In this project the Nominal Effective Exchange Rate (NEER) and the Real Effective Exchange Rate (REER) were derived to analyze the measure of country's external competitiveness. The research included development of a model taking number of input economic parameters of the United States and its eleven trading partners that included Canada, Japan, Germany, France, United Kingdom, Mexico, China, Taiwan, South Korea, Singapore and Brazil. The analyzed data covered a period of time from 1996 to 2008 and it showed the evolution of international financial positions of the United States.