By Carlo Barbieri
The global recession continues to sap the economic strength of many nations.
If you’re an international entrepreneur looking for a stable place to invest your money, there’s no better choice than the United States.
Certainly, the economy in the US, like that of many other countries, continues to sputter along with frustratingly high unemployment and sluggish GDP growth. But the American economy has always bounced back from economic slowdowns with renewed strength.
America’s influence on business culture across the globe is unmistakable. This can be seen more clearly through examination of key concepts and values of the American culture:
Individualism – The concept of individualism in the US plays a significant role in the lives of many Americans. The nation’s culture emphasizes individual initiative and personal achievement. Independence and self-reliance are highly valued, and this also extends to the workplace where business is frequently carried out autonomously. Consequently, one’s position in US society is determined by one’s own achievements as opposed to status or age. This is particularly important during an economic downturn. Some businesses have fallen on hard times while others continue to prosper. In the US, the government often plays an important role, offering initiatives or easing regulations to spur business growth.
Low context culture – Generally speaking, those cultures described as low context tend to communicate meaning and information explicitly through words. Americans are task-centered; thus, the primary purpose of communication is to exchange information, facts and opinions.
In the US, conflict is dealt with directly and openly, and for this reason, Americans will not hesitate to say “no” or criticize others in public. This direct style of speech is often interpreted by foreign visitors as rude and may cause embarrassment to business people who are unaccustomed to such explicit communication. However, it is important to remember that in a business context it bears no relation to personal feelings and should not be taken as such. Multi-billionaire businessman Donald Trump begins his popular “Apprentice” television program with the quote: “It’s not personal, it’s just business.”
Egalitarianism – An important element of American culture is the concept of equality. Despite the many differences within American society, there is a collective understanding of the notion of equality that underlines many social relationships in the US. Americans believe in having equal rights, equal social obligations and equal opportunities based on the concept of individual merit. Consequently, there is a general lack of deference in the US to people of greater wealth, age, higher social status or authority. This is evident in the way in which titles are seldom used in business environments and how Americans call each other by their first names almost immediately.
Egalitarianism also contributes to the system of merit frequently referred to as the “American Dream,” in which hard work is rewarded with success and financial prosperity. This concept has been muddied recently during the presidential campaign. President Obama, in a recent speech, indicated that business people did not succeed on their own, but were aided by another entity or person. “You didn’t build that on your own,” he said to citizens, many of whom have started successful enterprises or retired after selling one off. While Obama has tried to backtrack from that line, it has been picked up and used by presidential hopeful Mitt Romney against his foe. Many business people have also responded with signs at their firms proudly stating, “I built this.” Indeed, the economy of the United States is build on the strength of small businesses. And while the recession may have slowed growth, this, too, shall pass and the United States will return to its pre-eminent position in the world market.
America has a long history of economic stability, one that has endured through two world wars, a war between the North and South, and conflicts in Korea, Vietnam, Afghanistan and Iraq.
It is that history of stability that, even now, draws investors from China and other Asian nations. Brazil has a thriving trade with the US as well.
America also has a culture of taking care of its own. Even while unemployment remains high and people lose medical health coverage, the government steps in with unemployment payments, food stamps and Medicaid. Elders depend on Social Security and Medicare – all government programs.
And while these programs often draw criticism among those in American political office as being too generous or encouraging laziness, at the end of the day, these services prevail. To criticize is the right of every US citizen under the Constitution – a document that grants a level of freedom few other nations have.
American businesses have always found a way to survive the most difficult financial times. Even now, they are finding solutions to their problems as they adapt to a new world order.
Today, the US is considered to have the strongest and most technologically powerful economy. Investments in America are likely to endure and thrive.