Session 2Free-Enterprise and Economic Growth
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Case Study 2.2mNJ "New Jersey's Economy - Domestic and International"

Directions: Complete the following case study and record your answers on a separate sheet of paper.

Topic: A brief history of the state of New Jersey and its political and economic impact on the world.

Objective: To discuss the connection between local, national and global economies in New Jersey. To review New Jersey's role in American history, from its colonial inception to the present, in which it is a major center of production.

Key Terms: economics manufacture
free trade trade
import United States
 
Careers: garment worker shipping clerk
 
Web Site Links: www.state.nj.us
http://revolution.h-net.msu.edu/
 

Case Study:

New Jersey lies on the eastern seaboard of the United States. Its only land boundary is with the state of New York to the north. It borders the Atlantic Ocean on the east and the Delaware River on the west. Past the Delaware River are the states of Pennsylvania and Delaware. New Jersey runs 170 miles from north to south and 75 miles from east to west. Before European exploration and settlement, the land around New Jersey was home to the Lenni-Lenape tribes. In 1524, the first European landed in New Jersey. He was the Florentine explorer Giovanni da Verrazano. Henry Hudson, an Englishman who was exploring for the Dutch, landed in the area in 1609. The earliest European settlements were primarily Dutch and Swedish trading posts located along the Hudson and Delaware Rivers.

CS Question #1: What potential advantages does New Jersey's location offer?

 

In 1664, Britain claimed New Jersey from the Dutch. In 1676, the area was split into two colonies. Sir George Carteret controlled one of the colonies. A group of Quakers controlled the other colony. This division eventually ended when New Jersey was reunited as a royal colony under the Governor of New York. In 1738, New Jersey became its own colony, with its own governor and assembly.

New Jersey was a primary battleground during the American Revolution. Since the area was an important port and allowed access north and south along the Atlantic seaboard, both British and American troops moved men and supplies through the colony. The American forces won many of their major battles in New Jersey. In 1776, they won the Battle of Trenton; in 1777, the Battle of Princeton; and in 1778, the Battle of Monmouth. New Jersey was also the third state to ratify the U.S. Constitution shortly after the war. The state played an important role in the founding of the United States. It would later play another essential role as a center of production.

CS Question #2: Why was New Jersey important to both sides that fought in the American Revolution?

 

New Jersey's top exports are in the following industries:

Chemicals and related products $6.58 billion
Electronics, electronic equipment and computers $3.78 billion
Industrial machinery, computer equipment $1.96 billion
Transportation equipment $1.78 billion

New Jersey's economy is primarily based on manufacturing. Manufacturing provides work for almost one third of the total workforce. The state's major manufactured goods are chemicals and electronic equipment. New Jersey also produces clothing, electrical machinery, toys, sporting goods, stone, glass and clay. The state is also an important research center, with 10 percent of all research funds going to projects in New Jersey. New Jersey is also home to important educational and cultural centers, like Princeton University. The manufacturing industry in New Jersey provides many goods to both domestic and foreign consumers. Its production-based economy provides many of the goods that are traded in the global marketplace.

CS Question #3: What is the primary industry in New Jersey?

 

New Jersey has excellent access to waterways, including the Atlantic Ocean. Prime distribution access for goods and services is one result of New Jersey's geography. In fact, New Jersey's only land boundary is New York. New Jersey is often considered a part of the larger New York area. Often, the boundaries that separate the states of New Jersey and New York are blurred. For example, the New York Giants have a home stadium in New Jersey. This close relationship with New York has benefited the New Jersey economy by providing clear and easy access to world markets. New York supplies a route to contact potential customers anywhere in the world. Additionally, New Jersey's Atlantic City is a big tourist draw. The famous seaside resort has legal casino gambling and is a destination for both domestic and international tourists.

Foreign direct investment in New Jersey totals $30.4 billion, the seventh highest in the nation. New Jersey is also ranked sixth in the nation for the number of jobs that are maintained by subsidiaries of foreign businesses. New Jersey's exports total $22.7 billion, making it the ninth largest exporting state in the nation. New Jersey's top export markets include:

Canada $4.26 billion
Japan $1.97 billion
United Kingdom $1.21 billion
Mexico $1.20 billion
Netherlands $1.10 billion
Israel $1.04 billion

It is not surprising that Canada is a large export market for New Jersey, considering the proximity of the two locations. In fact, just under 500 miles separate New Jersey's capital city, Trenton, from the capital city of Toronto in the Canadian province of Ontario.

New Jersey is committed to economic growth and development in the world economy. The New Jersey Commerce and Economic Growth Commission is a driving force in this area. For example, their New Jersey-Israel Commission has assisted 21 businesses seeking investment opportunities in New Jersey.

CS Question #4: Why is New Jersey successful in the global economy?

 

Further Thought:

  1. How does a state's economy affect the surrounding regions?
  2. How does being a center of production benefit New Jersey's economy?
  3. What problems do the manufacturing sectors of New Jersey's economy face in the world economy?

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