Business in the US

Canea Mihai Caius

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United States: A Global Leader

The United States has developed a world leadership position due to:
its use of market-based transactions in the Western world a broad flow of ideas, goods, and services across national borders an encouragement of international communication and transportation

The Smoot-Hawley Act

In the 1930s, the U.S. passed the SmootHawley Act, which raised import duties to reduce the volume of goods coming into the U.S.
The act was passed in the hope that it would restore domestic employment

The result was a worldwide depression and the collapse of the world financial system
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The Current U.S. International Trade Position

Exports and Imports of Goods and Services per Capita for Selected Countries
Country Australia Brazil China Japan Kenya United Kingdom United States
Exports per Capita $4,296 379 222 4,165 91 4,767 3,472 Imports per Capita $4,525 428 199 3,622 125 5,500 4,962
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American Dream
The importance of success
Material success as a measure of personal development

Success is individual
Individualism - Creates a need to perform because people
are evaluated & rewarded on individual performance

Emphasis on initiative Americans can fail to see the situation in a critical light and over-estimate what they are capable of especially since individual performance is the basis of their survival
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Positive Aspects of doing business in the US

Relatively limited government regulationpro business orientation Favorable tax structure Access to venture capitalpro risk Can-do spirit which encourages entrepreneurship Huge consumption-oriented market
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Negative Aspects of doing business in the US

Tremendous pressure Job insecurity Highly competitiveSwim with the Sharks without being eaten alive Short term thinking Hype Wall St. mentalityquick profits, little responsibility, gambling, moral hazard
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Communication Style
Informal
First names and nick names Joking Extrovert behavior (highly respected) Uncomfortable with

Time is money-be brief Conflict and confrontation accepted Exhibit confidence

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Protocol
Dress-formal in business, informal socially Remove your hat when indoors Time-punctual in business, 20 minute rule socially Limited gift giving (Christmas) Achievement based respect, not seniority Not as rigid rules as Asia and perhaps Europe

Salaries and Benefits

Paid vacations-2-3 weeks 50 hour week not uncommon Unpaid overtime for managers Meritocracy, not seniority
Never ask about ones salary

Health insurance-must be negotiated Most benefits must be negotiated--no free lunch

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Average Plant Salary and Wages

(per worker, dollars per hour)
30 25

$ per hour

20 15 10 5 0 All Plants Small Plants Non-Exporters Exporters Large Plants

$12 million is the average for C.E.O.s in Fortune 500

(300 times the average worker)

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Negotiating
Tough negotiators High/Low balling is common Keep your bottom line a secret
Your opponent will be looking for it

Americans may promise more than they can deliver

A result of high expectations

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Successful Entertaining
Americans conduct business over breakfast, lunch and dinner In a business setting the person extending the invitation to a meal pays for it Never begin eating until everyone is served and your hosts have begun When you are invited to an event, it is very important to call or drop a note letting the host know if you will attend If an invitation reads "6:00 p.m. to 8:00 p.m.," leave very close to the ending time stated
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