economies progression, they share
same values (CIA actbook, 2011, Online). One of these values that has been further analyzed
through research has helped Global Community understand both countries desire to continue
forward establishing a greater GDP growth and energy efficiency. It can also be noted that both
countries are on the lower end of the industrial production growth, United States being 98th and
having a 3.3% rate while the United Kingdom is 132nd in the world and has a 1.9% rate (CIA
actbook, 2011, Online). These similarities and differences has helped enhance Global
Community see a different aspect of what both countries contribute in their own unique way.
inally, it was evident that both of these researched countries value imports greatly some
being further away while other countries where just nearby. The industry world, especially the
automobile industry is a label that our whole world revolves around and without valued
networks, like the Group of Eight these economies would be much different. The different
dynamics within the market places have even helped define countries more on a global context.
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Even Volkswagen, which is originally a German name brand, has been able to grow in selling
about 356,000 cars thus helping the market in the United States share by 3%. (Council on
oreign Relations, 2011, Online) This same relationship that the United States has is a great
influence with the United Kingdom, since Germany is a lot closer to the UK. The United
Kingdom has a great import relationship with Germany as they import 12.87% of their imports
from them (CIA actbook, 2011, Online). It is a learning experience to other nations to pick up
on some of these healthy collaborative work both the United States and United Kingdom practice
in their automobile industries. Though nothing is perfect, it has been exemplified greatly by both
References
Appendix A
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2008 2009 2010 2011
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Appendix B
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2008 2009 2010 2011
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Appendix C
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Appendix D
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Rank Make Volume
1 Nissan 423,262
2 MINI 216,302
4 Honda 139,278
5 Toyota 137,054
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Appendix E
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Appendix
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Year USD billion % Growth
2004 515.5 2.30
2005 526.2 2.10
2006 538.9 2.40
2007 553.4 2.70
2008 569.1 2.80
2009 585.9 3.00
CAGR 2004 - 2009 : 2.6%
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Appendix G
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Appendix H
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