Most Critical Problem Facing U.S. Businesses Today The rapid growth of American economy in the past came as the result of demand boosting up proposition. This used to create a shortage of workforce in America, which was being brought from abroad with the mean of monetary encouragement. The average salaries in U.S., even 30 years ago, were considerably higher than in Germany, for example. Because of process of Globalization, the situation changed drastically. Today, in America the consumers demand is still on the rise, but U.S. dollar rapidly looses its buying power, which used to stimulate production.
Basically, U.S. currency is not backed up by any real assets. However, in foreign countries, the value of American dollar is significantly higher, because American geopolitical power remains unchallenged. This is why more and more American companies move their production lines to the countries of Third World. It its turn, it creates situation when American workforce is becoming increasingly unqualified. This negatively impacts American businesses that still operate on mainland. At the same time, American government introduces more and more laws and regulations that undermine businesses economic efficiency. For example, companies are now required to celebrate diversity, without being explained the economic benefits of such practice. Therefore, many businesses have no option but to relocate.
In its turn, it requires a complete restructuring, on their part. This results in many of such companies loosing their competitive edge, which eventually leads to bankruptcy. Therefore, we can say that the most critical challenge that American business are facing today is economic incompetence of our own government, along with the fact that American workforce is becoming increasingly unqualified. They try to cope with this problem by the mean of relocation of their production lines. So far, this proved to be very effective. However, such practice undermines American economic and geopolitical influence, which will inevitably have a negative effect on everybody.
The Essay on The Impact Of Nafta On American Business Interests
The North American Free Trade Agreement (NFTA) is an import/export agreement between the governments of the United States of America, the United Mexican States and Canada designed to remove most barriers to trade and investment among nation [http://www.fas.usda.gov/itp/policy/nafta/nafte.ht ml, July, 2001]. The agreement was implemented on January 1, 1994 effectively eliminating all non-tariff ...
Bibliography:
Heffner, Thomas Major Economic Problems Facing the United States.
4 Apr. 2006. EconomyInCrisis.org. 21 Mar. 2007. http://www.economyincrisis.org/articles/show/113 Outline: Page 1 The analysis of major factors that undermine the effectiveness of American business today..
