The world was recently enthralled by the conduct of the Presidential elections in the United States of America, which ushered in President-elect Joe Biden and Vice President-elect Kamala Harris. Keeping tabs on the goings-on in the United States isn’t merely good for conversing on social media; it’s also good for business.
As the world’s largest superpower, the United States is a capitalist society. This, however, cannot be taken to mean that the government adopts a laissez-faire approach to business. Following the old adage, ‘’What’s good for General Motors is good for America’’, the U.S Government aims to provide an enabling environment for capitalism to thrive.
From an economic point of view, the U.S. Government provides three essential services which every business person wishing to do business in America ought to know. These services are listed below:
- THE GOVERNMENT ENSURES FAIR COMPETITION: The U.S Government creates and maintains a level playing field among those who provide goods and services. An example of this occurred in the late 1800s with the passage of the famous Sherman Antitrust Act of 1890 that broke up huge petroleum and railroad monopolies. The Government also considered breaking up IBM in the 1970s and Microsoft in the 1990s, and continues to maintain a close oversight over Facebook in the 2000s. The government also continues to examine proposed large mergers and industry dominance to ensure competition is not stifled. One such ruling was the prevention of AT&T’s proposed 39 billion USD acquisition of T-Mobile, which would ‘’substantially lessen competition’’ in the wireless market
- THE GOVERNMENT PROTECTS PUBLIC INTEREST: To protect the public, the US Government has empowered a number of agencies with regulatory powers. The Environmental Protection Agency (EPC) protects clean water and clean air from negative business externalities. The Federal Trade Commission (FTC) protects consumers from sharp practices. The Small Business Administration (SBA) protects small business by providing access to finance and information.
- THE GOVERNMENT MAINTAINS THE ECONOMY: The government’s Consumer Price Index (CPI) gauges and monitors inflation. The Federal Reserve Bank adjusts interest rates and other factors to stimulate or restrain economic activity. The Treasury Department stabilises the economy through its monetary policies
When doing business in America, you might be surprised at the number of governmental organizations that directly or indirectly affect your business decisions. If you want to learn more about the ins and outs of conducting business in America, watch our free webinar from our partner organization, the International Business Accelerator, based in San Francisco, USA.
Ready for success in the US market? We can help. The tremendous wealth and opportunity come with a complex business landscape with no sign posts for foreigners. Navigate to easy success with the IBA’s online course and 90-day accelerator. Enjoy Silicon Beach office space, startup attorneys, employees/interns, KPMG consulting and more. All backed by a customized market entry strategy and complete soft landing services. Enter the US market…easily.
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