The University of Lahore Gujrat Campus: Global HRM and Conflict Management

Subject
Global HRM and conflict management
Final project
Report
Submitted to
Mam Abida Ayub
Submitted by
Syeda Attiqa Batool
Submission date
04-April -2020
Sap ID
70056370
The University of Lahore Gujrat campus
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Table of contents
1. Overview of United States of America

2. Overview of National culture of USA
 American English
 music of the United
 Visual art of the United States
 Society of the United States
 American cuisine
 Folklore of the United States
 Popular culture
 Mass media
3. overview of business climate in America
 Business, Technology and Commercialisation
 Small Business and Entrepreneurship
 Taxes, Trade and Infrastructure
 Regulation and Intellectual Property
 The best (and worst) states for business
 Economic disparity: 10 States where the middle
class is being left behind
 Massachusetts
 South Dakota
 More: States where Americans pay the least
(and most) in taxes
 Utah
 North Dakota
 Colorado
 New Hampshire
 Minnesota
 Washington
 More: Financial security: Best (and worst) states
to grow old in
 Vermont
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 Virginia
 Idaho
 Wyoming
 Texas
 More: 25 best counties in the U.S. to live in
based on education, poverty and life expectancy
 Nebraska
 Alaska
 Michigan
 Arizona
 Delaware
 Kansas
 More: Bad reputation: America’s Top 20 most-
hated companies
 Oregon
 Nevada
 New Jersey
 Tennessee
 Missouri
 Montana
 More: U.S. economy: A rundown of the poorest
county in every state
 Indiana
 Wisconsin
 New York
 South Carolina
 Arkansas
 Oklahoma
4. HR specific challenges of multinational corporations
in USA
 Global Selection
 Problems with Expatriation
 Training & Development
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 Cross-cultural Training
 TrainingTechniques
 Integrating Training with Global Orientation
 Language Barrier
 Rules, Regulations and Labor Rights
 High Alerts
 Management Changes
 Leadership Development
 Adapting to Innovation
 Compensation
 Global Social Responsibility
 Integrating New Locations and Workers
 It’s difficult to create an international human
connection
 Centralise your processes – so you can
concentrate on the relationships
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Overview of United States of America
After the Cold War, the conflict in the Middle East triggered a crisis in 1990,
when Iraq under Saddam Hussein invaded and attempted to annex Kuwait, an
ally of the United States. Fearing that the instability would spread to other
regions, President George H. W. Bush launched Operation Desert Shield, a
defensive force buildup in Saudi Arabia, and Operation Desert Storm, in a
staging titled the Gulf War; waged by coalition forces from 34 nations, led by
the United States against Iraq ending in the successful expulsion of Iraqi forces
from Kuwait, restoring the former monarchy.
Originating within U.S. military defines networks, the Internet spread to

international academic platforms and then to the public in the 1990s, greatly
affecting the global economy, society, and culture.Due to the dot-com boom,
stable monetary policy under Alan Greenspan, and reduced social welfare
spending, the 1990s saw the longest economic expansion in modern U.S.
history, ending in 2001.Beginning in 1994, the U.S. entered into the North
American Free Trade Agreement (NAFTA), linking 450 million people
producing $17 trillion worth of goods and services. The goal of the agreement
was to eliminate trade and investment barriers among the U.S., Canada, and
Mexico by January 1, 2008. Trade among the three partners has soared since
NAFTA went into force.
On September 11, 2001, Al-Qaeda terrorists struck the World Trade Centre in
New York City and the Pentagon near Washington, D.C., killing nearly 3,000
people. In response, the United States launched the War on Terror, which
included war in Afghanistan and the 2003–11 Iraq War.In 2007, the Bush
administration ordered a major troop surge in the Iraq War, which successfully
reduced violence and led to greater stability in the region.
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Government policy designed to promote affordable housing, failures in
corporate and regulatory ,and historically low interest rates set by the Federal
Reserve led to the mid-2000s housing bubble, which culminated with the 2008
financial crisis, the largest economic contraction in the nation's history since the
Great Depression.Barack Obama, the first African-American-and multiracial
president, was elected in 2008 amid the crisis, and subsequently passed stimulus
measures and the Dodd-Frank Wall Street Reform and Consumer Protection Act
in an attempt to mitigate its negative effects and ensure there would not be a
repeat of the crisis. The stimulus facilitated infrastructure improvements and a
relative decline in unemployment. Dodd-Frank improved financial stability and
consumer protection, although there has been debate about its effects on the
economy.
In 2010, the Obama administration passed the Affordable Care Act, which made
the most sweeping reforms to the nation's healthcare system in nearly five
decades, including mandates, subsidies and insurance exchanges. The law
caused a significant reduction in the number and percentage of people without
health insurance, with 24 million covered during 2016, remains controversial
due to its impact on healthcare costs, insurance premiums, and economic
performance.Although the recession reached its trough in June 2009, voters
remained frustrated with the slow pace of the economic recovery. The
Republicans, who were opposed to Obama's policies, won control of the House
of Representatives with a landslide in 2010 and control of the Senate in 2014.
American forces in Iraq were withdrawn in large numbers in 2009 and 2010,
and the war in the region was declared formally over in December 2011. But
months earlier, the government authorised the operation code-named Operation
Neptune Spear, which was accomplished by United States Navy Seals and
successfully killed the leader of Al-Qaeda Osama Bin Laden in Pakistan. The
withdrawal caused an escalation of sectarian insurgency, to the rise of the
Islamic State of Iraq and the Levant, the successor of al-Qaeda in the region.In
2014, Obama announced a restoration of full diplomatic relations with Cuba for
the first time since 1961, though in June 2019, the Trump administration
announced new restrictions on American travel to Cuba. In 2015, the United
States as a member of the P5+1 countries signed the Joint Comprehensive Plan
of Action, an agreement aimed to slow the development of Iran's nuclear
program, though the U.S. withdrew from the deal in May 2018.In the United
States presidential election of 2016, Republican Donald Trump was elected as
the 45th president of the United States, making him both the oldest and
wealthiest person elected president in the country's history.
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The land area of the entire United States is approximately 3,800,000 square
miles (9,841,955 km2), with the contiguous United States making up 2,959,064
square miles (7,663,940.6 km2) of that. Alaska, separated from the contiguous
United States by Canada, is the largest state at 663,268 square miles
(1,717,856.2 km2). Hawaii, occupying an archipelago in the central Pacific,
southwest of North America, is 10,931 square miles (28,311 km2) in area. The
populated territories of Puerto Rico, American Samoa, Guam, Northern Mariana
Islands, and U.S. Virgin Islands together cover 9,185 square miles (23,789
km2).Measured by only land area, the United States is third in size behind
Russia and China, just ahead of Canada.
The United States is the world's third- or fourth-largest nation by total area (land
and water), ranking behind Russia and Canada and just above or below China.
The ranking varies depending on how two territories disputed by China and
India are counted, and how the total size of the United States is measured. The
Encyclopaedia Britannica, for instance, lists the size of the United States as
3,677,649 square miles (9,525,067 km2), as they do not count the country's
coastal or territorial waters.The World Fact-book, which includes those waters,
gives 3,796,742 square miles (9,833,517 km2).
The coastal plain of the Atlantic seaboard gives way further inland to deciduous
forests and the rolling hills of the Piedmont.The Appalachian Mountains divide
the eastern seaboard from the Great Lakes and the grasslands of the
Midwest.The Mississippi–Missouri River, the world's fourth longest river
system, runs mainly north–south through the heart of the country. The flat,
fertile prairie of the Great Plains stretches to the west, interrupted by a highland
region in the southeast.
The United States of America (USA), commonly known as the United States
(U.S. or US) or America, is a country consisting of 50 states, a federal district,
five major self-governing territories, and various possessions. At 3.8 million
square miles (9.8 million km2), it is the world's third or fourth-largest country
by total area[c]. Most of the country is located in central North America
between Canada and Mexico. With an estimated population of over 328 million,
the U.S. is the third most populous country in the world. The capital is
Washington, D.C., and the most populous city is New York City.
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Capital. Washington, D.C.
38°53′N 77°01′W
Largest city. New York City

40°43′N 74°00′W
Official languages
None at federal level
National language
English
Ethnic groups (2018).

By race:
76.5% White
13.4% Black
5.9% Asian
2.7% Other/multiracial
1.3% Native American
0.2% Pacific Islander.
Ethnicity:
18.3% Hispanic or Latino
81.7% non-Hispanic or Latino
Religion (2017)[8]
73.0% Christian
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21.3% Unaffiliated
2.1% Jewish
0.8% Muslim
2.9% Other
Demonic ( s)
American
Government
Federal presidential constitutional republic
President
Donald Trump
• Vice President
Mike Pence
• House Speaker
Nancy Pelosi
• Chief Justice
John Roberts
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Area
• Total area
3,796,742 sq mi (9,833,520 km2) (3rd/4th)
• Water (%)
6.97
• Total land area
3,531,905 sq mi (9,147,590 km2)
Population
• 2019 estimate
Increase328,239,523[7] (3rd)
• 2010 census
308,745,538[d][11] (3rd)
• Density
87/sq mi (33.6/km2) (146th)
GDP (PPP)
2019 estimate
• Total
$21.439 trillion[12] (2nd)
• Per capita
$65,112[12] (11th)
GDP (nominal)
2019 estimate
• Total
$21.439 trillion[12] (1st)
• Per capita
$65,112[12] (7th)
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Gini (2017)
Positive decrease 39.0[13]
medium · 56th
HDI (2018)
Increase 0.920[14]
very high · 15th
Currency
United States dollar ($) (USD)
Paleo-Indians migrated from Siberia to the North American mainland at least

12,000 years ago. European colonisation began in the 16th century. The United
States emerged from the thirteen British colonies established along the East
Coast. Numerous disputes between Great Britain and the colonies led to the
American Revolutionary War lasting between 1775 and 1783, leading to
independence.The United States embarked on a vigorous expansion across
North America throughout the 19th century—gradually acquiring new
territories, displacing Native Americans, and admitting new states—until 1848
when it spanned the continent.During the second half of the 19th century, the
American Civil War led to the abolition of slavery in the United States. The
Spanish–American War and World War I confirmed the country's status as a
global military power.
The United States emerged from World War II as a global superpower. It was
the first country to develop nuclear weapons and the only country to have used
them in warfare. During the Cold War, the United States and the Soviet Union
competed in the Space Race, culminating with the 1969 Apollo 11 mission, the
spaceflight that first landed humans on the Moon. The end of the Cold War and
collapse of the Soviet Union in 1991 left the United States as the world's sole
superpower.
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The United States is a federal republic and a representative democracy. It is a
founding member of the United Nations, World Bank, International Monetary
Fund, Organisation of American States (OAS), NATO, and other international
organisations. It is a permanent member of the United Nations Security Council.
A highly developed country, the United States is the world's largest economy by
nominal GDP, the second-largest by purchasing power parity, and accounts for
approximately a quarter of global GDP.The United States is the world's largest
importer and the second-largest exporter of goods, by value. Although its
population is 4% of the world total, holds 31% of the total wealth in the world,
the largest share of global wealth concentrated in a single country.Despite
income and wealth disparities, the United States continues to rank very high in
measures of socioeconomic performance, including average wage, median
income, median wealth, human development, per capita GDP, and worker
productivity.It is the foremost military power in the world, making up more than
a third of global military spending, and is a leading political, cultural, and
scientific force internationally.
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Overview of National culture of USA
The culture of the United States of America is primarily of Western origin, but
is influenced by a multicultural ethos that includes African, Native American,
Asian, Pacific Island, and Latin American people and their cultures. It also has
its own distinct social and cultural characteristics, such as dialect, music, arts,
social habits, cuisine, and folklore. The United States is ethnically and racially
diverse as a result of large-scale migration throughout its history. Because of its
size and influence, many American cultural elements, especially from popular
culture, have spread across the globe through modern mass media.
American English
English is the most widely spoken language in the United States and is the de
facto common language used by the federal and state governments, to the extent
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that all laws and compulsory education presume English as the primary
language. English is explicitly given official status by 32 of the 50 state
governments.While the local courts in some divisions of the United States grant
equivalent status to both English and another language—for example, English
and Spanish in Puerto Rico—under federal law, English is still the official
language for any matters being referred to the United States district court for the
territory.
The use of English in the United States is a result of British colonisation of the
Americas. The first wave of English-speaking settlers arrived in North America
during the 17th century, followed by further migrations in the 18th and 19th
centuries. During the 17th century, dialects from many different regions of
England existed in every American colony, allowing a process of extensive
dialect mixture and levelling in which English varieties across the colonies
became more homogeneous compared with varieties in England. English thus
predominated in the colonies even by the end of the 17th century's first massive
immigrations of non-English speakers from Europe and Africa, and firsthand
descriptions of a fairly uniform American English became common after the
mid-18th century.Since then, American English has developed into some new
varieties, including regional dialects that, in some cases, show minor influences
in the last two centuries from successive waves of immigrant speakers of
diverse languages, primarily European languages.
American English varieties include many patterns of pronunciation, vocabulary,

grammar, and particularly spelling that are unified nationwide but distinct from
other English dialects around the world. Any American or Canadian accent
perceived as free of noticeably local, ethnic, or cultural markers is popularly
called "General" or "Standard" American, a fairly uniform accent continuum
native to certain regions of the U.S. and associated nationally with broadcast
mass media and highly educated speech. However, historical and present
linguistic evidence does not support the notion of there being one single
"mainstream" American accent. The sound of American English continues to
evolve, with some local accents disappearing, but several larger regional accents
having emerged in the 20th century.
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music of the United
The music of the United States reflects the country's pluri- ethnic population
through a diverse array of styles. It is a mixture of music influenced by West
African, Irish, Scottish and mainland European cultures among others. The
country's most internationally renowned genres are jazz, blues, country,
bluegrass, Americana (music), rock, rhythm and blues, soul, ragtime, funk, hip
hop, doo wop, pop, techno, house, folk music, disco, boogaloo, reggae-ton, and
salsa. American music is heard around the world. Since the beginning of the
20th century, some forms of American popular music have gained a near-global
audience.
Native Americans were the earliest inhabitants of the land that is today known
as the United States and played its first music. Beginning in the 17th century,
immigrants from the United Kingdom, Ireland, Spain, Germany, and France
began arriving in large numbers, bringing with them new styles and
instruments. African slaves brought their own musical traditions, and each
subsequent wave of immigrants contributed to a melting pot.
Much of modern popular music has roots in the emergence in the late 19th
century of African American blues and the growth of gospel music in the 1920s.
The African American basis for popular music used elements derived from
European and indigenous musics. There are also strong African roots in the
music tradition of the original white settlers, such as country and bluegrass. The
United States has also seen documented folk music and recorded popular music
produced in the ethnic styles of the Ukrainian, Irish, Scottish, Polish, Hispanic,
and Jewish communities, among others.
Many American cities and towns have vibrant music scenes which, in turn,
support a number of regional musical styles. With musical centres such as
Boston, Philadelphia, Seattle, Portland, New York, San Francisco, New
Orleans, Detroit, Houston, Minneapolis, Chicago, Miami, Atlanta, San Juan,
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Nashville, Austin, Washington D.C., Los Angeles, and smaller cities such as
Asbury Park, New Jersey, Milwaukee, Cleveland, Asheville, North Carolina,
Oakland, the Research Triangle, Boulder, Colorado, Madison, Wisconsin, and
Burlington, Vermont have all have produced and contributed to the many
distinctive styles of music from the country. The Cajun and Creole traditions in
Louisiana music, the folk and popular styles of Hawaiian music, and the
bluegrass and old time music of the Southeastern states are a few examples of
diversity in American music.
Visual art of the United States
Visual art of the United States or American art is visual art made in the United
States or by U.S. artists. Before colonisation there were many flourishing
traditions of Native American art, and where the Spanish colonised Spanish
Colonial architecture and the accompanying styles in other media were quickly
in place. Early colonial art on the East Coast initially relied on artists from
Europe, with John White (1540-c. 1593) the earliest example. In the late 18th
and early 19th centuries, artists primarily painted portraits, and some landscapes
in a style based mainly on English painting. Furniture-makers imitating English
styles and similar craftsmen were also established in the major cities, but in the
English colonies, locally made pottery remained resolutely utilitarian until the
19th century, with fancy products imported.
But in the later 18th century two U.S. artists, Benjamin West and John
Singleton Copley, became the most successful painters in London of history
painting, then regarded as the highest form of art, giving the first sign of an
emerging force in Western art. American artists who remained at home became
increasingly skilled, although there was little awareness of them in Europe. In
the early 19th century the infrastructure to train artists began to be established,
and from 1820 the Hudson River School began to produce Romantic landscape
painting that was original and matched the huge scale of U.S. landscapes. The
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American Revolution produced a demand for patriotic art, especially history
painting, while other artists recorded the frontier country. A parallel
development taking shape in rural U.S. was the American craft movement,
which began as a reaction to the industrial revolution.
After 1850 Academic art in the European style flourished, and as richer
Americans became very wealthy, the flow of European art, new and old, to the
US began; this has continued ever since. Museums began to be opened to
display much of this. Developments in modern art in Europe came to the U.S.
from exhibitions in New York City such as the Armoury Show in 1913. After
World War II, New York replaced Paris as the centre of the art world. Since
then many U.S. movements have shaped Modern and Postmodern art. Art in the
United States today covers a huge range of styles.
Society of the United States
The society of the United States is based on Western culture, and has been
developing since long before the United States became a country with its own
unique social and cultural characteristics such as dialect, music, arts, social
habits, cuisine, folklore, etc. Today the United States of America is an
ethnically and racially diverse country as a result of large-scale immigration
from many different countries throughout its history.
Its chief early influences came from English and Irish settlers of colonial
America. British culture, due to colonial ties with Britain that spread the English
language, legal system and other cultural inheritances, had a formative
influence. Other important influences came from other parts of Europe.
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The United States has often been thought of as a melting pot, but recent
developments tend towards cultural diversity, pluralism and the image of a salad
bowl rather than a melting pot. Due to the extent of American culture there are
many integrated but unique social subcultures within the United States. The
cultural affiliations an individual in the United States may have commonly
depend on social class, political orientation and a multitude of demographic
characteristics such as religious background, occupation and ethnic group
membership. The strongest influences on American culture came from northern
European cultures, most prominently from Britain, Ireland, and Germany.
American cuisine
American cuisine reflects the history of the United States, blending the culinary
contributions of various groups of people from around the world, including
indigenous American Indians, African Americans, Asians, Europeans, Pacific
Islanders, and Latin Americans. Though much of American cuisine is fusion
cuisine reflecting global cuisine, many regional cuisines have deeply rooted
ethnic heritages, including Cajun, Louisiana Creole, Native American, New
Mexican, Pennsylvania Dutch, Soul food, and Tlingit. Early Native Americans
utilised a number of cooking methods in early American cuisine that have been
blended with early European cooking methods to form the basis of what is now
American cuisine. The European settlement of the Americas introduced a
number of ingredients, spices, herbs, and cooking styles to the continent. The
various styles of cuisine continued expanding well into the 19th and 20th
centuries, proportional to the influx of immigrants from many different nations;
this influx nurtured a rich diversity in food preparation throughout the country.
When the colonists came to the colonies, they farmed animals for clothing and
meat in a similar fashion to what they had done in Europe. They had cuisine
similar to their previous Dutch, Swedish, French and British cuisines. The
American colonial diet varied depending on the region settled. Commonly
hunted game included deer, bear, bison, and wild turkey. A number of fats and
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oils made from animals served to cook much of the colonial foods. Prior to the
Revolution, New Englanders consumed large quantities of rum and beer, as
maritime trade provided them relatively easy access to the goods needed to
produce these items: rum was the distilled spirit of choice, as the main
ingredient, molasses, was readily available from trade with the West Indies. In
comparison to the northern colonies, the southern colonies were quite diverse in
their agricultural diet; the growing season was longer.
During the 18th and 19th centuries, Americans developed many new foods.
During the Progressive Era of the late 19th and early 20th centuries, circa
1890s–1920s, food production and presentation became more industrialized.
One characteristic of American cooking is the fusion of multiple ethnic or

regional approaches into completely new cooking styles. A wave of celebrity
chefs began with Julia Child and Graham Kerr in the 1970s, with many more
following after the rise of cable channels such as the Food Network and
Cooking Channel in the late 20th century.
Folklore of the United States
Folklore consists of legends, music, oral history, proverbs, jokes, popular

beliefs, fairy tales, stories, tall tales, and customs that are the traditions of a
culture, subculture, or group. It is also the set of practices through which those
expressive genres are shared. The study of folklore is sometimes called
folkloristic. In usage, there is a continuum between folklore and mythology.
American folklore encompasses the folk traditions that have evolved on the
North American continent since Europeans arrived in the 16th century. While it
contains much in the way of Native American tradition, it should not be
confused with the tribal beliefs of any community of native people.
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Popular culture
Popular culture (also called mass culture and pop culture) is generally
recognized by members of a society as a set of the practices, beliefs, and objects
that are dominant or prevalent in a society at a given point in time. Popular
culture also encompasses the activities and feelings produced as a result of
interaction with these dominant objects. Heavily influenced in modern times by
mass media, this collection of ideas permeates the everyday lives of people in a
given society. Therefore, popular culture has a way of influencing an
individual's attitudes towards certain topics. However, there are various ways to
define pop culture.Because of this, popular culture is something that can be
defined in a variety of conflicting ways by different people across different
contexts.It is generally viewed in contrast to other forms of culture such as folk
culture, working-class culture, or high culture, and also through different
theoretical perspectives such as psychoanalysis, structuralism, postmodernism,
and more. The most common pop-culture categories are: entertainment (such as
movies, music, television and video games), sports, news (as in people/places in
the news), politics, fashion, technology, and slang.
Popular culture is sometimes viewed as being trivial and dumbed down in order
to find consensual acceptance from the mainstream. As a result, it comes under
heavy criticism from various non-mainstream sources (most notably religious
groups and countercultural groups) which deem it superficial, consumerist,
sensationalist, or otherwise corrupt.
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Mass media
Mass media refers to a diverse array of media technologies that reach a large
audience via mass communication. The technologies through which this
communication takes place include a variety of outlets.
Broadcast media transmit information electronically via media such as films,

radio, recorded music, or television. Digital media comprises both Internet and
mobile mass communication. Internet media comprise such services as email,
social media sites, websites, and Internet-based radio and television. Many other
mass media outlets have an additional presence on the web, by such means as
linking to or running TV ads online, or distributing QR Codes in outdoor or
print media to direct mobile users to a website. In this way, they can use the
easy accessibility and outreach capabilities the Internet affords, as thereby
easily broadcast information throughout many different regions of the world
simultaneously and cost-efficiently. Outdoor media transmit information via
such media as AR advertising; billboards; blimps; flying billboards (signs in
tow of airplanes); placards or kiosks placed inside and outside buses,
commercial buildings, shops, sports stadiums, subway cars, or trains; signs; or
skywriting. Print media transmit information via physical objects, such as
books, comics, magazines, newspapers, or pamphlets. Event organizing and
public speaking can also be considered forms of mass media.
The organizations that control these technologies, such as movie studios,

publishing companies, and radio and television stations, are also known as the
mass media.
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overview of business climate in america
The federal government should create a policy environment conducive to
business development at all levels that would aid the chemistry enterprise in
creating and commercializing new products and services here in the United
States. These products and services would help strengthen our existing industry
and help seed the growth of new industries, thus supporting new and sustainable
science-based jobs.
Policy Recommendations
Business, Technology and Commercialization – ACS supports a fair and level

playing field that enhances competition, stimulates research and development,
and grows the workforce through the following actions:
 Expand fundamental research capabilities and activities in academic

research environments and national laboratories, enable partnerships
between businesses and academic and national laboratories, and support
initiatives to facilitate technology transfer to businesses, serving to both
enable technology commercialization and provide training for a skilled
workforce.
 Provide grants, low-interest loans, and accelerated depreciation tax
incentives to mitigate the high start-up or retooling costs associated with
chemical and related high-technology businesses.
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 Expand federal programs that provide targeted support for science and
engineering activities to help chemical businesses (both large and small)
commercialize technology from academic institutions and science
research agencies.
 Advance higher standards and providing opportunities in education from
pre-K through college to ensure that U.S. students have the critical
technical and business background and skills needed for global
competitiveness.
 Revise existing laws strategically as business conditions change.
Small Business and Entrepreneurship – ACS supports policies that foster the
growth of the chemical enterprise, including small businesses and entrepreneurs
through the following actions:
 Improve access to shared resources, information and facilities for the

conduct of both early-stage proof-of-concept work and scale-up.
 Continue the support of existing and consideration of new incentive
programs to encourage investment supporting technology development,
such as making R&D tax credits accessible to start-up businesses by
making them refundable or transferable.
 Support the Small Business Innovation Research (SBIR), Small Business
Technology Transfer (STTR), Small Business Investment Companies
(SBIC), and Small Business Administration micro-loan programs and
reform these programs to make direct research funding for small
businesses more readily available.
23
 Continue the support of existing and consideration of new programs to
encourage investment by established companies, or provide other support
to businesses developing new technologies through collaborations at
institutes, on grants, and through other investment programs.
 Provide coordination and information exchange about incentives offered
at the federal, state and regional level.
Taxes, Trade and Infrastructure – ACS supports efforts to foster U.S.

corporate tax, trade, and infrastructure investment policies that will support
American firms’ competitiveness in the global business atmosphere through the
following actions:
 Revise the tax codes (addressing both the federal corporate tax rate and
the taxation rate for carried interest for long-term, venture and angel
capital investments in high-risk start-up companies) to encourage
investment in U.S. chemical industry jobs, facilities, and research, yet
generate the revenues that the government needs to fund its services.
 Provide preferential tax treatment for repatriated income that is invested
in U.S.-based research, technology development, and job creation.
 Encourage states to provide tax credits for R&D and investment in
chemical and related high- technology startups.
 Provide economic incentives to businesses, both U.S. and foreign-owned,
to invest in U.S.-based jobs, manufacturing, and research.
 Build a more flexible international trade framework to encourage
vigorous global trade and to better balance security considerations with
the partnerships that advance science and technology development.
 Assist displaced science and technology workers with trade-related
retraining and job searching.
 Invest in maintenance and improvement of critical infrastructure that will
facilitate commerce, manufacturing and transportation of goods.
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Regulation and Intellectual Property – ACS supports reforms to the U.S.
regulatory and intellectual property frameworks that will promote, and
minimize impediments to innovation through the following actions:
 Focus federal laws concerning air, water, and other media to protect
health, safety and the environment while minimizing their impacts on
businesses.
 Streamline the federal chemical security program to address current threat
levels effectively with minimum disruptions to business.
 Balance the public’s right-to-know with protection of confidential or
proprietary business information in the development of new regulations,
including chemical management laws.
 Ensure that government regulatory agencies are appropriately staffed with
knowledgeable scientists to ensure timely development of regulations,
notifications about them and receipt and consideration of responses to
them.
 Ensure that the U.S. Patent and Trademark Office (PTO) is appropriately
staffed with scientifically-qualified agents to ensure timely and fair
processing of patent applications.
 Allow the PTO to apply all fees directly to the creation of a more efficient
patent review process.
 Strengthen intellectual property protection to reduce instances of
violation of American copyright and patent holdings, and to promote U.S.
firms’ innovation, competitiveness, and economic growth.
Position in Brief
 Supports a fair and level playing field that enhances competition and
stimulates research and development
 Supports policies that foster the growth of small research and
development businesses and encourage entrepreneurship
 Supports efforts to foster U.S. corporate tax and trade policies that will
support American firms’ competitiveness in the global business
atmosphere
 Supports reforms to the U.S. regulatory and intellectual property
frameworks that will promote, and minimize impediments to innovation
25
The best (and worst) states for business
In December, President Trump signed into law the Tax Cuts and Jobs Act,
which was notable for giving substantial breaks to American businesses.
Included in the act was a significant cut in the maximum federal business tax
rate, reducing it from 35% to 21%.
Regardless of the implications of this new bill for low- and middle-income
Americans and for the programs that may soon lack funding, the tax cuts were
unquestionably good news for American business in what has already been a
boom time for many companies. Despite a sell-off earlier in the year, the Dow
Jones industrial average is near record highs, The economy has added jobs for
87 straight months, and GDP has grown for seven straight years.
This period prosperity has by no means been even across the country. While
GDP grew by an aggregate annual rate of 1.5% over the past five years, it
declined in seven states, including by more than 5% in Alaska.
Economic disparity: 10 States where the middle class is being left behind
A number of factors can explain the regional differences in economic growth,

including the varying business climates across states. While many factors affect
the success of a region’s businesses, socioeconomic conditions, differences in
geography, and regional regulations contribute to an overall business
environment. Depending on these conditions, running a successful business in
one state can be much easier than in another.
To determine which states have the best and worst business climates, 24/7 Wall
Street identified and reviewed nearly 50 measures of doing business. These
were divided into eight major categories: economic conditions, business costs,
state infrastructure, the availability and skill level of the workforce, quality of
life, regulations, technology and innovation, and cost of living. A number of
region-specific policies, costs, and regulations affect a state’s business climate,
including liability and oversight laws, utility costs, insurance requirements, and
tax policy.
Here is how the states rank based on our reporting:
Massachusetts
1-yr. real GDP change: +1.5% (21st largest growth)
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Avg. salary: $65,971 (2nd highest)
Adults w/ bachelor’s degree: 42.7% (the highest)
Patents issued/100,000 people: 99.5 (2nd most)
Working-age population change, 2020-2030: +2.7% (9th smallest growth)
A well-educated population can be a boon for state businesses. Such a

population presents a more flexible and skilled talent pool for employers. Also,
people with college educations tend to have higher incomes, which means they
have more disposable income to spend. A nation-leading 42.7% of
Massachusetts adults have a bachelor’s degree, compared to 31.3% of adults
nationwide. The typical state household earns $75,297 a year, the fourth highest
median income of any state and over $17,000 greater than the national median.
Businesses can often benefit from clustering — the close proximity of research
institutions and businesses in STEM fields. Clustering results in greater access
to the latest technology and other tech innovators as well as, often, high patent
output. The greater Boston area is the site of such clustering, as can be seen in
the statewide figures. Massachusetts enterprises were awarded more than 6,700
patents in 2015, or almost 100 patents per 100,000 state residents, the second
most patents per capita in the country.
South Dakota
1-yr. real GDP change: +0.7% (11th smallest growth)
Avg. salary: $40,724 (3rd lowest)
Adults w/ bachelor’s degree: 28.9% (tied — 22nd lowest)
Patents issued/100,000 people: 13.1 (8th fewest)
Working-age population change, 2020-2030: +10.3% (8th largest growth)
Of the eight best states for business, all but one have median household incomes
of at least $65,000 a year. The one exception is South Dakota, where the typical
household earns $54,467 a year. The state makes up for its lack of an affluent
consumer base in part by being an inexpensive state to do business. With goods
and services costing an average of 88.2 cents to the dollar, the state has the
fourth lowest cost of living. The state also has a favorable regulatory framework
for business. According to the Census’ American Survey of Entrepreneurs,
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South Dakota businesses are the least likely in the country to be negatively
affected by poor access to capital or by the state’s tax structure.
More: States where Americans pay the least (and most) in taxes
Utah
1-yr. real GDP change: +3.7% (3rd largest growth)
Avg. salary: $46,178 (19th lowest)
Adults w/ bachelor’s degree: 32.6% (17th highest)
Patents issued/100,000 people: 46.0 (13th most)
Working-age population change, 2020-2030: +15.1% (3rd largest growth)
One sign of a state’s favorability to business is the projected growth of its

potential labor force. More potential workers is both a sign of good economic
growth, as well as a benefit to employers, who will be able to draw from a
larger talent pool. Based on current growth rates, the working-age population in
Utah will grow by an estimated 15.1% between 2020 and 2030, the third largest
growth during that period of any state. Much of the state’s population growth is
likely also the result of growth in STEM jobs in the greater Salt Lake City
region. An estimated 6% of Utah’s jobs are in STEM fields, one of the higher
shares of any state. State GDP has grown by 3.7% in the last year alone, more
than double national GDP growth rate and the third largest of any state.
North Dakota
1-yr. real GDP change: -5.0% (2nd largest decrease)
Adults w/ bachelor’s degree: 29.6% (tied — 25th lowest)
Working-age population change, 2020-2030: -33.2% (the largest growth)
North Dakota ranks as one of the least expensive places to operate a business.
Goods and services in the state are less expensive compared to the national
average, and property ownership is among the most affordable in the country. In
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the American Survey of Entrepreneurs, state businesses are among the least
likely of their kind to report a negative impact from a lack of access to capital or
from the state’s tax structure.
Until the downturn in oil prices in 2014, North Dakota’s oil industry was
booming — and taking the entire state economy along with it. Between 2011
and 2016, the state economy grew at a nation-leading annualized rate of 4.4%
per year. Over that period, unemployment averaged just 2.8%, by far the lowest
of any state. However, with the recent slowdown, North Dakota’s position on
this ranking is in serious jeopardy. The state economy contracted by 5% in
2016, the second worst of any state.
Colorado
Avg. salary: $55,449 (11th highest)
Adults w/ bachelor’s degree: 39.9% (2nd highest)
In Colorado, 7.4% of all jobs are in science, technology, engineering, or

mathematics, the fourth highest share of any state. A high concentration of
STEM workers in a state can point to favorable conditions for businesses in
several ways. STEM workers tend to have higher incomes, which means they
have more disposable income to spend locally. The median household income
in Colorado of $65,685 a year is over $8,000 higher than the typical American
household income.
A high concentration of STEM jobs can also mean there is a greater potential
for innovation and growth in a region, which can create new business and
benefit existing companies. Colorado had 255 venture capital deals — a sign of
business innovation and growth — in 2016, the sixth most of any state.
New Hampshire
1-yr. real GDP change: +1.6% (17th largest growth)
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Working-age population change, 2020-2030: +3.9% (6th largest decrease)
Those living in poverty are far less likely to have disposable income to spend on
non-essential consumer goods, and so places with a low concentration of
poverty are more likely to have plenty of paying customers. In New Hampshire,
just 7.3% of the population lives in poverty — the lowest rate in the country.
Part of the reason for this low poverty rate is that a very small share of New
Hampshire’s labor force cannot find work. The state’s annual unemployment
rate of just 2.8% is the lowest in the country. New Hampshire’s low
unemployment is also is a sign businesses are doing well.
Less than 10% of the Minnesota population lives in poverty, the fifth-lowest
rate among states.
rate among states.
Minnesota
rate among states. This low poverty rate indicates the state’s businesses are
more likely to have interested and paying customers.
According to the American Survey of Entrepreneurs, state businesses are among

the least likely to report a negative impact on sales from slow business, lost
sales, and late or non-paying customers. Like many states on this list, Minnesota
has a substantial STEM sector, which coincides with a high issuance rate for
patents.
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Washington
1-yr. real GDP change: +4.2% (the largest growth)
Patents issued/100,000 people: 87.5 (3rd most)
Rapid economic growth is not always favorable for businesses in the long term,
as they can lead to an economic bubble and long-term crisis for regional
enterprise. However, growth can often be sustained, and in the short term, it is a
positive sign for a region’s economy. Washington state has one of the fastest
growing economies in the country, with a nation-leading 4.2% GDP growth in
2016. With companies such as Microsoft and Amazon operating in the state,
there has also been a great deal of innovation in Washington. Over 87 patents
are issued per 100,000 state residents in a year, the third most of any state.
More: Financial security: Best (and worst) states to grow old in
Vermont
Working-age population change, 2020-2030: +5.4% (3rd largest decrease)
The presence of violent crime can drive residents out of a given area and
hamper businesses’ ability to thrive. One of the safest states in the country,
Vermont’s violent crime rate of 158 incidents per 100,000 residents is less than
half the U.S. violent crime rate of 386 per 100,000. The state also ranks
relatively well in its capacity for innovating. There were about 72 patents issued
in the state for every 100,000 residents in 2015, more than in all but four other
states.
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Educated populations can be a draw for companies requiring skilled workers,
and Vermont’s population is one of the best educated of any state. Among
adults in the state, 36.4% have at least a bachelor’s degree and 15.2% a graduate
or professional degree — each among the 10 highest shares in the country.
Virginia
Patents issued/100,000 people: 24.5 (22nd fewest)
A well-educated workforce can make a region especially attractive to potential

employers — and Virginia has one of the best-educated populations of any
state. In Virginia, 38.1% of adults have a bachelor’s degree or higher, well
above the 31.3% of adults who do in the United States as a whole and a larger
share than in the vast majority of states.
A low crime rate further contributes to Virginia’s appeal to new and relocating
businesses. A high incidence of violent crime can drive top talent as well as
potential customers out of a given region, and there were just 218 violent crimes
for every 100,000 people in Virginia in 2016, the fourth lowest violent crime
rate of any state. Virginia’s population is also more likely to have more
disposable income than most Americans, which in turn can drive up consumer
spending. The typical household in the state earned $68,114 in 2016, over
$10,000 more than the typical American household.
Idaho
Avg. salary: $40,505 (2nd lowest)
Adults w/ bachelor’s degree: 27.6% (15th lowest)
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By several measures, Idaho’s economy is relatively strong. The state reported a
2.7% GDP growth between 2015 and 2016, a stronger growth rate than all but
six other states. Additionally, just 3.8% of the state’s labor force were out of
work in 2016 compared to 4.9% of the U.S. labor force. Idaho’s low crime is
another factor making the state attractive to business. A high violent crime rate
can contribute to a stagnant economy and economic drag, and Idaho is a
relatively safe state. There were 230 violent crimes for every 100,000 people in
Idaho in 2016 compared to the comparable U.S. rate of 386 per 100,000.
Business costs across Idaho are generally low. Commercial electricity per
kilowatt hour in Idaho averaged only 7.4 cents per kWh in 2016, well below the
national cost of 10.4 cents per kWh. Additionally, the average cost of
commercial real estate in Idaho is lower than in most states.
One factor that helps make Wyoming one of the most business-friendly states in
the country is its strong infrastructure. Just 2.4% of roads in the states are in
poor condition.
poor condition.
BANKRUPT / ISTOCK
Wyoming
1-yr. real GDP change: -1.8% (4th largest decrease)
Working-age population change, 2020-2030: -9.5% (11th largest growth)
poor condition according to the Federal Highway Administration, the ninth
smallest share nationwide. Quality roads likely help reduce congestion.
Trucking plays a relatively large role in Wyoming’s economy, and in 2016, the
trucking industry lost less revenue due to congestion per mile than in nearly any
other state. Clear roads benefit all workers in the state. Workers spend just 16.9
minutes on average commuting to work — the second shortest commute of any
state.
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Wyoming also outranks a majority of states in education spending and
outcomes. This can help attract advanced industries to the state. Wyoming spent
an average of $17,700 per student in public education in 2015 — over $5,000
more than the national average per-student spending. An estimated 93.2% of
adults in the state have a high school diploma, the largest share of any state.
Texas
Like North Dakota and a few other oil-producing states, Texas’ economy has
taken a beating from the more-than-three-years-long stretch of depressed crude
oil prices. However, the state’s economy is more diverse than that of North
Dakota, and GDP has contracted by just 0.3% in the most recently reported
year. Credit agencies Moody’s and Standard & Poor’s clearly recognize the
state’s stability and rate its debt a perfect AAA and Aaa, respectively, with a
stable outlook.
The state’s businesses not only benefit from a stable economy, but also from a
growing labor force. Texas’ working age population is projected to grow by
14.9% between 2020 and 2030, the fourth most of any state.
More: 25 best counties in the U.S. to live in based on education, poverty

and life expectancy
Nebraska
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Cost of living in Nebraska is nearly 10% lower than the national average, a
boon for both businesses and residents. In addition to generally having lower
costs, businesses also benefit from possible higher disposable income of
residents. Just 34.7% of business owners in Nebraska report a negative impact
attributable to slow business or lost sales, and just 26.9% report a negative
impact from late or non-payment from customers — each among the smallest
such shares of any state.
Not all aspects of a business are good for entrepreneurs in the state. About 56%
of Nebraska business owners surveyed claim taxes negatively impact their
operation, the largest such share of any state.
Alaska
1-yr. real GDP change: -5.4% (the largest decrease)
Patents issued/100,000 people: 5.4 (2nd fewest)
Alaska is one of the nation’s largest producers of crude oil and natural gas, and
like most states with a large oil and gas sector, the state’s economy has taken a
hit in the past few years due to depressed energy prices. The state’s GDP
contracted by 5.4% between 2015 and 2016, and the state’s annual
unemployment rate of 6.6% is the second highest among states.
While Alaska’s economy is struggling at the moment, the state’s businesses

benefit from a consumer base that is likely to be able to spend more on
consumer goods and services. The median household income in the state of
$76,440 a year is the second highest in the country. Alaska is one of just six
states with a poverty rate below 10%.
Michigan
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Working-age population change, 2020-2030: +6.7% (the largest decrease)
One of the biggest advantages businesses in Michigan benefit from is the state’s
low cost of living. Goods and services are 6.5% less expensive in Michigan than
they are on average nationwide — and businesses benefit. Not only does a low
cost of living provide consumers with more disposable incomes, but also
Michigan has the second lowest average commercial retail estate costs of any
state.
However, new and relocated businesses in Michigan may have trouble filling
positions with qualified candidates in the coming years. Over the decade
between 2020 and 2030, the working age population in Michigan is projected to
decline by 6.7%, the steepest drop of any state.
Arizona
Avg. salary: $49,432 (22nd highest)
Arizona’s economy has shown signs of strengthening recently. State GDP grew
by 2.6% in 2016, a positive sign for the state’s businesses. Also, the state’s
economy will likely continue to grow in the years ahead. The state’s working-
age population is projected to grow by 10.8% between 2020 and 2030, a further
sign business is booming and that state employers will have a large talent pool
to draw from.
The state’s business environment is far from ideal, however. Arizona’s poverty
rate of 16.4% is one of the highest in the country. The state also has below
average educational attainment rates at both the high school and college level.
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Delaware
1-yr. real GDP change: +0.1% (2nd smallest growth)
Adults w/ bachelor’s degree: 31.0% (tied — 20th highest)
Functional and reliable transportation infrastructure is important for many

businesses to succeed. In Delaware, just 4.9% of bridges are considered
structurally deficient and 3.9% of roadways are in poor condition — each well
below the respective 9.1% and 6.6% shares across the United States as a whole.
Businesses in the state also report benefitting from a low tax rate. Just 42.9% of
business owners surveyed cite taxes as a negative impact on their operation, the
third smallest share of any state.
Not all conditions in Delaware are ideal for businesses, however. Traffic
congestion is a considerable problem. Congestion cost the trucking
transportation industry an average of $323,713 per mile in 2016, the second
highest loss attributable to congestion of any state.
Kansas’ economy is not growing. The state’s GDP contracted by 0.9% in 2016
— just as the national economy expanded by 1.5%.
Kansas’ economy is not growing. The state’s GDP contracted by 0.9% in 2016
— just as the national economy expanded by 1.5%.
THINK-STOCK
Kansas
Patents issued/100,000 people: 31.5 (22nd most)
Working-age population change, 2020-2030: -2.6% (8th smallest growth)
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Ranking where it does, Kansas unsurprisingly has some attributes that are good
for business and some that are not. A state’s infrastructure condition is
important, as travel delays and poor commutes can eat into profits. In Kansas,
less than 1% of roadways are in poor condition, the lowest share of any state.
Also, the average commute time for state residents is less than 20 minutes,
compared to a national average of 26.6 minutes.
However, unlike most states, Kansas’ economy is not growing. The state’s GDP
contracted by 0.9% in 2016 — just as the national economy expanded by 1.5%.
A lack of capital for small businesses might help partially explain the state’s
stagnant economy. There were just 1,439 small business loans per employee in
2015, the second-fewest in the country.
More: Bad reputation: America’s Top 20 most-hated companies
Oregon
1-yr. real GDP change: +3.8% (2nd largest growth)
Oregon’s economy has been growing recently, a good sign for existing and
prospective businesses. State GDP increased by 3.8% in 2016, the second
largest growth rate of any state. The previous year, the number of private
businesses in the state increased by 2.3%, the sixth largest increase of any state.
However, one factor weighing on Oregon’s rank is the relative unaffordability
of doing business in the state. Median ownership costs are among the most
expensive in the country relative to incomes.
Nevada
1-yr. real GDP change: +1.4% (22nd largest growth)
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Patents issued/100,000 people: 24.7 (23rd fewest)
Working-age population change, 2020-2030: +17.5% (2nd largest growth)
The quality of life in a given state can have an impact on the ease with which
employers can entice candidates to relocate there. Nevada businesses are at
somewhat of a disadvantage, as the state ranks poorly in key measures of
quality of life. For example, Nevada has the third-highest violent crime rate in
the country, at 678 incidents per 100,000 people — nearly double the national
violent crime rate.
The state also has relatively few highly educated workers and relatively few
working in science, technology, engineering, and math. A highly educated
workforce with many workers in STEM fields signifies a growing and
innovative economy. Just 8.1% of Nevada adults have a graduate or
professional degree, the second-lowest share among states. Similarly, just 3% of
jobs in the state are in STEM fields, also the second-lowest share in the country.
New Jersey
A high cost of living is a potential deterrent for any business as it translates to

less disposable consumer income and high costs of doing business. And New
Jersey is a particularly expensive state. Goods and services in the state cost
about 13% more than they do nationwide. Both commercial real estate and
commercial electricity are more expensive in New Jersey than in the vast
majority of states. In addition, the Tax Foundation ranks the state dead last for
its business tax climate.
One of the state’s greatest assets, however, is its highly skilled workforce. Of
adults in the state, 38.6% have at least a bachelor’s degree, and 14.9% have a
graduate or professional degree — the fourth and seventh largest shares among
states, respectively. Partially as a result, 5.6% of all jobs in Garden State are in
STEM fields, a larger share than in all but 10 other states.
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Tennessee
Avg. salary: $46,961 (22nd lowest)
While Tennessee ranks below most states in business friendliness, the state’s
low cost of living may be a boon to businesses in the area. Goods and services
in the state cost 11.1% less than they do nationwide, the ninth lowest price
parity of any state. Also, taxes paid by Tennessee residents amount to just 7.3%
of income, the fourth lowest tax burden in the country.
Tennessee has also reported faster growth and more business activity than most
states. The state’s real GDP grew 2.9% in 2016, nearly twice the national GDP
growth rate of 1.5%. Some 36,000 new business permits were issued in the state
that year, the 12th most of any state when adjusted for population. Tennessee is
also one of just 11 states with a triple-A rating and stable outlook from both
Moody’s and S&P, a sign of a stable economy.
Missouri
Avg. salary: $47,193 (23rd lowest)
Working-age population change, 2020-2030: +0.9% (3rd smallest growth)
For a state that ranks 31st in favorability for business, Missouri does not rank
particularly poorly in any single category but is consistently average or below-
average across many important factors. For example, the state ranks slightly
below-average in measures of technology and innovation such as the share of
jobs in STEM fields.
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Missouri is also roughly in the middle of all states in measures of human
capital. For example, 28.5% of state adults have a bachelor’s degree, which is
slightly below the national figure of 31.3%.
Montana
Business loans are relatively easy to access and inexpensive in Montana. Just
5.4% of surveyed entrepreneurs reported a negative impact to business due to
lack of access to financial capital, and just 7.6% reported a negative impact due
to the cost of financial capital — each the smallest such shares of any state in
the country. Still, 32.7% of business owners reported struggling to find qualified
workers — a larger than typical share. The state’s small share of advanced
degree holders may be partially to blame. Only about 1-in-10 adults in the state
have a graduate or professional degree, a smaller share than in most states.
Relatively few tech startups and innovative companies choose Montana as a

place to do business. Only 14 patents were issued in the state for every 100,000
residents in 2015, and there were only 22 venture capital deals in 2016 — both
among the smallest such shares nationwide.
More: U.S. economy: A rundown of the poorest county in every state
Indiana
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In states with highly educated populations, businesses have a more skilled and
flexible workforce to draw from. In Indiana, while a slightly higher than the
national figure of 88.4% of adults have a high school diploma, just 25.6% of
adults have a bachelor’s degree. Nationwide, 31.3% of adults have a bachelor’s
degree. The state also ranks below average in measures of quality of life,
including health insurance coverage and the concentration of art, entertainment,
and recreational establishments, which can point to the state being less attractive
not only to potential businesses but also to employees.
Wisconsin
1-yr. real GDP change: +1.3% (23rd largest growth)
Avg. salary: $46,659 (21st lowest)
Adults w/ bachelor’s degree: 29.5% (23rd lowest)
Starting up a business in Wisconsin appears to be less expensive than in most

states. Goods and services on the whole cost about 93 cents on the dollar
compared to average prices nationwide. The price of commercial real estate in
the state is also among the most affordable in the country.
On the other hand, Wisconsin’s tax structure may be less than ideal both to
business and potential employees. In the Census Bureau’s Annual Survey of
Entrepreneurs, 52.8% said their business had been negatively impacted by the
state’s tax policies. High taxes for individuals may also discourage workers
from moving to the state. As of fiscal 2012, the average state and local taxes
paid in Wisconsin amounted to 11% of state income per capita, the fifth highest
proportion in the country.
The Tax Foundation ranks New York’s business tax climate as the worst of any
state after only Hawaii.
The Tax Foundation ranks New York’s business tax climate as the worst of any
state after only Hawaii.
THINK-STOCK
New York
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Avg. salary: $67,266 (the highest)
Attributable largely to the high cost of living in New York City, the average
cost of goods and services is about 15% higher in New York state than it is
nationwide. These high costs make conducting business in the state especially
pricey. Commercial real estate prices in New York are the highest of any state
after only Hawaii. Additionally, the Tax Foundation ranks New York’s business
tax climate as the worst of any state after only Hawaii.
Employee productivity and satisfaction are likely impacted by long commute

times in New York state. The average commute time for workers in the state is
33 minutes — the longest of any state in the country.
South Carolina
Businesses operating in states with a higher quality of life are more likely to be
able to attract new employees. South Carolina rates as one of the worst states in
quality of life, ranking among the worst states in measures such as the presence
of arts, entertainment, and recreation facilities and the presence of violent crime.
That the state is a less attractive place to live might help explain why it also has
a relatively small share of professionals. South Carolina has a below average
share of adults with bachelor’s degrees and adults with graduate and
professional degrees.
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Arkansas
Adults w/ bachelor’s degree: 22.4% (3rd lowest)
Businesses in a state with a high poverty rate can find it harder to turn a profit
as consumers are less likely to have disposable income to spend on goods and
services. In Arkansas, 17.2% of the population lives below the poverty line, the
sixth highest poverty rate in the country. Also, the state’s median household
income of $44,334 a year is the third lowest among states.
In addition, Arkansas has one of the highest violent crime rates of any state, at
550 incidents per 100,000 people, compared to a national violent crime rate of
386 incidents per 100,000. Local violent crime can drive away business, and
areas with a reputation for crime are less likely to attract potential employees.
Oklahoma
1-yr. real GDP change: -4.1% (3rd largest decrease)
A high violent crime rate can discourage businesses from relocating to an area.
In Oklahoma, there were 450 violent crimes for every 100,000 residents in
2016, more than in the majority of states and well above the U.S. violent crime
rate of 386 per 100,000. Due to a range of socioeconomic factors, Oklahoma’s
economy is struggling. The state’s GDP contracted by 4.1% between 2015 and
2016, nearly the largest decline of any state.Employers in the state may also
struggle to find enough skilled workers. Only 25.2% of adults have a bachelor’s
degree, a smaller share than in the vast majority of states.
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HR specific challenges of multinational corporations
in USA
Global Selection
The selection of personnel for overseas assignments is a complex process. The

criteria for selection are based on the same success factors as in the domestic
setting, but additional criteria must be considered, related to the specific
circumstances of each international position. Unfortunately, many personnel
directors have a long-standing, ingrained practice of selecting potential
expatriates simply on the basis of their domestic track records and their
technical expertise. The need to ascertain whether potential expatriates have the
necessary cross-cultural awareness and interpersonal skills
for the position is too often overlooked. It is also important to assess whether
the candidate's personal and family situation is such that everyone is likely to
adapt to the local culture. There are five categories of success for expatriate
managers: job factors, relational dimensions such as cultural empathy and
flexibility, motivational state, family situation, and language skills. The relative
importance of each factor is highly situational and difficult to establish. A more
flexible approach to maximizing managerial talent, regardless of the source,
would certainly consider more closely whether the position could be suitably
filled by a host-country national, as put forth by Tung, based on her research.
This contingency model of selection and training depends on the variables of
the particular assignment, such as length of stay, similarity to the candidate's
own culture, and level of interaction with local managers in that job. Tung
concludes that the more rigorous the selection and training process, the lower
the failure rate.
The selection process is set up as a decision tree in which the progression to the
next stage of selection or the type of orientation training depends on the
assessment of critical factors regarding the job or the candidate at each decision
point. The simplest selection process involves choosing a local national because
minimal training is necessary regarding the culture or ways of doing business
locally. However, to be successful, local managers often require additional
training in the MNC companywide processes, technology, and corporate
45
culture. If the position cannot be filled by a local national, yet the job requires a
high level of interaction with the local community, very careful screening of
candidates from other countries and a vigorous training program are necessary.
For MNCs based in Europe and Asia, human resource policies at all levels of
the organization are greatly influenced by the home-country culture and
policies. For Japanese subsidiaries in Singapore, Malaysia, and India, for
example, promotion from within and expectations of long- term loyalty to and
by the firm are culture-based practices transferable to subsidiaries. At
Matsushita, however, selection criteria for staffing seem to be similar to those of
Western companies. Its candidates are selected on the basis of a set of
characteristics the firm calls SMILE; specialty (required skill, knowledge);
management ability (particularly motivational ability); international flexibility
(adaptability); language facility; and endeavor (perseverance in the face of
difficulty).
Problems with Expatriation
Deciding on a staffing policy and selecting suitable managers are logical first
steps but do not alone ensure success. When staffing overseas assignments with
expatriates, for example, many other reasons, besides poor selection, contribute
to expatriate failure among U.S. multinationals. A large percentage of these
failures can be attributed to poor preparation and planning for the entry and
reentry transitions of the manager and his or her family. One important variable,
for example, often given insufficient attention in the selection, preparation, and
support phases, is the suitability and adjustment of the spouse. The inability of
the spouse to adjust to the new environment has been found to be a major in
fact, the most frequently cited reason for expatriate failure in United States and
European companies. Yet only about half of those companies studied had
included the spouse in the interviewing process. In addition, although research
shows
that human relational skills are critical for overseas work most of the U.S. firms
surveyed failed to include this factor in their assessment of candidates. The
following is a synthesis of the factors frequently mentioned by researchers and
firms as the major causes of expatriate failure selection based on headquarters
criteria rather than assignment needs; inadequate preparation, training, and
orientation prior to assignment; Alienation or lack of support from headquarters;
Inability to adapt to local culture and working environment; Problems with
spouse and children poor adaptation, family unhappiness; Insufficient
compensation and financial support; Poor programs for career support and
repatriation. After careful selection based on the specific assignment and the
long-term plans of both the organization and the candidates, plans must be made
for the preparation, training, and development of expatriate managers.
46
Training & Development
It is clear that preparation and training for cross-cultural interactions are critical.
In earlier discussions of the need for cultural sensitivity by expatriate managers,
reports indicate that up to 40 percent of expatriate managers end their foreign
assignments early because of poor performance or an inability to adjust to the
local environment. Moreover, about half of those who do remain function at a
low level of effectiveness. The indirect costs may be far greater, depending on
the expatriate's position, Relations with the host-country government and
customers may be damaged,84G.J.C.M.P.,Vol.3(2):83-86 (March–April,2014)
ISSN: 2319 – 7285
resulting in a loss of market share and a poor reception for future PCNs. Both
cross-cultural adjustment problems and practical differences in everyday living
present challenges for expatriates and their families. Examples are evident from
a survey of expatriates when they ranked the countries that presented the most
challenging assignments to them, along with some pet peeves from their
experiences. Even though cross-cultural training has proved to be effective, less
than a third of expatriates are given such training. In a study by Harvey of 332
U.S. expatriates (dual-career couples), the respondents stated that their MNCs
had not provided them with sufficient training or social support during the
international assignment. Much of the rationale for this lack of training is an
assumption that managerial skills and processes are universal. In a simplistic
way, a manager's domestic track record is used as the major selection criterion
for an overseas assignment.
In most countries, however, the success of the expatriate is not left so much to
chance. Foreign companies provide considerably more training and preparation
for expatriates than U.S. companies. Therefore, it is not hard to understand why
Japanese expatriates experience significantly fewer incidences of failure than
their U.S. counterparts, although this may be partially because fewer families
accompany Japanese assignees. Japanese multinationals typically have recall
rates of below 5 percent, signifying that they send abroad managers who are far
better prepared and more adept at working and flourishing in a foreign
environment. While this success is largely attributable to training programs, it is
also a result of intelligent planning by the human resource management staff in
most Japanese organizations, as reported by Tung. This planning begins with a
47
careful selection process for overseas assignments, based on the long-term
knowledge of executives and their families. An effective selection process, of
course, will eliminate many potential "failures" from the start. Another factor is
the longer duration of overseas assignments, averaging almost five years, which
allows the Japanese expatriate more time to adjust initially and then to function
at full capacity. In addition,
Japanese expatriates receive considerable support from headquarters and
sometimes even from local divisions set up for that purpose. At NEC
Corporation, for example, part of the Japanese giant's globalization strategy is
its permanent boot camp, with its elaborate training exercises to prepare NEC
managers and their families for overseas battle. The demands on expatriate
managers have always been as much a result of the multiple relationships that
they have to maintain as they are of the differences in the host-country
environment. Those relations include family relations, internal relations with
people in the corporation, both locally and globally, especially with
headquarters, external relations (suppliers, distributors, allies, customers, local
community, etc.), and relations with the host government. It is important to
pinpoint any potential problems that an expatriate may experience with those
relationships so that these problems may be addressed during pre-departure
training. Problem recognition is the first stage in a comprehensive plan for
developing expatriates. The three areas critical to preparation are cultural
training, language instruction, and familiarity with everyday matters.
Cross-cultural Training
Training in language and practical affairs is quite straightforward, but cross-

cultural training is not; it is complex and deals with deep-rooted behaviors. The
actual process of cross-cultural training should result in the expatriate learning
both content and skills that will improve interactions with host-country
individuals by reducing misunderstandings and inappropriate behaviors. The
trainers should apply social learning technique to this process by using the
behavioral science techniques of incentives and rehearsal until the trainee
internalizes the desired behaviors and reproduces them. The result is a state of
adjustment, representing the ability to effectively interact with host nationals.
The goal of this training is to ease the adjustment to the new environment by
reducing culture shock a state of disorientation and anxiety about not knowing
how to behave in an unfamiliar culture. The cause of culture shock is the trauma
people experience in new and different cultures, where they lose the familiar
signs and cues that they had used to interact in daily life and where they must
learn to cope with a vast array of new cultural cues and expectations. The
symptoms of culture shock range from mild irritation to deep-seated
psychological panic or crisis. The inability to work effectively, stress within the
family, and hostility toward host nationals are the common dysfunctional results
48
of culture shock often leading to the manager giving up and going home. It is
helpful to recognize the stages of culture shock to understand what is
happening. Culture shock usually progresses through four stages honeymoon,
irritation and hostility, gradual adjustment, biculturalism. Similar to culture
shock, though usually less extreme, is the experience of subculture shock. This
occurs when a manager is transferred to another part of the country where there
are cultural differences essentially from what she or he perceives to be a
"majority" culture to a "minority" one. The shock comes from feeling like an
"immigrant" in one's own country and being unprepared for such differences.
For instance, someone going from New York to Texas will
experience considerable differences in attitudes and lifestyle between those two
states. These differences exist even within Texas, with cultures that range from
roaming ranches and high technology to Bible-belt attitudes and laws and to
areas with a mostly Mexican heritage.
TrainingTechniques
Many training techniques are available to assist overseas assignees in the

adjustment process. These techniques are classified by Tung as, area studies,
that is, documentary programs about the country's geography, economics,
sociopolitical history, and so forth; culture assimilators, which expose trainees
to the kinds of situations they are likely to encounter that are critical to
successful interactions; language training; sensitivity training; and field
experiences exposure to people from other cultures within the trainee's own
country. Tung recommends using these training methods in a complementary
fashion, giving the trainee increasing levels of personal involvement as she or
he progresses through each method. Documentary and interpersonal approaches
have been found to be comparable, with the most effective intercultural training
occurring when trainees become aware of the differences between their own
cultures and the ones they are planning to enter. Similarly categorizing training
methods, Ronen suggests specific techniques, such as workshops and sensitivity
training, including a field experience called the host-family surrogate, where the
MNC pays for and places an expatriate family with a host family as part of an
immersion and familiarization program. Most trainingG.J.C.M.P.,Vol.3(2):83-
86 (March–April,2014) ISSN: 2319 – 7285
programs take place in the expatriate's own country prior to leaving. Although
this is certainly a convenience, the impact of host-country (or in-country)
programs can be far greater than those conducted at home because crucial skills,
such as overcoming cultural differences in intercultural relationships, can
actually be experienced during in-country training rather than simply discussed.
Some MNCs are beginning to recognize that there is no substitute for on-the-job
training (OJT) in the early stages of the careers of those managers they hope to
develop into senior-level global managers.
49
Integrating Training with Global Orientation
In continuing our discussion of "strategic fit," it is important to remember that

training programs, like staffing approaches, be designed with the company's
strategy in mind. Although it is probably impractical to breakdown those
programs into a lot of variations, it is feasible to at least consider the relative
level or stage of globalization that the firm has reached because obvious major
differences would be appropriate, for example, from the initial export stage to
the full global stage. As a further area for managerial preparation for global
orientation-in addition to training plans for expatriates and for HCNs separately-
there is a particular need to anticipate potential problems with the interaction of
expatriates and local staff. The continuous training and development of HCNs
and TCNs for management positions is also important to the long-term success
of multinational corporations. As part of a long-term staffing policy for a
subsidiary, the ongoing development of HCNs will facilitate the transition to an
indigenization policy. Furthermore, multinational companies like to have well-
trained managers with broad international experience available to take charge in
many intercultural settings, whether at home or abroad. Whether in home
corporations or in MNC subsidiaries or joint ventures in any country,
managerial training to facilitate e-business adoption is competitively taking on
increasing
importance in order to take advantage of new strategic opportunities. While
large companies are well ahead on the curve for information and
communication technologies (ICT), there is considerable need for small and
medium-sized enterprises (SMEs) to adopt such knowledge-creating
capabilities. Managerial training in ICT is particularly critical for firms in new
economy and emerging markets, and, in the aggregate, can provide leverage for
rapid economic growth in regions such as Eastern Europe. In another common
scenario also requiring management of a mixture of executives and employees,
American and European MNCs presently employ Asians as well as Arab locals
in their plants arid offices in Saudi Arabia, bringing together three cultures:
well-educated Asian managers living in a Middle Eastern, highly traditional
society who are employed by a firm reflecting Western technology and culture.
This kind of situation requires training to help all parties effectively integrate
multiple sets of culturally based values, expectations, and work habits.
50
Language Barrier
In addition to cultural diversity, international businesses have to deal with

language barriers. The language barrier can be among employees, or between
employees and the management. Employee communications should refer to the
local culture and contain analogues that the locals can relate to. In order for a
business to communicate to its overseas employees, it must first understand
what makes sense to them.
Rules, Regulations and Labor Rights
Safety rules, labor practices and compensation can differ from one country to
another. Harmonizing employment policies, labor administration, and industrial
relations is a difficult task for international business. For example, safety
standards in some countries are different from those in the U.S., requiring a
business to purchase more equipment and conduct training differently than it
does in the home country. The International Labor Organization sets minimum
standards of labor rights through recommendations and conventions
High Alerts
Deloitte, the international business consulting firm, cites safety and security as
one of the most difficult challenges for HR professionals in multinational
companies. Deloitte points out, in a 2010 white paper titled “Global HR
Transformation,” that terrorism, disasters such as Katrina and Japan’s tsunami,
and epidemic diseases such as the avian flu have made HR’s task of protecting
employees and the workplace from harm more critical than ever. Risks are
51
especially high for multinational companies with subsidiaries in politically or
physically vulnerable regions of the world.
Management Changes
As a business grows, its strategies, structure, and internal processes grow with
it. Some employees have a hard time coping with these changes. A lot of
companies experience decreased productivity and morale during periods of
change.
Leadership Development
A recent study showed more than a third of companies are doing an average job,
at best, at implementing leadership development programs. Thirty-six percent of
companies surveyed in Brandon Hall Group’s State of Leadership Development
Study admitted that their leadership development practices are below average.
Adapting to Innovation
52
Technology is constantly changing. Businesses must be quick to adapt, or risk
being left in the dust by their competitors. The challenge for small business
owners is getting employees to embrace innovation and learn new technology.
Compensation
Many companies are struggling with how best to structure employee

compensation. Small businesses have to compete not only with businesses of a
similar size, but also with corporations with big payroll budgets. Plus, you have
to factor in the cost of benefits, training, taxes, and other expenses, which can
range from 1.5 to 3 times the employee’s salary.
Global Social Responsibility
Many companies have been known to outsource work to poor countries where
employees are willing to work for lower wages due to higher competition and a
lower cost of living. Outsourcing is a touchy subject, as it means hiring workers
from other countries and taking jobs away from the country where the company
is headquartered. The public is a lot more comfortable with outsourcing that
incorporates social responsibility rather than simply exploiting workers in poor
countries.
This means that when your company hires people in third-world countries to
work in manufacturing, customer service or sales positions, these people should
be paid a fair wage with at least some basic benefits (sick leave, disability, etc.)
and not simply offered the bare minimum wage that these workers are willing to
accept. Even if it is not legally required to do so, it is important that the
company maintains its integrity and reputation.
Integrating New Locations and Workers
Human resource managers need to be intimately familiar with the country's

labor laws, but when the company opens a new location in another country, they
need to learn that country's laws and customs as well. For example, workers in
Indonesia are entitled to the same rights whether they work part time or full
time.
Not only do HR employees need to ensure that local workers are trained and
treated properly, but they also have to help employees who are moved to a new
53
region to adapt to the social and cultural norms of their new location. It's
important to remember that even when local laws fall short of protecting your
employees, your corporate policies should protect local employees just as they
do for those who have been transferred to new regions.
It’s difficult to create an international human connection
Maria Vihtkari, Chief Human Resources Officer for Arcusys, says that one of
HR’s biggest international challenges is building a strong human connection
between teams across borders.
“Video conferencing helps by allowing eye contacted and a restricted amount of

body language” she says “but there is still an aspect of human connection
missing that is critical to building strong teams. We work around this by
sending all of our employees from around the world to development days in
Finland, and on bonus company trips at a new destination annually.”
Vihtkari is not alone. In fact, PR consultant Alexis Chateau, who manages his
company’s international HR function, has the same problem. Chateau holds a
degree in Human Resource Management, and his experience working with
clients spanning five continents, brings team building and ‘the human
connection’ to the top of the list. Chateau explains that it’s easy to help people
in his Atlanta head office to connect, but it’s harder to forge that connection
between, for example, a designer in Jamaica and an editor in Vegas.
Centralise your processes – so you can concentrate on the relationships
It’s much easier to pay attention to the finer details that make the biggest impact
– like the relationships you build between your global teams – when you have
your HR processes centralised in one place.
If you’re spending your energy trying to implement different HR systems for

different countries, you’ll struggle. So find a system that lets you tweak
processes for local laws and customs.
Likewise, if you bottleneck all of your HR processes through one central person
or location, you’ll probably fall behind. And that’s why our next software
release focuses on easing the pressure of international HR, as detailed in this
post here.
54
Reference https://www.google.com
55

The University of Lahore Gujrat Campus: Global HRM and Conflict Management

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The University of Lahore Gujrat Campus: Global HRM and Conflict Management

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Global HRM and conflict management

Mam Abida Ayub

Syeda Attiqa Batool

The University of Lahore Gujrat campus

1. Overview of United States of America

Originating within U.S. military defines networks, the Internet spread to

Largest city. New York City

Ethnic groups (2018).

Paleo-Indians migrated from Siberia to the North American mainland at least

American English varieties include many patterns of pronunciation, vocabulary,

Visual art of the United States

Society of the United States

One characteristic of American cooking is the fusion of multiple ethnic or

Folklore of the United States

Folklore consists of legends, music, oral history, proverbs, jokes, popular

Broadcast media transmit information electronically via media such as films,

The organizations that control these technologies, such as movie studios,

Business, Technology and Commercialization – ACS supports a fair and level

 Expand fundamental research capabilities and activities in academic

 Improve access to shared resources, information and facilities for the

Taxes, Trade and Infrastructure – ACS supports efforts to foster U.S.

A number of factors can explain the regional differences in economic growth,

Here is how the states rank based on our reporting:

1-yr. real GDP change: +1.5% (21st largest growth)

Adults w/ bachelor’s degree: 42.7% (the highest)

Patents issued/100,000 people: 99.5 (2nd most)

Working-age population change, 2020-2030: +2.7% (9th smallest growth)

A well-educated population can be a boon for state businesses. Such a

1-yr. real GDP change: +0.7% (11th smallest growth)

Avg. salary: $40,724 (3rd lowest)

Adults w/ bachelor’s degree: 28.9% (tied — 22nd lowest)

Patents issued/100,000 people: 13.1 (8th fewest)

Working-age population change, 2020-2030: +10.3% (8th largest growth)

1-yr. real GDP change: +3.7% (3rd largest growth)

Avg. salary: $46,178 (19th lowest)

Adults w/ bachelor’s degree: 32.6% (17th highest)

Patents issued/100,000 people: 46.0 (13th most)

Working-age population change, 2020-2030: +15.1% (3rd largest growth)

One sign of a state’s favorability to business is the projected growth of its

1-yr. real GDP change: -5.0% (2nd largest decrease)

Avg. salary: $48,151 (24th lowest)

Adults w/ bachelor’s degree: 29.6% (tied — 25th lowest)

Patents issued/100,000 people: 15.6 (14th fewest)

Working-age population change, 2020-2030: -33.2% (the largest growth)

1-yr. real GDP change: +1.1% (18th smallest growth)

Avg. salary: $55,449 (11th highest)

Adults w/ bachelor’s degree: 39.9% (2nd highest)

Patents issued/100,000 people: 55.0 (10th most)

Working-age population change, 2020-2030: +10.5% (7th largest growth)

In Colorado, 7.4% of all jobs are in science, technology, engineering, or

1-yr. real GDP change: +1.6% (17th largest growth)

Avg. salary: $52,747 (15th highest)

Patents issued/100,000 people: 63.7 (6th most)

Working-age population change, 2020-2030: +3.9% (6th largest decrease)

1-yr. real GDP change: +2.1% (13th largest growth)

Avg. salary: $53,445 (13th highest)

Adults w/ bachelor’s degree: 34.8% (11th highest)

Patents issued/100,000 people: 79.6 (4th most)

Working-age population change, 2020-2030: +3.6% (11th smallest growth)

According to the American Survey of Entrepreneurs, state businesses are among

1-yr. real GDP change: +4.2% (the largest growth)

Avg. salary: $58,977 (7th highest)