Compare between Russia and America in Economic - Essay Example

Apparently, with the advancement and reform in the environmental domain, nations were engaged in providing effective means of production and distribution to earn highly competitive advantages. Thus, overall, the concept of economics elaborates the process through which, the nation produces and distributes goods and/or services in a community for its all-around development. Moreover, economics is identified as a widely extended concept, which is further sub-divided into different aspects including micro and macroeconomics. It is these distinctions made through the economic behavior of a country that indicates the underlying causes of why a nation performs better than the other or vice-versa (Stanford, “Economics for Everyone: On-Line Glossary of Terms & Concepts”).

These underpinnings of economic assumptions can be better understood through the comparison of two economies, as is intended for this study. The two economies considered herewith are the American and the Russian economies. America, as an economic power, is often regarded one of the most technologically powerful nations, hosting a strong foundation of private businesses. Its skilled labour pool has also been one of the key drivers of its growth. Besides, the businesses in the US hold a high level of flexibility in taking the key decisions concerning sustainable growth, which has further contributed towards the overall strengths of the economy (OECD, “OECD Economic Surveys: Russian Federation”; “OECD Economic Surveys: United States”). On the other r hand, Russian economy had to undergo significant changes and reforms following the collapse of the Soviet Union that in turn helped the economy become intensive market based. The reforms Russia had to witness during the early ’90s of privatization have led to significant alterations in its economic model overall (OECD, “OECD Economic Surveys: Russian Federation”; “OECD Economic Surveys: The United States”). Thus, while America’s economic growth model remained concentrated on evaluating and encouraging the key determinants of productive capitalism, for Russia, its structural reforms due to external forces became a noteworthy contributor. This particular difference can be better evil concerning to the performance of American and Russian economies during the global financial crisis. The difference became much apparent when both these economies were recovering from their indigenes to crisis and inculcating changes to manage their growth potentials (OECD, “OECD Economic Surveys: Russian Federation”; “OECD Economic Surveys: United States”).