US Economy Forecasts

Bob Urichuck asked:


Maintaining sales motivation in an uncertain economy is tough when we become a product of that environment. As the world is discussing the downturn in the economy more and more, we are also attracting a downturn in our behaviors. We spend less, do less and wait it out. That is the wrong thing to do!

Wake up! Refuse to be part of any negative environment or uncertain economy. It will only bring you down. It will change your beliefs, your attitude, the way you feel, the actions you take and the results you get. You need to maintain your sales motivation and sales results.

You are a professional and have to maintain professionalism in all that you do. That means, to keep doing what you have always done, and when the going gets tough, the tough get going and do more. That is sales motivation.

This is not the time to slow down, or to waste time discussing the economy. It is time to step up and do more! This is the time of opportunity. It is not the economy that will or will not give you the results you are looking for.

It is your attitude towards the economy and the behavior! That you demonstrate on a daily basis. Your attitude and your behavior is your motivation towards sales results.

You attitude stems from your beliefs. What do you believe about today’s economy? How long do you think it will last? How do you think customers will react to your products and services during this downturn? And most importantly, how will you react?

Your answers to these questions above will determine your level of sales professional motivation. If you believe that this is the time of opportunity - opportunity to sell more, as your competition downsizes, opportunity to hire highly skilled labor, as they are being let go, or opportunity to expand as prices fall, you will gain positive results. However, the opposite is also true.

Be aware of your beliefs as they will affect your attitude and behaviors. If you maintain a positive attitude, your actions will be demonstrated in your behaviors and will attract positive results. Sales motivation starts with your beliefs and ends with your reactions to those beliefs

Believe in who you are, and what you do. Believe in your organization, it’s products and services, team members and the market your sell into. Believe there is opportunity out there and you will find it.

Be disciplined, continue to do what you have to do, even when you do not want to do it and you will maintain sales motivation, in certain and uncertain economies.

Simon P Smith asked:


Unless you have been living under a rock for the past few months you will no doubt have noticed the economy and financial markets are failing.

A Forcast Event

Many financial strategist have been discussing this for quite some time. Robert Kiyosaki even wrote a book about it titled “Prophecy”. Written in 2002 it discusses why the biggest stock market crash in history is still coming and how you can prepare yourself and profit from it.

Now it is here we can no longer shrug it off as some silly “doom and gloom” view… .

If it is going to be as bad as the gloom and doom merchants in the media are wanting us to belive most people haven’t felt the pinch yet. Any financial strain you’ve felt so far is just the tip of the iceberg compared to what’s headed our way. And the biggest impact will be on the middle class around Christmas.

Understandably, many people are scared as their financial future is far from being secure. Having said that it is not the time to be stuffing your money into your mattress or hiding under the bed.

You shouldn’t do that, nor should you panic. The regulators around the world are working hard and taking swift action to bring stability to the market. The best thing you can do is ride out the short-term ups and downs with just a few prudent adjustments where necessary until it all shakes out.

The Smart People are Planning Their Future

Don’t get caught in what I call the “herd mentality”. A little rule I have used myself when I find myself in a tight spot is ask myself “What is the herd doing?” And then do the exact opposite. Now is the time to take a common sense approach. Following are a few tips for a failing economy you may find useful:-

What You Shouldn’t Do

* Bail out. Right now everyone is running around dumping stocks or equity mutual funds now. This is silly as the values are especially low and it is simply guaranteeing that you’ll turn paper losses into real ones. Even if there’s more downside to come, staying on course often pays off during times of economic uncertainty. You’ll only realise a loss if you sell. What happens after a recession? A Boom. What happens after the sun sets in the west? It rises in the east.

* Stop saving. Those regular contributions you’ve been making to your savings or retirement accounts are an important part of good financial discipline, and there’s no reason to stop them now. The strategy of dollar-cost averaging your investments-making periodic contributions to your accounts, regardless of where the market is heading is still good advice.

* Speculate. While lower prices for investments create opportunities, betting on the markets can easily get you into trouble, especially with the wild swings we’re seeing now. Small, measured investments are usually better than large, hasty ones intended to make a quick killing. Be especially wary if you get tips from e-mail, the Internet, or elsewhere for certain stocks, commodities, and other “once-in-a-lifetime” opportunities

* Take on new debt. Be careful about acquiring new debt. Economic downturns can affect job stability and investment income, making it difficult to determine how much debt you can handle.If you must borrow, say, to put a child through college or make an emergency repair to your home, be doubly sure that you’ve examined all the options and risks, especially if you’re planning to use the equity in your home

* Stop living. Although these times demand extra caution, there’s such a thing as over-reacting. Whether it’s buying gifts for the holidays or taking your family on vacation, life has to go on. And some cutbacks can have negative consequences for your wallet, such as putting off maintenance for your house or car or canceling insurance policies. So don’t overreact. Instead reflect carefully and, where necessary, adjust.

What You Should Do

* Get your finances in order. There’s never been a better time to make a budget and start paying down your debt, credit card and otherwise

* Rethink your plans to retire. If you’re expecting to retire soon, consider holding off for a while, if possible, until things calm down. That will give you time to reassess and, if need be, modify your plans

* Speak with your financial adviser. With end-of-the-year tax planning an annual ritual, now is a good time to make an appointment with your tax adviser no matter what the economic outlook. He or she may have some advice on how to tweak your finances as you ride out the current storm.

* Consider a Plan B. Instead of being scared, I’m encouraging you to look at starting or ramping up your Plan B. It’s never been more important than it is right now to re-plan how you make your money.

You need to do something different to create a stable financial future for yourself. One of the easiest ways to to this is to have your own home based business.

Now is the time to take action and learn how to build your own home based business… to apply yourself… to work smarter not harder … to find the time to get it done.

So what’s the smartest thing a person can do to build their own home based business, or any small business in this economy-successfully, and without a lot of risk?

Network Marketing has been hailed by many as the ideal home based business. Network Marketing is the best home based business opportunity particularly if you find a mentor in the network marketing business of your choice. This is a great short cut to home based business success as the mentor has already successfully travelled the road you want to travel. Consider this network marketing mentor option.

jumphigherglobal asked:


Germany as an economic hub

Germany is one of the most highly developed industrial nations in the world and, after the USA and Japan has the world’s third largest national economy. With a population of 82.3 million Germany is also the largest and most important market in the European Union (EU). In 2007, Germany’s gross domestic product (GDP) totaled EUR 2.42 trillion, which translates into per-capita GDP of EUR 29,455. With an Export volume of EUR 969 billion or one third of GDP in 2007, Germany is the biggest exporter of goods worldwide, and as such is considered to be the “export world champion”, more of a global player than almost any other country and more strongly linked to the global economy than many other countries.

Most recently, the German economy has seen a robust upturn, growing 2.5 percent in 2007. The increase in corporate investments was especially pronounced at 8.4 percent. The economic growth, stimulated by factors both inside and outside Germany, sparked a reduction in the number of registered unemployed. Economic policy has improved the overall conditions and companies have sharpened their competitive edge. Thus, ancillary wage costs have been reduced, the labor market made more flexible and red tape slashed.

An attractive location for foreign investments

Germany is one of the most attractive countries world-wide for International investors. On an international country comparison, Germany does especially well as regards R&D, skill levels and logistics. Moreover, it enjoys a central geographical position, offers strong infrastructure, legal certainty, and the right workforce. The labor force’s high level of qualifications is seen as an important plus point. Around 80 percent of employees have undergone formal training and only 20 percent hold the degree from a higher education institutes or university. The “dual system” for vocational training provides the bedrock here, combining on-the-job and college training, a policy which results in the well-known high standard of education.

Technology leader in many sectors

Germany is one of the leading nations regarding numerous technologies of the future that have exceptional growth rates. These include bio-technology, nano-technology, IT and the numerous high-tech divisions in individual sectors (aviation and aerospace, electrical engineering, logistics). Companies specializing in environmental technology (wind energy, photovoltaic power and biomass generation) have emerged as front runners. Today, Information and communications technology follows car-making and electronics engineering as the third largest economy’s sector. As per to genetic engineering, Germany is second to the United States worldwide and already has cutting edge in numerous fields of nanotechnology.

The key industrial sectors

The key industrial sectors are car-making, electronics, mechanical engineering and chemicals. As is the case in all western industrial nations, for several years now German industry has been in the midst of structural transformation. Some traditional industries (steel, textiles) have in partly shrunk considerably in recent years, with target markets now elsewhere and strong pressure from lowwage countries, or, as in the case of the pharmaceuticals industry, through M&As have come under foreign ownership.

Successful: Germany in the global economy

Given its high level of exports, Germany is interested in open markets. The most important trading partners are France, the USA and Great Britain. In 2006, goods and services worth EUR 85 billion were exported to France, EUR 78 billion to the USA and EUR 65 billion to Great Britain. In addition to trade with the original European Union member states, since the EU’s expansion eastwards (2004 and 2007) there has been a pronounced increase in trade with the east European EU member states. In total, a good ten percent of all exports go to these countries. The importance of trade and economic relations with emerging nations in Asia such as China and India is growing continually.

Economic system: Performance and social balance

Germany is a Social market economy. This is other strong reason why Germany enjoys a high degree of social harmony, something reflected in the fact that labor disputes are so rare here. On average between 1996 and 2005 the work force went on strike for on just 2.4 days per 1,000 employees and thus less than even Switzerland, which saw 3.1 days of strikes. The social partnership of trade unions and employer associations is enshrined in the institutionalized settlement of conflicts as outlined in the collective labor law. The Basic Law guarantees the social partners independence in negotiating wages, and they accordingly have the right themselves to select the working conditions.

All the latest information about Germany economy is available at German Information Centre. So if you are interested in knowing about Germany economy please visit at German Information Centre.

Murad Ali asked:


The economy is declining but companies like the United Parcel Service are making ends meet and exceeding expectations. They have utilized the growth in the global economy, better supply chain management techniques and customers attempting to reduce costs by sending low priced packages. UPS has become a victor in an arena of losers precisely because it has implemented a winning strategy.

UPS has experienced two major upswings in the past few years. In the third quarter of 2007 they had an increase of net income of $1.08 billion dollars and over a year ago they had a $1.04 billion dollar upswing. This was after their 46 million dollar restructuring program in France to improve their supply chain. Other companies are not having nearly the same upswing or growth which makes UPS unique.

UPS Chief Executive Mike Eskew state with some happiness, “UPS turned in a solid performance in the face of a slower U.S. economy”. This proves that diligent American companies have an opportunity to increase profits and continue to grow despite many of the difficulties that American companies face.

UPS has a number of strategies that it is using to achieve success that many businesses would be wise to pay attention to. These strategies are in the field of global expansion, reduction of cost, flexible labor costs and efficient supply chain management. The concepts make sense and are grounded in very basic principles of understanding what their main objective is (increasing shareholder wealth).

Strategy Concepts:

Global Expansion: UPS has been tapping into world markers much more successfully then many other organizations. They have their own aircraft division that delivers packages; they are spreading out throughout Europe and beginning to move into Asia. They are growing and beating out small competitors. When the global economy is expanding it is important for American businesses to get out there and conquer the market before others.

Reduction of Costs: UPS continually is looking for methods of reducing costs. They track fuel efficiency, labor costs, and other overhead to ensure they are reducing these expenses as much as possible. Every organization should be focusing on both long-term and short-term costs.

Flexible Labor Costs: In the United States labor costs can be a huge factor in whether or not a company is profitable. The automotive industry has been hit hard by unreasonable labor and benefit costs. UPS is utilizing flexible or seasonal labor that is hired for peak periods. 60,000 employees will be added in the United States to help with holiday packages.

Supply Chain Management: In the transportation industry supply chain management is of crucial important. If packages are shipped via long routes, old machinery, inability to track, etc… there is a good chance that costs will raise and profits will decline. When companies investing in their supply chain as UPS did in France they often are able to save millions of dollars while increasing efficiency.

UPS should be set as a standard of how companies can beat the declining economy problems of the U.S. When other companies are laying off workers UPS is putting more people to work. While business is becoming more difficult to conduct in the U.S., companies like UPS are creating more efficiency and are reaping the rewards. Companies have the opportunity to learn from UPS and develop their own growth strategies.

Bob Urichuck asked:


Sales prospecting in down economies is no different than sales prospecting in up economies. It is still a behaviour, a discipline - doing what we have to do, even when we do not want to do it.

The only difference is that you may have to invest more time in sales prospecting in a down economy.

Sales prospecting can be time consuming in itself, but in a down economy, it is even more time consuming as sales prospects seem to be harder to find.

Therefore, more time invested in sales prospecting is required. If you did ten daily sales prospecting calls before, you may now have to do twenty to get the same results.

However, besides investing time, there is a better way to get the same or better results when it comes to sales prospecting. But first, you have to do your homework.

You need to know what our sales prospects should look like - you need to profile them so that you can take a targeted sales prospecting approach and not a shot gun approach.

It is the shot gun approach that is time consuming and does not get you the sales prospecting results you are looking for.

In a targeted sales strategy you need to define the criteria for three customer levels - A, B, and C.

The 80/20 rule states that 80% of your sales results come from 20% of your customers.

That 20% would be considered as your best customers. They are “A” or absolute customers, because they provide you with 80% of your revenues and without them, you would be out of business.

Answer this question: What criteria best describes you’re A customers? Is it profitability, loyalty, margin, volume, brand, relationship, etc.? Note your answers.

Then you need to proceed with the same question for the next level of sales prospecting - “B” beneficial customers. So, what is the sales criteria for your “B” level of customers ? How are they distinguished from A customers? Note your answers.

You can then proceed with what is the sales criteria for your next level of customers - “C” - convenient customers? How are they distinguished from B customers? Note your answers.

You may find that most of your prospecting activities are probably to “C” or convenient customers, as most sales people invest 80% of their sales prospecting time where they get 20% of the revenues.

So, let’s do the opposite and focus our sales prospecting activities on the A customers.

Once your sales criteria is defined for each level of customer, go to your sales data base and using the sales criteria identify your existing customers as A, B or C.

Separate the A customers and create their profile based on the information on hand. You will find that there is something different about them, compared to the B’s and C’s.

What is that difference? Now map that profile over to the market place for sales prospecting. Who are the A sales prospects out there that are not presently doing business with you?

Do the same with the B customers and identified the sales prospects for you B category in the marketplace. Also, look at your existing B customers who have potential to be come A’s.

Sales prospecting can be fun and most rewarding for sales results when you invest the time and plan your sales prospecting approach.

Samuel Martin asked:


Although many immigrants who enter this country are unskilled laborers who provide essential services in many sectors of our economy, of equal importance to the immigration debate are the highly educated foreign professionals whose skills play a vital role in the enrichment of our economy.

The U.S. economy has shifted significantly over the past 50 years. We are no longer the blue collar nation that we once were. The transformation from a manufacturing to a knowledge-based economy has created a growing demand for skilled technical workers. This demand has been accompanied by a decline in the number of native-born students seeking degrees in the fields of science, engineering and technology.

Our prestigious graduate institutions currently train more foreign nationals than U.S. citizens in these fields. To alleviate labor shortages, U.S. businesses must be able to recruit and hire additional foreign-born professionals.

We must retain the educated professionals whom we have trained internally in order to benefit from the unique skills that they possess. By sending the best and the brightest workers back to their respective countries, we only create competition for ourselves, thereby diminishing America’s economic clout.

In order to increase the number of highly skilled professionals in this country, it is necessary to reform the employment-based immigration system and provide a sufficient amount of avenues through which U.S. businesses can legally employ specialized workers. We must increase the number of specialized worker visas awarded.

H-1B visas, or temporary skilled worker visas, are currently capped at only 65,000 annually. Yet, this “cap” is reached in a couple of months, and U.S. businesses are barred from hiring foreign-born professionals for the remainder of the fiscal year.

At the same time, we must increase recruitment and training of U.S. students. H-1B visas accelerate this process; a hefty portion of the processing fees for the H-1B visas are directed to the education and training of U.S. students in science and technology.

It is important that skilled workers are not overlooked in the current debate regarding comprehensive immigration reform. Raising the H-1B visa cap is vital to maintaining our leadership in the world market. By retaining foreign nationals, we may ensure that U.S. businesses have the most highly qualified workers in their fields, helping America maintain its edge in an increasingly competitive global economy.

Deborah Notkin is president of the American Immigration Lawyers Association. - NU

Wendy Maynard asked:


If you’ve been watching the news lately, you may have noticed that the economy is in a bit of a downturn. It’s happened before and it will happen again. During these times, smart businesses adjust their marketing strategies to make sure they will thrive during these slumps. You do not want to allow external circumstances to determine your future. The key is to be strategic, savvy, and streamlined in your campaigns.

For a well-positioned company, an economic recession should not lead to marketing cutbacks. Any time you go into a fearful reactive mode, you are actually moving backwards. Instead, think of this an opportunity for you and it is a great time to get aggressive with your marketing. Marketing is what will make your company recession proof. Since a lot of your competitors will be cutting back, this is your time to really differentiate your business and strengthen your competitive advantage.

Here are tips to help you adjust your marketing in a tough economy:

1. Know what drives your customer in this economy. More than ever, you must understand what drives your target audience and how they are reacting to the current economy. Both consumers and businesses will take more time to make a purchasing decision and they will most likely be a hard negotiator at the point of sale. Buyers are more willing to hold off on making a purchase, and they will rely on the brands that they know well. Therefore, talk to your current customers about their challenges and what they need from you to help them.

2. Keep an eye on your sales. This is a time for careful monitoring and adjusting. Watch your incoming company sales and keep an eye on your project pipeline/future income. If you compare this to past data, you will know what is happening before it actually occurs and you can intensify your marketing efforts to compensate for potential slowdowns. Now more than ever, you want to make sure that you are marketing forward to ensure your pipeline stays full in the coming months.

3. Differentiate yourself and reinforce your brand. When we are in a time when fewer people are buying, competition becomes fierce. Make sure your target audience understands why you are different from your competitors. Let them know why your brand is the best. Treat your best customers with extra TLC because you want them to weather the economic downturn with you. This is a great time to give your VIPs extra value and incentives.

4. Don’t focus on expansion right now; instead focus on what is profitable. Now is not the best time to launch a brand new venture. For example, if you are a chocolate bar company, it’s not a good economy for you to try out a donut line. You don’t want to risk a fall by jumping too far away from your tried-and-true core areas. Instead, take a look at the services and products that are most profitable for your company and vigorously promote these.

5. Focus on relationships and value. Keep marketing your company’s value to your prospects and customers. Because people are spending less, they want the purchases they DO make to be of great value to them. Emphasize reliability, durability, quality, and performance in your promotions. Tell your customers how much you appreciate their business.

6. Ditch awareness-marketing for lead-generating marketing. I am a proponent of building brand awareness through advertising and promotions. But now is not the time for traditional marketing - you can’t afford to waste your dollars on efforts that don’t generate immediate business. Instead, implement marketing that generates quality leads. Be sure to set up tracking systems so you can effectively monitor the results.

Remember, a recession is not the time to get gloomy. Instead it is an opportunity for smart business owners to differentiate their company. In a slowing economy, it is time to maintain or even increase your marketing budget. Stay laser focused on the activities that make your phone ring now and in the coming months.

Dianne Ronnow asked:


Are you looking for a recession proof business? People all over the world are affected by this recession and tough economy. Once solid jobs and businesses are disappearing rapidly. Retirement income and savings are disappearing just as quickly for many as well. Many thousands of people are looking for a way to make more money in a bad economy both at home and online.

Can it be done– absolutely! There is incredible income potential if you know what your are doing.

Is it easy? No. Like anything real, you have to work at it.

Even in a recession, there are always new opportunities that open and ways to thrive financially. Some recession-proof businesses actually grow more during bad economic times or even a depression. One of these businesses is network marketing.

Network marketing (MLM) is one of the best recession-proof businesses you can be in during bad economic times. Network marketing actually thrives when the economy is bad.

When the economy starts to slow down people start looking for ways to make extra income from home. Friends and family that scoffed at your business last year may now come running to you to find out how they can get started.

A network marketing home business doesn�t require a huge amount of capital to start. An ordinary person can get started in their own business with relatively little money invested. Plus you can work your own hours from home.

And network marketing has huge income potential. That is one of the reasons why Robert Kiyosaki (Rich Dad) and Donald Trump recommend MLM as a way for the average �Joe� to build wealth.

It is true that many people do fail at network marketing, and one of the main reasons is that they were never taught how to market their business properly. Many upline leaders are teaching their downline the old out-of-date marketing techniques of the 90�s. Distributors are taught to duplicate outdated marketing techniques such as home business meetings, tables at events, passing out business cards, endless phone calls to long lists of purchased leads, and bugging friends and family for referrals.

The Internet is the future for home business and network marketing. When network marketing trainers and companies don�t teach their distributors how to market effectively and profitably on the Internet, people waste a lot of time, effort and money. Many eventually give up and think that network marketing doesn�t work.

Duplication is the key to success in network marketing, but the old marketing practices just don�t work in today�s online world and have long been bypassed by newer online web marketing techniques and systems. Those that master the Internet are dominating their network marketing companies.

I can show you how to succeed financially in your network marketing company by utilizing the power of modern marketing practices on the web without doing all those out-of-date and tedious old marketing practices.

I have a simple system that will teach you powerful techniques for online marketing. This system can be used for any MLM or network marketing company, and is easily duplicatable.

For more information, click on the link below.

Heidi Grumm asked:


Special Economic Zones (SEZs) are specific geographical regions that have economic laws different from and more liberal than a country’s typical economic laws. The goal is usually an increase in foreign direct investment (FDI) in the country.

There is a clear understanding that a well-implemented and designed SEZ can bring about many desired benefits for a host-country: increases in employment, FDI attraction, general economic growth, foreign exchange earnings, international exposure, and the transfer of new technologies and skills. Hence, many developing countries are also developing the SEZs with the expectation that they will provide the engines of growth for their economies to achieve industrialization. But for this to be successful their governments need to enact legislation, create a focused administrative infrastructure to govern special economic zones, offer highly attractive incentives and locate zones in the best possible locations. Overall investment climate (infrastructure, governance) in a country matters in the success of its special economic zones in terms of competitiveness.

One of the earliest and the most famous Special Economic Zones were founded by the government of the People’s Republic of China under Deng Xiaoping in the early 1980s. The most successful Special Economic Zone in China, Shenzhen, has developed from a small village into a city with a population over 10 million within 20 years. Following the Chinese examples, Special Economic Zones have been established in several other countries.

In the face of fierce regional competition, South Korea is also showing strong economic performance and can boast a highly skilled labor force. It has started working strategically towards attracting investment, including the establishment of its first special economic zone, called The Incheon Special Economic Zone and so look set to transform the country into a regional hub from which foreign companies can expand into other parts of Asia.

The Incheon special economic zone in the north revolves around the international airport, the creation of an international financial services district and Songdo’s “intelligent city”, which will include a 60-storey world trade centre, 60 office buildings, deluxe hotels, shopping malls and a golf course, due to be completed by 2008.

These economic zones are a strategy to make Korea (http://korea.ixs.net/) more attractive in the eyes of foreign investors and to draw them to the country.

The project includes a technology complex to house research centers and venture start-ups alongside the Korean Institute of Technology. Two more complexes, for biotechnology and for knowledge and information will be built by 2008.

These projects, which have high-level political backing, are supported by a package of generous financial incentives. Other incentives include simplified administrative procedures, heavily subsidized land leases on government owned land, tax breaks and linguistic support.

Situated directly between Japan and China, South Korea is at the centre of a vast Asian market with a total population of two billion, including 500 million in the ASEAN (Association of Southeast Asian Nations) countries, with which, along with China and Japan, Korea enjoys a special commitment to economic cooperation. North-east Asia alone accounts for about 24% of the world’s population and 19% of global production.

South Korea’s gateway strategy is designed to leverage its geographic and geocultural advantages while offering a new, friendly business face to potential investors in the form of SEZs in the southern part of the peninsula. Foreigners, foreign companies, and international economic organizations can be involved in free corporate activities in these economic zones offering a range of special advantages, including tax, labor, regulatory and other incentives.

South Korea is a cheaper location than Japan and more straightforward from a regulatory point of view than China, having opened its markets decades ago.

Generally, it is argued that the special economic zone concept is attractive because it is much easier to resolve the problems of infrastructure and governance on a limited geographical area than it is to resolve them countrywide. Such economic zones cannot be insulated from the broader institutional and economic context of the country and be treated as an economy within the economy. Zones are a part of the economy and require overall improvement in the investment climate to ensure success in the long run. They should not, therefore, be viewed as an alternative to the overall development model. This is perhaps the reason why SEZs failed to fulfill the role of engines of industrialization in most countries on a sustainable basis.

For more Information About Special Economic Zone: http://eng.ifez.go.kr/guide/org/special-economic-zone.asp

Murad Ali asked:


The American economy can go either way according to most newspapers and television commentaries. The experts say that we have a 50% chance of going into a recession while some say we have almost no chance. Trying to decipher their confusing messages can be difficult. That leaves most American businesses unsure of what the future holds for them. Are they still going to be able to compete or are they going to suffer a slow and painful decline downwards. The best way to answer that question and determine how to improve the business environment is to look at the American businesses strengths and weaknesses.

Success and failure is all about strengths and weaknesses. When we rationally see the strengths and compare them against the strengths or weaknesses of other countries we can better determine our chances of success. It is almost the same as when you bet on two boxers one of which has endurance and the other one quickness. The one you feel will win depends in part on how you see the situation. If you feel the quickness will take out the opponent in the first few rounds then he is the better bet but if you feel that the two boxers are going the distance then endurance counts.

Looking at the American business world and comparing it to the challengers you can also see better who is going to win in the end. We know that the world is a high-tech place where efficiency and cost matter. The one who produces the cheapest products is likely to win as long as their products have reasonable quality and don’t break down often. With Chinese cheap products and America’s high quality both countries will need to come closer to the middle.

Strengths of American Businesses:

High Technology: Powerful and growing businesses require email, Internet, cell phones, computers, robots and more. The technological advances of the U.S. are difficult to surpass and few countries even come close. American businesses can grow simply because they can manage different international locations as though they were a block away. Few foreign countries can do this. In addition, America also has the ability to develop and implement modern technology like robotic arms and complex systems that increase productivity.

Power Supply: China is attempting to get its hands on as much natural resources and energy as possible. The U.S. is also doing this but is much further in the game. While the U.S. is moving towards alternative energy supply and thinking beyond fossil fuels China is still trying to accumulate basic energy. American businesses have no problem with black outs, rolling power outages or a lack of energy. This is a benefit because their environment becomes predictable.

Strong Law Enforcement: It may seem silly and out of place but a strong law enforcement system helps to keep the business environment fair and equitable. When businesses can be cheated when making partnerships, employees embezzle and politicians bribed there is lots of risks built into the environment. Businesses want to know there is a deterrent and opportunity to regain what is lost through unfair practices. You will find that China as well as most nations outside of Europe or the U.S. has difficulty curbing crime.

Sound Fiscal Policy & Self Adjusting Markets: American policy makers have been generally concerned with how well the economy is doing. The democratic system allows the population to remove senators, presidents and congressmen out of office when they are not producing results. Therefore, a single politician can complete little damage in a single term. When small mistakes happen the markets can adjust themselves by offering something new that makes money. For example, if people demand companies to reduce pollution then these consumers will gravitate towards clean businesses while leaving the rest of the businesses behind.

Weaknesses of the American Business:

Poor Public Education: The American education system is declining and children are falling behind much of the world in terms of science, languages, math, and more. The advancement of these core subjects are important for the improvement of society as the new high-tech world will need scientists and technology workers like never before. However, as we keep allowing skilled workers to immigrate our school systems are falling behind only because there is little direction and lots of politics.

High Labor Costs: Workers are cheaper then they are in other countries. The problem in the U.S. is that companies aren’t getting what they are paying for. The average high school graduate is barely able to grasp the concepts of a manufacturing business let alone work within it while the government raises the minimum wage. A Chinese worker is able to press a button like the American worker but for about 1/10th the cost. Only productivity will make the American worker worth his/her wages.

Taxes: American businesses pay a lot of money in taxes while companies from other countries may pay a lot less. The taxes in American businesses are simply extra overhead that must be pulled from the cost of the product. In a tight economy where people don’t want to pay extra the cheaper products (with less tax burden) will win out. Have you ever wondered what happened to the television and radio producers in the U.S.?

International Policy: America has come to mean, “bully” to many people overseas. To thwart America’s power is a sign of resolve and fashion. As our politicians continue to play favorites with countries that violate international law, demand compliance with American desires and try and finagle other countries its reputation declines. A bad reputation means that both international businesses and whole countries may not only distrust us but prefer to do business with someone else.