SUBMITTED BY:

KIRAN TAJ KAYANI

(16-Arid-4054)

ZAHRA KHALID (16-

Arid-4145)

HAMZA KHALID (16-

Arid-4074)

ZIA-UR-REHMAN (16-
Arid-4152)

MUHAMMAD
NASRULLAH(16-Arid-
4080)

ZAIN ALI (16-Arid-

4146)

SYED AMJAD (16-

INTERNATIONAL Arid-4193)

DEGREE:

BUSINESS REPORT BBA (hons.) Section C

SUBMITTED TO:
UNITED STATES OF AMERICA
MADAM HAFIZA
AMTUL HAFEEZ
 LETTER OF TRANSMITTAL

June 18, 2019

Madam Hafiza Amtul Hafeez

Lecturer, International Business

University Institute of Management Sciences, AAUR

Dear Madam!

The report we are presenting contains the detail about the United States
of America. It contains introduction, languages, religions, area, population,
imports exports, top global companies, political, social, cultural factors, trading
policies, trade rates, financial factors and some other details of United States of
America. We are a group of 7 members, Kiran Taj Kayani, Zahra Khalid,
Muhammad Nasrullah, Hamza Khalid, Zia-ur-Rehman, Zain Ali and Syed Amjad
Hussain. In our work, we tried to fulfil the course demand of BBA program that
we will present with your anticipation IN SHA ALLAH!

Different sources had been used for gathering data. In this report valid
information while presentation is kept forefront.

Yours Sincerely

1|Page
1. Table of Contents
1. INTRODUCTION: ............................................................................................................. 4

2. KEY STATISTICS ............................................................................................................. 4

➢ Official Name: ............................................................................................................. 4

➢ Independence:.............................................................................................................. 5

➢ Population: .................................................................................................................. 5

➢ Capital: ........................................................................................................................ 5

➢ Language: .................................................................................................................... 5

➢ Area: ............................................................................................................................ 5

➢ Most Populated Cities: ................................................................................................ 5

➢ GDP (Gross Domestic Product): ................................................................................. 6

➢ Unemployment Rate:................................................................................................... 6

➢ Exports: ....................................................................................................................... 7

➢ Imports: ....................................................................................................................... 7

➢ Human Development Index (HDI):............................................................................. 8

➢ Population Growth: ..................................................................................................... 8

➢ Birth Rate: ................................................................................................................... 8

➢ Death Rate: .................................................................................................................. 8

➢ Literacy: ...................................................................................................................... 8

➢ Country Religion: ........................................................................................................ 8

➢ Other Religions: .......................................................................................................... 9

3. HIERARCHY OF TOP ONE ORGANIZATION : ........................................................... 9

4. TOP FIVE COMPANIES IN U.S.A THAT ARE GLOBAL : ........................................ 16

1.Walmart - $485.3bn.......................................................................................................... 16

2.Berkshire Hathaway - $222.9bn ....................................................................................... 16

2|Page
 3. Apple - $217.5bn ............................................................................................................. 17

4. ExxonMobil - $197.5bn .................................................................................................. 17

5.General Motors - $168.4bn .............................................................................................. 17

6.Mcdonald’s ....................................................................................................................... 18

7. Coca Cola ........................................................................................................................ 18

5. COMPONENT OF INTERNATIONAL BUSINESS: ..................................................... 18

POLOTICAL:...................................................................................................................... 19

TECHNOLOGY: ................................................................................................................ 19

ECONOMICAL: ................................................................................................................. 20

FINANCIAL: ...................................................................................................................... 20

SOCIAL: ............................................................................................................................. 20

6. TYPES OF BUSINESS ENTITIES IN THE COUNTRY: .............................................. 21

7. PARTNERSHIP FIRM/COUNTRIES: ............................................................................ 23

1. Apple + Hermes ........................................................................................................ 23

2. Ford + Hearst............................................................................................................. 24

3. Spotify + Starbucks ................................................................................................... 24

4. UNICEF + Target ...................................................................................................... 25

8. CURRENCY USED IN FOREIGN BUSINESS: ............................................................ 25

9. TRADE POLICIES OF U.S.A: ........................................................................................ 26

10. TARIFF RATES: .......................................................................................................... 29

11. PRODUCT STRATEGY OF U.S.A: ............................................................................ 30

12. PRICING STRATEGY OF U.S.A: .............................................................................. 31

13. BUSINESS ETHICS ..................................................................................................... 31

14. CONCLUSION ............................................................................................................. 32

3|Page
1. INTRODUCTION:
The United states of America (USA), commonly referred to as the United States (U.S or US)
or America, is a country comprising of 50 states, a federal district, 5 major self-governing
territories, and various possessions. Forty-eight states and the capital's federal district are
contiguous in North America between Canada and Mexico. The state of Alaska is in the
northwest corner of North America, bordered by Canada to the east and across the Bering Strait
from Russia to the west. The state of Hawaii is an archipelago in the mid-Pacific Ocean. The
U.S. territories are scattered about the Pacific Ocean and the Caribbean Sea, stretching across
nine official time zones.

At 3.8 million square miles (9.8 million km2), the United States is the world's third or fourth
country by total area and is slightly smaller than the entire continent of Europe 3.9 million
square miles (10.1 million km2). With a population of over 327 million people, the U.S. is the
third most populous country. The capital is Washington D.C, and the largest city by population
is New York city. The extremely diverse geography, climate and wildlife of the United States
make it one of the world's 17 megadiverse countries.

13 red and white stripes in the flag symbolizes the 13 original colonies (Connecticut, Delaware,
Georgia, New Hampshire, New Jersey, Maryland, New York, North Carolina, South Carolina,
Massachusetts, Virginia, Rhode Island, Pennsylvania). Red stripes means ‘hardiness, valor,
bravery’ and blue portion means Vigilance, Perseverance, Justice’. The 50 stars means 50 states
o USA.

2. KEY STATISTICS
➢ Official Name:
The term “United States of America” was first used officially in the declaration of
Independence, adopted on 4th July 1776. On 15th November 1777, the second Continental
Congress adopted the articles of confederation, the first of which stated “the Stile of this
Confederacy shall be ‘The United States of America’”.

4|Page
➢ Independence:

The Declaration of Independence, 1776. By issuing the Declaration of Independence, adopted

by the Continental Congress on July 4, 1776, the 13 American colonies severed their political
connections to Great Britain.

➢ Population:

As of November 8, 2018, the United States is estimated to have a population of 328,953,020.

The population is distributed by age as follows:

0–14 years: 18.62% (male 31,255,995/female 29,919,938)

15–24 years: 13.12% (male 22,213,952/female 21,137,826)

25–54 years: 39.29% (male 64,528,673/female 64,334,499)

55–64 years: 12.94% (male 20,357,880/female 21,821,976)

65 years and over: 16.03% (male 22,678,235/female 28,376,817)

➢ Capital:

Washington, D.C is the capital city of the United States of America. Washington, D.C., has
been the capital of the United States since 1800.

➢ Language:

National language is English. Spanish and some other languages are also spoken.

➢ Area:

Total area 3,796,742 sq mi (9,833,520 km2), water(%) 6.97, total land area 3,531,905 sq mi
(9,147,590 km2)

➢ Most Populated Cities:

The 10 largest U.S. cities by population ARE AS FOLLOWS:

New York City, NY: Population: 8,550,405, Nickname: “The Big Apple” and “The City that
Never Sleeps”

5|Page
Los Angeles, CA: Population: 3,971,883, Nickname: “City of Angels,” “La La Land,” “The
Big Orange” and “Tinseltown.”

Chicago, IL: Population: 2,720,546 , Nickname: “The Windy City”

Houston, TX: Population: 2,296,224, Nickname: “Space City,” “Bayou City,” “H Town” and
“The Big Heart.”

Philadelphia, PA: Population: 1,567,442 , Nickname: “The City of Brotherly Love”

Phoenix, AZ: Population: 1,563,025, Nickname: “The Valley of the Sun” and “The Salt River
Valley”

San Antonio, TX: Population: 1,469,845, Nickname: “Alamo City”

San Diego, CA: Population: 1,394,928, Nickname: “America’s Finest City”

Dallas, TX: Population: 1,300,092, Nickname: “The Big D”

San Jose, CA: Population: 1,026,908, Nickname: “The Capital of Silicon Valley”

➢ GDP (Gross Domestic Product):

The GDP (Gross Domestic Product) figure in 2018 was $20,494,100 million, United States is
the world’s leading economy with regard to GDP in the ranking of GDP of 196 countries. The
absolute value of GDP in United States rose $1,008,700 million with respect to 2017.

➢ Unemployment Rate:

As of January 2019, the U.S. unemployment rate was 4%

As of July 2018, the U.S. unemployment rate was 3.7 percent (U3 rate).

As of July 2017, the U.S. unemployment rate was 4.3 percent (U3 rate).

As of July 2016, the U.S. unemployment rate was 4.9 percent (U3 rate).

As of July 2015, the U.S. unemployment rate was 5.3 percent (U3 rate).

As of July 2014, the U.S. unemployment rate was 6.2 percent (U3 rate)

6|Page
➢ Exports:

The United States of America shipped US$1.664 trillion worth of goods around the globe in
2018. That amount reflects a 7.6% uptick from 2017 to 2018 and a 2.7% gain since 2014. Based
on estimates from the Central Intelligence Agency’s World Factbook, America’s exported
goods plus services represent 12.1% of total US economic output or Gross Domestic Product–
including re-exports. Given America’s population of 329.3 million people, its total $1.664
trillion in 2018 export revenue translates to roughly $5,100 for every resident in the United
States. The main exports of U.S. in 2018 are the followings:

1. Machinery including computers: US$213.1 billion (12.8% of total exports)

2. Mineral fuels including oil: $189.9 billion (11.4%)
3. Electrical machinery, equipment: $176.1 billion (10.6%)
4. Aircraft, spacecraft: $139.1 billion (8.4%)
5. Vehicles: $130.6 billion (7.8%)
6. Optical, technical, medical apparatus: $89.6 billion (5.4%)
7. Plastics, plastic articles: $66.5 billion (4%)
8. Gems, precious metals: $63.8 billion (3.8%)
9. Pharmaceuticals: $48.4 billion (2.9%)
10. Organic chemicals: $40.2 billion (2.4%)

➢ Imports:

The United States of America imported US$2.614 trillion worth of goods from around the
globe in 2018. That dollar amount reflects an 8.4% gain since 2014 and an 8.5% uptick from
2017 to 2018. Given America’s population of 329.3 million people, its total $2.614 trillion in
2018 imports translates to roughly $7,900 in yearly product demand from each U.S. resident.

The following product groups represent the highest dollar value in America’s import purchases
during 2018. Also shown is the percentage share each product category represents in terms of
overall imports into the US.

1. Machinery including computers: US$386.4 billion (14.8% of total imports)

2. Electrical machinery, equipment: $367.1 billion (14%)
3. Vehicles: $306.7 billion (11.7%)
4. Mineral fuels including oil: $241.4 billion (9.2%)

7|Page
 5. Pharmaceuticals: $116.3 billion (4.5%)
6. Optical, technical, medical apparatus: $93.4 billion (3.6%)
7. Furniture, bedding, lighting, signs, prefab buildings: $72.1 billion (2.8%)
8. Plastics, plastic articles: $61.9 billion (2.4%)
9. Gems, precious metals: $60.8 billion (2.3%)
10. Organic chemicals: $54.6 billion (2.1%)

➢ Human Development Index (HDI):

The United States’ Human Development Index (HDI) value for 2018 is 0.924-which put the
country in the very high human development category- positioning it at 13 out of 189 countries
and territories. Between 1990 and 2018, United States’ Human Development Index (HDI)
value increased from 0.860 to 0.924, an increase of 7.4 percent.

➢ Population Growth:

Population growth rate: 0.8%. Country comparison to the world: 130th

➢ Birth Rate:

12.4 births/1,000 population (2018 est.) Country comparison to the world: 157th

➢ Death Rate:

8.2 deaths/1,000 population (2018 est.) Country comparison to the world: 86th

➢ Literacy:

The literacy rate in United states is 99%. 32 million adults in the United States can not read
properly. 21% of the adults in the United States read below a 5th grade level. 19% of the high
school graduates cannot read properly.

➢ Country Religion:

Christianity is by far the largest religion in the United States; more than three-quarters of
Americans identify as Christians. The United States remains a predominantly a Christian
nation, with 78.5% of all adults identifying with a Christian faith, more than 9 in 10 of those
have a religious identity identifying as Christians. Out of this 78.5%, Protestant are 51.3%,
Roman Catholic 23.9%, Mormon 1.7%, and other Christians are 1.6%.

8|Page
➢ Other Religions:

Other religions in United States include unaffiliated 12.1%, none 4%, other or unspecified
2.5%, Jewish 1.7%, Buddhist 0.7% and Muslims are 0.1%.

3. HIERARCHY OF TOP ONE ORGANIZATION :

Business Hierarchy of WALTMART:

Wal-Mart Stores is a multi-national retail corporation in America which is functioning as a

chain of discount departmental stores, grocery stores and supermarkets. It was formed in 1969
and since then, it is the most popular chain store where most of the Americans shop for their
daily needs.

It also operates in Canada, Mexico, United Kingdom, India, Japan and Argentina under
different names. Walmart is a big company and hence, the store business structure functions
according to a hierarchy planned for smooth functioning. The Hierarchy is divided into 3 main
branches given below:

9|Page
Above Store Manager:

They do not really visit the stores everyday but look after the overall progress of multiple stores.
They take care of the accounts, statistics and supply by overlooking the reports given to them
by their juniors.

1. Senior Vice President:

10 | P a g e
 He looks after the functioning of Wal-Mart stores located all over. He is responsible
for the smooth functioning of the stores and keeping a track of the sales and profits
by taking statistics from his juniors.

2. Regional Vice President:

The regional Vice President takes care of the functioning of Wal-Mart stores of a
particular region. He takes care of the accounts and profits generated from the stores
of that particular area.

3. Market Managers:

The Market Managers look after the profits being made by the store by analyzing
the market. He is responsible to introduce new offers and discounts for stores of a
particular area by studying the consumer behavior of that particular place.

In-store Managers:

The In-store managers are responsible for managing an entire store. Given below are three sub
levels of in-store managers.

1. General Manager:
The General Manager looks after the entire functioning of the store, including
looking after the sales and stocking of the goods. He checks the accounts from
time to time and solves issues related to anything which happens in the store.
2. Co-Manager:
The Co-Manager assists the General Manager in his work and helps him manage
the store efficiently.
3. Assistant Manager:
The Assistant Manager instructs the in-store employees with respect to their
daily tasks. He informs about the sales strategies formed by the seniors to the
in-store workers so that they execute the instructions.

In-store hourly workers:

They are the staff at Wal-Mart whom you see most of the times working on floor, instead of
the admin department.

11 | P a g e
 1. Support Manager:

The Support Manager looks after the daily working of the store and keeps records
of the sales and stocks.

2. Customer Service Supervisors:

Customer Service Supervisors help the customers with issues related to the products
they buy. They also assist the customers in finding the required products, in case
they are not able to locate the right shelf.

3. Cashiers and sales associates:

Cashiers are the ones who prepare the bills for the customers and sales associates
help the customers get the required goods.

4. Stockers:

Stockers stock up the shelves of the stores and arrange the products properly in the
stands. If any product is torn or packaged, they are responsible for discarding it.

WALTMART Organizational Hierarchy and Culture:

Walmart’s organizational structure determines the company’s business activities. Currently,

these activities are mainly in the retail industry, including operations in the e-commerce market.
The company’s corporate structure also imposes limits on how the business addresses its
problems. Structural characteristics help facilitate the company’s strategic implementations in
capturing a bigger share of the retail market. In relation, Walmart’s organizational culture
determines the way people respond to challenges in the workplace. The resilience of the
company’s human resources partly depends on the mindset supported through the corporate
culture. Cultural features help the retail business adapt to changes and emerging challenges in
the international market. The long history of Walmart Inc. in succeeding and continually
growing internationally shows that the firm’s organizational structure and organizational
culture are helpful in bringing competitive advantages and success. The organizational
structure interacts with the organizational culture to maintain the significant competitive
advantage of Walmart against other firms, such as Amazon and Target, as well as Apple,
Google, and other technology companies that have major online digital content distribution
operations.

12 | P a g e
Formerly named Wal-Mart Stores Inc., the company has a leadership position in the industry.
Such a retail market position and potential long-term business success are linked to the
beneficial and synergistic combination of the company’s organizational structure and
organizational culture. The characteristics and implications of the corporate culture are
influenced by how the corporate structure supports human resource development and other
aspects of Walmart’s retail business operations, such as marketing, and strategic formulation
and organizational design founded on the company’s mission and vision.

Walmart’s Organizational Structure

Walmart has a hierarchical functional organizational structure. This structure has two
features: hierarchy and function-based definition. The hierarchy feature pertains to the vertical
lines of command and authority throughout the organizational structure. For example, except
for the CEO, every employee has a direct superior. Directives and mandates coming from the
top levels of the company’s management are implemented through middle managers down to
the rank-and-file employees in Walmart stores. On the other hand, the function-based definition
feature of the company’s corporate structure involves groups of employees fulfilling certain
functions. For example, Walmart has a department for the function of human resource
13 | P a g e
management. The company also has a department for the function of information technology,
and another department for the function of marketing. These are just some of the numerous
function-based departments in Walmart’s organizational structure.

Walmart’s Organizational Culture

Walmart’s organizational culture has four main components. These components guide
employees’ behaviors, which determine organizational capacities to add value in the provision
of retail service and related services to consumers. The cultural components are also identified
as Walmart’s beliefs:

➢ Service to customers
➢ Respect for the individual
➢ Strive for excellence
➢ Action with integrity

14 | P a g e
15 | P a g e
4. TOP FIVE COMPANIES IN U.S.A THAT ARE GLOBAL :
1.Walmart - $485.3bn

Walmart inc. is an American multinational retail company that operates a chain of

hypermarkets, discount department store, and grocery stores, Headquartered in Bentoville the
company was founded by Sam Walton in 1962 and incorporated on October 31, 1969.

Set up as a sole discount store in 1962, Walmart has grown into the largest retailer in the world,
with 260mn customers, 11,695 stores in 28 countries, as well as internet-based stores in 11
countries, according to its company website. According to Forbes, Walmart makes $485.3bn
in revenue, with a market cap of $221.1bn. It is 17th on Forbes’ The World’s Biggest Public
Companies, and ninth of America’s Top Public Companies. Madison reports that Walmart’s
stock rose 43% in 2017, as the company has focused on combating Amazon’s retail ability with
its own purchases in the ecommerce industry, including Jet.com, and express delivery service
Parcel.

2.Berkshire Hathaway - $222.9bn

Berkshire Hathaway is an American multinational conglomerate of multiple segments

including car insurance provider GEICO, Berkshire Hathaway Reinsurance Group, railroad
operator Burlington Northern Santa Fe, LLC, property and casualty insurance company
Berkshire Primary Group, electrical and gas utility provider Berkshire Hathaway Energy,
wholesale non-food grocery product distributor McLane Company, as well as manufacturing,
service and retailing, and finance and financial segments. Founded by Oliver Chace in 1839,
the company used to rely on Warren Buffet’s investment skills to turn a profit – nowadays, it
is less reliant on Buffet and turns a greater profit due to its multiple holdings, according to
Fortune. Forbes places its revenue at $222.9bn, with a market cap of $409.9bn. CNN reports,
however, that in 2016 both Facebook and Amazon surpassed Berkshire Hathaway in market
value for the first time ever. Berkshire Hathaway has averaged an annual growth in book value
of 19.0% to its shareholders since 1965 (compared to 9.7% from the S&P 500 with dividends
included for the same period), while employing large amounts of capital, and minimal debt

According to the Forbes Global 2000, list and formula, Berkshire Hathaway is the third largest
public company in the world, the tenth largest conglomerate by revenue and the largest
financial company by revenue in the world.

16 | P a g e
Berkshire is currently the seventh largest company in the S&P 500 Index by market
capitalization, and is famous for having the most expensive share price in history with a class
A share costing around $300,000 each. This is due to the fact that there has never been a stock
split and Buffett has stated in a 1984 letter to shareholders that he does not intend to do so

3. Apple - $217.5bn

Apple Inc. is an American Multinational technology company headquartered in Cupertino,

California that designs, develops, and sells consumer electronics, computer software, and
online services. It is considered one of the big four of technology along with Amazon, Google
and Facebook.

Founded in 1976 by Steve Jobs, Ronald Wayne, and Stephen Wozniak, Apple is a technology
and software company that currently employs 116,000 people, and has reach in the Americas,
Europe, the Middle East, Africa, Greater China, Japan, and Asia Pacific. It brings in $217.5bn
in sales revenue, according to Forbes, with a market cap of $752bn. It is ninth on Forbes’
Global 2000 and first on Forbes’ World’s Most Valuable Brands. Fortune reports that in
February of this year, Apple released the HomePod, a smart speaker designed to compete with
Amazon’s Alexa.

4. ExxonMobil - $197.5bn

ExxonMobil is the American largest publicly traded international gas and oil company in the
world. Founded in 1859, when Edwin Drake and Billy Smith drilled an oil well in Titusville,
Pennsylvania, it currently oversees 72,700 employees, according to Fortune. Forbes places its
revenue at $197.5bn, with a market cap of $343.2. However, as the world moves more into the
clean energy industry, ExxonMobil has had to make accommodations. Its current CEO Darren
Woods states ExxonMobil is investing $1bn in finding solutions to reduce emissions. This said,
the company has also announced intentions to increase US oil production to 600,000 barrels a
day by 20258.

5.General Motors - $168.4bn

General Motors is an American multinational automobile company headquartered in Detriot

that provides a variety of vehicles from full size trucks to electric cars under eight different
brands: Chevrolet, Buick, GMC, Cadillac, Holden, Baojun, Wulin and Jiefang. Founded in
1908, the company sells automobiles in 125 countries across 19,000 dealerships. According to

17 | P a g e
Forbes, it has a sales revenue of $168.4bn, with a market cap of $50.8bn. With headquarters in
Detroit, Michigan, it oversees 225,000 employees, and spans across six continents. CNBC
reports, however, that General Motors announced the closure of one of its four plants in South
Korea, due to sudden rises in labor costs.

6.Mcdonald’s

McDonald's is an American fast food company, founded in 1940 as a restaurant operated by

Richard and Maurice Mcdonald’s, in San Bernardino, California, United States. They
rechristened their business as a hamburger stand, and later turned the company into a franchise,
with the Golden Arches logo being introduced in 1953 at a location in Phoenix, Arizona. In
1955, Ray Kroc, a businessman, joined the company as a franchise agent and proceeded to
purchase the chain from the McDonald brothers. McDonald's had its original headquarters in
Oak Brook Illinois, but moved its global headquarters to Chicago in early 2018.

McDonald's is the world's largest restaurant chain by revenue, serving over 69 million
customers daily in over 100 countries across 37,855 outlets as of 2018.

7. Coca Cola

The Coca-Cola Company is an American multinational corporation, and manufacturer, retailer,

and marketer of non-alcoholic beverage concentrates and syrups. The Coca-Cola Company
began building its global network in the 1920s. Now operating in more than 200 countries and
producing nearly 450 brands, the Coca-Cola system has successfully applied a simple formula
on a global scale: provide a moment of refreshment for a very small amount of money -- a
billion times a day.

The Coca-Cola Company and its network of bottlers comprise the most sophisticated and
pervasive production and distribution system in the world. More than anything, that system is
dedicated to people working long and hard to sell Coca-Cola, Diet Coke, Sprite, Fanta and
other Company products. For 125 years, Coca-Cola has created a special moment of pleasure
for hundreds of millions of people every day.

5. COMPONENT OF INTERNATIONAL BUSINESS:

The United States of America is the third most populous country in the world, and the fourth
largest by total area. With a population of over 318 million, the country is ethnically diverse

18 | P a g e
and has the largest economy in the world. The country’s growth slowed down after the 9/11
attacks and the recession in 2009 added to that as the economy contracted significantly.
However, the economy is now moving on steady course forward thanks to increase in business
investment, consumer expenditure and substantial decrease in unemployment.

POLOTICAL:

USA has a strong democratic setup and effective rule of law, with elections that are considered
fair and transparent. The country enjoys massive political and economic influence over both
national and global policymaking, and is recognized as the leading superpower in the world.
However, the country faces international criticism for its interventionist policies regarding the
‘War on Terror’ which is souring foreign relations, and at the same time fuelling terrorist
groups, increasing the threat of terrorism.

TECHNOLOGY:

Innovation and technology are the cornerstones of the US economy. Since its inception, the
country has been leading in terms of adapting and applying technology. Though the country
faces strong competition from rising economies, it is expected it will continue to retain a
technology supremacy over its competitors. Additionally, the US has also been at the forefront
in enhancing and developing technologies in areas such as nanotechnology, environmental
technology and biotechnology, which opens up massive opportunities for companies with
expertise in the mentioned fields. IT is another field the US has been excelling in.

US-based technology giants, such as Amazon, Apple, Face book, Microsoft, IBM, Google,
eBay and Twitter, have paved the way for a supported ecosystem rich with venture capital,
incubators, accelerators, mentorship programmers, co-working spaces and media platforms to
support an infrastructure that spawns thousands of new startups year after year.

ENVIRONMENT:
The environment of the United States comprises diverse biota’s, climates, and geologies.
Environmental regulations and the environmental movement have emerged to respond to the
various threats to the environment. The United States include climate change, energy, species
conservation, invasive species, deforestation, mining, nuclear accidents, pesticides, pollution,

19 | P a g e
waste and over-population. Despite taking hundreds measures, the rate of environmental issues
is increasing rapidly instead of reducing.

ECONOMICAL:

The United States of America is a union of fifty states in North America. It is the world's third-
largest economy. It is a mixed economy. That means it operates as a free market economy in
consumer goods and business services. But, even in those areas, the government imposes
regulations to protect the good of all. The U.S. economic outlook is healthy according to the
key economic indicators. The most critical indicator is the gross domestic product, which
measures the nation's production output. The GDP growth rate is expected to remain between
the 2% to 3% ideal range. Unemployment is forecast to continue at the natural rate.
With a GDP of over $16.760 trillion, the US is the largest economy in the world. The economic
system is well-developed and gathers its strength from its services and manufacturing
industries. The recession in 2009 adversely affected the economy of the country and
unemployment rates soared to an alarming point. But the economy bounced back with a growth
of around 4% in the third quarter of 2014 as consumers and businesses have stepped up
spending. However, the increasing budget deficit puts the economic prosperity of the country
at grave risk as the deficit currently amounts to a staggering $506 million.

FINANCIAL:
The financial position of the United States includes assets of at least $269.6 trillion (1576%
of GDP) and debts of $145.8 trillion (852% of GDP) to produce a net worth of at least $123.8
trillion (723% of GDP) as of Q1 2014.

The U.S. increased the ratio of public and private debt from 152% GDP in 1980 to peak at
296% GDP in 2008, before falling to 279% GDP by Q2 2011. The 2009-2011 decline was due
to foreclosures and increased rates of household saving.

SOCIAL:

Like most developed countries, the US faces the problem of an aging population which can
lead to a serious labor shortage and rising tax rates in the future. Nonetheless, the education
and healthcare system is one of the best in the world. A majority of the population has a liberal
mindset, but rising racial intolerance is a serious concern. Additionally, increasing illegal

20 | P a g e
immigration is another concern, as there are currently more than 11.7 million people living
illegally in the US, further increasing the risk of racial discrimination.

6. TYPES OF BUSINESS ENTITIES IN THE COUNTRY:

The following are the main types of business entities in the USA:

1. Corporations:
➢ Corp., Inc. Corporation, Incorporated: used to denote corporations (public or
otherwise). These are the only terms universally accepted by all 51 corporation
chartering jurisdictions in the United States. However, in some states other suffixes
may be used to identify a corporation, such as Ltd., Co./Company. Some states that
allow the use of "Company" prohibit the use of "and Company", "and Co.", "&
Company" or "& Co.". In most states sole proprietorships and partnerships may register
a fictitious "doing business as" name with the word "Company" in it.
Corporation or company can be designated by the following types:

o C Corporation. A corporation is a separate legal entity set up under state law

that protects owner (shareholder) assets from creditor claims. Incorporating
your business automatically makes you a regular, or “C” corporation. A C
corporation (or C corp) is a separate taxpayer, with income and expenses taxed
to the corporation and not owners. If corporate profits are then distributed to
owners as dividends, owners must pay personal income tax on the distribution,
creating “double taxation” (profits are taxed first at the corporate level and again
at the personal level as dividends). Many small businesses do not opt for C
corporations because of this tax feature.
o S Corporation. Once you’ve incorporated, you can elect S corporation status
by filing a form with the IRS and with your state, if applicable, so that profits,
losses and other tax items pass through the corporation to you and are reported
on your personal tax return (the S corporation does not pay tax).
➢ Professional corporation: abbreviated as PC or P.C. are those corporate entities for
which many corporation statutes make special provision, regulating the use of the
corporate form by licensed professionals such as attorneys, architects, accountants, and
doctors.

21 | P a g e
 ➢ Doing Business As: denotes a business name used by a person or entity that is different
from the person's or entity's true name. DBA’s are not separate entities and do not shield
the person or entity who uses the DBA as a business name from liability for debts or
lawsuits. Filing requirements vary and are not permitted for some types of businesses
or professional practices.
2. Limited Liability Companies:
➢ LLC, LC, Ltd. Co. Limited Liability Company: a form of business whose owners enjoy
limited liability, but which is not a corporation. Allowable abbreviations vary by state. Note
that in some states Ltd. by itself is not a valid abbreviation for an LLC, because in some
states (e.g. Texas), it may denote a corporation instead. See also Series LLC. For U.S.
federal tax purposes, in general, an LLC with two or more members is treated as a
partnership, and an LLC with one member is treated as a sole proprietorship. Tax-wise, an
LLC is similar to an S corporation (or S corp), with business income and expenses reported
on your personal tax return. If you are the only owner of an LLC, you are viewed as a
“disregarded” entity. This means you report the LLC’s income and expenses on Schedule
C of Form 1040─the same schedule used by sole proprietors.
➢ PLLC Professional Limited Liability Company: some states do not allow certain
professionals to form an LLC that would limit the liability that results from the services the
professionals provide such as doctors, medical care; lawyers, legal advice; and accountants,
accounting services; architects, architectural services; when the company formed offers the
services of the professionals. Instead those states allow a PLLC or in the LLC statutes, the
liability limitation only applies to the business side, such as creditors of the company, as
opposed to the client/customer service side, the level of medical care, legal services, or
accounting provided to clients. This is meant to maintain the higher ethical standards that
these professionals have committed themselves to by becoming licensed in their profession
and to prevent them from being immune (or at least limit their immunity) to malpractice
suits.

3. Partnerships:

➢ General Partnership: is a partnership in which all the partners are jointly and separately
liable for the debts of the partnership. In most U.S. states, it can be created by agreement
without requiring a public filing. The partners may themselves be legal entities or
individuals.
22 | P a g e
➢ LP Limited Partnership: a partnership where at least one partner (the general partner,
which may itself be an entity or an individual) has unlimited liability for the LP's debts)
and one or more partners (the limited partners) have limited liability (which means that
they are not responsible for the LP's debts beyond the amount they agreed to invest).
Limited partners generally do not participate in the management of the entity or its business.
➢ LLP Limited Liability Partnership: a partnership where a partner's liability for the debts
of the partnership is limited except in the case of liability for acts of professional negligence
or malpractice. In some states, LLPs may only be formed for purposes of practicing a
licensed profession, typically attorneys, accountants and architects. This is often the only
form of limited partnership allowed for law firms (as opposed to general partnerships).
➢ LLLP Limited Liability Limited Partnership: a combination of LP and LLP, available in
some states.

7. PARTNERSHIP FIRM/COUNTRIES:
1. Apple + Hermes

Apple defines its Hermes-branded watch as “the culmination of a partnership based on parallel
thinking, singular vision and mutual regard.” That boils down nicely to a partnership of two
highly esteemed brands, making Apple's must-have wearable even more covetable with a
luxury fashion boost. Given that Apple Watch’s biggest criticism has been its design aesthetics,
offering an upscale version with Hermes handmade leather straps and an exclusive watch face
ups the cool factor considerably, extending the reach of the Apple Watch from techies to more
fashion conscious consumers. Retailing at a significantly higher price point than the regular
Apple Watch, this partnership represents a status symbol as much as a beautifully designed and
highly functional watch.

23 | P a g e
2. Ford + Hearst

Ford’s branded content partnership with Hearst took “Built Ford Tough” to new levels with
over 120 pieces of original editorial content. Running with the slogan “The Code”, this content
conveyed a set of skills and tools that every Ford man should possess. Running in Esquire,
Popular Mechanics, Road & Track and Car and Driver, the Ford F-150 lifestyle organically
reached its target audience with thoughtful content offering practical lifestyle advice.

3. Spotify + Starbucks

Starbucks is the original coffee-shop-with-music venue, so it seems only natural that it would
partner with Spotify to bring music into its franchises in new ways. Starbucks employees will
receive a premium Spotify subscription that they can use to curate music to playlists featured

24 | P a g e
on Spotify. Users can also earn My Starbucks Reward points through the music app. As
Starbucks announced earlier this year that it will no longer sell CDs, the leap to Spotify keeps
both brands relevant throughout the day, from the morning coffee to an afternoon pastry and
playlist.

4. UNICEF + Target

UNICEF’s recent kid power partnership with Target merges a philanthropic initiative with a
wellness-wearable device. As kids in the U.S. complete fitness-based missions, they earn points
that can be used to “unlock” therapeutic food packets that UNICEF delivers to malnourished
children around the world. Partnering with Target -- which will retail the fitness trackers for
$39 -- will allow UNICEF to reach a projected audience of 70,000 kids in the next year. The
combination of encouraging healthy living with greater global awareness is a promising
partnership.

8. CURRENCY USED IN FOREIGN BUSINESS:

A global currency is one that is accepted for trade throughout the world. Some of the
world's currencies are accepted for most international transactions. The most popular are the
U.S. dollar, the euro, and the yen.

The U.S. dollar is the most popular. As of the third quarter of 2018, it makes up nearly 62
percent of all known central bank foreign exchange reserves. That makes it the de facto global
currency, even though it doesn't hold an official title.

The next closest reserve currency is the euro. Nearly 21 percent of known central bank foreign
currency reserves were in euros as of the third quarter of 2018. The chance of the euro

25 | P a g e
becoming a world currency increases as the eurozone crisis fades. However, the crisis
highlights the difficulties of ever using the euro as a world currency.

➢ The U.S. Dollar Is the Strongest World Currency

The relative strength of the U.S. economy supports the value of its currency. It's the reason
the dollar is the most powerful currency. Around $580 billion in U.S. bills are used outside the
country. That's 65 percent of all dollars. That includes 75 percent of $100 bills, 55 percent of
$50 bills, and 60 percent of $20 bills. Most of these bills are in the former Soviet Union
countries and in Latin America. They are often used as hard currency in day-to-day
transactions.

9. TRADE POLICIES OF U.S.A:

The expansion of global trade in the past half century is one of the signature accomplishments
of modern U.S. foreign policy. Out of the wreckage of the Great Depression and World War
II, American leaders and their allies in Europe, Japan, Canada, and elsewhere established
international rules for commerce that allowed for an unprecedented growth in the exchange of
goods and services across borders.

The benefits have been substantial. Economic growth fueled in part by integration into the
world economy has helped lift hundreds of millions of people out of poverty, the highest rate
of poverty reduction in human history. Peaceful exchange has helped reduce conflict by
offering countries new ways to enrich themselves without territorial conquest. And the
structure of international rules built to resolve trade and investment disputes has helped contain
protectionist responses, even in the face of the worst global economic downturn since the Great
Depression. The United States has gained in numerous ways. Liberalization of trade and
investment over the past half century has made Americans wealthier than they could have
become in a closed economy. Opening the U.S. market to imported goods has strengthened
U.S. foreign policy by improving living standards in allied countries in Europe, Asia, and Latin
America. It has fostered deep engagement with many countries in which the United States has
strategic interests but no military presence. And it has promoted core U.S. beliefs about how
societies are best structured to benefit their citizens, including free enterprise, democratic
governance, open markets, respect for workers’ rights and the environment, and transparent
regulation.

26 | P a g e
Trade Agreements can create opportunities for Americans and help to grow the U.S.
economy. United States Trade Representatives (USTR) has principal responsibility for
administering U.S. trade agreements. This involves monitoring trading partners'
implementation of trade agreements with the United States, enforcing America's rights
under those agreements, and negotiating and signing trade agreements that advance the
President's trade policy.

▪ The United States is Member of the World Trade Organization (WTO), and the Marrakesh
Agreement Establishing the World Trade Organization (WTO Agreement) sets out rules
governing trade among the WTO's 154 members. The United States and other WTO
Members are currently engaged in Doha Development Round of world trade talks, and a
strong, market-opening Doha agreement for both goods and services would be an important
contribution to addressing the global economic crisis and helping to restore trade's role in
leading economic growth and development.
▪ The United States has free trade agreements (FTAs) in effect with 20 countries. These FTAs
build on the foundation of the WTO Agreement, with more comprehensive and stronger
disciplines than the WTO Agreement. Many of FTAs are bilateral agreements between two
governments. But some, like the North American Free Trade Agreement and the
Dominican Republic-Central America-United States Free Trade Agreement, are
multilateral agreements among several parties.
▪ Another important type of trade agreement is the Trade and Investment Framework
Agreement. TIFAs provide frameworks for governments to discuss and resolve trade and
investment issues at an early stage. These agreements are also a means to identify and work
on capacity-building where appropriate.
▪ The United States also has a series of Bilateral Investment Treaties (BITs) help protect
private investment, develop market-oriented policies in partner countries, and promote U.S.
exports.
▪ The United States is also participating in negotiations of the Trade in Service Agreement
(TiSA), a free trade agreement focused on promoting fair and open competition across a
broad spectrum of service sectors. Twenty-three economies are participating in the TiSA
negotiations, representing nearly 70 percent of the world’s $55 trillion services market.
With every $1 billion in services exports supporting an estimated 5,900 U.S. jobs,
promoting the expansion of services trade globally will pay dividends for the United States.

27 | P a g e
▪ In July 2014, the United States and 13 WTO Members launched negotiations on the
Environmental Goods Agreement (EGA), an agreement aimed at eliminating tariffs on a
range of environmental goods. Tariffs on these environmental goods, including wind
turbines, solar water heaters, and catalytic converters are often high and limit the
technological advancement for green technologies. The EGA provides an important
opportunity to protect the global environment while unlocking economic opportunity for
American workers and businesses.
▪ U.S. bilateral and regional free trade agreements (FTAs) expanded from a simple 1985
agreement with Israel that only addressed tariffs on non-agricultural goods to a web of
agreements with nineteen other countries that almost completely eliminate all barriers to
trade between the signatories and have more extensive rules on intellectual property
protection, services, and investment than the multilateral rules.
▪ The North American Free Trade Agreement (NAFTA), which went into effect in 1994, and
the newly created WTO, which resulted from the Uruguay Round negotiations, created a
strong backlash against U.S. trade agreements.
➢ What is a Free Trade Agreement?

Free trade agreements, many of which are bilateral, are arrangements in which countries give
each other preferential treatment in trade, such as eliminating tariffs and other barriers on
goods. Each country continues its trade policies, such as tariffs with countries outside the FTA.
For example, in the U.S.-Australian FTA, which took effect in 2005, Australia lowered tariffs
on most U.S. agricultural and manufactured goods, and the United States lowered tariffs on
Australian beef, dairy and other items. Some U.S. regional free trade agreements, such as the
Central America Free Trade Agreement, are essentially a series of bilateral deals between the
United States and member countries.

➢ How many FTAs has the United States signed?

Since completing its first FTA with Israel in 1985, the United States has completed ten such
agreements, with Canada, the North America Free Trade Agreement (NAFTA), Jordan, Chile,
Singapore, Australia, Morocco, El Salvador, Nicaragua, and Honduras. Four others approved
by Congress have yet to enter force—with Bahrain, Guatemala, the Dominican Republic, and
Costa Rica. Three additional FTAs are under congressional consideration—Oman, Peru and
Colombia. The United States has held talks with eleven other countries for free trade
agreements either bilaterally, as part of regional deals, or as members of a customs union. The
28 | P a g e
United States also wants to negotiate a thirty-four-nation Free Trade Agreement of the
Americas (FTAA), a process currently stalled. The Bush administration has expressed interest
in bilateral trade agreements with all ten members of the Association of Southeast Asian
Nations (ASEAN), including Vietnam, with which it recently signed a pact that will ease its
entry into the WTO.

10. TARIFF RATES:

Some countries pay close to zero overall, while others pay an average of 7 percent or higher,
depending on individual trade agreements and the goods they export. In 2015, total tariffs
collected came to $34 billion out of $2.2 trillion in imports, or about $100 for every person in
the U.S., according to a CNBC analysis of data from the U.S. International Trade Commission.

More than 40 percent of the those tariffs already come from China, and other smaller nations
like Indonesia also pay a high price to access the American market.

The tariffs themselves are remarkably granular: If you're in Vietnam and want to import
boys' dress shirts manufactured with man-made fibres (with less than two colours), it'll
cost close to 30 percent. But Mexico could ship the same shirt for free, and anyone could
import certain types of mittens without paying tariffs.

Most of the tariffs collected on incoming goods are levied on clothes, shoes and vehicles,
according to CNBC's analysis. Those three product categories alone account for more than half
of all duties collected, though they make up only about 2 percent of imports by value.

The import value of those clothes and shoes is worth a fraction of that for electronics,
machinery and cars, but clothes and shoes are taxed at a much higher rate. On average, apparel
tariffs charge 13 to 14 percent, compared with less than 1 percent for some of those other goods.
That's why consumers today barely notice the cost of tariffs, while a company selling a specific
product can be slammed by even a small increase.

Some tariff rates of U.S.A for other countries of the world are given below:

29 | P a g e
When a tariff is increased, domestic prices also go up. The price may simply be passed along
to consumers, or a decline in foreign competition could put less downward pressure on the
price of domestic goods.

Either way, the final cost of the tariff tends to fall on American consumers. For that reason,
tariffs are often considered a regressive tax, since price increases tend to hit low-income
Americans the hardest.

11. PRODUCT STRATEGY OF U.S.A:

A company that starts its operation in UNITED STATES may need to rethink the approach to
create value of a product or service that is already available and successful. The product
strategy determines the sequence in which products are develop and released. Before reaching
the customers, it is important to review the design process in order to create product line plan.

Factors effecting International Trade Strategy:

30 | P a g e
• Cultural and social influences
• Legal issues
• Demographics
• Political conditions
• Change in natural environment and strategy

Product strategy of U.S.A regarding different countries:

➢ For ASIAN countries:

For assian countries mostly USA products are of low quality and low cost. Eg WALTMART,
UNILIVERS

➢ For EUROPIAN countries:

They sell product and services according to their culture and environment.

12. PRICING STRATEGY OF U.S.A:

Pricing strategy consists of adding up the cost of all expenses incurred to bring the product to
market and adding acceptable profit on top. In developed countries like Canada, China, France,
the product prices are high due to their quality, for third world countries prices are low because
of low quality as they sell to these countries.

13. BUSINESS ETHICS

The field of business ethics emerged from America and has been able to establish itself. Many
American companies have developed a very explicit way to deal with their management of
values and norms and introduced so-called “business ethics programs”. They have written
Codes of Ethics to define the company's ethical value system, to provide rules and orientation
for employees, and to signal their commitment to their stakeholders. They implemented Ethics
Committees of the Board of Directors to integrate ethics at the company's top-level,
communicate their concern for ethics to the outside world, and provide the ethics program with
the necessary political backing needed for the resolution of touchy issues. This committee is
supported by the Ethics Office that handles and coordinates all aspects of ethics management
on a day-today basis. It runs the company's Ethics Trainings and enforces and controls the
whole process. It communicates the Ethics Code and answers employees' questions. To

31 | P a g e
facilitate this advice task, some companies have even installed a toll-free Ethics Hotline. The
head of this department – the Ethics Officer – serves as an ombudsperson for employees,
investigates alleged violations, and reports to the board.

14. CONCLUSION
The United states of America, this huge territory with a history less than four centuries old, the
land of free, the land of democracy, the land of opportunities to make fabulous fortune over
night, but also the land of contract and exaggeration of all kinds has been a subject of numerous
books, reports, articles, documentation, presentation etc. Tons of papers materials have been
used to describe and analyze research and understand numerous conglomerate of individual's
cultures, languages, races, religions and laws, therefore the attempt to describe in a few points
the complete detail of the country is hard to accomplish. However this brief project report is
intended to provide concise description of some of the key statistics, political, social, cultural
facts, trading policies, that contribute in shaping up the incredible land that created so much
controversy and has been influencing the evolution of the entire world.

Constituting less than 5 percent of the world's population, Americans generate and earn more
than 20 percent of the world's total income. America is the world's largest national economy
and leading global trader. the US economy is also affected by its trade and financial linkages
with the rest of the world. Global economic developments play an important role in driving
activity and financial markets in the US. foreign direct investment growth has a significant
impact on the United States' economic growth. Additionally, foreign direct investment has a
significant impact on the total factor productivity in the United States, further contributing to
the U.S. economic growth.

Unfortunately, the bilateral relations between Pakistan and United States are not going well
since last year. Their working relationship is suspended and there is a clear lack of trust. The
statements from US officials show that there is no mutual understanding between both the
countries. It is unfortunate that the United States is still ignoring the sacrifices made by Pakistan
against the war on terror.

32 | P a g e