Business Environment of United States of America

Political Environment: The United States of America (USA) has a strong democratic
system. The country has established a secured political environment. The president is the
chief of the state and he/she is elected through a very fair and transparent election organized
by an electoral college (elected directly from each state) to serve a four year term. The state
has federal government system and powers are checked by the U.S. Congress. It has already
achieved political stability and the state is recognized as the leading superpower in the world
because of their influence over both national and global policymaking. Besides, the advanced
infrastructure, availability of resources, advanced technology, welcoming attitude towards
innovativeness, facilities for the foreign companies have always attracted foreign investors.
Subsequently, the country has become the first choice for many multinational companies for
foreign direct investment for a long time.

The political stability, the business environment and political impact on industries, radical
infrastructure, and innovative technology of the USA has made itself as an excellent
destination for foreign direct investment. (David)

Economic Environment: The USA is the largest global economy by nominal GDP and net
wealth. This well-developed economic system gathers its strength from its services,
manufacturing activities, technological advances in various sectors.

In terms of GDP, the USA has the strongest economy. It is a country where global
corporations such as Coca-Cola, McDonald's, Subway, Microsoft, Apple, Facebook, Google,
and others shape and lead global socioeconomic discussions. (David)

Economic environment depends on several factors, such as consumer behaviour,

employment, labour costs, business rules and regulations interest rates, inflation rate etc.

The USA is the world’s largest growing economy yet it is under threat due to the constant
evolvement of the world economic system. The country already faced a decrease in their
GDP rate due to COVID-19 situation. Currently, it is recovering from the huge loss occurred
in past year.
Social environment: The USA is a very different country. By 2020, it was expected that
nearly 1 in the 3 Americans had African, Asian, Latino or local ancestors. The education
system is one of the best in the world; so is the health system. However, health care is usually
not free and certainly not cheap for many people. Similarly, police violence, crime and baby
mortality rates are a number of other issues of serious concerns. People are generally health-
conscious; however, junk food culture has contributed to obesity and other illnesses within
the country. A majority of the population has a generous way of thinking; yet the country has
recently experienced by racial tensions. The immigrants are also a part of the country’s social
and economic system. Immigrants consists 26 percent on the country’s entire population.
During this pandemic, migrants were affected badly, especially those who earn through lower
paid jobs. (Migration Data portal, 2021)

Socio-economic mobility in the USA rose from 1950 to 1980; According to some studies,
however, there is a decline of 1980. Social economic mobility relates to the upgrading or
downward movement of people from the social studies or the economic level on the other.
(David)

Technological environment: The USA has achieved global leadership in science and
technology. Americans have been dependent on technology, and companies such as Apple,
Microsoft, Google, Facebook and other companies are serving to the technological needs of
Americans and people around the world. In this way, they have become world leaders in their
field. (David)
The United States is at the forefront of technology adaptation and application in many
different areas. Their resources, innovativeness, higher efficiency and advanced technology
has changed the way of doing many things. While it helped companies to cut their
manufacturing costs, it worried many Americans as well. Many of the people lost their job as
technology took over the place of an employee in many cases.

The pace of innovation and technological change in the United States is unusually high.
However, in terms of their technological sector, the country is facing serious challenges from
many countries such as China, South Korea and India.

Legal environment: The USA maintains a federal system where they have a central federal
government and individual government for fifty states. The country Businesses come under
the regulatory environment of the state in which it is operated. The country upholds equal
treatment of nationals, migrants and foreigners. Expatriate employees can expect an unbiased
trial from the judiciary. The USA puts strict and effective rules and regulation on businesses.
Their business laws protect the right of the employees as well as the authority. There are
several laws that have been used to protect ethical business acts, also there are other acts
related to public interest which might be affected by business environment.