Agriculture
In Russia, the agricultural sector includes products such as grains, sugar beets, sunflower seeds, meat, and dairy products. Agricultural products make up for 7% of Russia's GDP. The agriculture sector provides employment options for around 16% of the entire population, even though Russia is primarily an industry-based country. Russia has around 23 million hectares of cultivatable land, and grain occupies more than 50% of that area. Wheat is the most valuable grain, considering it makes up for 70% of total grain production in the country and it can be harvested in both the spring and winter seasons. This relates to how we learned that foreign investors would want to invest in cultivation of wheat, whether it be spring or winter. It would benefit them even if one crop starts dying more in the spring, since they would only have to wait until next winter instead of a full year. This is an important export for Russia to gain money on, and investors will too because of the win-win situation for them. Around 40% of the land in the US is used for agriculture. Agriculture makes up 1.3% of the GDP. In the United States, small farms have been decreasing since 1979, but agricultural production has increased since 1990, along with the output of each worker growing by an average of 0.84% each year. The largest crop in the US is corn, which accounts for more than half of the nation's crop output of 247,882,000 metric tons. However, the US Congress has reduced subsidies that help farmers who aren't growing crops and to keep the price of crops high. Yet, support and aid still continues for tobacco farmers.
Manufacturing
Manufacturing in Russia includes automobiles, trucks, trains, agricultural equipment, advanced aircraft, aerospace, machine and equipment products, mining and extractive industry, medical and scientific instruments, and construction equipment. It makes up for 34% of Russia's GDP. On the other hand, manufacturing makes up for 12% of the GDP of the US. For Russia, the manufacturing industry has been deteriorating in business conditions recently. We learned about how input costs may become too high for some businesses to operate functionally, and that is what is happening here. Input costs and output charges, prices pressures, and a drop in employee numbers have caused another contraction to hit the manufacturing sector as a result. The manufacturing sector in the United States has contributed $2.17 trillion to the economy in 2015. There are 12.3 million manufacturing workers, representing 9% of the workforce. For ever $1 that is spent on manufacturing, another $1.81 is added to the economy. This is the multiplier effect that we also learned about.
Services
The Markit Russia Purchasing Managers' Index (PMI) in services has risen to the highest level it has ever been. This relates to our previous studies because the PMI has shown that there have been substantial increases in output and healthier conditions have been made to persuade more people to join the workforce. Exports, as well, decreased at the slowest pace in 40 months. Business activity levels have risen at the fastest pace in 37 months, due to business intakes and improvements in demand conditions. This shows signs of the business cycle that our class learned about, because there was a sharp contraction in 2009 with a very low trough in business activity, but then an expansion began and the providing business sector has been improving ever since. Services makes up 63.7% of the GDP in Russia, and in the United States, it makes up 78%. For the United States, jobs in the services area are expected to grow as well throughout 2018. Currently, the services sector represents 32% of exports and accounts for 89.7 million jobs of the U.S. private sector employment.