The term the Great Game referred to the strategic rivalry between the British and Russian empires in Central Asia. Today’s great game is the battle for economic survival in a world of low growth. As economic nationalism reasserts itself, reducing free trade in goods and service and free movement of capital, the major modern empires – US, Europe and China – must adapt.
The US can function successfully as a closed economy. It remains the world’s largest economy, a quarter of global gross domestic product (GDP) and almost twice the size of China, the second largest economy. Its economy has access to a large domestic market. It is less exposed to trade (15 per cent of GDP) than other large economies. Reliance on trade is lower if trading with Canada and Mexico under the North American Free Trade Agreement is excluded.
Categories: Finance, Monetary Value, United States