Globalization of U.S.A

Introduction

The globalization is a kind of process of interaction and integration which takes place between people, companies and the government worldwide.  Globalization have increased as a result of advances in transportation. With the rise in global interaction, there is a rise of international trade, culture and ideas (Bräutigam & Gallagher ,2014).  The economies of scale are known as the cost advantage that the firms usually obtain as a result of their scale of operation where he cost per unit will be decreasing with the rise in scale. Globalization can also be defined as the ongoing process through which the regional economies, cultures and societies become integrated with the network of trade and communication.

Market factors

The forces of the demand and supply represents the influence of self interested buyers and sellers on price and quantity of the goods.  The market forces are the competitive pressures in a free market which will impact the output and the price levels. The primary market forces are generally the supply and demand. The economy of United States are generally known as the capitalist economy. The United States have the mixed economy (Gwynne & Cristobal, 2014).. The government of the UNITED States have always player an important role in the economic affairs of the nation. The government of America also played an important role in the economy with the financial policies which can influence inflation. The United States of America is known to be have a mixed economy since the privately owned business and the government, both plays an important role.

Cost factors of doing business

One of the challenge that the entrepreneur faces is the management of the cash flows. The prices and the interest rates, consumer confidence along with the effect of the invisible hand.  Many business have found the factoring or the process of selling the accounts (Steger, 2017).  Factoring is also used by the firms which have large volumes of business to business sales on the credit.

Environmental factors

 The United States of America is the second largest democracy in the world.  There are many factors which affects the business. There are both external and internal factors which will affect the business environment of the place. The internal factors are those factors which is present within the premise of an organization. The financial factors includes financial policies and capital structures which affects the financial positions and he capital structures of the business performance (Gwynne & Cristobal, 2014). On the other hand the external factors are those factors which is present outside the firms and are regarded as uncontrollable in nature. The environmental factors of the United States of America which will impact the business will be that it has a diverse geography, wildlife and climate. The diversity will drive a large amount of business in the country. Although The United States OF America faces some of the toughest weather conditions in the world. As the country have already suffered 218 climate disasters which can work against the environment. The businesses usually come under the regulatory environment of the place from where they operate.  The United States of America have also offered a strong legal system.

Competitive advantage factors which benefits the United States

Globalization have introduced the concept of comparative advantage. The comparative advantage can be defined as the ability of the country fir producing the goods more efficiently and also inexpensively. The united states have also benefitted from comparative advantage in labour costs. Although the less developed countries have benefitted a lot from globalization by the comparative advantage. The globalization also means rise in the integration of the world markets. The globalization have also helped the Americans wins the war of the communism. Globalization made the Americans wealthy and also helped them to enjoy the world’s highest standard of living.  This stated with the invention of THE General Agreement on Trade and Tariff (GATT) (Oliveira & Hecht, 2016).

Conclusion

The globalization have highly impacted the American citizens in a great way.  More markets have been opened up in the United States as a result of globalization.  There have been huge rise of the multinational corporations and the influence have also highly increased. With the help of globalization, American corporations can also sell their products outside the country. The cheap prices have helped the Americans to raise their standard of living

Reference list

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Giddens, A. (2018). Globalization. In Sociology of Globalization (pp. 19-26). Routledge.

Gwynne, R. N., & Cristobal, K. A. Y. (2014). Latin America transformed: globalization and modernity. Routledge.

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Oliveira, G., & Hecht, S. (2016). Sacred groves, sacrifice zones and soy production: globalization, intensification and neo-nature in South America.

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Steger, M. B. (2017). Globalization: A very short introduction (Vol. 86). Oxford University Press.