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International Business Environment – United States Assignment Help

- discuss the political and regulatory system with reference to their stability and receptivity to international business, including foreign investment.

- discuss the kind of legal system that exists there.  The following questions are typically important in such a discussion -  Is the legal system transparent and independent?  Is it fair and objective? Does it protect intellectual property, foreign investments, etc.?

- discuss the business customs and practices that exist there.  The following questions are typically important in such a discussion - What role do ethics, corruption, and respect of law play? How are environmental concerns and human rights issues addressed?

- discuss the cultures that play a significant role in the country, specifically how these cultures might impact international business.

- Economic analysis of key indicators –



Major sectors and industries

Currency, interest, and inflation rates

International Trade patterns

Labour Force

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United States is the largest economy in the world and one of the most important countries. Understanding of its business environment is therefore very important. This understanding can help international businesses, which enter the US market, create more effective strategies.

Political and regulatory environment in United States

There is high degree of political and regulatory stability in United States. The country is a democracy. Democratic institutions such as an independent judiciary are quite strong (Blanchard, 2018). The regulatory regime is stable and effective, and generally pro-business. Both political and regulatory environment are favorable for private businesses and foreign investment.

Legal system

As aforementioned, the judiciary is quite independent in United States. The legal system is transparent too. A system of trial courts , appeal courts and the highest court of appeal, the Supreme Court, exists. This system makes the overall legal system fair to a considerable degree (Chandra, 2017). Contract laws and intellectual property laws are very clearly defined and stringently implemented. United States is one of the best countries in the world when it comes to protection of foreign investments and rights of foreign investors. This is a major reason why it attracts such large amount of foreign investments. Government in United States cannot appropriate or seize assets owned by foreign investors arbitrarily. United States is a market economy, where private property rights are held in utmost importance.

Business customs and practice

United States is an individualistic culture. This culture is reflected in business customs too. Ethics is given high importance. There is a clear idea about what is right and what is wrong regarding business practices. Freedom of expression is expected during business negotiations. Subordinates express themselves quite freely before their seniors. Disagreements are not looked down upon. They are looked at as something natural during the course of negotiations and doing business.  United States has very strict laws against corrupt business practices. Most types of corporate frauds carry criminal punishments. One found guilty of such a fraud can face long years of imprisonment. The Foreign Corrupt Practices Act, 1977 of United States prohibits corrupt business practices by US companies even in foreign countries (Samuelson & Nordhaus, 2018). So if a manager of a US company is found to be guilty of doing corruption during a business deal in Australia, he will be punished in United States. It is extremely important for a foreign company entering US market to comply with all the laws and regulation.

Environmental laws and human rights issues

Environmental laws are strict as the country is one of the biggest emitters of greenhouse gases. Stringent environment laws have increased the cost of doing business in the country (Jonathan & Peter, 2017). Human rights issues are very important. The concern for human rights is reflected in the labor laws of the country. Employees should be treated with respect and fairness and all their legal right have to be given by the employer.

Religion and culture

United States is a secular country. It is a very cosmopolitan country. There is significant population of people from different religious beliefs in the country. The culture places very high value on individual freedom (Hofstede, 2018). It is a low power distance and relatively egalitarian or equal culture. Hard work is given a lot of value and Americans remain one of the hardest working people in the world in spite of their prosperity. The cultural aspects have to be borne in mind by any international business operating in the US market. Strategies and policies of the business should not be in conflict with the culture of the country. 

Economic analysis of key indicators

Demographically, the median age of United States is 37.8 years (Blanchard, 2018). This means that half the population of the country is less than 37.8 years while the other half is more than this age. GDP of United States in 2018 was around $20.6 trillion (Blanchard, 2018). This made it the largest economy in the world. Major sectors and industries in the US economy are the services sector, software and information technology sector, high-end manufacturing such as those of aircrafts, oil & gas, automobile manufacturing, entertainment, tourism and housing construction. 

The currency of United States is US dollars. It is the most widely accepted currency globally and in international trade. Interest rate in United States is low, currently at 2.25%. Inflation rate in the country is low and stable, at around 2% (Blanchard, 2018). 

United States has international trade with most of the countries. China is the biggest trading partner of United States, followed by Canada and Mexico (Blanchard, 2018).  Trade barriers have been increased in US under the current government. 

Size of US labor force is around 160 million. Unemployment rate in the country is currently around 4%.


For any international business, the United States is a very attractive market. However in order to be successful in this market, it is important that the environment in this market is understood correctly. Only after adequate understanding of the environment in US, strategies should be made. 

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