The 4th of July is an iconic day of celebration where every year
without fail, Americans display their unmatched sense of patriotism and pride
for their country. This celebration brings Americans together in celebration of
their independence. Flags are positioned
on lawns, on cars, and well, pretty much everywhere while those from the old to the young adorn
clothes with stars and stripes and the colors of their national flag, red ,
white and blue . Fireworks are shot in the sky and families and friends come
together to celebrate this wonderful day with their loved ones.
For this specific
article, we will delve into the economic aspects of the 4th of July. As the 4th of July approaches, Americans rush to purchase flags, clothes ,
fireworks to set off, and various other products that either portray
patriotism or depicts their national flag. But that begs the question…
where
do these products come from ?
Who
produces them ?
Well, unsurprisingly, the US imports the majority of
these products from China, mainly the American flags and the fireworks.
According to the U.S. census Bureau Data, of the $3.8 million worth of the
American flags imported into the U.S. last year, $3.6 million's worth came from
China. For the fireworks on the other hand, of all U.S fireworks imported
last year ($227.3 million), $21.8 million's worth of fireworks were imported
from China. However, U.S exports of fireworks for the same period paled in
comparison, amounting to only $11.7 million. Furthermore, The American
Pyrotechnics Association estimates that only 6.7 million of the 207.5
million pounds of fireworks Americans bought in 2012 were manufactured in
the U.S.
That's not all, of
the many types of 4th of July merchandise sold and purchased in the U.S., a large
portion of them were imported from China. It seems that the manufacturers in
China have as much to celebrate as the Americans during this holiday , seeing
as the large amount of goods produced in China and exported to the U.S not only
profits the manufacturers in China, but also contributes greatly to China's
GNP.
However, we cannot
omit the fact that the 4th of July also profits the U.S greatly, as a commercial holiday.
The retailers and distributors in the U.S take advantage of the spike in demand
for these products and go all out in sales, increasing the supply and
profiting from the situation. America is said to be the land of opportunity,
and in this case, they take all that they can get, offering discounts and
promotional deals for products with a patriotic nature and products that depict
the U.S. national flag.
Stores
stock up on these products, while small vendors set up stalls on the streets
and sidewalks selling T-Shirts, Pants, hats and
anything they can put the American flag on .The 4th of July benefits China in terms of GNP, but it also greatly
contributes to America's GDP. The sales of these products not only create
a festive mood and environment for the American people, but also helps in
improving the national economy.
Written by, Keeve Wong Weikit (0315620)
References:
Hello, my name is Clarissa :) A very interesting article. However, there are some parts I didn't quite understand. Would you mind explaining to me what GDP and GNP means ?
ReplyDeleteHello Clarissa, sure I don't mind explaining it to you !
ReplyDeleteGDP – Gross Domestic Product measures the total market value of all final goods and services produced within the nation’s geographical boundary during a given period of time. The total market value means the monetary value of goods and services at current prices.
GDP includes goods and services produced by citizen-supplied and foreign-supplied resources within a particular nation's geographical boundaries. GDP is a monetary measure.
GNP - Gross National Product measures the market value of all final goods and services produced by nationals whether they are located in the country or abroad.
Thus GDP focuses on the value of domestic production, whereas GNP focuses on the value of incomes earned by domestic residents.
ReplyDeleteThank you for sharing :)