Introduction
America, or the USA, can be easily considered one of the richest and most powerful nations in the world. Combining its vast natural resources, economic and political prowess, as well as a vast external influence, the country is both well known and widely regarded by others. It was chosen as the target of this research primarily for two reasons, the first being the availability of varied data on the country’s condition, and the second being its importance in the global sphere. By analyzing a country of such magnitude, further insight into some of the modern business practices can be found, and many problems faced by less developed areas are simply avoided.
In terms of its general position in the world, America can boast of its sizeable territory, vast resources, and technological advancement. In today’s world, America is largely regarded as a trendsetter; a powerful force others have to account for and actively regard in their operation. The US market fluctuations affect the global economy and bring both challenges and profits to other countries. In terms of its business and production, the country is very active in exploiting the natural resources it has been provided with, taking advantage of new-age machinery and technological power to reach its goals. The levels of CO2 pollution are high, among the highest in the world. While the current environment exploitation and extraction methods are largely harmful to the environment, the country is slowly striving for a more sustainable model of operation. The United States has a rather large population, being well known for the diversity of its people and the cultural variety found in each of its states. The religious, cultural, historical, and ethnic background of every American territory is vastly unique, and in many cases, must be taken into account to more accurately evaluate the state of the country. The population boasts a high education level, with literacy rates being reflective of its status as a developed nation. The experts in America are highly qualified and professional, often being sent overseas to support various businesses and companies.
In terms of business organization, development, and growth, the country can be considered a trendsetter by many standards. The practices USA organizations use are later adopted into general practice, discussed, and set as an example to others. An unprecedented number of companies are started there every year, which then expand and conquer other markets in their stride to perform better. With all of the above being true, the country faces a variety of different problems, each of them being rooted in long-standing unsolved or overlooked problems. The country can often be found economically unstable, largely due to the problems in its political sphere. In addition, many businesses might find working here to be an impossibility due to the lack of accommodations and regulations put in place. While large and existing corporations can find significant benefits both to their operation and business relations by settling in America, smaller businesses have difficulty both staying afloat and being profitable. The push toward monopolistic tendencies, a lack of regulation for the major players in the industry, as well as a lack of protection towards developing companies puts them at a big disadvantage.
Country Background
The United States of America is the 4th largest country in the world, occupying a major portion of land in the north. Totaling up to 9.3 square kilometers in size, the country can be considered a heavyweight both in terms of its population and general size. The US is rich with natural resources, both the ones found on its territory and available to it as a result of political influence. In terms of energy resources, gas, petroleum, and coal can be noted as the biggest prospects. Speaking of other types of resources, the area can be considered to be a stable source of both expendable and non-renewable materials. With its sizeable landmass, the country has a lot of arable lands, leading to many possibilities for crop production. IT coastlines also provide the US with an entrance point to global trade and a large amount of seafood. In terms of export materials and resources that are harvested, America is abundant with natural minerals, metals, and other mining products.
Forestation and greenery are also in large supply, allowing the country to both utilize them for domestic production and sell them overseas. The climate of the US is largely varied, ranging from more moderate weather to extreme changes depending on the region. Its climate can be described as continental, with harsh winters and hot summers, although the duration of both is mostly dependent on the area one is in. Climatic differences based on the area are based on a variety of factors, including the proximity to Canada, the distance from the sea, and the general topographical differences of the US. Some parts of the country are covered with mountains and plateaus, while others are primarily occupied by plains and forests. Moving on to the economic state of the country, America has a prominent service industry, one that has developed in recent years. Other prominent areas include a combination of fuels and other production materials. Petroleum, steel, automobiles, electronics, and consumer goods are some of the major manufacturing areas.
In terms of political organization, the country can be classified to be a representative democracy based on elections. Citizens elect their representatives to reflect their desires and needs in the legislative field, including both national, local, and state governments. The main politically-charged force of the US is its parties, which are used to group political figures together and push for specific legislative routes. The federal government is comprised of three branches – legislative, executive, and judicial, all of which exist under the control of their respective entities. By separating the government into different parts, the country ensures less corruption and faster work operation, both of which are needed for the government to function. The government works to support its people, introducing a variety of policies and regulations to make their life better.
The USA is affiliated closely with other nations, allowing it a wide variety of economic actions and opportunities. Foreign trade and diplomacy are among the most developed areas in the country. The connection to other countries and their markets supports more than 39.8 million jobs in the US, sustaining the employment and prosperity of its people (Business Roundtable, 2015). With the marginally high profits coming from exporting goods and services, the country allows its people to reap the benefits of increased consumer choice. The biggest collaborator for the United States is Canada, sharing a border and a history of beneficial trade relations. Both imports and export from the country are among the largest, contributing to positive economic relations. It is reported that “the US goods and services trade surplus with Canada was $2.4 billion in 2019” (“US – Canada Trade Facts,” n.d.). Other significant collaborators with the US export are Mexico and China, with the two being responsible for 14% and 7% percent of the country’s total export, respectively (Daniels et al., 2019).
In terms of population, the US region can be considered among one of the most diverse and varied in the world. Being comprised of white Americans, indigenous peoples, Hispanic, African-American, and Asian-American citizens, the US has to walk a tight balance of managing the well-being of a variety of different groups. Furthermore, immigration into the United States also brings other nationalities and ethnicities there, including individuals from Asia, Europe, and Africa. The diversity and demographics largely depend on the area and can be widely varied depending on the state or city. Population density is not even, with some areas being severely more inhabited than others (“Population density in the US, by state 2020,” 2020). The DC area can be noted as among the most densely populated, followed by New Jersey, Puerto Rico, and Massachusetts far behind.
Education
Education is a mixed topic in regards to the US. In general, the levels of both education and literacy levels have been among the highest in the world, as a reflection of the country’s developed status. As noted by the PIAAC and the US department of education, the majority of US citizens have a higher than average literacy and reading comprehension; however, the results fall below the statistics shown by other advanced nations, such as Japan (US Department Of Education, 2019). To note, the PIAAC study also found that more than 20% of all US adults do not have sufficient reading comprehension and understanding to complete basic tasks, such as comparing information, paraphrasing, or making inferences about the text they read (US Department Of Education, 2019). This statistic is an alarming reminder of an existing problem and something that must be remedied in the near future. In terms of education, similar considerations have to be made. Education quality and levels in America largely depend on the state that the person is in, as the field is decentralized and inconsistent among the country’s territories (Loo, 2019).
Each local government must establish a framework of education for its people, regulate policies related to it and ensure that every individual has access, but the system of education delivery and the quality of education itself is questionable. Furthermore, it has been noted throughout the years that the system of education adopted by the United States is failing in a variety of important fields, including both its availability and general quality. Educational outcomes and the accessibility of education is unequal among all the different populations of the US, with non-white groups enjoying lower average education levels and a lack of learning options. Colleges, schools, and universities people of color study in are often lacking in either funding or education quality, leading to significant disparities among the population. Furthermore, the quality of education on average is alarmingly lackluster, with many children leaving school with insufficiently developed basic skills. On a connected note, it should be said that the US trains and produces large amounts of professional workers and specialists despite its educational failings. The developments in the tech sphere are immense, and the US continuously produces new and ambitious prospects for global growth.
Political Environment
The politics of the US are a large consideration in discussing the business and development of the country. In particular, both the political system itself and the recent developments in the country’s life can have severe implications for how a business might operate in the future. America sports a two-party political system, with an array of representatives and legislators being elected to reflect the will of the people. The elections serve as a way for the public to reflect their interests, as well as to support those people that they feel might take the country in a much-needed direction. However, the elections will inevitably lead to a change in the country’s policies and approaches to business. As an example, it can be noted that the Republican party has historically been in support of lower taxation of the wealthy and fewer market regulations, which gave bigger companies an opportunity to have free reign of the sphere. In a dissimilar vein, when the Democratic party has been in the position of power, it has set out to limit the influence of corporations and introduce protections for the middle and lower class. The differences in priorities, approaches, and actions of the political parties, their legislative agents, and other entities shape both the political and economic environment of the country.
In regards to the current state of the country, it should also be noted that the US is currently experiencing an especially difficult period. With the recent change in leadership came unprecedented civil unrest, largely coming from radical conservative individuals and American nationalists. The most egregious example of uncivil behavior would be the still recent attack on the Capitol, fueled by dissatisfaction with the results of the election. A large mob of people has organized to stage an attack against the US Congress itself. The severity of this event, as well as the premise of its occurrence, signifies that the country faces an unprecedented divide among its population. Politics are becoming more polarizing, leading to an increase in both radical action and violent crime (Heltzel & Laurin, 2020). While the general criminality trend has been on a decrease, violence is slowly climbing, which is alarming (“The United States of America,” n.d.). This trend can have heavy consequences for any company that starts a business in the USA. In particular, political unrest leads to economic instability, which can be a destructive force for a company.
Corruption
Corruption, as a rule, occurs in every country and on every level of influence. However, the level and prominence of corruption, as well as its level of impact on a particular country, remain unique. The levels of corruption in America are difficult to measure, but the data published by the Transparency International organization places the USA at 25th place in terms of corruption severity (“Corruption Perceptions Index 2020 for the United States,” 2020). While the ranking leaves the country at the top position, it is notably lower than other developed and leading countries of both Europe and the West. Current research notes that corruption brings detriments to society in a variety of ways, including redirecting the public funds to private entities, decreasing the quality of life for the general population, raising the cost of operation for companies, and contributing to criminality (Zikai, 2018). Corruption occurs when an individual, or an entity, uses its power, influence, or resources for the purpose of personal benefit.
This can include bribery, lobbying, fund embezzlement, and other forms of activities that can be used to derive benefits from society. Furthermore, corruption can be institutionalized, meaning that the occurrence of corruption becomes regular and integrated into an operation of a particular entity. This can mean that the operation of an institution is compromised to achieve more positive personal outcomes. America has a number of egregious examples of institutional corruption, especially in the spheres of politics, healthcare, and food. As an example, it is well known that the food and drug association has significant ties to the medical sphere, using their financial incentive to promote or push for the publication of favorable medical research (Fotaki, 2019). Another example would be the USA congress, where members often have to rely on monetary support and donors to continue their advocacy. While the system is legitimized in the eyes of the law, the monetary connections and incentives lead to biased outcomes and the promotion of special interests.
Social Problems
The public sector of the USA is a point of contention and concern for many, often being discussed and examined in hopes of promoting improvement. Firstly, the diverse and varied population of the country presents not only a number of opportunities but problems. The USA sets a historical precedent of disparity between its populations, with people of color being presented will fewer opportunities and having statistically less positive outcomes than their white counterparts. Education quality, income, living conditions, rates of mental illness, homelessness – all of these factors are largely dependent on a person’s race, nationality, and ethnicity in America. This trend can be contextualized by a precedent of preferential treatment white people have received, as well as white supremacy reigning supreme in the America of the past. Black people, in particular, have had to overcome a history of slavery and lynching, setting them back compared to other groups of people despite the changes made in society.
Long after the abolition of slavery, local and federal governments have taken action to limit or restrict the lives of black people, with practices such as redlining and the war on drugs. Despite such practices no longer being allowed, their existence and prominence left an impression on both statistics and the public perception. Similar problems such as systematic racism also persist, being a large portion responsible for skewed incarceration statistics and life expectancy. The next issue that is rather prominent in the US is the lack of social support and welfare programs. In the 21st century, research has found incredibly high levels of relative poverty in the US. The effect of taxes, social programs, assistance, and other initiatives is continuously demonstrated by the authors to be insufficient to reduce the number of poor people compared to other developed nations. Valued notions of personal responsibility and freedom often lead America to neglect the need to support more vulnerable demographics, placing the responsibility of navigating society in their own hands.
The lack of support and the burden that people with smaller incomes face is especially notable in the healthcare sphere, which is another problematic area for the country. With the privatization of healthcare, a limited number of free or accessible services exist to help the population to find treatment or medication. The expansion of the Medicaid program has allowed more people to pay for medical services, and insurance companies cover a certain portion of the costs, which, however, is not sufficient to fully resolve the issue (McMorrow et al., 2017). The healthcare industry has a vested interest in securing profits due to both the need to continue their operation and personal gain. The lack of government support and regulation leads to medical companies price gouging their patented medication and often forcing people to make a choice between debilitating illness and poverty.
Economic Conditions
The economic growth of the US is determined by a variety of factors, including the economic developments of its neighbors and trade partners. As a trendsetter, however, the US is less dependent on following others, instead often acting as an anchor of influence for the countries of the world. Currently, the GDP of the country is more than 2.1 trillion USD, the highest number among all existing countries (“United States GDP Growth Rate1947-2021 Data: 2022-2023 Forecast: Calendar,” n.d.). The nation is vast in its natural resources and opportunities, using its metals, ores, oil, and other resources as a valuable export resources. IT is also crucial to note the country’s relationship with Canada as an important trade partner. The trade agreements signed in the 1980s and 1990s have allowed the countries to establish a long and fruitful relationship, promoting economic integration and cooperation. At least three-quarters of all Canadian exports are sold in the US, which provides a vital connection between the two. In terms of the country’s growth, the rates of GDP increase have been steadily on the rise. Outside of economic growth, it can also be noted that the country is experiencing a decrease in unemployment compared to 5 years before (“United States Unemployment Rate1948-2021 Data: 2022-2023 Forecast: Calendar,” n.d.).
The USA presents a beneficial environment for particular businesses as well, as some industries succeed significantly more than others. In particular, banking and insurance companies are amassing great profits, as well as medical insurance companies, software publishers, and real estate. The conditions of the free market promote the growth and prosperity of particular businesses. The banking industry enjoys the continuous need for people to secure finances, as well as the rising interest rates each year. The life insurance and annuity sector is expanding, fueled by beneficial government policies and increased consumer spending. For software publishing companies, the expansion of connected areas, such as tech and manufacturing, has created more demand and profit. Healthcare and medical insurance have also felt the changes in the country’s economic on their operation. More consumer spending and increased total health expenditure due to the prices of healthcare force people to invest in insurance as a way to cover a portion of their spending. Furthermore, the population of the country is aging, with older people spending more money on their insurance, leading to more profits. Lastly, the real estate sphere is also developing gradually. The need for new housing is persistent each year, with the prices and affordability of living being risen accordingly. With a persistent need for real estate and increased spending, the industry can be sure to enjoy stable growth in the future.
External Analysis
SWOT
Strengths
The United States of America has a variety of strengths to its advantage. As a military superpower, the country can exert its will on others, establish foreign relations on favorable terms and protect itself against possible threats, making the questions of international interactions more simple. A vast collection of natural resources, good geographical positioning, and the abundance of both renewable and non-renewable energy sources can be noted most quickly. Oil, natural gas, and coal are used domestically to power all sorts of industries and exported to bolster the country’s economic prowess. In specific areas, such as entertainment, aerospace, and IT, the USA is nearly unrivaled. The industry is highly advanced and relies on both the size of the workforce and its professionalism to deliver results. In terms of technological advancements, the country is also a major powerhouse, being responsible for the birth and growth of many successful tech companies.
Apple, IBM, Microsoft, and other technology giants are all responsible for a big portion of professional and consumer-grade electronics, software, and hardware. Another significant advantage the US boasts is the benefits for businesses and companies. The government is supportive of corporate development and famously regulates them in a very lax manner, allowing many to take the reins of the market and use it to their advantage. For businesses that want to harness more sustainable and environment-friendly ways of production, the USA also provides an array of opportunities. While the practices of sustainability and environmental protection are not adopted universally, the efforts of their integration and acceptance have already been started. In particular, companies that help other organizations to develop sustainable zero-waste policies operate in the US on a regular basis, offering a surefire way to start the process.
Weaknesses
A notable weakness of the US is its manufacturing costs. To produce its products, America often engages in outsourcing, using countries with cheaper labor or a constant workforce to do that for them. The tendency to use Singapore, China, India, and the Philippines hurts the domestic income of US citizens and can potentially compromise the quality of their products.
The unusually high poverty levels for a developed nation are also a cause for concern, as a large percentage of the population can be found to be struggling for survival, despite living in one of the most prosperous countries in the world. As of 2019, at least 13.4% percent of the population lives in poverty, with their distribution being uneven in the country. Many of such people have trouble finding stable housing or employment or face other related issues such as drug addiction, criminality, or mental illness. With lackluster frameworks of social support, these individuals have way to be properly integrated into society or change their living conditions. Women, vulnerable demographics, and people of color experience poverty even more severely, With Native Americans and black people being twice as likely to be poor as white people.
As a connected consideration, it can be noted that the healthcare field in America is currently suffering from an array of unsolved problems. Financial incentives and privatized healthcare are dominant in society, forcing people to pay to receive even life-saving essential treatment (Dickman et al., 2017). The costs of prescription drugs are increasing year after year, with even simple conditions such as Diabetes rising in total cost by 21% from 2007 to 2012 (Peter & Lipska, 2016). Healthcare has changed its status from a much-needed service to a commodity, something that people can freely sell and set a price on, despite the implications, it may have on human life and wellbeing.
Income disparity is partially connected with the issues of poverty, healthcare, and demographic differences, but can also be classified as a separate weakness. The term pertains to the difference between incomes among the population, in particular the existence of the 1% and the super-rich. In the US, a small portion of the inhabitants possesses vastly more resources and finances than others, giving them an ability to influence industries, politics, and legislation alike. Founders and leaders of major corporations, energy industry moguls, and other big figures have the ability to sidestep the democratic process to reach their goals a lot more easily than a regular person, creating the problem of unequal political representation. They can also more readily afford to pay for healthcare and ensure a better quality of life for themselves and their close associates. Furthermore, the savings and immense wealth of the ultra-rich damage the country’s economy by directly limiting the flow of currency and decreasing the amount of money available at any specific point in time.
Opportunities
The country has a wide range of possibilities for development, both in domestic operations and foreign relations. Firstly, America has an opportunity to expand its exports to new and emerging markets, and involve itself in further international trade as a way to amass resources. With its abundance of land, territory, and products to sell, America has great potential as a foreign relations partner. Using its strong status and position to find the best opportunities, the country can have an ability to further grow. Regions of Asia, in particular, have a lot of untapped potential for trade relationships.
On another note, the country has a lot of influence and power, which can be used in an effort to conserve the environment and reverse the current effects of climate change (Haines & Ebi, 2019). Currently, the high use of fossil fuels, wasteful use of natural resources, as well as continued reliance on non-biodegradable materials have resulted in disastrous consequences for the planet. Melting ice sheets and the increase in extreme temperatures, both low and high, are just the most prominent examples of this trend. The USA, as a trendsetter, is a country with much influence, money, and power.
Threats
International competition and relationships can not only present an opportunity but a significant threat to the USA. Countries with opposing political or economic interests are a challenge to overcome for the country. Another global superpower is Russia, which has its goals rarely aligned with those of the US and actively seeks to undermine its position at the top. Russian federation competes with America and global politics. Another country that can be considered a threat is China, with its quickly growing market and increasing influence over global trade. As a competitor in producing, buying, and selling resources, it must quickly be counteracted to support the USA’s agenda.
Another problem that is increasingly becoming apparent is the polarization of the political sphere. Both the right and the left are moving in directions opposite to each other, leading to the development of extremist and exclusionary ideologies. On the right of the political spectrum especially, the rise in nationalist and white supremacist movements has been tremendous, with some prominent political actors affiliated with such groups becoming a part of the mainstream. The differences between political ideologies multiply, and the hostility between the two sides builds even higher with each year. No real notion of centrality exists, as both, the poles of political alignment keep moving away from each other.
Among some of the more apparent threats, criminality can be noted as a significant problem. The prison complex system and mass incarceration lead to an ever-increasing number of people being locked away from society, prohibiting them from actively contributing to the development of society. Furthermore, undue persecution and the school-to-prison pipeline that many young people face poses a significant threat to future generations, as well as to the country’s future criminality rates (Rocque & Snellings, 2018). By placing people in unstable, antisocial, and unhealthy conditions from childhood, the American prison system guarantees that their future life will also be involved in crime and violence. Without proper social support programs, opportunities, and monetary assistance, most ex-convicts soon find their way back to prison. An inability to properly address the health and wellbeing of prisoners, as well as to decrease the scope of the industrial prison complex, puts a burden on the country’s workforce, financial gains, and civility.
PESTEL
Political Analysis
The US is a representative democracy where the will of the people is reflected by publicly chosen officials that have the capacity to change legislation and the country’s development direction. Political parties form the basis of the government, offering people an ability to associate with a group whose interests most closely align with theirs. The president and the congress are the most important part of the political system, being responsible for new laws, initiatives, and regulations. Currently, the country exists in a transitionary period from one president to another, with the civil upheaval and a general sense of confusion. The political environment is rather unstable, with the country trying to deal with the consequences of ex-president Donald Trump’s actions. Under president Joe Biden, the country has taken a more hard stance on issues of foreign relations, in particular its relationship with China and Russia (BBC, 2021).
Economic Analysis
Economically, the country has experienced the start of a Covid-19 recovery period, which was in large part signified by a return to normalcy, an increase in consumer buying power, and spending. After being left in a state of crisis due to the pandemic, the change is anticipated and welcomed by the majority of the population. While severely affected by the disease, America did not lose its position as the #1 country in terms of its GDP or allowed its competitors to overcome its import and export efforts. The economic environment of the US can be noted for its relatively high standards of living, income, and government spending. Business relations with and from the USA enjoy a variety of benefits, including many trade agreements and favorable terms of operation. Industrial production and market are well-developed, allowing access to materials more easily.
Social Analysis
Socially, the United States of America is both an extremely diverse and problematic environment. A lot of cultures intersect in the US, combining different religions, histories, customs, traditions, and types of people under a single flag. The populations are unevenly distributed and diverse, leading to the culture of a particular area developing completely different from another. The differences among populations are reflected in the business sphere, where a varied range of companies can be found, each with different competencies and staff. America is a place of many opportunities for growth and development, a nation where one can learn about others while directly interacting with them.
On the other hand, the status of the US as one of the more diversely populated nations presents significant challenges. Properly addressing the history of discrimination, inequality, subjugation, and white supremacy keeps being a topical and not fully resolved consideration, while newer and newer generations of people of color live at a disadvantage compared to their peers. Accessibility to education, living conditions, healthcare outcomes, life expectancy, and probability of mental and physical illness – all these considerations affect the population disproportionately, leading to a decrease in the quality of life in the country. There persists a need to give people of color proper tools of leading more self-fulfilling, protected, and secure lives.
In terms of other minority groups, the results also can be considered mixed. As a developed nation, America is quite supportive and tolerant of progressive ideas about gender, identity, and sexual orientation, meaning that people from the LGBT+ community are more likely to lead full, fulfilling lives there. However, there should be noted a lack of proper support and systematic protections from the government, especially in relation to issues of transgender healthcare and social support. The disadvantaged or often vulnerable positions of specific demographics are not often recognized, leading to inequality or systematic discrimination.
In a similar vein, women have also enjoyed an ability to lead successful, fulfilling, and diverse lives, starting work careers, working in positions of power and even contributing to the government and political sphere. However, systematic discrimination and remnants of power imbalance in society still persist, with women having statistically different life outcomes than men. In issues of parenthood, childcare, and childbirth, especially, women can still be treated in an exceptionally distasteful manner.
Technological Analysis
Technologically speaking, the nation is well-endowed and developed. Being among the most prosperous and advanced, the USA has the ability to both produce and buy new tech for its industries or local production. Manufacturing and the service industry rely on modern technology heavily, with the use of the internet and computerization as a push for better work quality. In their daily lives, citizens of the US also enjoy wide internet coverage, cellphones, and other modern feats of engineering. The accessibility and pricing on such types of personal tech are continuously made more available, contributing to the spread of technology among the population.
Environmental Analysis
Environmentally, the US makes a tremendous negative impact on the climate with its active production and industries. The oil and gas spheres, in particular, are among the most egregious offenders. Modern technology and transportation methods pollute the environment, and the car-reliant infrastructure emphasizes the personal use of fossil fuels by the population. Notions of conserving the environment are especially prominent in the country, with many political advocates and independent organizations realizing the value and need to safeguard the environment. While the pollution and CO2 levels of the country are significant, it also strives to remedy its ways, although in a limited capacity. New approaches to transportation and production are being developed, with long-term sustainability and less waste being among the primary consideration. The population starts to become more universally aware of the effects of climate change and act in environmentally conscious ways in their day-to-day lives. However, it should be noted that the current efforts are still minuscule and do not address the core issue of the energy industries being destructive to the environment.
Legal Analysis
The country is rather advanced in terms of its legal protections and regulations for business. Local and federal governments set specific regulations in place as a way to help businesses, protect their rights, and regulate their relationship with employees. In particular, companies have to provide their workers with protection, health, and safety considerations on the job, as well as compensation and medical leaves. The laws make sure that any organization can work with its employees in a more humane, equal manner. In terms of protections for companies, intellectual property and copyright laws exist and are actively enforced in their every iteration to help organizations protect both their rights and their profits. The levels of corruption are moderate, and organizations can expect a fair and favorable outcome than fighting for their rights in court.
Key Challenges of America
There is a number of major challenges and problems the US has to overcome in its growth and development path. The first and more notable problem is the cost of domestic production and over-reliance on outsourcing. Large companies in the manufacturing, tech, commodity production, and clothing industries all use cheap international labor instead of relying on making their products inside of the country. This trend increases spending on transportation and contributes to the exploitation of the less developed countries, as well as drains the job market of its much-needed vacancies. Outsourcing also often jeopardizes the quality of finished products, as the workers that are tasked with creating products are unskilled and underpaid. A move towards optimizing costs of domestic production and Employing local labor forces should be made as a way to counteract this issue.
Another issue that can be noted is the overreliance on the gas and oil sector, in both professional and personal capacities of people. As the city infrastructure of the US was built around using cars, public transportation, and other means of transport and was underdeveloped and underinvested, leading to increased investment into oil/gas production. The trend is extremely detrimental to the environment, as these fields are among the biggest pollutants in the country. The need to ensure that transportation and transit proceed smoothly makes it harder for policymakers and advocacy groups to introduce more sustainable methods or push regulations on the existing industries. The trend is bad for the growth and development of sustainable energy companies, as well as those that specialize in alternative means of transport.
Recommendations for Operating a Business
Currently, The United States of America is an unfavorable environment for investment or company growth due to a number of factors. Firstly, the country has just come under the rule of a new president, with the changes and future policies that will take place still under question. The political landscape of the country is uncertain, causing worry and unrest in the population. Companies, accordingly, have to adjust to the newly introduced government regulation and change their own policies in response to the actions of both the president and the senate. Furthermore, many demographics in America are currently dissatisfied or act in opposition to the direction the government is heading towards, creating a precedent for civil unrest and violence. The polarization of the political sphere further contributes to this, escalating the tensions and making the country’s internal environment deeply unstable. In addition, political turmoil impacts the economic stability of the country and the market. Stock prices, currency, and investments are becoming harder to predict, and even small changes can lead to severe circumstances for a new business.
On the topic of economic instability, the market of the US also cannot be described as overly reliable, partially due to the cyclical nature of its crashes, as well as the notable rise of inflation in the recent month. Prices on both commodities and necessities have risen, and interest rates are continuously rising, creating an especially hostile environment for newcomers. Contributing to this array of already-existing problems, the national debt of the country has been increasing nonstop as well, which further signifies the potential weakness of the American economy (Duffin, 2021).
Implementations
As starting a business cannot be presently recommended, significant improvements need to be made to ensure that new companies can start on a stable footing in the US. Firstly, there needs to be a way of decreasing national debt, both public and private. The national debt can weaken the country’s currency, put its people in danger and contribute to the rise in inflation. To counteract this issue, cutting down on the costs and encouraging spending with lower interest rates may be the most efficient means of achieving that goal. While the introduction of more severe taxes on the populations and corporations is also a way to reduce the national debt, it can have much more negative implications for public opinion and should not be considered lightly. As a way to optimize this process, the government could increase the taxation of the ultra-rich and those that own large amounts of property. Heavier taxation of these groups can increase the flow of currency, decrease the income disparities between populations, and contribute to the reduction of the national debt.
Another important consideration that America should take is increasing the use of innovation and sustainable technology. The future rests on the use of new technology for the benefit of the environment, and more and more governments begin to realize this fact. By adopting more environmentally-friendly policies, introducing regulations on worst industry offenders, and increasing spending on climate change research, the USA can create a more favorable environment for new and emerging businesses. While the more could negatively impact the country in the short term, the long-term implications of such a move are much more important, as they contribute to the long-term survivability and prosperity of humans as a whole.
The last major problem that should be noted is the reduction of outsourcing efforts from companies, and the introduction of frameworks that facilitate domestic production. While companies decide what kinds of products they use, the local and federal governments can introduce legislation that encourages them to act in a certain manner. Using government influence to promote domestic production and reduce costs for organizations could greatly benefit the economy and bring more money to the effort of reducing the national debt.
Conclusion
Overall, the United States of America is one of the most interesting countries to examine for potential businesses and companies. As a nation built on differences and contradictions, it keeps being a mixed bag even while becoming the most successful nation in the world. The power, influence, and reach of the country are undeniable, but they, however, are coupled with significant internal problems. Sporting a diverse range of individuals and companies on its territory, the country must take decisive action to modernize its approaches and make the operational conditions more favorable to those starting out. The effort of reducing national debt can be noted as the most important one, as it could introduce much-needed stability to the country’s economy.
References
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