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The US Economy: Power, Trade, Competitiveness, Entrepreneurship, and Capitalism The Author’s Name The Institutional Affiliation Course Number and Name The Instructor Assignment Due Date The US Empire: Three Powers to the Rise The United States of America (US) is the largest economy worldwide. According to Dalio (2021), the US underwent robust processes to transform into an empire. The methods include revolution, post-revolution, and domestic order formation. Infamous leaders and visions consolidated powerful control as a government to make the US a great nation. The strategic control and administrative management allowed the US economy to prosper through currency reserves, world trade share, and military robustness (Dalio, 2021). However, the US had three fundamental powers to rise and become an empire. Each power influenced American history, transforming the land into a progressive nation. First, Dalio (2021) explained that education is a primary power that optimizes growth. The author explained that education fuels human productivity in an economy. Education increases knowledge, resilience, and invention of capitalism for the ‘Scientific Revolution’ in a country. The US economy invested in education to boost wealth and wisdom in people. As a result, the country experienced a sustainable transformation into machines, introducing the ‘First Industrial Revolution (Industry 1.0)’ and the journey to empire formation (Dalio, 2021). Dalio (2021) further argued that education led America to increase innovation and technology (IT) culture, the second power to the rise. Subsequently, IT is the second power for the US to rise and become an empire. The US economy invented steam-powered engines, telephones, electric bulbs, radios, airplanes, televisions, and antibiotics. Modern IT inventions include nuclear power plants, global positioning systems (GPS), internet, digital banking, social media, e-commerce, Wireless Fidelity (WiFi), iPhone, and digital cameras (Dalio, 2021). IT advancements were future breakthroughs for the US to dominate the world economy through communication, healthcare, transportation, energy diversification, and entertainment. The evolution empowered the US to become a ‘Super Power’ to lead the global economy and dominate global politics using modern techniques (Dalio, 2021). Lastly, economic output is the third power of the US economy in becoming a modern empire. Accessible education and IT advancements contribute to the economic output of a country. The US economy reported a significant growth in gross domestic product (GDP) after World War II (WWII; Dalio, 2021). Besides, the US economy sustained education and IT advancements to strengthen its share in global output. America defeated the Soviet Union and the United Kingdom (UK) in WWII through economic productivity and currency dominance (Dalio, 2021). The three powers define the US’ journey to rise and become an empire. The other powers are byproducts of one of the three powers that America enjoys as a complement. USMCA: Vision, Relative Trade Advantage, and Reserve Currency Lighthizer (2023) explained that the ‘US, Mexico, and Canada Agreement (USMCA)’ came onto the agenda after the fall of the ‘North American Free Trade Agreement (NAFTA).’ The author explained that NAFTA failed due to autos, labor, and free trade disruptions between the US and Mexico. The Mexican government introduced aggressive industrial policies to attract foreign direct investments (FDI; Lighthizer, 2023). The revised policies introduced company-controlled labor unions and low wages to expand trade reach beyond the US. The strategy succeeded since General Motors (GM) started assembling trucks in Mexico. However, countries outside North America took leverage and used Mexico as a backdoor policy to enter the US market. As a result, President Donald Trump replaced NAFTA with USMCA in 2020 to protect the US hegemony and retain trade advantages along with the dollar’s global reserves (Lighthizer, 2023). Kirby (2018) states that the US, Mexico, and Canada signed a new trilateral trade deal at the G20 summit in Buenos Aires. Trump Administration promised Mexican President Enrique Peña Nieto and Canadian Prime Minister Justin Trudeau to renegotiate NAFTA terms under USMCA for sustainable trade relationships. USMCA agreed that the three countries will manufacture 75% of automotive components to enjoy zero tariffs. The agreement helped the three trading countries reduce manufacturing costs for automotive parts compared to Asia (Kirby, 2018). Furthermore, the USMCA introduced new prospects to protect labor rights in the three countries. The agreement confirmed that automotive components should allow workers to earn US$16 per hour until 2023. The provision favored Mexico to meet wage standards with the US and Canada (Kirby, 2018). Lastly, the agreement encouraged Canada to open its dairy market for the US farmers while preventing investors from filing lawsuits against the governments, creating a win-win situation for the three trading countries in the long run (Kirby, 2018). However, other provisions indicate that the US will enjoy a relative trade advantage and currency dominance over Mexico and Canada to maintain global hegemony. USMCA earns trade advantages relative to those of the US. As evidence, the agreement revised terms for the intellectual property rights and digital provisions. The provision confirms that copyright terms will extend to 70 years beyond the creator’s life. Besides, specialized drugs will enjoy 10 years for a patent. USMCA also confirms that electronic goods will have no applicable duties and that companies are not liable for cyber protection (Kirby, 2018). The provision benefits the US due to its digital dominance, entertainment industry contributions, and IT advancements for regulating economic...