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Yeah, teams are just given points for wins and then its added up and ranked.
Like Packt Up pointed out, the USA is the strongest team by an absolute mile in CONCACAF (excluding Mexico). So whenever the US plays international friendlies or Gold Cup matches or World Cup qualifiers against the likes of Haiti and The British Virgin Islands, they inevitably win and as such rack up more points than European teams who, with respect are probably better but also face tougher teams in friendlies and world cup qualifying.
At the moment the US are ranked 5th, with France 8th, Argentina 9th, England 10th and Italy 13th. But I think its fair to say if those 5 teams played eachother in a league system, the final table wouldn't finish in that order.
So yeah, the rankings aren't really that great.
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