The USA

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The USA

• International Business Strategies

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The Melting Pot

• Israel Zangwell (1864-1926)
• Jewish spokesman and writer
• America is Gods crucible, the great melting pot
  where all of Europes races are melting and
  reforming
• The melting pot, 1908.

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Brief History

• The most multicultural country in the world

• Discovered by
• Leif Eriksson
• 2 Christopher Colombus
• 3 John Cabot
• 4 Amerigo Vespucci

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History

• The USA was formed under the Articles of
  Confederation in 1781
• First President was John Hanson
• The new USA aimed to be a democracy open to all,
  all men being equal.
• Civil War 1861-1865.
• Mass immigration- the melting pot.

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Social Variables

• 2 Main Areas
• Demographics/Makeup of population
• Social Values

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Demographics

• Population 275,562,673
• Growth Rate of 0.91
• Age Structure
• 0-14 YRS 21.25
• 15-64 YRS 66.11
• 65 12.64

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Demographics

• Ethnic Groups (1992)
• White 83.5
• Black 12.4
• Asian 3.3
• Amerindian 0.8
• (Hispanic is not included)

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Demographics

• Religions
• Protestant 56
• Roman Catholic 28
• Jewish 2
• Other 4
• None 10
• Languages English and Spanish
• Literacy 97 of total population

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Why is this important?

• Size and characteristics of labour supply.
• Change in makeup Creation of social issues
• Markets

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Social Values

• Compare with other countries
• Japan
• France
• Germany

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Political Environment

• Worlds most powerful nation state
• Believed to be the most hated
• Federal Republic
• Legal system based on English common law
• President William Jefferson Clinton
• General election 7th November (next week)

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Political Parties

• Democratic Party (49.2)
• Republican Party (40.7)
• Al Gore Vs George W. Bush
• Either candidate not believed to effect political
  stability of the USA.
• Legislation- Bicameral, Senate and House of
  Representatives

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State Laws

• 50 states and 1 district (Columbia)
• State laws differ
• Companies can choose state based on preferable
  laws

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Current Issues

• Risk of war
• Racism
• Non government organisations (NGOs)
• Pollution
• Illicit drugs
• Trade Disputes eg. Banana Wars

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US ECONOMY

• Largest and most technically advanced economy in
  the world
• Capitalist - market oriented
• Low barriers to entry

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GDP COMPOSITION

• Agriculture - 2
• Industry - 18
• Services - 80

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Economic Indicators

• Inflation 2.2
• Labour force 139.4 million
• Unemployment rate 4.2
• External debt 862 billion

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A Divided Workforce

• A two tier economy
• GDP per capita 33,900
• 12.7 of population below the poverty line
• Economy generally still in very good shape

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NAFTA

• Free Trade Area set up in 1994 comprising of
  Mexico, USA and Canada
• Three members have seen slight net gains in GDP,
  whilst the rest of the world has suffered a
  negligible loss

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Long Term Problems

• Inadequate investment in economic infrastructure
• Ageing population
• Sizeable trade deficit
• Stagnation of family income in lower economic
  groups
• Exuberant level of stock prices in relation to
  corporate earnings

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Technology

• The US has the most technologically advanced
  economy in the world
• Technological forefront in medical, aerospace,
  and military equipment
• Narrowed since the end of WW2

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Technology

• Telephones - main lines in use 178 million
  (1999)
• Telephones - mobile cellular 55.312 million
  (1997) est.. 2000 74.856 million
• large system of fibre-optic cable, microwave
  radio relay, coaxial cable, and domestic
  satellites
• 24 ocean cable systems in use satellite earth
  stations

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Communication

• Radios 575 million (1997)
• 5000 AM and 5000 FM stations
• Televisions 219 million (1997)
• 1,500 channels
• Internet Service Providers (ISPs) 7,600 (1999
  est..)
• 102,158,000 PCs in households for private use in
  1999

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Online

• US has 83.3 million online (1999)
• by 2002 there will be 165 million online
• 2.3 million jobs in e-commerce
• Ad. Spending in 2000 5.4 billion
• (Forrester Research) U.S. online retail revenues
  will hit 38.8billion in 2000, up from 20.3
  billion in 1999.

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E-commerce

• 98 of fortune 500 companies online
• E-commerce as of retail sales
• 4th Q 1999 0.63
• 1st Q 2000 0.70
• 2nd Q 2000 0.68

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Technology jobs

• 3,800 scientists per 100,000 of the population
• Universities (120)
• Royalties received 336,627,888
• Patents issued 1,776
• Royalty generating licenses 4,958
• Start up companies 184

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Establish in USA

• Immigration an  Entry Barrier 
• September 96 The immigration law
• Green card
• Find your sponsor !
• Political asylum
• Diversity Visa
• - Quotas
• Category
• Country

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Establish in USA

• Set up your business
• Aid
• Legal policy
• Sole Proprietorship
• Corporation
• Limited Liability Company
• General Partnership
• Taxation
• Social Protection

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Conclusion

• Opportunities
• Biggest commercial market in the world
• Resources and infrastructure
• Geographic position
• Sources of capital
• Still young, great influences on others

• Weaknesses
• Expense of entering markets
• High competition
• Controls on entry

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Sources

• www.OCDI.com
• www.OECD.com
• www.APCE.com
• www.electronictelegraph.com
• www.ft.com
• www.gi.grolier.com