Can American Businesses Survive In The Global Economy?

The American economy can go either way accordingplace but a strong law enforcement system helps to
to most newspapers and television commentaries. Thekeep the business environment fair and equitable.
experts say that we have a 50% chance of going intoWhen businesses can be cheated when making
a recession while some say we have almost nopartnerships, employees embezzle and politicians
chance. Trying to decipher their confusing messagesbribed there is lots of risks built into the environment.
can be difficult. That leaves most AmericanBusinesses want to know there is a deterrent and
businesses unsure of what the future holds for them.opportunity to regain what is lost through unfair
Are they still going to be able to compete or are theypractices. You will find that China as well as most
going to suffer a slow and painful decline downwards.nations outside of Europe or the U.S. has difficulty
The best way to answer that question and determinecurbing crime.
how to improve the business environment is to look atSound Fiscal Policy & Self Adjusting Markets:
the American businesses strengths and weaknesses.American policy makers have been generally
Success and failure is all about strengths andconcerned with how well the economy is doing. The
weaknesses. When we rationally see the strengthsdemocratic system allows the population to remove
and compare them against the strengths orsenators, presidents and congressmen out of office
weaknesses of other countries we can betterwhen they are not producing results. Therefore, a
determine our chances of success. It is almost thesingle politician can complete little damage in a single
same as when you bet on two boxers one of whichterm. When small mistakes happen the markets can
has endurance and the other one quickness. The oneadjust themselves by offering something new that
you feel will win depends in part on how you see themakes money. For example, if people demand
situation. If you feel the quickness will take out thecompanies to reduce pollution then these consumers
opponent in the first few rounds then he is the betterwill gravitate towards clean businesses while leaving
bet but if you feel that the two boxers are going thethe rest of the businesses behind.
distance then endurance counts.Weaknesses of the American Business:
Looking at the American business world andPoor Public Education: The American education
comparing it to the challengers you can also seesystem is declining and children are falling behind much
better who is going to win in the end. We know thatof the world in terms of science, languages, math, and
the world is a high-tech place where efficiency andmore. The advancement of these core subjects are
cost matter. The one who produces the cheapestimportant for the improvement of society as the new
products is likely to win as long as their products havehigh-tech world will need scientists and technology
reasonable quality and don't break down often. Withworkers like never before. However, as we keep
Chinese cheap products and America's high qualityallowing skilled workers to immigrate our school
both countries will need to come closer to the middle.systems are falling behind only because there is little
Strengths of American Businesses:direction and lots of politics.
High Technology: Powerful and growing businessesHigh Labor Costs: Workers are cheaper then they are
require email, Internet, cell phones, computers, robotsin other countries. The problem in the U.S. is that
and more. The technological advances of the U.S. arecompanies aren't getting what they are paying for. The
difficult to surpass and few countries even comeaverage high school graduate is barely able to grasp
close. American businesses can grow simply becausethe concepts of a manufacturing business let alone
they can manage different international locations aswork within it while the government raises the minimum
though they were a block away. Few foreign countrieswage. A Chinese worker is able to press a button like
can do this. In addition, America also has the ability tothe American worker but for about 1/10th the cost.
develop and implement modern technology like roboticOnly productivity will make the American worker
arms and complex systems that increase productivity.worth his/her wages.
Power Supply: China is attempting to get its hands onTaxes: American businesses pay a lot of money in
as much natural resources and energy as possible.taxes while companies from other countries may pay
The U.S. is also doing this but is much further in thea lot less. The taxes in American businesses are
game. While the U.S. is moving towards alternativesimply extra overhead that must be pulled from the
energy supply and thinking beyond fossil fuels China iscost of the product. In a tight economy where people
still trying to accumulate basic energy. Americandon't want to pay extra the cheaper products (with
businesses have no problem with black outs, rollingless tax burden) will win out. Have you ever wondered
power outages or a lack of energy. This is a benefitwhat happened to the television and radio producers in
because their environment becomes predictable.the U.S.?
Strong Law Enforcement: It may seem silly and out of