Background
The United States may be regarded as the world’s largest economy with the following main indicators that remain impressive even affected by the COVID-19 pandemic:
(“United States: Economic and political outline,” 2021).
In general, the United States is a developed and industrialized country characterized by modern technologies and a high level of productivity. Major sectors and industries include agriculture, food, chemical products, manufacturing of machinery, automobiles, finance, insurance, retail, rentals, real estate, and leases. The major sectors that contribute to the economy and provide employment are services (78.7% of employment), industry (19.9%), and agriculture (1.4%) (“United States: Economic and political outline,” 2021). Approximately 60% of both male and female populations over 16 years old are involved in the civilian labor force. At the same time, the country focuses on international trade having trade relations with more than 200 developing and industrially advanced states all over the world.
Political and Regulatory Stability
The United States’ political and regulatory system is receptive to international business and ensures its development. First of all, the U.S. government is committed to responsible business conduct (RBC) and shapes standards to ensure that companies’ rights are respected, and business is done responsibly both locally and worldwide (“Responsible business conduct,” n.d.). The team that ensures RBC “provides guidance, promotion and support for responsible business practices, engaging the private sector, labor groups, non-governmental organizations, and other governments” (“Responsible business conduct,” n.d., para. 2). At the same time, regardless of the current level of business stability, there are always ways for improvement. Thus, on June 16, 2021, the Biden-Harris Administration announced that the United States National Action Plan on Responsible Business Conduct (RBC) would be updated and revitalized (“Responsible business conduct,” n.d.). It will unite civil society groups, governmental organizations, workers’ organizations, and the private sector to promote business sustainability for local and international companies.
At the same time, the U.S. market is relatively receptive to foreign investments regulated by the political system as well. The Office of Investment Affairs (OIA) is responsible for the promotion of investment policies that support the economic growth, employment, and prosperity of the United States (“Investment affairs,” n.d.). Moreover, it protects national security in relation to foreign investments while sustaining the country’s open investment policy. The Office’s Investment Climate Statements provide the state’s companies with economy-specific information on investment legislation that may be beneficial in making appropriate business decisions. In addition, OIA represents the Department of State on the Committee on Foreign Investment in the United States (CFIUS) (“Investment affairs,” n.d.). This inter-agency committee controlled by the U.S. Department of Treasury reviews acquisitions and mergers of local businesses by foreigners to assure national security and determine the impact of such transactions on it.
That is why there are restrictions on foreign investments in particular sectors, including defense, maritime industries, commercial aviation, fishing, mining rights, power generation, banking, broadcasting, and communications. Although these restrictions may be justified by particular attention to national safety, it is recommended for the United States to provide more incentives and grants for foreign investors. In the present day, only several states propose incentives for the encouragement of investments, however, it may become a federal practice in a particular sphere for economic growth and prosperity.
Legal System
In general, the transparency of law enforcement and an independent judiciary are central to the rule of law and democracy. Regardless of the fact that corruption that negatively affects the system’s transparency and independence occurs all over the world, the United States may be regarded as one of the leaders in its combating. At the same time, the fairness and objectivity of American law is a controversial matter, especially for foreign investors and businesspeople. On the one hand, almost all states are conducted by common law jurisdictions that presuppose the application of the law on the basis of historical reports – however, statutes are also highly important depending on a particular case. On the other hand, every state has its independent position in relation to business and commercial law. This system creates multiple limitations and complicates business processes, especially when they need to be negotiated with federal and local authorities of states, counties, and cities. Moreover, various aspects of the business may be regulated by totally different authorities. For foreign investors, the division and regulation of American business law may be regarded as highly confusing.
In turn, The United States legal system pays particular attention to the protection of business attributes, including investments and intellectual property. The Constitution protects both domestic and foreign investments as the Fifth Amendment protects businesspeople against expropriation or provides fair compensation in the case of property acquisition for public purposes. In turn, intellectual property is protected by the Office of International Intellectual Property Enforcement (IPE) (“Intellectual property enforcement,” n.d.). It promotes strong right systems to ensure that holders’ intellectual property is protected locally and worldwide and prevent access to pirated goods that may harm consumers.
Business Customs and Practice
Respect of law, business ethics, and anticorruption measures play a vital role in the United States Business environment. First of all, the power of law is ultimate and controls every aspect of the business process. Thus, it is a common practice for businesspeople to be routinely involved in the legal system and court actions, as the process of business transactions is conservative and complicated. In turn, U.S. business ethics is based on the idea of the possibility to be committed to law and social values and maximize profit at the same time. The basic elements of ethics in the United States include anti-discrimination, general professional conduct, financial responsibility, fair labor standards, and honest marketing. In addition, the United States business environment has zero tolerance to all types of corruption that presupposes legal prosecution.
In addition, the United States is among countries that started to implement the standards of sustainability in relation to the environment and human rights. A considerable number of companies are committed to the reasonable use of natural resources aiming to keep them for future generations. At the same time, business is conducted on the basis of sustainable employment when employees’ general and working rights are respected. In general, organizations focus on the creation of an employee-oriented working culture based on the absence of discrimination, appropriate and safe working conditions, and friendly communication.
Religion and Culture
Although religion and business environment seem to be completely different concepts that never meet, in Corporate America, religion matters. According to the Journal of Financial and Quantitative Analysis, companies in more religious counties have lower debt costs and higher credit ratings in comparison with other organizations (Kim, 2017). Due to religious beliefs, they traditionally take fewer risks and avoid inappropriate and unethical practices. And it goes without saying that elements of American culture, including independence, directness, and equality, impact local and international business. Thus, communication for problem solutions, openness, customer support, autonomy and individualism, creativity, and human rights are valued in the U.S. market. At the same time, in relation to international business, foreign businesspeople frequently admit the arrogance of the United States companies to other cultures despite the growing number of cross-cultural training.
References
Intellectual property enforcement. (n.d.). U.S. Department of State. Web.
Investment affairs. (n.d.). U.S. Department of State. Web.
Kim, K. (2017). Does religion matter in Corporate America? Forbes. Web.
Responsible business conduct. (n.d.). U.S. Department of State. Web.
United States: Economic and political outline. (2021, October). Web.