24 Mar

Can American Businesses Survive In The Global Economy?

Looking at the American business world and comparing it to the challengers you can also see better who is going to win in the end. With Chinese cheap products and America’s high quality both countries will need to come closer to the middle.

When we rationally see the strengths and compare them against the strengths or weaknesses of other countries we can better determine our chances of success. It is almost the same as when you bet on two boxers one of which has endurance and the other one quickness.

The American economy can go either way according to most newspapers and television commentaries. That leaves most American businesses unsure of what the future holds for them. The best way to answer that question and determine how to improve the business environment is to look at the American businesses strengths and weaknesses.

Strengths of American Businesses:

High Technology: Powerful and growing businesses require email, Internet, cell phones, computers, robots and more. American businesses can grow simply because they can manage different international locations as though they were a block away.

While the U.S. is moving towards alternative energy supply and thinking beyond fossil fuels China is still trying to accumulate basic energy. American businesses have no problem with black outs, rolling power outages or a lack of energy.

Sound Fiscal Policy & Self Adjusting Markets: American policy makers have been generally concerned with how well the economy is doing. If people demand companies to reduce pollution then these consumers will gravitate towards clean businesses while leaving the rest of the businesses behind.

Strong Law Enforcement: It may seem silly and out of place but a strong law enforcement system helps to keep the business environment equitable and fair. When businesses can be cheated when making partnerships, employees embezzle and politicians bribed there is lots of risks built into the environment.

Weaknesses of the American Business:

The average high school graduate is barely able to grasp the concepts of a manufacturing business let alone work within it while the government raises the minimum wage. A Chinese worker is able to press a button like the American worker but for about 1/10th the cost.

As our politicians continue to play favorites with countries that violate international law, demand compliance with American desires and try and finagle other countries its reputation declines. A bad reputation means that both whole countries and international businesses may not only distrust us but prefer to do business with someone else.

Taxes: American businesses pay a lot of money in taxes while companies from other countries may pay a lot less. A bad reputation means that both whole countries and international businesses may not only distrust us but prefer to do business with someone else.

The best way to answer that question and determine how to improve the business environment is to look at the American businesses strengths and weaknesses.

Poor Public Education: The American education system is declining and children are falling behind much of the world in terms of science, languages, math, and more. The advancement of these core subjects are important for the improvement of society as the new high-tech world will need scientists and technology workers like never before. As we keep allowing skilled workers to immigrate our school systems are falling behind only because there is little direction and lots of politics.

Looking at the American business world and comparing it to the challengers you can also see better who is going to win in the end. If people demand companies to reduce pollution then these consumers will gravitate towards clean businesses while leaving the rest of the businesses behind.

Taxes: American businesses pay a lot of money in taxes while companies from other countries may pay a lot less. The taxes in American businesses are simply extra overhead that must be pulled from the cost of the product.