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Country Risk analysis of USA

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Manjeet MN
Manjeet MN

This document provides a country risk analysis report on the United States. It covers the country overview, government structure, political scenario, economy, international trade, investment, payment profile, enforcement of business decisions, culture and society, healthcare system, infrastructure, and reaching consumers. Key highlights include: - The US is a federal republic with a two-party system and three branches of government. The current political landscape remains polarized. - The US has an advanced mixed economy that is ranked highly on global indices. Major industries include technology, finance, and healthcare. Economic growth has been hampered by business difficulties. - International trade is important, with Canada and Mexico as top trade partners. Regional trade blocs include NA

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Globali Businessi Environment Projecti Reporti On CountryCountryCountryCountryiiii RiskRiskRiskRiskiiii AnalysisAnalysisAnalysisAnalysisiiii ofofofofiiii USAUSAUSAUSA i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i Submittedi to: Dr.i Jagdishi Shettigar Dr.i Monikai Jian Submittedi by:i Groupi 1 Abhinavi Irwini Johni 19DM009 Ankitai Jaini 19DM35 Divyankai Bansali 19DM067 Manjeeti 19DM104 Sejali Agarwali 19DM118 Shrutii Guptai 19DM238
TableTableTableTableiiii ofofofofiiii ContentsContentsContentsContents 1 UNITEDI STATES:I COUNTRYI OVERVIEW.............................................................................................................................3 1.1 GLOBAL INDEX RANKINGS..........................................................................................................................................................4 2 UNITEDI STATES:I GOVERNMENTI STRUCTURE....................................................................................................................4 3 UNITEDI STATES:I POLITICALI SCENARIOI ............................................................................................................................5 3.1 CURRENTI POLITICALI CONTEXT ..................................................................................................................................................5 3.1.1 Maini Politicali Parties....................................................................................................................................................6 3.1.2 Typei ofi State.................................................................................................................................................................6 3.1.3 Executivei Power.............................................................................................................................................................6 3.1.4 Legislativei Power...........................................................................................................................................................6 3.1.5 Indicatori ofi Politicali Freedom......................................................................................................................................6 3.2 POLITICALI RISK.......................................................................................................................................................................6 3.3 I UNITEDI STATESI CORRUPTIONI RANK.........................................................................................................................................8 4 UNITEDI STATES:I ECONOMY...............................................................................................................................................8 4.1 ECONOMICI INDICATORSI OFI THEI UNITEDI STATESI :I GROWTH........................................................................................9 4.2 MAINI SECTORSI OFI INDUSTRY...................................................................................................................................................9 4.3 ECONOMICI FORECAST............................................................................................................................................................10 4.3.1 Medium-i andi Long-termi Forecast.............................................................................................................................10 4.4 ECONOMICI RISK:I VERYI LOWI .................................................................................................................................................11 4.5 UNITEDI STATES:I ECONOMICI STATISTICS...................................................................................................................................12 4.5.1 Grossi Domestici Product..............................................................................................................................................12 4.5.2 Economici Indicators.....................................................................................................................................................12 4.5.3 GDPi Compositioni %i Ofi Industry................................................................................................................................12 4.5.4 Labori andi Employment...............................................................................................................................................13 4.5.5 Trade ............................................................................................................................................................................13 4.6 ECONOMICI SNAPSHOT...........................................................................................................................................................14 5 UNITEDI STATES:I INTERNATIONALI TRADEI ......................................................................................................................14 5.1 ECONOMICSI INDICATOR:I TRADEI (IMPORTI &I EXPORT)...............................................................................................................15 5.2 MAJORI IMPORTI &I EXPORTI COUNTRIES ..................................................................................................................................16 5.3 MAJORI IMPORTI &I EXPORTI GOODSI.......................................................................................................................................16 5.4 REGIONALI TRADEI BLOCKS......................................................................................................................................................16 5.4.1 Asia-Pacifici Economici Cooperationi (APEC)................................................................................................................17 5.4.2 Northi Americani Freei Tradei Agreementi (NAFTA).....................................................................................................17 6 UNITEDI STATES:I INVESTMENT.........................................................................................................................................18 6.1 ECONOMICI INDICATORSI OFI THEI UNITEDI STATES:I FDI ..............................................................................................................18 7 UNITEDI STATES:I PAYMENTI &I DEBTI COLLECTIONI PROFILE...........................................................................................20 7.1 AVAILABILITYI OFI FINANCIALI INFORMATION ...............................................................................................................................20 7.2 REGULATORYI ENVIRONMENT...................................................................................................................................................20 7.3 DAYSI SALESI OUTSTANDINGI (DSO).........................................................................................................................................20 7.4 LATEI PAYMENTI INTEREST .......................................................................................................................................................21 7.5 OWNERSHIPI PROTECTION .......................................................................................................................................................21 8 UNITEDI STATES:I ENFORCEMENTI OFI BUSINESSI LEGALI DECISIONS................................................................................21 8.1 ALTERNATIVESI TOI LEGALI ACTION ............................................................................................................................................21 8.2 INSOLVENCYI PROCEEDINGS.....................................................................................................................................................22 8.2.1 Out-Of-Courti Proceedingsi ..........................................................................................................................................22 8.2.2 Restructuringi Proceedings...........................................................................................................................................22 8.2.3 Liquidation....................................................................................................................................................................22
8.3 INSOLVENCYI TREND...............................................................................................................................................................22 9 UNITEDI STATES:I CULTUREI &I SOCIETYI I.........................................................................................................................23 9.1 SOCIALI ISSUES......................................................................................................................................................................23 9.1.1 Employmenti trends .....................................................................................................................................................23 9.1.2 Federali privacyi laws ...................................................................................................................................................23 9.1.3 Equalityi ati workplace.................................................................................................................................................23 9.2 CULTURALI ISSUES..................................................................................................................................................................23 9.2.1 Communicationi ...........................................................................................................................................................24 9.2.2 Interactions ..................................................................................................................................................................24 9.2.3 Etiquettei ini thei workplace.........................................................................................................................................24 9.2.4 Hierarchyi ini thei organization ....................................................................................................................................24 10 UNITEDI STATES:I HEALTHI CAREI SYSTEMI .......................................................................................................................24 10.1 ROLEI OFI GOVERNMENT.........................................................................................................................................................25 10.2 PUBLICLYI FINANCEDI HEALTHI CARE ..........................................................................................................................................26 10.3 PRIVATELYI FINANCEDI HEALTHI CARE ........................................................................................................................................26 10.4 REASONSI BEHINDI HIGHI USI HEALTHI CAREI.............................................................................................................................26 11 UNITEDI STATES:I INFRASTRUCTURE .................................................................................................................................27 12 UNITEDI STATES:I REACHINGI THEI CONSUMER ................................................................................................................28 12.1 POPULATIONI INI FIGURES .......................................................................................................................................................29 12.2 CONSUMERI PROFILE..............................................................................................................................................................29 12.3 PURCHASINGI POWER.............................................................................................................................................................29 12.4 CONSUMERI BEHAVIOUR.........................................................................................................................................................30 12.5 HOUSEI HOLDI CONSUMERI EXPENDITURE..................................................................................................................................30 12.6 CONSUMERI RECOURSEI TOI CREDIT ..........................................................................................................................................31 13 I UNITEDI STATES:I RISKI ASSESSMENTI ONI CURRENTI TRENDS........................................................................................31 13.1 GROWTHI HAMPEREDI BYI BUSINESSI DIFFICULTIES........................................................................................................................31 13.2 EVER-PRESENTI DEFICITSI INI PUBLICI ANDI EXTERNALI ACCOUNTS ....................................................................................................32 13.3 UNCERTAINTYI OVERI THEI PRESIDENTIALI ELECTIONI INI AI POLARISEDI LANDSCAPE .............................................................................32 14 UNITEDI STATES:I STRENGTHSI &I WEAKNESS...................................................................................................................33 14.1 STRENGTHS ..........................................................................................................................................................................33 14.2 WEAKNESS...........................................................................................................................................................................33 15 REFERENCES......................................................................................................................................................................34
1 Unitedi States:i Countryi Overview Thei Unitedi Statesi isi ai countryi locatedi ini Northi Americai borderingi thei Atlantici Oceani andi Pacifici Ocean.i Neighbouringi countriesi arei Canadai andi Mexico.i Thei geographyi ofi thei Unitedi Statesi isi variedi withi mountainsi ini thei west,i ai broadi centrali plain,i andi lowi mountaini ini thei east.i Thei governmenti systemi isi ai constitution-basedi federali republici withi ai strongi democratici tradition;i thei chiefi ofi statei andi headi ofi governmenti isi thei president.i Thei Unitedi Statesi hasi ani advancedi mixedi economyi ini whichi therei isi ai varietyi ofi privatei freedom,i combinedi withi centralizedi economici planningi andi governmenti regulation.i Thei USAi bordersi Canadai ini thei north;i itsi southerni 3,155i kmi longi borderi toi Mexicoi isi partlyi furnishedi withi ai greati walli (ori fence).i Thei Unitedi Statesi alsoi sharesi maritimei bordersi withi thei Bahamas,i Cuba,i andi Russia. Withi ani areai ofi 9,833,516i km²,i thei USAi isi thei third-largesti countryi ini thei world.i Thei countryi isi morei thani twicei thei sizei ofi thei Europeani Unioni ori abouti slightlyi morei thani halfi thei sizei ofi Russia. Thei Unitedi Statesi hasi ai populationi ofi 326i millioni people,i (ini 2019),i thei capitali cityi isi Washingtoni D.C.,i thei largesti USi cityi isi Newi York.i Spokeni languagesi arei Englishi 80%,i andi Spanishi 13%.
1.1 Global Index Rankings 2 Unitedi States:i Governmenti Structure Chiefi ofi State:i Presidenti Donaldi J.i Trump Headi ofi Government:i Presidenti Donaldi J.i Trump Governmenti Name:i Unitedi Statesi ofi America Governmenti Type:i Federali Republic Constitution:i Foundedi ini 1787,i isi thei supremei lawi ofi thei Unitedi Statesi thati addressesi separationi ofi powersi intoi threei branches,i explainsi federalism,i relationshipsi betweeni statesi asi welli asi ai billi ofi rights. Powersi noti grantedi toi thei federali governmenti arei reservedi fori statesi andi thei people,i whichi arei dividedi betweeni statei andi locali governments. Mosti Americansi havei morei dailyi contacti withi theiri statei andi locali governmentsi thani withi thei federali government.i Policei departments,i libraries,i andi schoolsi —i noti toi
mentioni driver’si licensesi andi parkingi ticketsi —i usuallyi falli underi thei oversighti ofi statei andi locali governments.i Eachi statei hasi itsi owni writteni constitution,i andi thesei documentsi arei ofteni fari morei elaboratei thani theiri federali counterpart Underi thei Tenthi Amendmenti toi thei U.S.i Constitution,i alli powersi noti grantedi toi thei federali governmenti arei reservedi fori thei statesi andi thei people.i Alli statei governmentsi arei modelledi afteri thei federali governmenti andi consisti ofi threei branches:i executive,i legislative,i andi judicial. 3 Unitedi States:i Politicali scenarioi 3.1 Currenti Politicali Context Thei Americani domestici politicsi remainsi highlyi polarised.i Followingi thei 2018i mid-termi elections,i thei Democratsi havei becomei thei majorityi ini thei Housei ofi Representativesi (235i seatsi outi ofi 435)i andi thei newi Democratici majorityi electedi Nancyi Pelosii asi Presidenti ofi thei Chamberi (ori Speaker).i Alli committeei chairmanshipsi alsoi falli toi electedi Democrats.i Thei Republicansi havei neverthelessi strengthenedi theiri controli ofi thei Senatei wherei theyi stilli havei majorityi (53i seatsi outi ofi 100),i andi thei Republicani Mitchi McConnelli retainsi thei presidencyi ofi thei Senate. Thei Democratsi havei initiatedi ani impeachmenti procedurei againsti Presidenti Trumpi oni chargesi ofi abusei ofi poweri andi obstructioni ofi Congress.i Ini Decemberi 2019,i thei Housei ofi Representativesi votedi ini favouri ofi thei impeachmenti ofi Donaldi Trump,i whoi thusi becamei thei thirdi presidenti ini thei historyi ofi thei Unitedi Statesi toi undergoi thisi vote.i Thei impeachmenti hasi neverthelessi veryi littlei chancei ofi success,i sincei iti requiresi ai two-thirdsi votei ini thei Senate,i wherei thei Republicansi retaini ai majority.i Thei outcomei ofi thei Democratici primariesi remainsi highlyi unpredictablei andi thei campaigni precedingi thei Novemberi 2020i Presidentiali electioni promisesi toi bei tumultuous. Tradei tensionsi withi Chinai arei expectedi toi continue,i withi mosti importi tariffsi beingi maintainedi (19%i oni averagei ini Januaryi 2020i versusi 3%i ati thei beginningi ofi 2018,i accordingi toi Coface).i Ini thei diplomatici andi foreigni policyi area,i tensionsi withi Irani escalatedi againi ini earlyi 2020. Maini Powers Electioni Process Electioni Cycle Executive Ledi byi thei president,i ensuresi thei executioni ofi thei USi laws. Electedi byi ani electorali college. 4i years Judicial Systemi ofi thei courts,i interpretsi andi appliesi laws. Appointedi byi executivei branch. Lifei appointment Legislative Poweri toi pass,i amendi andi repeali laws,i abilityi toi raisei ori loweri taxes,i createi budgetsi andi otheri moneyi bills. Senatei 100i membersi arei electedi byi pluralityi vote,i andi Housei ofi Representativesi 435i membersi arei electedi byi pluralityi vote. Senate:i 6i years;i Housei ofi Representatives:i 2i years
3.1.1 Maini Politicali Parties Twoi politicali partiesi dominatei politics: -i Thei Democratici Party:i sociallyi progressive,i favoursi governmenti interventioni toi temperi thei marketi economy -i Thei Republicani Partyi (alsoi knowni asi thei Grandi Oldi Party,i GOP):i sociallyi conservative,i supportsi free- marketi capitalismi andi emphasisesi nationali defence Therei arei otheri partiesi suchi asi thei Reformi Party,i thei Libertariani Party,i thei Greeni Party,i thei Constitutioni Party,i thei Communisti Partyi USA,i thei Proi Lifei Partyi andi thei Puertoi Ricani Independencei Party. 3.1.2 Typei ofi State Thei Unitedi Statesi arei ai federali republic,i basedi oni representativei democracy,i withi threei equallyi powerfuli branchesi ofi Government;i comprisedi ofi 50i largelyi self-governingi andi semi-sovereigni states 3.1.3 Executivei Power Thei Presidenti isi thei Chiefi ofi State,i Commander-in-Chiefi ofi thei Armedi Forcesi andi thei Headi ofi Government.i Thei Presidenti isi electedi byi ani electorali collegei (whoi arei electedi directlyi fromi eachi state)i toi servei ai four-yeari term.i Thesei powersi arei checkedi byi thei U.S.i Congress.i Thei Cabineti isi appointedi byi thei Presidenti andi subjecti toi approvali byi thei Senate. 3.1.4 Legislativei Power Thei legislaturei isi bicamerali ini thei Unitedi States.i Thei Congressi consistsi ofi Senatei (thei upperi house)i andi thei Housei ofi Representativesi (loweri house).i Thei Senatei hasi thei poweri toi confirmi ori rejecti presidentiali appointmentsi andi toi ratifyi treaties.i Iti isi composedi ofi 100i senators.i Thei Housei ofi Representativesi hasi thei solei righti toi initiatei revenuei bills,i althoughi theyi mayi bei amendedi ori rejectedi byi thei Senate.i Iti isi composedi ofi 435i members.i Thei Presidenti hasi thei poweri toi vetoi thei legislationi passedi byi thei Congress,i buti thei Congressi cani overridei thei vetoi withi ai two-thirdsi vote. 3.1.5 Indicatori ofi Politicali Freedom i i i i i Ranking:i Free i i i Politicali Freedom:2/7 i Civili Liberties:1/7 3.2 Politicali Risk Ini thei Novemberi 2018i elections,i thei Democratsi tooki ai majorityi ini thei Housei ofi Representatives,i whilei Republicansi heldi theiri Senatei majority.i Policyi gridlocki isi likely,i withi majori legislationi passagei likelyi toi bei difficult.i Thei presidenti isi likelyi toi relyi oni executivei authorityi toi pursuei hisi agenda. Presidentiali electionsi arei scheduledi fori 2020,i andi thei Democratici fieldi fori thei presidentiali nomineei isi crowded.i Thei 2020i electioni isi likelyi toi focusi oni thei keyi issuesi ofi thei economy,i healthcare,i andi trade.
Presidenti Trumpi hasi reversedi variousi policiesi passedi underi thei Obamai administrationi andi holdsi ani “Americai First”i principlei wheni iti comesi toi foreigni policy.i Risingi tradei protectionismi mayi bringi uncertaintyi overi existingi legislationi andi tradei agreements. Thei USi legali systemi isi clear,i businessi friendly,i andi broadlyi transparent.i Thei judiciaryi isi regardedi asi independent,i andi thei bureaucracyi isi generallyi efficient. Domestically,i demonstrationsi arei relativelyi common,i buti theyi arei generallyi peaceful.i Terroristi attacksi inspiredi byi right-wingi extremisti ideologies,i thei Islamici State,i ori Al-i Qaedai posei securityi threats
3.3 i Unitedi Statesi Corruptioni rank Thei Corruptioni Perceptionsi Indexi ranksi countriesi andi territoriesi basedi oni howi corrupti theiri publici sectori isi perceivedi toi be Thei Unitedi Statesi isi thei 23i leasti corrupti nationi outi ofi 180i countries,i accordingi toi thei 2019i Corruptioni Perceptionsi Indexi reportedi byi Transparencyi International. 4 Unitedi States:i Economy Thei Unitedi Statesi isi thei world'si largesti economy,i aheadi ofi China.i Thei economyi grewi 2.4%i ini 2019i -i againsti 2.9i ini 2018i -i andi isi expectedi toi slowi :i 2.1%i andi 1.7%i ini 2020i andi 2021,i accordingi toi thei IMF.i Cofacei calculatedi 2.5%i GDPi growthi ini 2019,i closei toi IMFi forecasts,i andi alsoi expectsi ai slowdowni whilei highlightingi Presidenti Donaldi Trump'si taxi reformsi (whichi cuti thei corporatei taxi ratei fromi 35%i toi 21%).i Thei countryi facesi increasingi inequalitiesi andi outdatedi infrastructures,i whichi ini consequencei slowi downi itsi potentiali GDPi growth.i Thei US-Chinai tradei wari alsoi seemsi toi affecti investors,i and,i thei economyi asi ai whole.i Presidenti Trumpi implementedi tradei protectionismi viai tariffsi oni Chinesei importsi andi despitei thei announcementi ofi ai partiali tradei agreementi ini Decemberi 2019,i tensionsi withi Chinai arei expectedi toi continue,i withi mosti tariffsi beingi maintainedi accordingi toi Cofacei (19%i oni averagei ini Januaryi 2020i versusi 3%i ati thei beginningi ofi 2018). Thei IMFi forecastsi thei publici debti toi increasei toi 106.2%i ini 2019.i Thisi trendi shouldi continuei ini 2020i andi 2021.i Publici deficiti reachedi -6.3%i ini 2019i andi shouldi stabilisei ini thei followingi years.i Thei Presidenti Trump’si taxi reformsi havei affectedi thei deficiti sincei 2018,i causingi ani upwardi trendi fori thei debt.i Economistsi expecti thei governmenti toi continuei thei spendingi increase.i Phillipi Swagel,i Congressionali Budgeti Officei director,i expectsi thei deficiti toi reachi historici levels,i whichi willi approachi thei figuresi “noti seeni sincei WWII”.i Accordingi toi thei IMF,i thei inflationi ratei decreasedi toi 1.8%i ini 2019,i approachingi thei 2%i targeti fixedi byi thei Fed.i Inflationi ratei shouldi goi upi againi ini 2020i andi 2021,i abovei 2%.i Withi inflationi pickingi upi abovei target,i thei Fedi couldi resumei monetaryi tighteningi policies.i Accordingi toi thei USi Bureaui ofi Labori Statistics,i Consumeri Pricei Indexi (CPI)i increasedi 0.2%i ini Decemberi 2019,i withi higheri pricesi ini energy,i andi ai sloweri increasei ini food. Thei unemploymenti ratei decreasedi fromi 3.9%i toi 3.7%i ini 2019;i thei IMFi expectsi thisi slowi decreasingi trendi toi continuei ini 2020i andi 2021i (3.5%).i Nevertheless,i ifi onei takesi intoi accounti discouragedi workersi thati havei lefti thei labouri marketi andi thosei whoi havei takeni part-timei jobs,i thei reali unemploymenti ratei jumpsi toi 8.1%i (asi ofi Januaryi 2019;i Bureaui ofi Labori Statistics).i Thei numberi ofi peoplei withouti healthi insurancei stronglyi decreasedi fromi 2010i toi 2016,i buti isi raisingi againi withi taxi cuts.i Currenti publici healthi policiesi tendi toi worseni incomei inequalities.
4.1 ECONOMICi INDICATORSi OFi THEi UNITEDi STATESi :i GROWTH 4.2 Maini Sectorsi ofi Industry Thei Unitedi Statesi isi ai highlyi industrialisedi countryi withi highi levelsi ofi productivityi andi usei ofi moderni technologies.i Keyi sectorsi includei agriculturei (corn,i soy,i beef,i andi cotton);i manufacturingi ofi machinery,i chemicali products,i food,i andi automobiles;i andi ai boomingi tertiaryi marketi focusedi oni finance,i insurance,i reali estate,i rentals,i andi leases.i Thei Americani agriculturali sectori isi withouti doubt,i onei ofi thei world'si Incomei Level (byi peri capitai GNI)i Highi Income Leveli ofi Developmenti Developed Economici Trivia Importedi oili accountsi fori nearlyi 55%i ofi USi consumption. Tradei Topi 3i Tradei Partnersi (2018):i China,i Canada,i andi Mexico Topi 3i Exportedi Goodsi (2018):i Industriali Machinery,i Oili &i Minerali Fuels,i andi Electricali Machinery Topi Industriesi Petroleum;i Steel;i Motori Vehicles;i Aerospace;i Telecommunications;i Chemicals;i Electronics;i Foodi Processing;i Consumeri Goods
largest,i withi Californiai alonei producingi morei thani one-thirdi ofi thei country'si vegetablesi andi two-thirdsi ofi itsi fruitsi andi nuts.i Nevertheless,i agriculturei onlyi accountsi fori 0.9%i ofi GDPi andi employsi 1.4%i ofi thei workforce,i ai slighti decreasei fromi 2018i (Worldi Bank).i Ini 2019,i thei valuei addedi producedi byi thei agriculturali sectori reducedi byi 5.5%. Includingi ai broadi rangei ofi activities,i thei industriali sectori contributesi overi 18.2%i ofi GDPi andi employsi 19.2%i ofi thei workforce.i Besidesi thei industriesi mentionedi above,i thei countryi isi alsoi thei worldi leaderi ini thei aerospacei andi pharmaceuticali industries.i Thanksi toi itsi abundanti naturali resources,i thei Unitedi Statesi hasi becomei ai leaderi ini thei productioni ofi ai numberi ofi mineralsi andi hasi beeni ablei toi maintaini diversifiedi production.i Thei countryi isi thei world'si largesti produceri ofi liquidi naturali gas,i aluminium,i electricityi andi nucleari energy.i Iti isi thei world'si thirdi largesti oili produceri and,i fori ai numberi ofi years,i hasi alsoi beeni developingi shalei gasi extractioni oni ai largei scale;i USi shalei oili outputi hasi alsoi reachedi recordi levelsi ini recenti yearsi (Reuters).i Thei manufacturingi sectori hadi beeni underi pressurei fori muchi ofi thei secondi halfi ofi 2019,i asi U.S.i andi Chinesei tariffsi slowedi tradei betweeni thei twoi economiesi andi aroundi thei world.i However,i thei sectori grewi byi 1.8%i ini 2019. Thei Americani economyi isi essentiallyi basedi oni services.i Thei tertiaryi sectori accountsi fori morei thani three- fourthsi ofi GDPi (77%)i andi employsi overi 79.40%i ofi thei country'si workforce.i Ai bigi portioni ofi GDPi isi composedi ofi finance,i insurance,i reali estate,i rental,i andi leasingi sectori (18.2%)i andi thei educationali services,i healthcare,i andi sociali assistancei sectori (8.2%).i Thei governmentali sectori (ati federal,i statei andi locali level)i accountsi fori aroundi 11%i ofi thei country’si GDP.i Thei remainingi 5.7%i ofi thei workforcei isi classifiedi asi “noi agriculturei self-employed”i (USi Bureaui ofi Labouri Statistics). i 4.3 Economici Forecast USi economici growthi isi slowingi toi trend,i roughlyi 2%i (fourthi quarteri overi fourthi quarter).i Asi underlyingi demandi growthi ebbs,i loweri ratesi arei neededi toi supporti eveni thisi pace.i Thei Federali Reserve’si signalingi ofi ai pausei helpedi thei recoveryi ini equitiesi andi loweredi termi yields. Investori concernsi overi risingi risksi ofi ai downturni afteri 2019,i stokedi byi developmentsi abroad,i resultedi ini sharplyi worseningi financiali conditionsi ini latei 2018,i despitei prospectsi fori solidi trend-likei USi growthi ini 2019.i Helpedi byi ai morei dovish-soundingi Fed,i ai recoveryi ini financiali conditionsi isi nowi supportingi GDPi growthi neari trend. 4.3.1 Medium-i andi Long-termi Forecast IHSi Markiti forecastsi 2.0%i GDPi growthi ini 2019,i followedi byi 2.1%i growthi ini 2020i (fourthi quarteri overi fourthi quarter).i Thereafter,i ai periodi ofi below-trendi growthi isi assumed,i balancingi thei risksi betweeni continuedi trend-likei growthi andi ai recession. Thei Fedi isi nowi expectedi toi implementi onei morei federali fundsi ratei hikei andi windi downi itsi balance-sheeti run-off,i bringingi thei topi ofi thei fundsi rangei toi 2.75%,i neari thei longer-runi nominali neutrali rate. • Thei unemploymenti ratei isi forecasti toi declinei toi 3.5%i byi thei secondi halfi ofi 2019i andi corei personali consumptioni expenditurei inflationi toi risei toi 2.2%i byi fourthi quarteri 2019. Wei viewi thei recenti dropi ini broadi equityi marketsi asi onlyi partlyi relatedi toi fundamentalsi andi looki fori ani
18.5%i gaini ini thei S&Pi 500i thisi yeari (end-2019i overi end-2018). 4.4 Economici Risk:i VeryiLowi Thei USi economyi continuesi itsi historici expansioni run,i withi continuedi lowi unemploymenti thati averagedi 3.9%i ini 2018.i Thei strongi jobi marketi andi lowi inflationi hasi helped fueli consumeri spending,i whichi accountsi fori approximatelyi two-thirdsi ofi USi GDP.i Thei labori marketi isi seeingi strongeri growthi amongi thei well-educated. Lowi gasi pricesi andi governmenti sociali benefitsi (taxi cuts)i increasedi discretionaryi spending,i whichi shouldi helpi stimulatei thei economyi throughouti 2019. Thei tradei wari bringsi uncertainty.i Tariffsi werei increasedi fromi 10%i toi 25%i oni USDi 200i billioni ofi Chinesei goods,i andi Chinai hasi imposedi retaliatoryi tariffs.i Thei costi ofi thei tradei wari hasi thei potentiali toi increasei inflation.i Thei USDi hasi appreciatedi againsti itsi majori tradingi partners,i buti hasi beeni relativelyi stablei throughi tradei tensions.
Ini 2018,i thei USi economyi expandedi 2.9%,i dominatedi byi growthi ini consumeri spending.i Growthi ini 2019i isi expectedi ati 2.3%,i driveni byi continuedi domestici demand.i Risksi toi thei forecasti includei sloweri globali growth,i continuedi tradei tensions,i andi continuedi declinei ini consumeri confidence Mediumi termi growthi isi expectedi toi rangei betweeni 1.5%i andi 2.5%. 4.5 Unitedi States:i Economici Statistics 4.5.1 Grossi Domestici Product 4.5.2 Economici Indicators 4.5.3 GDPi Compositioni %i Ofi Industry
4.5.4 Labori andi Employment 4.5.5 Trade Howi toi interpreti thei graph:i Thei purposei ofi thisi graphi isi toi takei ai snapshoti ofi ai country’si economyi ini comparisoni toi otheri economies.i Fori example,i Unitedi States’si Exportsi ranki isi higheri thani 99.46%i ofi thei countriesi ini thei dataset.i Fori Exports,i FDIi andi GDPi measures,i ai higheri ranki (closeri toi 100%)i indicatesi ai strongeri economy.i Conversely,i fori Unemploymenti andi Inflation,i ai loweri ranki (closeri toi 0%)i indicatesi ai strongeri economy.
4.6 Economici Snapshot Note:i Percentilei ranksi arei calculatedi usingi thei latesti availablei datai fori alli countriesi withini thei lasti 5i years. 5 Unitedi States:i Internationali Tradei Ini general,i thei Unitedi Statesi hasi reducedi itsi tradei barriersi andi coordinatedi withi othersi ini thei globali economici system.i Thei U.S.i isi thei world'si largesti importeri andi secondi largesti exporteri ofi goods,i asi welli asi thei largesti importeri andi exporteri ofi commerciali services.i Nevertheless,i tradei representsi onlyi 27.5%i ofi thei country’si GDPi ini 2018i (Worldi Bank).i Thei Presidenti Trump’si protectionisti policiesi ledi toi tradei tensionsi withi differenti partners,i andi especiallyi withi China.i U.S.i topi exportsi ini 2018i werei refinedi petroleumi oilsi followedi byi cars,i automotivei partsi andi accessories,i electronici integratedi circuits,i mobilei phones,i financiali servicesi andi transportation.i Maini U.S.i importsi ini 2018i includedi cars,i crudei oils,i phonei systemi devices,i computers,i automobilei parts,i transportationi andi otheri businessi services. Maini tradei partnersi ofi thei Unitedi Statesi includei Canada,i Mexico,i China,i Japan,i thei Unitedi Kingdomi andi Germany.i Historically,i thei U.S.i hasi takeni thei viewi thati tradei promotesi economici growth,i sociali stability,i democracyi andi betteri internationali relations.i However,i Presidenti Donaldi Trumpi hasi calledi thesei principlesi intoi question,i declaringi ini earlyi 2018i thati thei U.S.i wouldi imposei steepi tariffsi oni steeli andi aluminumi imports;i escalatingi tensionsi withi Chinai andi otheri tradingi partners;i andi leadingi toi risingi pricesi oni importsi fori Americani consumersi andi companies.i Ani agreementi toi replacei NAFTAi withi thei USMCAi wasi alsoi reachedi withi Canadai andi Mexico,i buti hasi noti beeni approvedi byi Congressi yet.
Thei U.S.i tradei balancei isi structurallyi negativei andi thei tradei deficiti hasi furtheri widenedi ini recenti years.i Unitedi Statesi registeredi ai USDi 887.3i billioni tradei deficiti ini 2018i (USDi 627.7i billioni wheni includingi services)i withi importsi growthi ati ai fastesti pacei (4.4%)i thani exportsi (3%).i Thei Presidenti isi expectedi toi signi ai first-stagei tradei agreementi withi Chinai ini Januaryi 2020,i buti willi leavei manyi tariffsi ini placei toi limiti thei supplyi ofi Chinesei productsi toi thei Americani market.i Ini 2019,i thei tradei deficiti improved,i especiallyi withi Chinai (-15%i fori thei tradei deficiti withi China).i Accordingi toi WTOi data,i ini 2018,i thei USi importedi 2,612i billioni USDi worthi ofi goodsi whereasi itsi exportsi reachedi nearlyi 1,666i billioni USD.i Withi regardsi toi services,i thei countryi importedi thei totali valuei ofi 536,23i billioni USDi ofi services,i whilei itsi servicesi exportsi amountedi toi 808,22i billioni USDi fori thei samei year. 5.1 Economicsi Indicator:i Tradei (Importi &i Export)
5.2 Majori Importi &i Exporti Countries 5.3 Majori Importi &i Exporti Goodsi 5.4 Regionali Tradei Blocks Unitedi Statesi isi ai memberi ofi thei Asia-Pacifici Economici Cooperationi (APEC)i andi thei Northi Americani Freei Tradei Agreementi (NAFTA)
5.4.1 Asia-Pacifici Economici Cooperationi (APEC) Theii Asia-Pacificii Economicii Cooperation,ii orii APEC,ii isii theii premierii forumii forii facilitatingii economicii growth,ii cooperation,ii trade,ii andii investmentii inii theii Asia-Pacificii region.ii Itii wasii establishedii inii 1989ii inii responseii toii theii growingii interdependenceii ofii Asia-Pacificii economiesii andii theii adventii ofii regionalii economicii blocs.ii Foundingii membersii includeii Australia,ii Brunei,ii Canada,ii Indonesia,ii Japan,ii Southii Korea,ii Malaysia,ii Newii Zealand,ii Philippines,ii Singapore,ii Thailand,ii andii theii Unitedii States.ii APECii worksii towardsii aii higherii standardii ofii livingii andii higherii educationii levelsii throughii sustainableii economicii growth 5.4.2 Northi Americani Freei Tradei Agreementi (NAFTA) Oni Januaryi 1,i 1994,i thei Northi Americani Freei Tradei Agreementi (NAFTA)i betweeni thei Unitedi States,i Canada,i andi Mexicoi enteredi forcei toi createi ai trilaterali tradingi bloci ini Northi America.i Thei agreementi supersededi thei originali Canada-Unitedi Statesi Freei Tradei Agreementi betweeni thei U.S.i andi Canada.i NAFTAi seeksi toi liberalizei restrictionsi oni tradei amongi thei threei countries.i Sincei itsi entryi intoi force,i NAFTAi hasi eliminatedi mosti tariffi andi non-tariffi barriersi fori tradei andi investmenti betweeni itsi threei memberi countries.i NAFTAi aimsi toi promotei thei conditionsi ofi freei competitioni ini orderi toi increasei marketi accessi andi investmenti opportunitiesi withini thei freei tradei area. Memberi Countries Canada Mexico Unitedi States Memberi Countries Australia Brunei Canada Chile China Hongi Kong Indonesia Japan Malaysia Mexico Newi Zealand Papuai Newi Guinea Peru Philippines Russia Singapore Southi Korea Taiwan Thailand Unitedi States Vietnam
6 Unitedi States:i Investment Accordingi toi thei UNCTADi Worldi Investmenti Reporti 2019,i FDIi inflowsi ini 2018i amountedi toi USDi 251.8i billion,i downi 9%i fromi 2017.i Thei declinei isi mainlyi duei toi thei falli ofi onei thirdi ini cross-borderi M&Ai sales.i Thei USi FDIi stocki ini 2018i decreasedi byi 4%i comparedi toi thei previousi year,i reachingi USDi 7,464i billion.i Thei countryi remainedi thei topi destinationi fori FDIi ini 2017i duei toi itsi largei consumeri base,i ai predictablei andi transparenti justicei system,i ai productivei workforce,i ai highlyi developedi infrastructurei andi ai businessi environmenti thati fostersi innovation.i Ini 2018,i thei Unitedi Statesi confirmedi itsi positioni asi thei largesti investori ini thei worldi withi FDIi outflowsi reachingi USDi 342i billion,i 22%i higheri thani ini 2016.i Thei maini investori countriesi ini 2016i ini thei Unitedi Statesi werei thei Unitedi Kingdom,i Japan,i Luxembourg,i Canada,i thei Netherlandsi andi Switzerland.i Mosti ofi thesei investmentsi arei ini manufacturing,i financiali andi insurancei activities,i tradei andi maintenance,i andi informationi andi communication.i Accordingi toi ai UNCTADi surveyi ofi multinationali enterprisesi (MNEs),i thei Unitedi Statesi isi consideredi thei firsti potentiali hosti economyi ini termsi ofi FDIi fori 2017-2019,i aheadi ofi Chinai andi India.i Increasedi investmenti ini thei manufacturingi sector,i morei specificallyi chemicali manufacturing,i accountedi fori thei majorityi ofi investmenti gains.i Greenfieldi investmenti spendingi byi foreigni entitiesi totaledi USDi 7.7i billioni ini 2016,i includingi newi businessi start-upi expensesi (USDi 5.6i billion)i andi Existingi Enterprisei Expansioni Expendituresi (USDi 2.1i billion). Accordingi toi thei Worldi Bank'si Doingi Businessi 2020i report,i thei Unitedi Statesi ranksi 6thi outi ofi 190i countriesi fori thei qualityi ofi itsi businessi climate,i gainingi twoi spotsi comparedi toi 2019.i Thei countryi remainsi thei world'si leadingi economici power,i thei largesti internationali financiali centre,i andi thei thirdi largesti countryi ini thei worldi ini termsi ofi population.i Thei Unitedi Statesi isi onei ofi thei countriesi withi thei besti regulatoryi performancei ini payingi taxes.i Ini 2019,i theyi madei payingi taxesi lessi costlyi (decreasei ini thei corporatei incomei taxi rate)i ini Newi Yorki Cityi andi Losi Angeles.i Startingi ai businessi isi nowi easieri (onlinei filingi ofi thei statementi ofi informationi fori limitedi liabilityi companies)i andi enforcingi contractsi tooi (electronici filingi andi electronici paymenti ofi courti fees).i Ini orderi toi havei ai betteri rank,i thei USi cani improvei hisi abilityi toi geti electricity,i registeri propertyi andi tradei acrossi border. 6.1 Economici Indicatorsi ofi thei Unitedi States:i FDI Thei Unitedi Statesi remainsi thei largesti singlei recipienti ofi FDIi ini thei world.i However,i asi thei globali economyi hasi developed,i thei Unitedi Statesi musti activelyi competei toi retaini andi attracti newi investment
7 Unitedi States:i Paymenti &i Debti Collectioni Profile Thei paymenti culturei ofi domestici companiesi isi becomingi increasinglyi uncertaini and,i ini thei absencei ofi ai harmonizedi frameworki oni latei payments,i paymenti termsi remaini ai merei contractuali issue Thei courti systemi isi complicatedi byi ai county,i statei andi federali structurei ini whichi protectioni mechanismsi arei noti recognizedi andi wherei noi simplifiedi proceedingsi arei availablei toi settlei thei simplesti files.i Asi ai result,i significanti delaysi andi costsi musti bei expectedi whilei enforcementi mayi bei difficult. Wheni thei debtori becomesi insolvent,i collectingi debti becomesi ai complexi task.i Thei bankruptcyi systemi remainsi proi debtori andi makingi ai companyi insolventi isi noti ai significanti wayi toi obtaini payment.i Ini practice,i bankruptcyi reorganizationi isi resource-drainingi andi rarelyi resultsi ini generali unsecuredi creditorsi receivingi anyi dividend. 7.1 Availabilityi ofi financiali information Obtainingi financiali informationi oni privatei companiesi isi ratheri ai difficulti andi costlyi exercisei ini thei US.i Iti isi possiblei toi purchasei financiali informationi fromi specializedi providers,i buti iti isi alsoi recommendedi toi obtaini ai detailedi crediti application,i andi ifi possible,i ai personali guaranteei wheni grantingi crediti ini thei Unitedi States.i Information,i therefore,i isi thei lifebloodi ofi thei Euleri Hermesi crediti insurancei businessi andi ouri riski departmenti hasi variousi toolsi availablei toi allocatei eachi companyi ai gradei reflectingi itsi financiali healthi andi howi iti conductsi business.i Gradesi representi ai corei ofi ouri knowledgei andi analyses,i andi helpi clientsi identifyi andi avoidi risk.i Datai isi continuouslyi monitoredi toi offeri thei mosti up-to-datei informationi toi supporti managementi decisions. 7.2 Regulatoryi environment Thei Unitedi Statesi hasi ai federali structurei consistingi ofi fiftyi statesi andi onei federali districti (Washington,i D.C.),i eachi characterizedi byi specifici rulesi andi specifici courts.i Disputesi arei normallyi settledi ati thei statei leveli throughi Statei andi Countyi Courtsi ofi generali jurisdiction,i buti federali Districti andi Regionali Courtsi wouldi havei exclusivei jurisdictioni overi subjecti mattersi fallingi underi thei scopei ofi applicationi ofi federali lawi (internationali trade,i federali claims)i ori wheni thei disputei involvesi partiesi locatedi ini differenti statesi andi ai balancei ofi overi USDi 50,000 7.3 Daysi Salesi Outstandingi (DSO) Paymentsi ini thei USi normallyi takei placei withini 28i daysi oni average,i buti delaysi ofi fivei toi teni daysi tendi toi
bei increasinglyi imposedi byi largei companies.i Ini somei instances,i suchi asi fori substantiali salesi ori speciali customers,i termsi cani extendi upi toi 90i ori eveni 120i days.i Somei businessesi havei beguni toi takei ai morei relaxedi approachi toi invoices.i Iti isi nowi noti uncommoni toi heari ofi businessesi thati regularlyi extendi termsi withouti furtheri discussioni withi theiri suppliers,i andi thisi isi undoubtedlyi ai worryingi trend.i Businessesi arei lessi inclinedi toi thei concepti thati invoicesi arei ‘duei now,’i noti appreciatingi thati 30-i dayi termsi ori indeedi anyi periodi ofi crediti isi ai privilegei ratheri thani ai right.i Perhapsi unsurprisingly,i iti isi thei largeri companiesi thati arei muchi morei likelyi toi takei advantagei ofi theiri suppliers’i goodi naturei andi theiri dependencei oni largeri customersi fori trade 7.4 Latei paymenti interest Paymenti termsi arei noti regulatedi byi lawi andi mayi bei freelyi agreedi uponi asi parti ofi ai contractuali relationship.i Latei paymenti interesti mayi bei chargedi toi thei debtor.i Interesti mayi bei chargedi upi toi thei legali ratei ofi interesti allowedi byi thei statei ini whichi thei debtori resides.i Ifi noi suchi agreementi isi available,i thei creditori cani chargei thei legali ratei ofi interesti allowedi byi lawi ini thati state. 7.5 Ownershipi protection Retentioni ofi Titlei isi veryi uncommoni ini thei US,i soi iti wouldi noti standi upi ini court,i sincei securedi lenders’i rightsi takei priorityi overi thei goods.i UCCi financingi statements,i beingi ai legali formi filedi byi ai creditori ini orderi toi givei noticei ofi itsi interesti ini thei personali propertyi ofi thei debtori toi otheri creditors,i arei consideredi asi ai betteri alternativei thoughi iti isi alsoi rarelyi usedi asi debtorsi cani normallyi choosei anotheri supplieri thati doesi noti havei suchi requirement. 8 Unitedi states:i Enforcementi ofi Businessi Legali Decisions Domestici judgmentsi ini thei Unitedi Statesi givei thei creditorsi additionali rights,i suchi asi thei seizurei andi sellingi ofi thei debtor’si assetsi ori thei garnishmenti ofi theiri banki account.i Asi ai federali state,i decisionsi renderedi ini onei ofi thei country’si statesi mayi bei executedi ini anotheri state’si court,i providedi thati thei enforcingi courti considersi thati iti isi competenti toi enforcei anyi judgement. Fori foreigni awards,i eachi statei hasi itsi owni legislation.i Nevertheless,i theyi musti bei firsti recognisedi asi domestici judgments.i Ifi ai reciprocali recognitioni treatyi exists,i thei requirementi isi fulfilled.i However,i ini thei absencei ofi one,i exequaturi proceedingsi aimi ati ensuringi enforcementi ini domestici court,i afteri verifyingi thei judgmenti meetsi certaini criteriai providedi byi thei statei law. 8.1 Alternativesi toi legali action Alternativei Disputei Resolutioni methodsi (ADR)i Giveni thei lengthyi andi costlyi naturei ofi legali actionsi ini thei US,i Alternativei Disputei Resolutioni methodsi (suchi asi arbitrationi ori mediation)i arei veryi common.i First,i thei lawi (underi thei Alternativei Disputei Resolutioni Act,i 28i U.S.C.i §i 651i eti seq.)i imposesi ani obligationi oni federali courtsi toi providei meansi toi settlei disputesi throughi ADR.i Secondi andi asi previouslyi mentioned,i mosti casesi ini thei USi endi throughi ai negotiatedi compromisei andi ADRi thusi constitutesi ai relevanti channeli fori doingi so.i Finally,i thei courtsi increasinglyi tendi toi orderi thei partiesi toi engagei ini ai pre-triali negotiationi processesi priori toi commencingi proceedings.i Somei jurisdictionsi alsoi consideri thisi phasei asi ai pre-legali requirementi which,i ifi noti fulfilled,i wouldi bari accessi toi court.
8.2 Insolvencyi Proceedings 8.2.1 Out-Of-Courti Proceedingsi Differenti statei lawsi cani proposei out-ofi courti proceedingsi ini orderi toi avoidi anyi formali judiciali proceedings,i suchi asi thei Assignmenti fori thei benefiti ofi creditorsi ini thei statei ofi California,i wherei ai companyi turnsi overi alli ofi itsi assetsi toi ani independenti thirdi party,i whoi liquidatesi andi distributesi themi toi alli creditorsi ini ani equitablei fashion. 8.2.2 Restructuringi Proceedings Chapteri 11iofi thei Americani Bankruptcyi Codei providesi ai distressedi entityi withi thei opportunityi toi preservei itsi businessi asi ai goingi concerni whilei implementingi ani operationi ofi financiali restructuring.i Thei debtori cani seeki toi adjusti itsi debti byi reductioni thei amounti owedi ori extendingi repaymenti terms.i Thei debtori entityi andi itsi managementi continuei toi operatei thei businessi asi thei debtor-in-possession.i Thei Bankruptcyi Courti supervisesi thei proceedings. 8.2.3 Liquidation Accordingi toi Chapteri 7i ofi thei Americani Bankruptcyi Code,i thei purposei ofi thesei proceedingsi isi toi implementi ani orderlyi liquidationi ofi thei distressedi entity.i Thei court-supervisedi processi involvesi ai trusteei sellingi assetsi andi distributingi thei proceedsi toi creditorsi ini accordancei withi thei statutoryi prioritiesi providedi ini thei Bankruptcyi Codei asi welli asi pursuingi availablei causesi ofi action.i Thei USi Trusteei appointsi ani independenti interimi trusteei toi administeri thei case.i Thei interimi trusteei holdsi ai meetingi ofi creditorsi afteri thei petitioni isi filed.i Hei isi responsiblei fori liquidatingi thei estate’si assetsi andi distributingi thei proceedsi toi thei creditors.i Thei courti supervisesi thei proceedings.i Statei lawi cani alsoi providei differenti mechanismi fori liquidationi ofi ai debtor’si assetsi suchi asi receivership. 8.3 Insolvencyi Trend
9 Unitedi States:i Culturei &i Societyi i 9.1 Sociali Issues 9.1.1 Employmenti trends i Asi peri thei Harvardi businessi reviewi wheni iti comesi toi locationi andi schedulei 80%i ofi thei employeesi desirei morei flexibilityi ati worki andi lessi thani 25%i arei satisfied.i Onei controversyi wasi therei whichi wasi surroundingi Kavanaughi hearingi whichi isi thei sourcei ofi politicali andi workplacei conflicts.i Fori instance,i therei wasi casei wherei ai memorandumi wasi releasedi byi Sundari Pichaii CEOi ofi Googlei toi warni employeesi noti toi leti theiri “personali problemsi ori politicsi affecti theiri work”.i Thus,i iti alsoi hasi ai hugei impacti oni thei businessi environmenti andi crossi borderi businessi wheni iti comesi toi tradingi asi thei credibilityi andi reliabilityi decreases.i Thisi politicali conflicti wheni combinedi withi technologyi createi ai booni ini thei formi ofi “hashtagi activism”.i 9.1.2 Federali privacyi laws Ini Junei 2019,i sweepingi privacyi legislationi wasi presentedi ini Californiai whichi impactedi businessesi ofi morei thani $25i millioni ori thosei whoi collecti andi disseminatei informationi toi morei thani 50i thousandi people.i Asi thei residentsi ofi thei nationi hasi thei righti toi seei thei informationi andi withi whomi iti isi shared.i Ini 2019,i legislatorsi consideredi similari legislationi wheni CEOi ofi Applei Timi Cooki aski governmenti toi passi ai comprehensivei privacyi lawi ini thei casti ofi EU’si generali datai protectioni regulation.i Timi ini onei ofi hisi interviewsi saidi thati datai hadi becomei ai weaponi ini moderni worldi withi efficiencyi ofi military.i Manyi Techi companiesi abidei byi EUi finesi ati 4%i ofi revenue.i Alli thei companiesi whetheri iti isi nationali ori internationali ori MNCi willi bei welli advisedi toi checki theiri privacyi andi datai policies. 9.1.3 Equalityi ati workplace Wheni #MeTooi movementi wasi launchedi morei thani 100i womeni electedi toi congress.i Californiai passedi senatei billi 826i i.e.i thei firsti movei toi geti representationi fromi femalei oni boardsi ofi directorsi ini publici companiesi andi thisi issuei wasi soi populari thati iti hadi ai directi impacti oni businessesi buti therei isi noi standardi fori privatei companies. Ini 2019i U.S.i companiesi focusedi oni genderi equalityi andi tryi toi discardi everyi chancei toi geti intoi anyi discriminationi acti andi injusticei toi anyi gender.i Companiesi startedi focusingi oni genderi equalityi policiesi andi electedi morei femalei directors. Otheri sociali issuesi likei sociali mediai trendsi (Facebook,i twitter,i Instagrami etc.),i artificiali intelligencei ini customeri service,i nostalgiai (peoplei seeki normalcy),i marijuanai consumptioni amongi U.S.i youngsters,i traveli trendsi andi foodi &i nutrition.i Thesei alli factorsi havei impacti oni businessi environment. 9.2 Culturali Issues Therei arei hugei cross-culturali challengesi whichi arisesi wheneveri tradei happensi betweeni countries.i U.S.A.i hasi ai low-contexti culturesi wheneveri negativei feedbacki isi called,i theyi tendi toi bei indirect.i Buildingi trusti isi anotheri challengei fori businesses.i Ini unitedi states,i peoplei tendi noti toi havei drinksi withi potentiali businessi partnersi andi tryi toi avoidi asi muchi asi possiblei asi theyi tryi toi avoidi embarrassingi situations.
Therei arei otheri factorsi alsoi whichi affecti thei trusti buildingi likei thei comforti ofi silence.i Ini U.S.i comforti ofi silencei isi lowi asi theyi arei ablei toi speaki duringi businessi meetingsi andi feeli comfortablei ifi thei conversationi stopsi fori 0.5i mins.i 9.2.1 Communicationi Asi Englishi isi thei commoni languagei usedi ini businessi worldi soi U.S.i businessi environmenti isi goodi fori anyi otheri countryi whoi isi tradingi withi them.i Effectivei communicationi isi veryi importanti toi businessi success.i Iti isi importanti toi learni thei languagei ofi thei targeti marketi andi thei tradingi partiesi asi toi properlyi conveyi message.i Aparti fromi verbali communicationi nonverbali communicationi isi veryi importanti ini businessi nowi ai daysi wheni dealingi withi internationali businesses. 9.2.2 Interactions Everyi countryi hasi ai gesturei toi greeti wheni theyi havei businessi meetingi andi conferencesi andi thisi playsi ani importanti rolei whilei signingi ai deal.i Sometimesi peoplei needi toi bei extrai observanti ofi bodyi languagei andi iti isi betteri toi aski thei otheri partyi thani commiti ai sociali blunder. 9.2.3 Etiquettei ini thei workplace Thei workersi ofi MNCi arei likelyi toi encounteri manyi differencesi whichi makesi iti compulsoryi fori employeesi toi learni businessi etiquette.i Asi Americansi usei firsti names,i eveni wheni dealingi withi newi people.i Punctualityi isi somethingi whichi isi relative.i Wheni dealingi withi businessi Partners,i clientsi ori colleaguesi fromi U.S.i theyi expecti theiri partnersi toi bei oni time. i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i Thei businessi hierarchyi ini U.S.Ai includesi followingi designations: 9.2.4 Hierarchyi ini thei organization Iti isi createdi toi achievei goalsi andi supporti stakeholders.i Ini U.S.A,i therei isi cleari mentioningi ofi designations,i positionsi andi dutiesi ini thei organization.i Thei businessi culturei givesi enoughi freedomi toi thei workersi toi reachi theiri goali ini spitei ofi rigidi dutiesi andi regulations. 10Unitedi States:i Healthi Carei Systemi Thei U.S.i healthi carei systemi isi uniquei amongi advancedi industrializedi countries.i Thei U.S.i doesi noti havei ai uniformi healthi system,i hasi noi universali healthi carei coverage,i andi onlyi recentlyi enactedi legislationi mandatingi healthcarei coveragei fori almosti everyone.
10.1 Rolei ofi Government Thei Affordablei Carei Acti (ACA),i enactedi ini 2010,i establishedi “sharedi responsibility”i betweeni thei government,i employers,i andi individualsi fori ensuringi thati alli Americansi havei accessi toi affordablei andi good-qualityi healthi insurance.i i However,i healthi coveragei remainsi fragmented,i withi numerousi privatei andi publici sources,i asi welli asi widei gapsi ini insuredi ratesi acrossi thei U.S.i population.i Thei Centersi fori Medicarei andi Medicaidi Servicesi (CMS)i administersi Medicare,i ai federali programi fori adultsi 65i andi olderi andi somei peoplei withi disabilities,i andi worksi ini partnershipi withi statei governmentsi toi administeri bothi Medicaidi andi thei Children’si Healthi Insurancei Programi (CHIP),i ai conglomerationi ofi federal–statei programsi fori certaini low-incomei populations. Privatei insurancei isi regulatedi mostlyi ati thei statei level.i Ini 2014,i statei andi federallyi administeredi healthi insurancei marketplacesi werei establishedi toi providei additionali accessi toi privatei insurancei coverage,i withi income-basedi premiumi subsidiesi fori low-i andi middle-incomei people.i Ini addition,i statesi werei giveni thei optioni ofi participatingi ini ai federallyi subsidizedi expansioni ofi Medicaidi eligibility.
10.2 Publiclyi Financedi healthi care Ini 2014,i publici spendingi accountedi fori abouti 49i percenti ofi totali healthi carei spending.12 i Medicarei isi financedi throughi ai combinationi ofi payrolli taxes,i premiums,i andi federali generali revenues.i Medicaidi isi tax-fundedi andi administeredi byi thei states,i whichi operatei thei programi withini broadi federali guidelines.i Statesi receivei matchingi fundsi fromi thei federali governmenti fori Medicaidi ati ratesi thati varyi basedi oni theiri per-capitai income—ini fiscali yeari 2016,i federali matchingi rangedi fromi 50i percenti toi 74i percenti ofi states’i Medicaidi expenditures.13 i Thei expansioni ofi Medicaidi underi thei ACAi isi currentlyi fullyi fundedi byi thei federali governmenti throughi 2017,i afteri whichi thei government’si fundingi sharei willi bei phasedi downi toi 90i percenti byi 2020i (subjecti toi changei underi thei newi administrationi andi Congress).i Federali premiumi subsidiesi oni thei exchangesi arei offeredi ini thei formi ofi taxi credits. 10.3 Privatelyi financedi Healthi care Ini 2014,i privatei healthi insurancei spendingi accountedi fori abouti 39i percenti ofi totali healthi carei spending.14 i Privatei insurers,i whichi cani bei for-profiti ori nonprofit,i arei answerablei toi statei insurancei commissionersi andi subjecti toi varyingi statei (andi federal)i regulations.i Privatei healthi insurancei cani bei purchasedi byi individualsi buti isi usuallyi fundedi byi voluntary,i tax-exempti premiums,i thei costi ofi whichi isi sharedi byi employersi andi workersi oni ani employer-specifici basis,i sometimesi varyingi byi typei ofi employee.i Thei employeri taxi exemptioni isi thei government’si third-largesti healthi carei expenditurei (afteri Medicarei andi Medicaid),i reducingi taxi revenuesi byi USD260i billioni peri year.15 Somei individualsi arei coveredi byi bothi publici andi privatei healthi insurance.i Fori example,i manyi Medicarei beneficiariesi purchasei privatei supplementali Medigapi policiesi toi coveri additionali servicesi andi cost- sharing.i Privatei insurers,i ini general,i payi providersi ati ratesi higheri thani thosei paidi byi publici programs,i particularlyi Medicaid.i Thisi disparityi leadsi toi widei variationsi ini provideri paymenti ratesi andi revenues,i whichi dependi toi ai largei extenti oni payeri mixi andi marketi power. Medicare’si paymenti ratesi arei typicallyi determinedi accordingi toi ai feei schedule,i withi variousi adjustmentsi basedi oni costi ofi livingi andi otheri locali andi provideri characteristics.i Medicaidi ratesi varyi byi state.i Privatei healthi insurersi typicallyi negotiatei paymenti ratesi withi providers 10.4 Reasonsi Behindi Highi USi Healthi Carei Ini 2016,i thei U.S.i spenti nearlyi twicei asi muchi oni healthi carei asi otheri high-incomei countries,i yeti hadi pooreri populationi healthi outcomes. • Thei maini driversi ofi higheri healthi carei spendingi ini thei U.S.i arei generallyi highi pricesi —i fori salariesi ofi physiciansi andi nurses,i pharmaceuticals,i medicali devices,i andi administration. • Contraryi toi commonlyi heldi beliefs,i highi utilizationi ofi healthi carei servicesi andi lowi spendingi oni sociali servicesi doi noti appeari toi playi ai significanti rolei ini higheri U.S.i healthi carei costs. • Ini addition,i despitei poori populationi healthi outcomes,i qualityi ofi healthi carei deliveredi oncei peoplei arei sicki isi highi ini thei U.S.
11Unitedi States:i Infrastructure Thei $21i trillioni U.S.i economyi dependsi oni itsi vasti networki ofi infrastructurei fromi roadsi toi interneti provision.i Asi thei systemi wasi buildi yearsi ago,i andi accordingi toi economisti delaysi andi risingi maintenancei costsi arei holdingi economici performancei back.i Engineersi arei alsoi warningi andi havei safetyi concernsi thati manyi bridgesi arei structurallyi deficienti andi antiquatedi drinkingi wateri andi wastewateri systemsi posei risksi toi publici health.i Meanwhile,i otheri competingi countriesi whichi arei developedi havei morei efficienti andi reliablei servicesi andi theiri investmenti isi oni ani averagei doublei ofi America. Thei presidenti ofi US,i Donaldi J.i Trumpi hasi promisedi andi isi workingi andi focusingi oni thei infrastructurei developmenti andi increasedi publici spendingi asi iti wasi necessaryi toi meeti thei growingi needsi andi ensurei thei developmenti whichi willi directlyi affecti thei economy. Asi afteri thei Worldi Wari II,i robusti investmenti ini infrastructurei seti thei foundationi fori thei nation’si growth.i Iti isi clearlyi estimatedi thati poori infrastructurei willi definitelyi imposei largei costsi oni U.S.i economy.i Andi anyi catastrophici failuresi likei bridgei collapsesi ori dami breaches,i inadequatelyi maintainedi roads,i trains,i andi waterwaysi costi billionsi ofi dollarsi ini losti economici productivity. Accordingi toi Henryi Petroski,i ani engineeri andi historian,i thei traffici congestioni causei delayi andi costi thei economyi aroundi $120i billioni peri year.i Anotheri chokei pointi isi airporti asi internationali tourismi supportsi 1.2i millioni U.S.i jobsi andi bringsi ini hundredsi ofi billionsi ofi dollarsi ofi taxi revenuei buti duei toi thei poori statei ofi nation’si airportsi therei arei delaysi andi avoidedi tripsi whichi costi thei economyi overi $35i billioni peri year.i Accordingi toi manyi analystsi andi economistsi investingi ini newi infrastructurei andi currenti maintenancei willi affecti thei economyi positivelyi ini manyi ways.i Asi becausei ofi thisi efficiencyi willi increasei andi reliabilityi andi loweri transportationi costsi thesei alli willi boosti longi termi U.S.i competitivenessi andi acti asi ani economyi shocksi insulator.i Thisi isi directlyi increasingi thei demandi andi employment,i asi somei 14i millioni workersi (11%i ofi totali U.S.i labori force),i arei currentlyi employedi byi thisi sectori asi peri thei Brookingsi Institution. Sincei 1980s,i Thei Americani Societyi ofi Civili Engineersi (ASCE)i compilei “reporti cards”i oni thei statei ofi nation’si infrastructure.i Ini 2017i report,i U.S.i goti “D”i whichi meansi “mostlyi belowi standard”,i givingi ai signali fori “significanti deterioration”i whichi willi leadi toi highi riski ofi failure.i Byi 2025,i Thei estimatedi infrastructurei gapi isi $1.5i trillion.
Ini thei developedi world,i U.S.i generallyi lagsi behindi itsi peers.i Asi peri thei worldi economici forum’si globali competitivenessi report,i ini 2016i U.S.i wasi rankedi 10th i ini thei worldi fori thei infrastructurei qualityi asi iti camei downi fromi 5th i positioni whichi wasi ini 2002.i Andi iti isi placedi behindi byi France,i Germany,i Japani andi Spain.i Poori infrastructurei directlyi affecti thei businessi andi thisi alsoi increasei averagei commutingi houri asi iti becamei 48i minutesi peri dayi whichi isi veryi highi thati ofi itsi peersi duei toi congestioni andi poori publici transiti asi ini U.K.i itsi 38i minsi andi ini Italyi 32mins.i Wheni iti comesi toi interneti U.S.i isi againi laggingi behindi asi byi Worldi Economici Forumi iti goti 19th i ranki ini broadbandi coverage.i Therei isi ai hugei differencei ini thei fundingi levelsi ofi U.S.i andi itsi peersi likei oni averagei Europeani countriesi spendi approx.i 5%i ofi GDPi oni buildingi andi maintainingi infrastructurei whereasi U.S.i spendi 2.4%.i somei ofi thei developedi nationsi likei Australia,i Canada,i France,i U.K.i havei alsoi developedi Nationali Infrastructurei Frameworksi whichi allowi centrali governmenti toi directi andi prioritizei projectsi whichi U.S.i failedi toi doi duei toi decentralizedi system. U.S.i differsi fromi otheri industrializedi countriesi oni thei basisi ofi howi theyi spendi theiri locali andi statei fundingi oni itsi infrastructurei development. Ini comparisoni toi Europeani countriesi whichi fundsi bulki ofi theiri infrastructurei developmenti ati nationali level,i aroundi 25%i whichi veryi lessi asi comparisoni toi othersi U.S.i publici infrastructurei fundingi comesi fromi thei federali government.i Thei federali governmenti helpsi ini somei indirecti waysi whichi includei financingi mechanismsi ori taxi incentives.i Manyi projectsi havei startedi asi thei electricityi andi poweri sectori accounti fori thei largesti sharei ofi thei projecti pipelinei valuei US$4222.9i billioni followedi byi raili projects;i airporti andi otheri infrastructurei projects,i roadi projectsi whichi makei upi fori US$110.9i billioni andi wateri andi seweragei projectsi valuei ati US$86.8i billion. Thei publici sectori isi expectedi toi contributei 48.3%i ofi thei totali valuei ofi infrastructurei projectsi ini thei pipeline,i whilei 31.6%i arei expectedi toi bei financedi byi thei privatei sectori (thei majorityi ofi whichi arei electricityi andi poweri projects).i Thei remainingi 20%i willi bei financedi byi ai mixi ofi publici andi privatei sources. Ini feb,2018,i Trumpi Administrationi releasedi itsi infrastructurei initiativei toi modernizei thei country'si infrastructure.i Taxi ratesi reductioni andi deregulationi arei expectedi toi boosti overalli investmenti overi thei nexti 5i years,i majorlyi ini thei telecommunications,i energyi andi airi transportationi sectors.i 12Unitedi States:i Reachingi thei Consumer
12.1 Populationi ini Figures Ethnici Origins:i Accordingi toi thei U.S.i Censusi Bureau,i thei majorityi ofi Americansi havei Europeani ori Middlei Easterni ethnici origins,i representingi overi 77%i ofi thei population.i Overi 17%i ofi thei populationi hasi Hispanici ori Latinoi ethnici origins,i 13%i ofi thei populationi isi Africani Americani andi abouti 5%i isi ofi Asiani ethnici origin.i Nativei Americansi andi Alaskani Nativesi constitutei abouti 1%i ofi thei populationi andi Nativei Hawaiiansi ori otheri Pacifici Islandersi arei abouti 0.2%i ofi thei population. 12.2 Consumeri Profile Thei averagei agei havingi beeni morei ori lessi constanti sincei 2010i despitei ai slighti upwardi trend.i Iti reachedi 38.2i yearsi ini 2018.i Morei thani 31%i ofi thei populationi isi underi 24i yearsi oldi andi 29%i isi overi 55i yearsi old.i Thei populationi growthi ratei isi 0.8%.i Thei averagei sizei ofi ai householdi isi 2.53i yearsi peoplei withi 28%i ofi householdsi livingi alone,i 34.5%i ofi peoplei livingi ini twoi andi 15.2%i ofi householdsi ofi 3i people.i Therei arei abouti 97i meni fori everyi 100i women.i Abouti 82%i ofi thei populationi livesi ini urbani areas.i Thei mosti populatedi areasi arei ini thei easterni halfi ofi thei Unitedi Statesi (Greati Lakes,i Northeast,i Easti andi Southeast)i andi ini thei westerni states.i Thei leasti populatedi populationsi arei mountaini areas,i desertsi andi boreali forestsi ini thei extremei north.i Thei maini citiesi arei Newi York-Newark,i Losi Angeles-Longi Beach-Santai Ana,i Chicago,i Houston,i Miami,i Washingtoni DC.i i Thei leveli ofi educationi isi highi withi 90%i ofi adultsi agedi 25i toi 64i havingi completedi secondaryi education,i andi 28%i continuingi ini higheri education.i Thei maini occupationsi arei administrativei andi tradei jobs,i followedi byi health,i management,i business,i finance,i transportationi andi construction 12.3 Purchasingi Power Thei GDPi peri capitai PPPi ini thei Unitedi Statesi isi 59i 531i USDi peri year.i Thei averagei salaryi isi upi andi hasi reachedi 38i 390i dollars.i Purchasingi poweri ini 2018i hasi increased,i thanksi toi thei increasei ini promotionsi andi thei usei ofi credit.i Adjustedi disposablei incomei peri capitai is $i 44,049.i Consumptioni rosei ini 2018i andi grewi byi 1.26%i ini thei thirdi quarteri ofi 2018.i Thei Ginii indexi oni incomei inequalityi hasi stabilisedi sincei 2016.i Ini 2017,i meni earnedi ani averagei ofi $i 44,408i ai yeari andi womeni earnedi 31,610.i Wagesi ini thei easti ofi thei countryi arei higheri whilei thei southi hasi thei lowesti wages.i Asian-borni householdsi havei thei highesti mediani wage,i aheadi ofi thei non-Hispanici whitei population,i thei Hispanici populationi andi thei Afro-Americani population.
12.4 Consumeri Behaviour Thei Unitedi Statesi isi ai veryi developedi consumeri society.i Whilei thei populationi hasi ai fairlyi highi leveli ofi confidencei ini thei future,i thei financiali crisisi hasi pushedi consumersi toi movei towardsi lower-pricedi products.i Youngi peoplei arei morei likelyi toi payi attentioni toi promotionsi andi comparei prices.i Thei mosti populari supermarketsi arei Walmarti andi Sam'si Clubi (morei thani ai fifthi ofi marketi share),i followedi byi Kroger,i Albertsons,i Costcoi etc.i Americansi arei generallyi willingi toi traveli toi majori shoppingi centres.i Ini ani averagei yeari ani Americani spendsi 7203i dollars,i withi 85%i ofi Americansi visitingi thei interneti ati leasti oncei ai month.i Thisi marketi representsi $i 504i billioni ini 2018,i includingi 10%i ofi goodsi purchasedi oni Amazon.i Consumeri confidencei isi downi ati thei endi ofi 2018.i Generally,i consumersi arei openi toi internationali companiesi andi brands. Mosti Americansi arei loyali toi brandsi buti arei willingi toi learni abouti otheri brandsi toi accessi cheaperi productsi withi 10%i ofi consumersi showingi willingnessi toi tryi otheri brandsi ifi thei pricei isi lower.i Sociali networksi havei ai largei impacti oni consumers,i withi 74%i ofi sociali networki usersi makingi decisionsi basedi oni feedback.i Plusi 45%i readi reviews,i articles,i reviewsi andi feedbacki fromi influencersi oni products.i i Somei 71%i ofi consumersi arei worriedi abouti bigi datai andi 34%i doi noti trusti techi companiesi withi regardi toi personali data. Amongi consumeri trendsi ini thei Unitedi Statesi 'Madei ini America'i isi ani importanti issue.i Somei 70%i ofi Americansi consideri iti significanti toi buyi Americani products.i Also,i responsiblei consumptioni isi increasinglyi attractingi consumersi whoi wanti sustainable,i transparent,i cleani products.i i Somei 48%i ofi consumersi sayi theyi wanti toi changei theiri habitsi toi reducei theiri impacti oni thei environment.i Youngi peoplei arei eveni morei concernedi abouti thei subjecti andi arei willingi toi payi morei toi reducei theiri footprint.i Thei second-handi marketi grewi byi 2%i betweeni 2014i andi 2019,i andi buyingi andi sellingi websitesi arei multiplying.i Thei collaborativei economyi isi highlyi developedi ini thei Unitedi States,i especiallyi ini largei cities. 12.5 Housei Holdi Consumeri Expenditure
12.6 Consumeri Recoursei toi Credit Ini thei Unitedi States,i thei usei ofi crediti andi debiti cardsi isi widespread.i Withi cardi payments,i aroundi 70%i isi madei byi debiti card,i whilei crediti cardsi arei usedi ini thei remainingi 30%.i However,i thei amounti ofi purchasesi madei withi crediti cardsi isi higher.i Householdi debti hasi increasedi significantlyi ini recenti yearsi andi exceedsi thei pre-crisisi level.i Ini thei secondi halfi ofi 2018,i outstandingi debti reachedi $i 13.29i trillion.i Morei andi morei Americansi arei ini debti (abouti 73%i ofi thei population).i Oni average,i ani Americani hasi $i 137,000i ini debt,i andi 38,000i ifi onei withdrawsi mortgages.i Consumeri crediti isi usedi primarilyi toi financei vehicles,i educationi andi sustainablei products.i Thei risei ini defaults,i threateningi financiali stability,i andi ai possiblei risei ini interesti ratesi couldi havei ai negativei impacti oni consumeri credit. 13i Unitedi States:i Riski Assessmenti oni Currenti Trends 13.1 Growthi hamperedi byi businessi difficulties Growthi willi slowi sharplyi ini 2020i duei toi thei downturni ini businessi investmenti which,i afteri beingi boostedi ini 2018i andi earlyi 2019i byi Presidenti Donaldi Trump’si taxi reformsi (corporatei taxi cuti fromi 35%i toi 21%),i begani toi declinei ini mid-2019i amidi tradei tensions,i aggravatedi byi thei unpredictabilityi ofi politicali decisions.i Ini addition,i USi companiesi havei beeni forcedi toi trimi theiri importi margins,i toi avoidi passingi oni thei entirei increasei ini inputi costsi resultingi fromi customsi dutiesi imposedi oni mosti Chinesei importsi andi ai multitudei ofi productsi (includingi steeli andi aluminium),i buti alsoi theiri exporti margins,i toi remaini competitivei despitei retaliationi measuresi byi tradingi partners.i Ini thisi challengingi contexti fori companies,i thei Federali Reserve,i whichi wasi forcedi toi loweri itsi keyi interesti ratei threei timesi byi thei endi ofi 2019,i isi expectedi toi pursuei itsi easingi policyi ini 2020.i Improvedi financingi conditionsi willi makei iti possiblei toi supporti householdi consumption,i whichi willi ini turni boosti growthi thanksi toi ai persistentlyi lowi unemploymenti ratei (3.6%i ini Octoberi 2019)i andi correspondinglyi briski growthi ini reali wages.i Conversely,i ini thei absencei ofi anyi majori newi measures,i publici spendingi willi contributei onlyi marginallyi toi growthi ini 2020,i afteri expandingi stronglyi fori twoi years.
Ini addition,i thei tradei environmenti willi remaini weak,i featuringi mutedi growthi amongi keyi partnersi andi retaliatoryi protectionisti measuresi byi thosei samei partners,i andi exportsi willi growi slowlyi afteri ai flati performancei ini 2019.i Althoughi alsoi affectedi byi protectionisti measures,i importsi arei expectedi toi remaini brisker,i ini linei withi householdi consumption.i Foreigni tradei willi thereforei continuei toi weighi oni growth. Thei segmentsi mosti exposedi toi tradei tensionsi willi continuei toi bei manufacturingi industry,i whichi isi facingi bothi fallingi exporti ordersi andi risingi inputi costs,i andi agribusiness,i whichi isi thei maini targeti ofi Chinesei tradei retaliationi measures.i Thei economici situationi isi alsoi difficulti fori thei energyi sector,i whichi isi heavilyi indebtedi duei toi investmenti requirementsi andi facingi weaki profitabilityi becausei ofi thei dipi ini oili prices.i Conversely,i activityi willi remaini solidi ini construction,i thanksi toi lowi interesti rates. 13.2 Ever-presenti deficitsi ini publici andi externali accounts Ini thei absencei ofi anyi majori fiscali measures,i thei publici deficiti willi remaini veryi highi ini 2020.i Oncei again,i thei maini increasesi ini spendingi willi bei concentratedi ini thei militaryi budgeti (+USDi 23i billion,i ori 0.1%i ofi GDP).i Ati thei samei time,i withi revenuesi slackeningi ini ai contexti ofi slowingi activity,i thei deficiti mayi eveni widen.i Publici debt,i whichi isi amongi thei highesti ini thei world,i willi thereforei continuei itsi upwardi trajectory.i Ini thisi regard,i thei governmenti andi Congressi reachedi ani agreementi ini Julyi 2019i toi raisei thei ceilingi oni publici spendingi andi debt,i thusi avoidingi thei prospecti ofi ai federali shutdowni similari toi thei onei ini Januaryi 2019. Thei currenti accounti willi continuei toi showi ai largei deficiti ini 2020.i Substantiali importsi ofi consumeri andi capitali goodsi engenderi i ai structurali deficiti ini thei goodsi balancei (4.2%i ofi GDPi ini 2018).i Surplusesi ini thei balancei ofi servicesi (1.2%i ofi GDP)i –i thanksi toi tourism,i researchi andi developmenti andi financiali servicesi –i andi ini incomei (0.6%i ofi GDP),i attributablei toi dividendsi fromi USi investmentsi abroad,i arei clearlyi insufficienti toi offseti thei goodsi balance.i Thei resultingi currenti accounti deficiti willi bei mainlyi financedi byi FDIi andi portfolioi investment.i Thei neti externali asseti positioni hasi beeni ini deficiti fori threei decadesi (49.5%i ofi GDPi ati thei endi ofi Junei 2019).i Thisi deficiti willi continuei toi widen. 13.3 Uncertaintyi overi thei presidentiali electioni ini ai polarisedi landscape Ini thei lead-upi toi thei presidentiali electioni ini Novemberi 2020,i thei politicali landscapei looksi morei polarisedi thani ever.i Democrats,i whoi tooki overi thei Housei ofi Representativesi (235i seatsi outi ofi 435)i ini thei 2018i mid- termi elections,i launchedi impeachmenti proceedingsi ini Septemberi 2019i againsti Presidenti Trump,i whoi isi suspectedi ofi pressuringi Ukrainei toi investigatei Joei Biden,i onei ofi thei Democratici presidentiali candidatesi ini 2020.i Althoughi impeachmenti hasi veryi littlei chancei ofi success,i sincei iti requiresi ai two-thirdsi votei ini thei Senate,i wherei thei Republicansi stilli havei ai majorityi (53i seatsi outi ofi 100),i iti illustratesi thei dividei betweeni twoi setsi ofi voters:i ini Novemberi 2019,i onlyi 11%iofi Republicansi wantedi Presidenti Trumpi impeached,i comparedi toi 81%i ofi Democrats.i Thei outcomei ofi thei Democratici primariesi isi highlyi uncertain.i Whilei pollsi conductedi ai yeari beforei thei electionsi suggesti thati eachi onei ofi thei maini Democratici candidatesi wouldi beati Presidenti Trump,i thei situationi couldi changei radicallyi ini whati mayi bei ai tumultuousi electioni campaign. Internationally,i USi tradei andi foreigni policyi willi remaini unpredictable.i Despitei thei announcementi ofi ai partiali tradei agreementi ini Decemberi 2019,i tradei tensionsi withi Chinai arei expectedi toi continue,i withi mosti tariffsi beingi maintainedi (19%i oni averagei ini Januaryi 2020i versusi 3%i ati thei beginningi ofi 2018).i Thei Unitedi Statesi mayi alsoi openi ai newi fronti ini thei tradei wari byi taxingi Europeani cari imports,i afteri twicei postponingi itsi decisioni oni thisi matter.
14Unitedi States:i Strengthsi &i Weakness 14.1 Strengths • Flexiblei labouri market • Fulli employmenti isi onei ofi thei Federali Reserve’si objectives • Highlyi attractive:i leaderi ini researchi &i innovation;i hugei market • World’si largesti economy • Effectivei governmentali checksi andi balances • Highi peri capitai GDP • Relativelyi lowi uniti labori costs • Highi datai transparency • Reservei currency • Largei oili andi gasi reserves • Diversei GDP • Lowi interesti ratesi andi inflation • Strongi dollari (lowersi inflation,i interesti rates) 14.2 Weakness • Lowi labouri marketi participation • Householdsi noti geographicallyi flexible • Highi householdi debti (129%i ofi grossi disposablei income) • Polarisedi politicali landscapei Decreasei ini fertilityi ratei Outdatedi infrastructurei Increasingi inequalities • Politicali polarization,i stagnation • Structurali unemployment • Lacki ofi skilledi workers • Lowi productivity • Highi corporatei debt • Highi publici debt,i persistenti budgeti deficits • Weaki housingi market • Restrictivei monetaryi policy • Soaringi amounti of,i andi defaultsi on,i studenti loans • Tradei conflicts • Strongi dollari (widensi persistenti tradei deficit)
15References • Countryi Riski Analysis.i (n.d.).i Ami besti ratingi agency.i https://www3.ambest.com/ratings/cr/crisk.aspx • Countryi Riski Classification.i (n.d.).i OECD.orgi -i OECD.i https://www.oecd.org/trade/topics/export- credits/arrangement-and-sector-understandings/financing-terms-and-conditions/country-risk- classification/ • Easei ofi Doingi Business.i (n.d.).i Worldi Bank.i https://www.doingbusiness.org/ • Economici Freedomi Studies.i (n.d.).i https://www.fraserinstitute.org/studies/economic-freedom • Economici Prosperityi andi Tradei Policy.i (2019,i Aprili 12).i Unitedi Statesi Departmenti ofi State.i https://www.state.gov/policy-issues/economic-prosperity-and-trade-policy/ • Economici Studies.i (2020,i Februaryi 4).i Tradei Crediti Insurance,i Accounti Receivablesi Managementi andi Businessi Informationi fromi Coface.i https://www.coface-usa.com/Economic-studies • Globali Competitivenessi Reporti 2015-2016.i (n.d.).i https://reports.weforum.org/global- competitiveness-report-2015-2016/ • Globali Competitivenessi Reporti 2015-2016.i (n.d.).i Globali Competitivenessi Reporti 2015-2016.i https://reports.weforum.org/global-competitiveness-report-2015-2016/ • Reportsi andi Publications.i (n.d.).i Unitedi Statesi Tradei Representative.i https://ustr.gov/about-us/policy- offices/press-office/reports-and-publications/ • Transparencyi Internationali e.V.i (June).i Whati Wei Doi -i Publications.i Transparencyi Internationali -i Thei Globali Anti-Corruptioni Coalition.i https://www.transparency.org/whatwedo/publications/doc/gcr

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Country Risk analysis of USA

  • 1. Globali Businessi Environment Projecti Reporti On CountryCountryCountryCountryiiii RiskRiskRiskRiskiiii AnalysisAnalysisAnalysisAnalysisiiii ofofofofiiii USAUSAUSAUSA i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i Submittedi to: Dr.i Jagdishi Shettigar Dr.i Monikai Jian Submittedi by:i Groupi 1 Abhinavi Irwini Johni 19DM009 Ankitai Jaini 19DM35 Divyankai Bansali 19DM067 Manjeeti 19DM104 Sejali Agarwali 19DM118 Shrutii Guptai 19DM238
  • 2. TableTableTableTableiiii ofofofofiiii ContentsContentsContentsContents 1 UNITEDI STATES:I COUNTRYI OVERVIEW.............................................................................................................................3 1.1 GLOBAL INDEX RANKINGS..........................................................................................................................................................4 2 UNITEDI STATES:I GOVERNMENTI STRUCTURE....................................................................................................................4 3 UNITEDI STATES:I POLITICALI SCENARIOI ............................................................................................................................5 3.1 CURRENTI POLITICALI CONTEXT ..................................................................................................................................................5 3.1.1 Maini Politicali Parties....................................................................................................................................................6 3.1.2 Typei ofi State.................................................................................................................................................................6 3.1.3 Executivei Power.............................................................................................................................................................6 3.1.4 Legislativei Power...........................................................................................................................................................6 3.1.5 Indicatori ofi Politicali Freedom......................................................................................................................................6 3.2 POLITICALI RISK.......................................................................................................................................................................6 3.3 I UNITEDI STATESI CORRUPTIONI RANK.........................................................................................................................................8 4 UNITEDI STATES:I ECONOMY...............................................................................................................................................8 4.1 ECONOMICI INDICATORSI OFI THEI UNITEDI STATESI :I GROWTH........................................................................................9 4.2 MAINI SECTORSI OFI INDUSTRY...................................................................................................................................................9 4.3 ECONOMICI FORECAST............................................................................................................................................................10 4.3.1 Medium-i andi Long-termi Forecast.............................................................................................................................10 4.4 ECONOMICI RISK:I VERYI LOWI .................................................................................................................................................11 4.5 UNITEDI STATES:I ECONOMICI STATISTICS...................................................................................................................................12 4.5.1 Grossi Domestici Product..............................................................................................................................................12 4.5.2 Economici Indicators.....................................................................................................................................................12 4.5.3 GDPi Compositioni %i Ofi Industry................................................................................................................................12 4.5.4 Labori andi Employment...............................................................................................................................................13 4.5.5 Trade ............................................................................................................................................................................13 4.6 ECONOMICI SNAPSHOT...........................................................................................................................................................14 5 UNITEDI STATES:I INTERNATIONALI TRADEI ......................................................................................................................14 5.1 ECONOMICSI INDICATOR:I TRADEI (IMPORTI &I EXPORT)...............................................................................................................15 5.2 MAJORI IMPORTI &I EXPORTI COUNTRIES ..................................................................................................................................16 5.3 MAJORI IMPORTI &I EXPORTI GOODSI.......................................................................................................................................16 5.4 REGIONALI TRADEI BLOCKS......................................................................................................................................................16 5.4.1 Asia-Pacifici Economici Cooperationi (APEC)................................................................................................................17 5.4.2 Northi Americani Freei Tradei Agreementi (NAFTA).....................................................................................................17 6 UNITEDI STATES:I INVESTMENT.........................................................................................................................................18 6.1 ECONOMICI INDICATORSI OFI THEI UNITEDI STATES:I FDI ..............................................................................................................18 7 UNITEDI STATES:I PAYMENTI &I DEBTI COLLECTIONI PROFILE...........................................................................................20 7.1 AVAILABILITYI OFI FINANCIALI INFORMATION ...............................................................................................................................20 7.2 REGULATORYI ENVIRONMENT...................................................................................................................................................20 7.3 DAYSI SALESI OUTSTANDINGI (DSO).........................................................................................................................................20 7.4 LATEI PAYMENTI INTEREST .......................................................................................................................................................21 7.5 OWNERSHIPI PROTECTION .......................................................................................................................................................21 8 UNITEDI STATES:I ENFORCEMENTI OFI BUSINESSI LEGALI DECISIONS................................................................................21 8.1 ALTERNATIVESI TOI LEGALI ACTION ............................................................................................................................................21 8.2 INSOLVENCYI PROCEEDINGS.....................................................................................................................................................22 8.2.1 Out-Of-Courti Proceedingsi ..........................................................................................................................................22 8.2.2 Restructuringi Proceedings...........................................................................................................................................22 8.2.3 Liquidation....................................................................................................................................................................22
  • 3. 8.3 INSOLVENCYI TREND...............................................................................................................................................................22 9 UNITEDI STATES:I CULTUREI &I SOCIETYI I.........................................................................................................................23 9.1 SOCIALI ISSUES......................................................................................................................................................................23 9.1.1 Employmenti trends .....................................................................................................................................................23 9.1.2 Federali privacyi laws ...................................................................................................................................................23 9.1.3 Equalityi ati workplace.................................................................................................................................................23 9.2 CULTURALI ISSUES..................................................................................................................................................................23 9.2.1 Communicationi ...........................................................................................................................................................24 9.2.2 Interactions ..................................................................................................................................................................24 9.2.3 Etiquettei ini thei workplace.........................................................................................................................................24 9.2.4 Hierarchyi ini thei organization ....................................................................................................................................24 10 UNITEDI STATES:I HEALTHI CAREI SYSTEMI .......................................................................................................................24 10.1 ROLEI OFI GOVERNMENT.........................................................................................................................................................25 10.2 PUBLICLYI FINANCEDI HEALTHI CARE ..........................................................................................................................................26 10.3 PRIVATELYI FINANCEDI HEALTHI CARE ........................................................................................................................................26 10.4 REASONSI BEHINDI HIGHI USI HEALTHI CAREI.............................................................................................................................26 11 UNITEDI STATES:I INFRASTRUCTURE .................................................................................................................................27 12 UNITEDI STATES:I REACHINGI THEI CONSUMER ................................................................................................................28 12.1 POPULATIONI INI FIGURES .......................................................................................................................................................29 12.2 CONSUMERI PROFILE..............................................................................................................................................................29 12.3 PURCHASINGI POWER.............................................................................................................................................................29 12.4 CONSUMERI BEHAVIOUR.........................................................................................................................................................30 12.5 HOUSEI HOLDI CONSUMERI EXPENDITURE..................................................................................................................................30 12.6 CONSUMERI RECOURSEI TOI CREDIT ..........................................................................................................................................31 13 I UNITEDI STATES:I RISKI ASSESSMENTI ONI CURRENTI TRENDS........................................................................................31 13.1 GROWTHI HAMPEREDI BYI BUSINESSI DIFFICULTIES........................................................................................................................31 13.2 EVER-PRESENTI DEFICITSI INI PUBLICI ANDI EXTERNALI ACCOUNTS ....................................................................................................32 13.3 UNCERTAINTYI OVERI THEI PRESIDENTIALI ELECTIONI INI AI POLARISEDI LANDSCAPE .............................................................................32 14 UNITEDI STATES:I STRENGTHSI &I WEAKNESS...................................................................................................................33 14.1 STRENGTHS ..........................................................................................................................................................................33 14.2 WEAKNESS...........................................................................................................................................................................33 15 REFERENCES......................................................................................................................................................................34
  • 4. 1 Unitedi States:i Countryi Overview Thei Unitedi Statesi isi ai countryi locatedi ini Northi Americai borderingi thei Atlantici Oceani andi Pacifici Ocean.i Neighbouringi countriesi arei Canadai andi Mexico.i Thei geographyi ofi thei Unitedi Statesi isi variedi withi mountainsi ini thei west,i ai broadi centrali plain,i andi lowi mountaini ini thei east.i Thei governmenti systemi isi ai constitution-basedi federali republici withi ai strongi democratici tradition;i thei chiefi ofi statei andi headi ofi governmenti isi thei president.i Thei Unitedi Statesi hasi ani advancedi mixedi economyi ini whichi therei isi ai varietyi ofi privatei freedom,i combinedi withi centralizedi economici planningi andi governmenti regulation.i Thei USAi bordersi Canadai ini thei north;i itsi southerni 3,155i kmi longi borderi toi Mexicoi isi partlyi furnishedi withi ai greati walli (ori fence).i Thei Unitedi Statesi alsoi sharesi maritimei bordersi withi thei Bahamas,i Cuba,i andi Russia. Withi ani areai ofi 9,833,516i km²,i thei USAi isi thei third-largesti countryi ini thei world.i Thei countryi isi morei thani twicei thei sizei ofi thei Europeani Unioni ori abouti slightlyi morei thani halfi thei sizei ofi Russia. Thei Unitedi Statesi hasi ai populationi ofi 326i millioni people,i (ini 2019),i thei capitali cityi isi Washingtoni D.C.,i thei largesti USi cityi isi Newi York.i Spokeni languagesi arei Englishi 80%,i andi Spanishi 13%.
  • 5. 1.1 Global Index Rankings 2 Unitedi States:i Governmenti Structure Chiefi ofi State:i Presidenti Donaldi J.i Trump Headi ofi Government:i Presidenti Donaldi J.i Trump Governmenti Name:i Unitedi Statesi ofi America Governmenti Type:i Federali Republic Constitution:i Foundedi ini 1787,i isi thei supremei lawi ofi thei Unitedi Statesi thati addressesi separationi ofi powersi intoi threei branches,i explainsi federalism,i relationshipsi betweeni statesi asi welli asi ai billi ofi rights. Powersi noti grantedi toi thei federali governmenti arei reservedi fori statesi andi thei people,i whichi arei dividedi betweeni statei andi locali governments. Mosti Americansi havei morei dailyi contacti withi theiri statei andi locali governmentsi thani withi thei federali government.i Policei departments,i libraries,i andi schoolsi —i noti toi
  • 6. mentioni driver’si licensesi andi parkingi ticketsi —i usuallyi falli underi thei oversighti ofi statei andi locali governments.i Eachi statei hasi itsi owni writteni constitution,i andi thesei documentsi arei ofteni fari morei elaboratei thani theiri federali counterpart Underi thei Tenthi Amendmenti toi thei U.S.i Constitution,i alli powersi noti grantedi toi thei federali governmenti arei reservedi fori thei statesi andi thei people.i Alli statei governmentsi arei modelledi afteri thei federali governmenti andi consisti ofi threei branches:i executive,i legislative,i andi judicial. 3 Unitedi States:i Politicali scenarioi 3.1 Currenti Politicali Context Thei Americani domestici politicsi remainsi highlyi polarised.i Followingi thei 2018i mid-termi elections,i thei Democratsi havei becomei thei majorityi ini thei Housei ofi Representativesi (235i seatsi outi ofi 435)i andi thei newi Democratici majorityi electedi Nancyi Pelosii asi Presidenti ofi thei Chamberi (ori Speaker).i Alli committeei chairmanshipsi alsoi falli toi electedi Democrats.i Thei Republicansi havei neverthelessi strengthenedi theiri controli ofi thei Senatei wherei theyi stilli havei majorityi (53i seatsi outi ofi 100),i andi thei Republicani Mitchi McConnelli retainsi thei presidencyi ofi thei Senate. Thei Democratsi havei initiatedi ani impeachmenti procedurei againsti Presidenti Trumpi oni chargesi ofi abusei ofi poweri andi obstructioni ofi Congress.i Ini Decemberi 2019,i thei Housei ofi Representativesi votedi ini favouri ofi thei impeachmenti ofi Donaldi Trump,i whoi thusi becamei thei thirdi presidenti ini thei historyi ofi thei Unitedi Statesi toi undergoi thisi vote.i Thei impeachmenti hasi neverthelessi veryi littlei chancei ofi success,i sincei iti requiresi ai two-thirdsi votei ini thei Senate,i wherei thei Republicansi retaini ai majority.i Thei outcomei ofi thei Democratici primariesi remainsi highlyi unpredictablei andi thei campaigni precedingi thei Novemberi 2020i Presidentiali electioni promisesi toi bei tumultuous. Tradei tensionsi withi Chinai arei expectedi toi continue,i withi mosti importi tariffsi beingi maintainedi (19%i oni averagei ini Januaryi 2020i versusi 3%i ati thei beginningi ofi 2018,i accordingi toi Coface).i Ini thei diplomatici andi foreigni policyi area,i tensionsi withi Irani escalatedi againi ini earlyi 2020. Maini Powers Electioni Process Electioni Cycle Executive Ledi byi thei president,i ensuresi thei executioni ofi thei USi laws. Electedi byi ani electorali college. 4i years Judicial Systemi ofi thei courts,i interpretsi andi appliesi laws. Appointedi byi executivei branch. Lifei appointment Legislative Poweri toi pass,i amendi andi repeali laws,i abilityi toi raisei ori loweri taxes,i createi budgetsi andi otheri moneyi bills. Senatei 100i membersi arei electedi byi pluralityi vote,i andi Housei ofi Representativesi 435i membersi arei electedi byi pluralityi vote. Senate:i 6i years;i Housei ofi Representatives:i 2i years
  • 7. 3.1.1 Maini Politicali Parties Twoi politicali partiesi dominatei politics: -i Thei Democratici Party:i sociallyi progressive,i favoursi governmenti interventioni toi temperi thei marketi economy -i Thei Republicani Partyi (alsoi knowni asi thei Grandi Oldi Party,i GOP):i sociallyi conservative,i supportsi free- marketi capitalismi andi emphasisesi nationali defence Therei arei otheri partiesi suchi asi thei Reformi Party,i thei Libertariani Party,i thei Greeni Party,i thei Constitutioni Party,i thei Communisti Partyi USA,i thei Proi Lifei Partyi andi thei Puertoi Ricani Independencei Party. 3.1.2 Typei ofi State Thei Unitedi Statesi arei ai federali republic,i basedi oni representativei democracy,i withi threei equallyi powerfuli branchesi ofi Government;i comprisedi ofi 50i largelyi self-governingi andi semi-sovereigni states 3.1.3 Executivei Power Thei Presidenti isi thei Chiefi ofi State,i Commander-in-Chiefi ofi thei Armedi Forcesi andi thei Headi ofi Government.i Thei Presidenti isi electedi byi ani electorali collegei (whoi arei electedi directlyi fromi eachi state)i toi servei ai four-yeari term.i Thesei powersi arei checkedi byi thei U.S.i Congress.i Thei Cabineti isi appointedi byi thei Presidenti andi subjecti toi approvali byi thei Senate. 3.1.4 Legislativei Power Thei legislaturei isi bicamerali ini thei Unitedi States.i Thei Congressi consistsi ofi Senatei (thei upperi house)i andi thei Housei ofi Representativesi (loweri house).i Thei Senatei hasi thei poweri toi confirmi ori rejecti presidentiali appointmentsi andi toi ratifyi treaties.i Iti isi composedi ofi 100i senators.i Thei Housei ofi Representativesi hasi thei solei righti toi initiatei revenuei bills,i althoughi theyi mayi bei amendedi ori rejectedi byi thei Senate.i Iti isi composedi ofi 435i members.i Thei Presidenti hasi thei poweri toi vetoi thei legislationi passedi byi thei Congress,i buti thei Congressi cani overridei thei vetoi withi ai two-thirdsi vote. 3.1.5 Indicatori ofi Politicali Freedom i i i i i Ranking:i Free i i i Politicali Freedom:2/7 i Civili Liberties:1/7 3.2 Politicali Risk Ini thei Novemberi 2018i elections,i thei Democratsi tooki ai majorityi ini thei Housei ofi Representatives,i whilei Republicansi heldi theiri Senatei majority.i Policyi gridlocki isi likely,i withi majori legislationi passagei likelyi toi bei difficult.i Thei presidenti isi likelyi toi relyi oni executivei authorityi toi pursuei hisi agenda. Presidentiali electionsi arei scheduledi fori 2020,i andi thei Democratici fieldi fori thei presidentiali nomineei isi crowded.i Thei 2020i electioni isi likelyi toi focusi oni thei keyi issuesi ofi thei economy,i healthcare,i andi trade.
  • 8. Presidenti Trumpi hasi reversedi variousi policiesi passedi underi thei Obamai administrationi andi holdsi ani “Americai First”i principlei wheni iti comesi toi foreigni policy.i Risingi tradei protectionismi mayi bringi uncertaintyi overi existingi legislationi andi tradei agreements. Thei USi legali systemi isi clear,i businessi friendly,i andi broadlyi transparent.i Thei judiciaryi isi regardedi asi independent,i andi thei bureaucracyi isi generallyi efficient. Domestically,i demonstrationsi arei relativelyi common,i buti theyi arei generallyi peaceful.i Terroristi attacksi inspiredi byi right-wingi extremisti ideologies,i thei Islamici State,i ori Al-i Qaedai posei securityi threats
  • 9. 3.3 i Unitedi Statesi Corruptioni rank Thei Corruptioni Perceptionsi Indexi ranksi countriesi andi territoriesi basedi oni howi corrupti theiri publici sectori isi perceivedi toi be Thei Unitedi Statesi isi thei 23i leasti corrupti nationi outi ofi 180i countries,i accordingi toi thei 2019i Corruptioni Perceptionsi Indexi reportedi byi Transparencyi International. 4 Unitedi States:i Economy Thei Unitedi Statesi isi thei world'si largesti economy,i aheadi ofi China.i Thei economyi grewi 2.4%i ini 2019i -i againsti 2.9i ini 2018i -i andi isi expectedi toi slowi :i 2.1%i andi 1.7%i ini 2020i andi 2021,i accordingi toi thei IMF.i Cofacei calculatedi 2.5%i GDPi growthi ini 2019,i closei toi IMFi forecasts,i andi alsoi expectsi ai slowdowni whilei highlightingi Presidenti Donaldi Trump'si taxi reformsi (whichi cuti thei corporatei taxi ratei fromi 35%i toi 21%).i Thei countryi facesi increasingi inequalitiesi andi outdatedi infrastructures,i whichi ini consequencei slowi downi itsi potentiali GDPi growth.i Thei US-Chinai tradei wari alsoi seemsi toi affecti investors,i and,i thei economyi asi ai whole.i Presidenti Trumpi implementedi tradei protectionismi viai tariffsi oni Chinesei importsi andi despitei thei announcementi ofi ai partiali tradei agreementi ini Decemberi 2019,i tensionsi withi Chinai arei expectedi toi continue,i withi mosti tariffsi beingi maintainedi accordingi toi Cofacei (19%i oni averagei ini Januaryi 2020i versusi 3%i ati thei beginningi ofi 2018). Thei IMFi forecastsi thei publici debti toi increasei toi 106.2%i ini 2019.i Thisi trendi shouldi continuei ini 2020i andi 2021.i Publici deficiti reachedi -6.3%i ini 2019i andi shouldi stabilisei ini thei followingi years.i Thei Presidenti Trump’si taxi reformsi havei affectedi thei deficiti sincei 2018,i causingi ani upwardi trendi fori thei debt.i Economistsi expecti thei governmenti toi continuei thei spendingi increase.i Phillipi Swagel,i Congressionali Budgeti Officei director,i expectsi thei deficiti toi reachi historici levels,i whichi willi approachi thei figuresi “noti seeni sincei WWII”.i Accordingi toi thei IMF,i thei inflationi ratei decreasedi toi 1.8%i ini 2019,i approachingi thei 2%i targeti fixedi byi thei Fed.i Inflationi ratei shouldi goi upi againi ini 2020i andi 2021,i abovei 2%.i Withi inflationi pickingi upi abovei target,i thei Fedi couldi resumei monetaryi tighteningi policies.i Accordingi toi thei USi Bureaui ofi Labori Statistics,i Consumeri Pricei Indexi (CPI)i increasedi 0.2%i ini Decemberi 2019,i withi higheri pricesi ini energy,i andi ai sloweri increasei ini food. Thei unemploymenti ratei decreasedi fromi 3.9%i toi 3.7%i ini 2019;i thei IMFi expectsi thisi slowi decreasingi trendi toi continuei ini 2020i andi 2021i (3.5%).i Nevertheless,i ifi onei takesi intoi accounti discouragedi workersi thati havei lefti thei labouri marketi andi thosei whoi havei takeni part-timei jobs,i thei reali unemploymenti ratei jumpsi toi 8.1%i (asi ofi Januaryi 2019;i Bureaui ofi Labori Statistics).i Thei numberi ofi peoplei withouti healthi insurancei stronglyi decreasedi fromi 2010i toi 2016,i buti isi raisingi againi withi taxi cuts.i Currenti publici healthi policiesi tendi toi worseni incomei inequalities.
  • 10. 4.1 ECONOMICi INDICATORSi OFi THEi UNITEDi STATESi :i GROWTH 4.2 Maini Sectorsi ofi Industry Thei Unitedi Statesi isi ai highlyi industrialisedi countryi withi highi levelsi ofi productivityi andi usei ofi moderni technologies.i Keyi sectorsi includei agriculturei (corn,i soy,i beef,i andi cotton);i manufacturingi ofi machinery,i chemicali products,i food,i andi automobiles;i andi ai boomingi tertiaryi marketi focusedi oni finance,i insurance,i reali estate,i rentals,i andi leases.i Thei Americani agriculturali sectori isi withouti doubt,i onei ofi thei world'si Incomei Level (byi peri capitai GNI)i Highi Income Leveli ofi Developmenti Developed Economici Trivia Importedi oili accountsi fori nearlyi 55%i ofi USi consumption. Tradei Topi 3i Tradei Partnersi (2018):i China,i Canada,i andi Mexico Topi 3i Exportedi Goodsi (2018):i Industriali Machinery,i Oili &i Minerali Fuels,i andi Electricali Machinery Topi Industriesi Petroleum;i Steel;i Motori Vehicles;i Aerospace;i Telecommunications;i Chemicals;i Electronics;i Foodi Processing;i Consumeri Goods
  • 11. largest,i withi Californiai alonei producingi morei thani one-thirdi ofi thei country'si vegetablesi andi two-thirdsi ofi itsi fruitsi andi nuts.i Nevertheless,i agriculturei onlyi accountsi fori 0.9%i ofi GDPi andi employsi 1.4%i ofi thei workforce,i ai slighti decreasei fromi 2018i (Worldi Bank).i Ini 2019,i thei valuei addedi producedi byi thei agriculturali sectori reducedi byi 5.5%. Includingi ai broadi rangei ofi activities,i thei industriali sectori contributesi overi 18.2%i ofi GDPi andi employsi 19.2%i ofi thei workforce.i Besidesi thei industriesi mentionedi above,i thei countryi isi alsoi thei worldi leaderi ini thei aerospacei andi pharmaceuticali industries.i Thanksi toi itsi abundanti naturali resources,i thei Unitedi Statesi hasi becomei ai leaderi ini thei productioni ofi ai numberi ofi mineralsi andi hasi beeni ablei toi maintaini diversifiedi production.i Thei countryi isi thei world'si largesti produceri ofi liquidi naturali gas,i aluminium,i electricityi andi nucleari energy.i Iti isi thei world'si thirdi largesti oili produceri and,i fori ai numberi ofi years,i hasi alsoi beeni developingi shalei gasi extractioni oni ai largei scale;i USi shalei oili outputi hasi alsoi reachedi recordi levelsi ini recenti yearsi (Reuters).i Thei manufacturingi sectori hadi beeni underi pressurei fori muchi ofi thei secondi halfi ofi 2019,i asi U.S.i andi Chinesei tariffsi slowedi tradei betweeni thei twoi economiesi andi aroundi thei world.i However,i thei sectori grewi byi 1.8%i ini 2019. Thei Americani economyi isi essentiallyi basedi oni services.i Thei tertiaryi sectori accountsi fori morei thani three- fourthsi ofi GDPi (77%)i andi employsi overi 79.40%i ofi thei country'si workforce.i Ai bigi portioni ofi GDPi isi composedi ofi finance,i insurance,i reali estate,i rental,i andi leasingi sectori (18.2%)i andi thei educationali services,i healthcare,i andi sociali assistancei sectori (8.2%).i Thei governmentali sectori (ati federal,i statei andi locali level)i accountsi fori aroundi 11%i ofi thei country’si GDP.i Thei remainingi 5.7%i ofi thei workforcei isi classifiedi asi “noi agriculturei self-employed”i (USi Bureaui ofi Labouri Statistics). i 4.3 Economici Forecast USi economici growthi isi slowingi toi trend,i roughlyi 2%i (fourthi quarteri overi fourthi quarter).i Asi underlyingi demandi growthi ebbs,i loweri ratesi arei neededi toi supporti eveni thisi pace.i Thei Federali Reserve’si signalingi ofi ai pausei helpedi thei recoveryi ini equitiesi andi loweredi termi yields. Investori concernsi overi risingi risksi ofi ai downturni afteri 2019,i stokedi byi developmentsi abroad,i resultedi ini sharplyi worseningi financiali conditionsi ini latei 2018,i despitei prospectsi fori solidi trend-likei USi growthi ini 2019.i Helpedi byi ai morei dovish-soundingi Fed,i ai recoveryi ini financiali conditionsi isi nowi supportingi GDPi growthi neari trend. 4.3.1 Medium-i andi Long-termi Forecast IHSi Markiti forecastsi 2.0%i GDPi growthi ini 2019,i followedi byi 2.1%i growthi ini 2020i (fourthi quarteri overi fourthi quarter).i Thereafter,i ai periodi ofi below-trendi growthi isi assumed,i balancingi thei risksi betweeni continuedi trend-likei growthi andi ai recession. Thei Fedi isi nowi expectedi toi implementi onei morei federali fundsi ratei hikei andi windi downi itsi balance-sheeti run-off,i bringingi thei topi ofi thei fundsi rangei toi 2.75%,i neari thei longer-runi nominali neutrali rate. • Thei unemploymenti ratei isi forecasti toi declinei toi 3.5%i byi thei secondi halfi ofi 2019i andi corei personali consumptioni expenditurei inflationi toi risei toi 2.2%i byi fourthi quarteri 2019. Wei viewi thei recenti dropi ini broadi equityi marketsi asi onlyi partlyi relatedi toi fundamentalsi andi looki fori ani
  • 12. 18.5%i gaini ini thei S&Pi 500i thisi yeari (end-2019i overi end-2018). 4.4 Economici Risk:i VeryiLowi Thei USi economyi continuesi itsi historici expansioni run,i withi continuedi lowi unemploymenti thati averagedi 3.9%i ini 2018.i Thei strongi jobi marketi andi lowi inflationi hasi helped fueli consumeri spending,i whichi accountsi fori approximatelyi two-thirdsi ofi USi GDP.i Thei labori marketi isi seeingi strongeri growthi amongi thei well-educated. Lowi gasi pricesi andi governmenti sociali benefitsi (taxi cuts)i increasedi discretionaryi spending,i whichi shouldi helpi stimulatei thei economyi throughouti 2019. Thei tradei wari bringsi uncertainty.i Tariffsi werei increasedi fromi 10%i toi 25%i oni USDi 200i billioni ofi Chinesei goods,i andi Chinai hasi imposedi retaliatoryi tariffs.i Thei costi ofi thei tradei wari hasi thei potentiali toi increasei inflation.i Thei USDi hasi appreciatedi againsti itsi majori tradingi partners,i buti hasi beeni relativelyi stablei throughi tradei tensions.
  • 13. Ini 2018,i thei USi economyi expandedi 2.9%,i dominatedi byi growthi ini consumeri spending.i Growthi ini 2019i isi expectedi ati 2.3%,i driveni byi continuedi domestici demand.i Risksi toi thei forecasti includei sloweri globali growth,i continuedi tradei tensions,i andi continuedi declinei ini consumeri confidence Mediumi termi growthi isi expectedi toi rangei betweeni 1.5%i andi 2.5%. 4.5 Unitedi States:i Economici Statistics 4.5.1 Grossi Domestici Product 4.5.2 Economici Indicators 4.5.3 GDPi Compositioni %i Ofi Industry
  • 14. 4.5.4 Labori andi Employment 4.5.5 Trade Howi toi interpreti thei graph:i Thei purposei ofi thisi graphi isi toi takei ai snapshoti ofi ai country’si economyi ini comparisoni toi otheri economies.i Fori example,i Unitedi States’si Exportsi ranki isi higheri thani 99.46%i ofi thei countriesi ini thei dataset.i Fori Exports,i FDIi andi GDPi measures,i ai higheri ranki (closeri toi 100%)i indicatesi ai strongeri economy.i Conversely,i fori Unemploymenti andi Inflation,i ai loweri ranki (closeri toi 0%)i indicatesi ai strongeri economy.
  • 15. 4.6 Economici Snapshot Note:i Percentilei ranksi arei calculatedi usingi thei latesti availablei datai fori alli countriesi withini thei lasti 5i years. 5 Unitedi States:i Internationali Tradei Ini general,i thei Unitedi Statesi hasi reducedi itsi tradei barriersi andi coordinatedi withi othersi ini thei globali economici system.i Thei U.S.i isi thei world'si largesti importeri andi secondi largesti exporteri ofi goods,i asi welli asi thei largesti importeri andi exporteri ofi commerciali services.i Nevertheless,i tradei representsi onlyi 27.5%i ofi thei country’si GDPi ini 2018i (Worldi Bank).i Thei Presidenti Trump’si protectionisti policiesi ledi toi tradei tensionsi withi differenti partners,i andi especiallyi withi China.i U.S.i topi exportsi ini 2018i werei refinedi petroleumi oilsi followedi byi cars,i automotivei partsi andi accessories,i electronici integratedi circuits,i mobilei phones,i financiali servicesi andi transportation.i Maini U.S.i importsi ini 2018i includedi cars,i crudei oils,i phonei systemi devices,i computers,i automobilei parts,i transportationi andi otheri businessi services. Maini tradei partnersi ofi thei Unitedi Statesi includei Canada,i Mexico,i China,i Japan,i thei Unitedi Kingdomi andi Germany.i Historically,i thei U.S.i hasi takeni thei viewi thati tradei promotesi economici growth,i sociali stability,i democracyi andi betteri internationali relations.i However,i Presidenti Donaldi Trumpi hasi calledi thesei principlesi intoi question,i declaringi ini earlyi 2018i thati thei U.S.i wouldi imposei steepi tariffsi oni steeli andi aluminumi imports;i escalatingi tensionsi withi Chinai andi otheri tradingi partners;i andi leadingi toi risingi pricesi oni importsi fori Americani consumersi andi companies.i Ani agreementi toi replacei NAFTAi withi thei USMCAi wasi alsoi reachedi withi Canadai andi Mexico,i buti hasi noti beeni approvedi byi Congressi yet.
  • 16. Thei U.S.i tradei balancei isi structurallyi negativei andi thei tradei deficiti hasi furtheri widenedi ini recenti years.i Unitedi Statesi registeredi ai USDi 887.3i billioni tradei deficiti ini 2018i (USDi 627.7i billioni wheni includingi services)i withi importsi growthi ati ai fastesti pacei (4.4%)i thani exportsi (3%).i Thei Presidenti isi expectedi toi signi ai first-stagei tradei agreementi withi Chinai ini Januaryi 2020,i buti willi leavei manyi tariffsi ini placei toi limiti thei supplyi ofi Chinesei productsi toi thei Americani market.i Ini 2019,i thei tradei deficiti improved,i especiallyi withi Chinai (-15%i fori thei tradei deficiti withi China).i Accordingi toi WTOi data,i ini 2018,i thei USi importedi 2,612i billioni USDi worthi ofi goodsi whereasi itsi exportsi reachedi nearlyi 1,666i billioni USD.i Withi regardsi toi services,i thei countryi importedi thei totali valuei ofi 536,23i billioni USDi ofi services,i whilei itsi servicesi exportsi amountedi toi 808,22i billioni USDi fori thei samei year. 5.1 Economicsi Indicator:i Tradei (Importi &i Export)
  • 17. 5.2 Majori Importi &i Exporti Countries 5.3 Majori Importi &i Exporti Goodsi 5.4 Regionali Tradei Blocks Unitedi Statesi isi ai memberi ofi thei Asia-Pacifici Economici Cooperationi (APEC)i andi thei Northi Americani Freei Tradei Agreementi (NAFTA)
  • 18. 5.4.1 Asia-Pacifici Economici Cooperationi (APEC) Theii Asia-Pacificii Economicii Cooperation,ii orii APEC,ii isii theii premierii forumii forii facilitatingii economicii growth,ii cooperation,ii trade,ii andii investmentii inii theii Asia-Pacificii region.ii Itii wasii establishedii inii 1989ii inii responseii toii theii growingii interdependenceii ofii Asia-Pacificii economiesii andii theii adventii ofii regionalii economicii blocs.ii Foundingii membersii includeii Australia,ii Brunei,ii Canada,ii Indonesia,ii Japan,ii Southii Korea,ii Malaysia,ii Newii Zealand,ii Philippines,ii Singapore,ii Thailand,ii andii theii Unitedii States.ii APECii worksii towardsii aii higherii standardii ofii livingii andii higherii educationii levelsii throughii sustainableii economicii growth 5.4.2 Northi Americani Freei Tradei Agreementi (NAFTA) Oni Januaryi 1,i 1994,i thei Northi Americani Freei Tradei Agreementi (NAFTA)i betweeni thei Unitedi States,i Canada,i andi Mexicoi enteredi forcei toi createi ai trilaterali tradingi bloci ini Northi America.i Thei agreementi supersededi thei originali Canada-Unitedi Statesi Freei Tradei Agreementi betweeni thei U.S.i andi Canada.i NAFTAi seeksi toi liberalizei restrictionsi oni tradei amongi thei threei countries.i Sincei itsi entryi intoi force,i NAFTAi hasi eliminatedi mosti tariffi andi non-tariffi barriersi fori tradei andi investmenti betweeni itsi threei memberi countries.i NAFTAi aimsi toi promotei thei conditionsi ofi freei competitioni ini orderi toi increasei marketi accessi andi investmenti opportunitiesi withini thei freei tradei area. Memberi Countries Canada Mexico Unitedi States Memberi Countries Australia Brunei Canada Chile China Hongi Kong Indonesia Japan Malaysia Mexico Newi Zealand Papuai Newi Guinea Peru Philippines Russia Singapore Southi Korea Taiwan Thailand Unitedi States Vietnam
  • 19. 6 Unitedi States:i Investment Accordingi toi thei UNCTADi Worldi Investmenti Reporti 2019,i FDIi inflowsi ini 2018i amountedi toi USDi 251.8i billion,i downi 9%i fromi 2017.i Thei declinei isi mainlyi duei toi thei falli ofi onei thirdi ini cross-borderi M&Ai sales.i Thei USi FDIi stocki ini 2018i decreasedi byi 4%i comparedi toi thei previousi year,i reachingi USDi 7,464i billion.i Thei countryi remainedi thei topi destinationi fori FDIi ini 2017i duei toi itsi largei consumeri base,i ai predictablei andi transparenti justicei system,i ai productivei workforce,i ai highlyi developedi infrastructurei andi ai businessi environmenti thati fostersi innovation.i Ini 2018,i thei Unitedi Statesi confirmedi itsi positioni asi thei largesti investori ini thei worldi withi FDIi outflowsi reachingi USDi 342i billion,i 22%i higheri thani ini 2016.i Thei maini investori countriesi ini 2016i ini thei Unitedi Statesi werei thei Unitedi Kingdom,i Japan,i Luxembourg,i Canada,i thei Netherlandsi andi Switzerland.i Mosti ofi thesei investmentsi arei ini manufacturing,i financiali andi insurancei activities,i tradei andi maintenance,i andi informationi andi communication.i Accordingi toi ai UNCTADi surveyi ofi multinationali enterprisesi (MNEs),i thei Unitedi Statesi isi consideredi thei firsti potentiali hosti economyi ini termsi ofi FDIi fori 2017-2019,i aheadi ofi Chinai andi India.i Increasedi investmenti ini thei manufacturingi sector,i morei specificallyi chemicali manufacturing,i accountedi fori thei majorityi ofi investmenti gains.i Greenfieldi investmenti spendingi byi foreigni entitiesi totaledi USDi 7.7i billioni ini 2016,i includingi newi businessi start-upi expensesi (USDi 5.6i billion)i andi Existingi Enterprisei Expansioni Expendituresi (USDi 2.1i billion). Accordingi toi thei Worldi Bank'si Doingi Businessi 2020i report,i thei Unitedi Statesi ranksi 6thi outi ofi 190i countriesi fori thei qualityi ofi itsi businessi climate,i gainingi twoi spotsi comparedi toi 2019.i Thei countryi remainsi thei world'si leadingi economici power,i thei largesti internationali financiali centre,i andi thei thirdi largesti countryi ini thei worldi ini termsi ofi population.i Thei Unitedi Statesi isi onei ofi thei countriesi withi thei besti regulatoryi performancei ini payingi taxes.i Ini 2019,i theyi madei payingi taxesi lessi costlyi (decreasei ini thei corporatei incomei taxi rate)i ini Newi Yorki Cityi andi Losi Angeles.i Startingi ai businessi isi nowi easieri (onlinei filingi ofi thei statementi ofi informationi fori limitedi liabilityi companies)i andi enforcingi contractsi tooi (electronici filingi andi electronici paymenti ofi courti fees).i Ini orderi toi havei ai betteri rank,i thei USi cani improvei hisi abilityi toi geti electricity,i registeri propertyi andi tradei acrossi border. 6.1 Economici Indicatorsi ofi thei Unitedi States:i FDI Thei Unitedi Statesi remainsi thei largesti singlei recipienti ofi FDIi ini thei world.i However,i asi thei globali economyi hasi developed,i thei Unitedi Statesi musti activelyi competei toi retaini andi attracti newi investment
  • 20.
  • 21. 7 Unitedi States:i Paymenti &i Debti Collectioni Profile Thei paymenti culturei ofi domestici companiesi isi becomingi increasinglyi uncertaini and,i ini thei absencei ofi ai harmonizedi frameworki oni latei payments,i paymenti termsi remaini ai merei contractuali issue Thei courti systemi isi complicatedi byi ai county,i statei andi federali structurei ini whichi protectioni mechanismsi arei noti recognizedi andi wherei noi simplifiedi proceedingsi arei availablei toi settlei thei simplesti files.i Asi ai result,i significanti delaysi andi costsi musti bei expectedi whilei enforcementi mayi bei difficult. Wheni thei debtori becomesi insolvent,i collectingi debti becomesi ai complexi task.i Thei bankruptcyi systemi remainsi proi debtori andi makingi ai companyi insolventi isi noti ai significanti wayi toi obtaini payment.i Ini practice,i bankruptcyi reorganizationi isi resource-drainingi andi rarelyi resultsi ini generali unsecuredi creditorsi receivingi anyi dividend. 7.1 Availabilityi ofi financiali information Obtainingi financiali informationi oni privatei companiesi isi ratheri ai difficulti andi costlyi exercisei ini thei US.i Iti isi possiblei toi purchasei financiali informationi fromi specializedi providers,i buti iti isi alsoi recommendedi toi obtaini ai detailedi crediti application,i andi ifi possible,i ai personali guaranteei wheni grantingi crediti ini thei Unitedi States.i Information,i therefore,i isi thei lifebloodi ofi thei Euleri Hermesi crediti insurancei businessi andi ouri riski departmenti hasi variousi toolsi availablei toi allocatei eachi companyi ai gradei reflectingi itsi financiali healthi andi howi iti conductsi business.i Gradesi representi ai corei ofi ouri knowledgei andi analyses,i andi helpi clientsi identifyi andi avoidi risk.i Datai isi continuouslyi monitoredi toi offeri thei mosti up-to-datei informationi toi supporti managementi decisions. 7.2 Regulatoryi environment Thei Unitedi Statesi hasi ai federali structurei consistingi ofi fiftyi statesi andi onei federali districti (Washington,i D.C.),i eachi characterizedi byi specifici rulesi andi specifici courts.i Disputesi arei normallyi settledi ati thei statei leveli throughi Statei andi Countyi Courtsi ofi generali jurisdiction,i buti federali Districti andi Regionali Courtsi wouldi havei exclusivei jurisdictioni overi subjecti mattersi fallingi underi thei scopei ofi applicationi ofi federali lawi (internationali trade,i federali claims)i ori wheni thei disputei involvesi partiesi locatedi ini differenti statesi andi ai balancei ofi overi USDi 50,000 7.3 Daysi Salesi Outstandingi (DSO) Paymentsi ini thei USi normallyi takei placei withini 28i daysi oni average,i buti delaysi ofi fivei toi teni daysi tendi toi
  • 22. bei increasinglyi imposedi byi largei companies.i Ini somei instances,i suchi asi fori substantiali salesi ori speciali customers,i termsi cani extendi upi toi 90i ori eveni 120i days.i Somei businessesi havei beguni toi takei ai morei relaxedi approachi toi invoices.i Iti isi nowi noti uncommoni toi heari ofi businessesi thati regularlyi extendi termsi withouti furtheri discussioni withi theiri suppliers,i andi thisi isi undoubtedlyi ai worryingi trend.i Businessesi arei lessi inclinedi toi thei concepti thati invoicesi arei ‘duei now,’i noti appreciatingi thati 30-i dayi termsi ori indeedi anyi periodi ofi crediti isi ai privilegei ratheri thani ai right.i Perhapsi unsurprisingly,i iti isi thei largeri companiesi thati arei muchi morei likelyi toi takei advantagei ofi theiri suppliers’i goodi naturei andi theiri dependencei oni largeri customersi fori trade 7.4 Latei paymenti interest Paymenti termsi arei noti regulatedi byi lawi andi mayi bei freelyi agreedi uponi asi parti ofi ai contractuali relationship.i Latei paymenti interesti mayi bei chargedi toi thei debtor.i Interesti mayi bei chargedi upi toi thei legali ratei ofi interesti allowedi byi thei statei ini whichi thei debtori resides.i Ifi noi suchi agreementi isi available,i thei creditori cani chargei thei legali ratei ofi interesti allowedi byi lawi ini thati state. 7.5 Ownershipi protection Retentioni ofi Titlei isi veryi uncommoni ini thei US,i soi iti wouldi noti standi upi ini court,i sincei securedi lenders’i rightsi takei priorityi overi thei goods.i UCCi financingi statements,i beingi ai legali formi filedi byi ai creditori ini orderi toi givei noticei ofi itsi interesti ini thei personali propertyi ofi thei debtori toi otheri creditors,i arei consideredi asi ai betteri alternativei thoughi iti isi alsoi rarelyi usedi asi debtorsi cani normallyi choosei anotheri supplieri thati doesi noti havei suchi requirement. 8 Unitedi states:i Enforcementi ofi Businessi Legali Decisions Domestici judgmentsi ini thei Unitedi Statesi givei thei creditorsi additionali rights,i suchi asi thei seizurei andi sellingi ofi thei debtor’si assetsi ori thei garnishmenti ofi theiri banki account.i Asi ai federali state,i decisionsi renderedi ini onei ofi thei country’si statesi mayi bei executedi ini anotheri state’si court,i providedi thati thei enforcingi courti considersi thati iti isi competenti toi enforcei anyi judgement. Fori foreigni awards,i eachi statei hasi itsi owni legislation.i Nevertheless,i theyi musti bei firsti recognisedi asi domestici judgments.i Ifi ai reciprocali recognitioni treatyi exists,i thei requirementi isi fulfilled.i However,i ini thei absencei ofi one,i exequaturi proceedingsi aimi ati ensuringi enforcementi ini domestici court,i afteri verifyingi thei judgmenti meetsi certaini criteriai providedi byi thei statei law. 8.1 Alternativesi toi legali action Alternativei Disputei Resolutioni methodsi (ADR)i Giveni thei lengthyi andi costlyi naturei ofi legali actionsi ini thei US,i Alternativei Disputei Resolutioni methodsi (suchi asi arbitrationi ori mediation)i arei veryi common.i First,i thei lawi (underi thei Alternativei Disputei Resolutioni Act,i 28i U.S.C.i §i 651i eti seq.)i imposesi ani obligationi oni federali courtsi toi providei meansi toi settlei disputesi throughi ADR.i Secondi andi asi previouslyi mentioned,i mosti casesi ini thei USi endi throughi ai negotiatedi compromisei andi ADRi thusi constitutesi ai relevanti channeli fori doingi so.i Finally,i thei courtsi increasinglyi tendi toi orderi thei partiesi toi engagei ini ai pre-triali negotiationi processesi priori toi commencingi proceedings.i Somei jurisdictionsi alsoi consideri thisi phasei asi ai pre-legali requirementi which,i ifi noti fulfilled,i wouldi bari accessi toi court.
  • 23. 8.2 Insolvencyi Proceedings 8.2.1 Out-Of-Courti Proceedingsi Differenti statei lawsi cani proposei out-ofi courti proceedingsi ini orderi toi avoidi anyi formali judiciali proceedings,i suchi asi thei Assignmenti fori thei benefiti ofi creditorsi ini thei statei ofi California,i wherei ai companyi turnsi overi alli ofi itsi assetsi toi ani independenti thirdi party,i whoi liquidatesi andi distributesi themi toi alli creditorsi ini ani equitablei fashion. 8.2.2 Restructuringi Proceedings Chapteri 11iofi thei Americani Bankruptcyi Codei providesi ai distressedi entityi withi thei opportunityi toi preservei itsi businessi asi ai goingi concerni whilei implementingi ani operationi ofi financiali restructuring.i Thei debtori cani seeki toi adjusti itsi debti byi reductioni thei amounti owedi ori extendingi repaymenti terms.i Thei debtori entityi andi itsi managementi continuei toi operatei thei businessi asi thei debtor-in-possession.i Thei Bankruptcyi Courti supervisesi thei proceedings. 8.2.3 Liquidation Accordingi toi Chapteri 7i ofi thei Americani Bankruptcyi Code,i thei purposei ofi thesei proceedingsi isi toi implementi ani orderlyi liquidationi ofi thei distressedi entity.i Thei court-supervisedi processi involvesi ai trusteei sellingi assetsi andi distributingi thei proceedsi toi creditorsi ini accordancei withi thei statutoryi prioritiesi providedi ini thei Bankruptcyi Codei asi welli asi pursuingi availablei causesi ofi action.i Thei USi Trusteei appointsi ani independenti interimi trusteei toi administeri thei case.i Thei interimi trusteei holdsi ai meetingi ofi creditorsi afteri thei petitioni isi filed.i Hei isi responsiblei fori liquidatingi thei estate’si assetsi andi distributingi thei proceedsi toi thei creditors.i Thei courti supervisesi thei proceedings.i Statei lawi cani alsoi providei differenti mechanismi fori liquidationi ofi ai debtor’si assetsi suchi asi receivership. 8.3 Insolvencyi Trend
  • 24. 9 Unitedi States:i Culturei &i Societyi i 9.1 Sociali Issues 9.1.1 Employmenti trends i Asi peri thei Harvardi businessi reviewi wheni iti comesi toi locationi andi schedulei 80%i ofi thei employeesi desirei morei flexibilityi ati worki andi lessi thani 25%i arei satisfied.i Onei controversyi wasi therei whichi wasi surroundingi Kavanaughi hearingi whichi isi thei sourcei ofi politicali andi workplacei conflicts.i Fori instance,i therei wasi casei wherei ai memorandumi wasi releasedi byi Sundari Pichaii CEOi ofi Googlei toi warni employeesi noti toi leti theiri “personali problemsi ori politicsi affecti theiri work”.i Thus,i iti alsoi hasi ai hugei impacti oni thei businessi environmenti andi crossi borderi businessi wheni iti comesi toi tradingi asi thei credibilityi andi reliabilityi decreases.i Thisi politicali conflicti wheni combinedi withi technologyi createi ai booni ini thei formi ofi “hashtagi activism”.i 9.1.2 Federali privacyi laws Ini Junei 2019,i sweepingi privacyi legislationi wasi presentedi ini Californiai whichi impactedi businessesi ofi morei thani $25i millioni ori thosei whoi collecti andi disseminatei informationi toi morei thani 50i thousandi people.i Asi thei residentsi ofi thei nationi hasi thei righti toi seei thei informationi andi withi whomi iti isi shared.i Ini 2019,i legislatorsi consideredi similari legislationi wheni CEOi ofi Applei Timi Cooki aski governmenti toi passi ai comprehensivei privacyi lawi ini thei casti ofi EU’si generali datai protectioni regulation.i Timi ini onei ofi hisi interviewsi saidi thati datai hadi becomei ai weaponi ini moderni worldi withi efficiencyi ofi military.i Manyi Techi companiesi abidei byi EUi finesi ati 4%i ofi revenue.i Alli thei companiesi whetheri iti isi nationali ori internationali ori MNCi willi bei welli advisedi toi checki theiri privacyi andi datai policies. 9.1.3 Equalityi ati workplace Wheni #MeTooi movementi wasi launchedi morei thani 100i womeni electedi toi congress.i Californiai passedi senatei billi 826i i.e.i thei firsti movei toi geti representationi fromi femalei oni boardsi ofi directorsi ini publici companiesi andi thisi issuei wasi soi populari thati iti hadi ai directi impacti oni businessesi buti therei isi noi standardi fori privatei companies. Ini 2019i U.S.i companiesi focusedi oni genderi equalityi andi tryi toi discardi everyi chancei toi geti intoi anyi discriminationi acti andi injusticei toi anyi gender.i Companiesi startedi focusingi oni genderi equalityi policiesi andi electedi morei femalei directors. Otheri sociali issuesi likei sociali mediai trendsi (Facebook,i twitter,i Instagrami etc.),i artificiali intelligencei ini customeri service,i nostalgiai (peoplei seeki normalcy),i marijuanai consumptioni amongi U.S.i youngsters,i traveli trendsi andi foodi &i nutrition.i Thesei alli factorsi havei impacti oni businessi environment. 9.2 Culturali Issues Therei arei hugei cross-culturali challengesi whichi arisesi wheneveri tradei happensi betweeni countries.i U.S.A.i hasi ai low-contexti culturesi wheneveri negativei feedbacki isi called,i theyi tendi toi bei indirect.i Buildingi trusti isi anotheri challengei fori businesses.i Ini unitedi states,i peoplei tendi noti toi havei drinksi withi potentiali businessi partnersi andi tryi toi avoidi asi muchi asi possiblei asi theyi tryi toi avoidi embarrassingi situations.
  • 25. Therei arei otheri factorsi alsoi whichi affecti thei trusti buildingi likei thei comforti ofi silence.i Ini U.S.i comforti ofi silencei isi lowi asi theyi arei ablei toi speaki duringi businessi meetingsi andi feeli comfortablei ifi thei conversationi stopsi fori 0.5i mins.i 9.2.1 Communicationi Asi Englishi isi thei commoni languagei usedi ini businessi worldi soi U.S.i businessi environmenti isi goodi fori anyi otheri countryi whoi isi tradingi withi them.i Effectivei communicationi isi veryi importanti toi businessi success.i Iti isi importanti toi learni thei languagei ofi thei targeti marketi andi thei tradingi partiesi asi toi properlyi conveyi message.i Aparti fromi verbali communicationi nonverbali communicationi isi veryi importanti ini businessi nowi ai daysi wheni dealingi withi internationali businesses. 9.2.2 Interactions Everyi countryi hasi ai gesturei toi greeti wheni theyi havei businessi meetingi andi conferencesi andi thisi playsi ani importanti rolei whilei signingi ai deal.i Sometimesi peoplei needi toi bei extrai observanti ofi bodyi languagei andi iti isi betteri toi aski thei otheri partyi thani commiti ai sociali blunder. 9.2.3 Etiquettei ini thei workplace Thei workersi ofi MNCi arei likelyi toi encounteri manyi differencesi whichi makesi iti compulsoryi fori employeesi toi learni businessi etiquette.i Asi Americansi usei firsti names,i eveni wheni dealingi withi newi people.i Punctualityi isi somethingi whichi isi relative.i Wheni dealingi withi businessi Partners,i clientsi ori colleaguesi fromi U.S.i theyi expecti theiri partnersi toi bei oni time. i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i Thei businessi hierarchyi ini U.S.Ai includesi followingi designations: 9.2.4 Hierarchyi ini thei organization Iti isi createdi toi achievei goalsi andi supporti stakeholders.i Ini U.S.A,i therei isi cleari mentioningi ofi designations,i positionsi andi dutiesi ini thei organization.i Thei businessi culturei givesi enoughi freedomi toi thei workersi toi reachi theiri goali ini spitei ofi rigidi dutiesi andi regulations. 10Unitedi States:i Healthi Carei Systemi Thei U.S.i healthi carei systemi isi uniquei amongi advancedi industrializedi countries.i Thei U.S.i doesi noti havei ai uniformi healthi system,i hasi noi universali healthi carei coverage,i andi onlyi recentlyi enactedi legislationi mandatingi healthcarei coveragei fori almosti everyone.
  • 26. 10.1 Rolei ofi Government Thei Affordablei Carei Acti (ACA),i enactedi ini 2010,i establishedi “sharedi responsibility”i betweeni thei government,i employers,i andi individualsi fori ensuringi thati alli Americansi havei accessi toi affordablei andi good-qualityi healthi insurance.i i However,i healthi coveragei remainsi fragmented,i withi numerousi privatei andi publici sources,i asi welli asi widei gapsi ini insuredi ratesi acrossi thei U.S.i population.i Thei Centersi fori Medicarei andi Medicaidi Servicesi (CMS)i administersi Medicare,i ai federali programi fori adultsi 65i andi olderi andi somei peoplei withi disabilities,i andi worksi ini partnershipi withi statei governmentsi toi administeri bothi Medicaidi andi thei Children’si Healthi Insurancei Programi (CHIP),i ai conglomerationi ofi federal–statei programsi fori certaini low-incomei populations. Privatei insurancei isi regulatedi mostlyi ati thei statei level.i Ini 2014,i statei andi federallyi administeredi healthi insurancei marketplacesi werei establishedi toi providei additionali accessi toi privatei insurancei coverage,i withi income-basedi premiumi subsidiesi fori low-i andi middle-incomei people.i Ini addition,i statesi werei giveni thei optioni ofi participatingi ini ai federallyi subsidizedi expansioni ofi Medicaidi eligibility.
  • 27. 10.2 Publiclyi Financedi healthi care Ini 2014,i publici spendingi accountedi fori abouti 49i percenti ofi totali healthi carei spending.12 i Medicarei isi financedi throughi ai combinationi ofi payrolli taxes,i premiums,i andi federali generali revenues.i Medicaidi isi tax-fundedi andi administeredi byi thei states,i whichi operatei thei programi withini broadi federali guidelines.i Statesi receivei matchingi fundsi fromi thei federali governmenti fori Medicaidi ati ratesi thati varyi basedi oni theiri per-capitai income—ini fiscali yeari 2016,i federali matchingi rangedi fromi 50i percenti toi 74i percenti ofi states’i Medicaidi expenditures.13 i Thei expansioni ofi Medicaidi underi thei ACAi isi currentlyi fullyi fundedi byi thei federali governmenti throughi 2017,i afteri whichi thei government’si fundingi sharei willi bei phasedi downi toi 90i percenti byi 2020i (subjecti toi changei underi thei newi administrationi andi Congress).i Federali premiumi subsidiesi oni thei exchangesi arei offeredi ini thei formi ofi taxi credits. 10.3 Privatelyi financedi Healthi care Ini 2014,i privatei healthi insurancei spendingi accountedi fori abouti 39i percenti ofi totali healthi carei spending.14 i Privatei insurers,i whichi cani bei for-profiti ori nonprofit,i arei answerablei toi statei insurancei commissionersi andi subjecti toi varyingi statei (andi federal)i regulations.i Privatei healthi insurancei cani bei purchasedi byi individualsi buti isi usuallyi fundedi byi voluntary,i tax-exempti premiums,i thei costi ofi whichi isi sharedi byi employersi andi workersi oni ani employer-specifici basis,i sometimesi varyingi byi typei ofi employee.i Thei employeri taxi exemptioni isi thei government’si third-largesti healthi carei expenditurei (afteri Medicarei andi Medicaid),i reducingi taxi revenuesi byi USD260i billioni peri year.15 Somei individualsi arei coveredi byi bothi publici andi privatei healthi insurance.i Fori example,i manyi Medicarei beneficiariesi purchasei privatei supplementali Medigapi policiesi toi coveri additionali servicesi andi cost- sharing.i Privatei insurers,i ini general,i payi providersi ati ratesi higheri thani thosei paidi byi publici programs,i particularlyi Medicaid.i Thisi disparityi leadsi toi widei variationsi ini provideri paymenti ratesi andi revenues,i whichi dependi toi ai largei extenti oni payeri mixi andi marketi power. Medicare’si paymenti ratesi arei typicallyi determinedi accordingi toi ai feei schedule,i withi variousi adjustmentsi basedi oni costi ofi livingi andi otheri locali andi provideri characteristics.i Medicaidi ratesi varyi byi state.i Privatei healthi insurersi typicallyi negotiatei paymenti ratesi withi providers 10.4 Reasonsi Behindi Highi USi Healthi Carei Ini 2016,i thei U.S.i spenti nearlyi twicei asi muchi oni healthi carei asi otheri high-incomei countries,i yeti hadi pooreri populationi healthi outcomes. • Thei maini driversi ofi higheri healthi carei spendingi ini thei U.S.i arei generallyi highi pricesi —i fori salariesi ofi physiciansi andi nurses,i pharmaceuticals,i medicali devices,i andi administration. • Contraryi toi commonlyi heldi beliefs,i highi utilizationi ofi healthi carei servicesi andi lowi spendingi oni sociali servicesi doi noti appeari toi playi ai significanti rolei ini higheri U.S.i healthi carei costs. • Ini addition,i despitei poori populationi healthi outcomes,i qualityi ofi healthi carei deliveredi oncei peoplei arei sicki isi highi ini thei U.S.
  • 28. 11Unitedi States:i Infrastructure Thei $21i trillioni U.S.i economyi dependsi oni itsi vasti networki ofi infrastructurei fromi roadsi toi interneti provision.i Asi thei systemi wasi buildi yearsi ago,i andi accordingi toi economisti delaysi andi risingi maintenancei costsi arei holdingi economici performancei back.i Engineersi arei alsoi warningi andi havei safetyi concernsi thati manyi bridgesi arei structurallyi deficienti andi antiquatedi drinkingi wateri andi wastewateri systemsi posei risksi toi publici health.i Meanwhile,i otheri competingi countriesi whichi arei developedi havei morei efficienti andi reliablei servicesi andi theiri investmenti isi oni ani averagei doublei ofi America. Thei presidenti ofi US,i Donaldi J.i Trumpi hasi promisedi andi isi workingi andi focusingi oni thei infrastructurei developmenti andi increasedi publici spendingi asi iti wasi necessaryi toi meeti thei growingi needsi andi ensurei thei developmenti whichi willi directlyi affecti thei economy. Asi afteri thei Worldi Wari II,i robusti investmenti ini infrastructurei seti thei foundationi fori thei nation’si growth.i Iti isi clearlyi estimatedi thati poori infrastructurei willi definitelyi imposei largei costsi oni U.S.i economy.i Andi anyi catastrophici failuresi likei bridgei collapsesi ori dami breaches,i inadequatelyi maintainedi roads,i trains,i andi waterwaysi costi billionsi ofi dollarsi ini losti economici productivity. Accordingi toi Henryi Petroski,i ani engineeri andi historian,i thei traffici congestioni causei delayi andi costi thei economyi aroundi $120i billioni peri year.i Anotheri chokei pointi isi airporti asi internationali tourismi supportsi 1.2i millioni U.S.i jobsi andi bringsi ini hundredsi ofi billionsi ofi dollarsi ofi taxi revenuei buti duei toi thei poori statei ofi nation’si airportsi therei arei delaysi andi avoidedi tripsi whichi costi thei economyi overi $35i billioni peri year.i Accordingi toi manyi analystsi andi economistsi investingi ini newi infrastructurei andi currenti maintenancei willi affecti thei economyi positivelyi ini manyi ways.i Asi becausei ofi thisi efficiencyi willi increasei andi reliabilityi andi loweri transportationi costsi thesei alli willi boosti longi termi U.S.i competitivenessi andi acti asi ani economyi shocksi insulator.i Thisi isi directlyi increasingi thei demandi andi employment,i asi somei 14i millioni workersi (11%i ofi totali U.S.i labori force),i arei currentlyi employedi byi thisi sectori asi peri thei Brookingsi Institution. Sincei 1980s,i Thei Americani Societyi ofi Civili Engineersi (ASCE)i compilei “reporti cards”i oni thei statei ofi nation’si infrastructure.i Ini 2017i report,i U.S.i goti “D”i whichi meansi “mostlyi belowi standard”,i givingi ai signali fori “significanti deterioration”i whichi willi leadi toi highi riski ofi failure.i Byi 2025,i Thei estimatedi infrastructurei gapi isi $1.5i trillion.
  • 29. Ini thei developedi world,i U.S.i generallyi lagsi behindi itsi peers.i Asi peri thei worldi economici forum’si globali competitivenessi report,i ini 2016i U.S.i wasi rankedi 10th i ini thei worldi fori thei infrastructurei qualityi asi iti camei downi fromi 5th i positioni whichi wasi ini 2002.i Andi iti isi placedi behindi byi France,i Germany,i Japani andi Spain.i Poori infrastructurei directlyi affecti thei businessi andi thisi alsoi increasei averagei commutingi houri asi iti becamei 48i minutesi peri dayi whichi isi veryi highi thati ofi itsi peersi duei toi congestioni andi poori publici transiti asi ini U.K.i itsi 38i minsi andi ini Italyi 32mins.i Wheni iti comesi toi interneti U.S.i isi againi laggingi behindi asi byi Worldi Economici Forumi iti goti 19th i ranki ini broadbandi coverage.i Therei isi ai hugei differencei ini thei fundingi levelsi ofi U.S.i andi itsi peersi likei oni averagei Europeani countriesi spendi approx.i 5%i ofi GDPi oni buildingi andi maintainingi infrastructurei whereasi U.S.i spendi 2.4%.i somei ofi thei developedi nationsi likei Australia,i Canada,i France,i U.K.i havei alsoi developedi Nationali Infrastructurei Frameworksi whichi allowi centrali governmenti toi directi andi prioritizei projectsi whichi U.S.i failedi toi doi duei toi decentralizedi system. U.S.i differsi fromi otheri industrializedi countriesi oni thei basisi ofi howi theyi spendi theiri locali andi statei fundingi oni itsi infrastructurei development. Ini comparisoni toi Europeani countriesi whichi fundsi bulki ofi theiri infrastructurei developmenti ati nationali level,i aroundi 25%i whichi veryi lessi asi comparisoni toi othersi U.S.i publici infrastructurei fundingi comesi fromi thei federali government.i Thei federali governmenti helpsi ini somei indirecti waysi whichi includei financingi mechanismsi ori taxi incentives.i Manyi projectsi havei startedi asi thei electricityi andi poweri sectori accounti fori thei largesti sharei ofi thei projecti pipelinei valuei US$4222.9i billioni followedi byi raili projects;i airporti andi otheri infrastructurei projects,i roadi projectsi whichi makei upi fori US$110.9i billioni andi wateri andi seweragei projectsi valuei ati US$86.8i billion. Thei publici sectori isi expectedi toi contributei 48.3%i ofi thei totali valuei ofi infrastructurei projectsi ini thei pipeline,i whilei 31.6%i arei expectedi toi bei financedi byi thei privatei sectori (thei majorityi ofi whichi arei electricityi andi poweri projects).i Thei remainingi 20%i willi bei financedi byi ai mixi ofi publici andi privatei sources. Ini feb,2018,i Trumpi Administrationi releasedi itsi infrastructurei initiativei toi modernizei thei country'si infrastructure.i Taxi ratesi reductioni andi deregulationi arei expectedi toi boosti overalli investmenti overi thei nexti 5i years,i majorlyi ini thei telecommunications,i energyi andi airi transportationi sectors.i 12Unitedi States:i Reachingi thei Consumer
  • 30. 12.1 Populationi ini Figures Ethnici Origins:i Accordingi toi thei U.S.i Censusi Bureau,i thei majorityi ofi Americansi havei Europeani ori Middlei Easterni ethnici origins,i representingi overi 77%i ofi thei population.i Overi 17%i ofi thei populationi hasi Hispanici ori Latinoi ethnici origins,i 13%i ofi thei populationi isi Africani Americani andi abouti 5%i isi ofi Asiani ethnici origin.i Nativei Americansi andi Alaskani Nativesi constitutei abouti 1%i ofi thei populationi andi Nativei Hawaiiansi ori otheri Pacifici Islandersi arei abouti 0.2%i ofi thei population. 12.2 Consumeri Profile Thei averagei agei havingi beeni morei ori lessi constanti sincei 2010i despitei ai slighti upwardi trend.i Iti reachedi 38.2i yearsi ini 2018.i Morei thani 31%i ofi thei populationi isi underi 24i yearsi oldi andi 29%i isi overi 55i yearsi old.i Thei populationi growthi ratei isi 0.8%.i Thei averagei sizei ofi ai householdi isi 2.53i yearsi peoplei withi 28%i ofi householdsi livingi alone,i 34.5%i ofi peoplei livingi ini twoi andi 15.2%i ofi householdsi ofi 3i people.i Therei arei abouti 97i meni fori everyi 100i women.i Abouti 82%i ofi thei populationi livesi ini urbani areas.i Thei mosti populatedi areasi arei ini thei easterni halfi ofi thei Unitedi Statesi (Greati Lakes,i Northeast,i Easti andi Southeast)i andi ini thei westerni states.i Thei leasti populatedi populationsi arei mountaini areas,i desertsi andi boreali forestsi ini thei extremei north.i Thei maini citiesi arei Newi York-Newark,i Losi Angeles-Longi Beach-Santai Ana,i Chicago,i Houston,i Miami,i Washingtoni DC.i i Thei leveli ofi educationi isi highi withi 90%i ofi adultsi agedi 25i toi 64i havingi completedi secondaryi education,i andi 28%i continuingi ini higheri education.i Thei maini occupationsi arei administrativei andi tradei jobs,i followedi byi health,i management,i business,i finance,i transportationi andi construction 12.3 Purchasingi Power Thei GDPi peri capitai PPPi ini thei Unitedi Statesi isi 59i 531i USDi peri year.i Thei averagei salaryi isi upi andi hasi reachedi 38i 390i dollars.i Purchasingi poweri ini 2018i hasi increased,i thanksi toi thei increasei ini promotionsi andi thei usei ofi credit.i Adjustedi disposablei incomei peri capitai is $i 44,049.i Consumptioni rosei ini 2018i andi grewi byi 1.26%i ini thei thirdi quarteri ofi 2018.i Thei Ginii indexi oni incomei inequalityi hasi stabilisedi sincei 2016.i Ini 2017,i meni earnedi ani averagei ofi $i 44,408i ai yeari andi womeni earnedi 31,610.i Wagesi ini thei easti ofi thei countryi arei higheri whilei thei southi hasi thei lowesti wages.i Asian-borni householdsi havei thei highesti mediani wage,i aheadi ofi thei non-Hispanici whitei population,i thei Hispanici populationi andi thei Afro-Americani population.
  • 31. 12.4 Consumeri Behaviour Thei Unitedi Statesi isi ai veryi developedi consumeri society.i Whilei thei populationi hasi ai fairlyi highi leveli ofi confidencei ini thei future,i thei financiali crisisi hasi pushedi consumersi toi movei towardsi lower-pricedi products.i Youngi peoplei arei morei likelyi toi payi attentioni toi promotionsi andi comparei prices.i Thei mosti populari supermarketsi arei Walmarti andi Sam'si Clubi (morei thani ai fifthi ofi marketi share),i followedi byi Kroger,i Albertsons,i Costcoi etc.i Americansi arei generallyi willingi toi traveli toi majori shoppingi centres.i Ini ani averagei yeari ani Americani spendsi 7203i dollars,i withi 85%i ofi Americansi visitingi thei interneti ati leasti oncei ai month.i Thisi marketi representsi $i 504i billioni ini 2018,i includingi 10%i ofi goodsi purchasedi oni Amazon.i Consumeri confidencei isi downi ati thei endi ofi 2018.i Generally,i consumersi arei openi toi internationali companiesi andi brands. Mosti Americansi arei loyali toi brandsi buti arei willingi toi learni abouti otheri brandsi toi accessi cheaperi productsi withi 10%i ofi consumersi showingi willingnessi toi tryi otheri brandsi ifi thei pricei isi lower.i Sociali networksi havei ai largei impacti oni consumers,i withi 74%i ofi sociali networki usersi makingi decisionsi basedi oni feedback.i Plusi 45%i readi reviews,i articles,i reviewsi andi feedbacki fromi influencersi oni products.i i Somei 71%i ofi consumersi arei worriedi abouti bigi datai andi 34%i doi noti trusti techi companiesi withi regardi toi personali data. Amongi consumeri trendsi ini thei Unitedi Statesi 'Madei ini America'i isi ani importanti issue.i Somei 70%i ofi Americansi consideri iti significanti toi buyi Americani products.i Also,i responsiblei consumptioni isi increasinglyi attractingi consumersi whoi wanti sustainable,i transparent,i cleani products.i i Somei 48%i ofi consumersi sayi theyi wanti toi changei theiri habitsi toi reducei theiri impacti oni thei environment.i Youngi peoplei arei eveni morei concernedi abouti thei subjecti andi arei willingi toi payi morei toi reducei theiri footprint.i Thei second-handi marketi grewi byi 2%i betweeni 2014i andi 2019,i andi buyingi andi sellingi websitesi arei multiplying.i Thei collaborativei economyi isi highlyi developedi ini thei Unitedi States,i especiallyi ini largei cities. 12.5 Housei Holdi Consumeri Expenditure
  • 32. 12.6 Consumeri Recoursei toi Credit Ini thei Unitedi States,i thei usei ofi crediti andi debiti cardsi isi widespread.i Withi cardi payments,i aroundi 70%i isi madei byi debiti card,i whilei crediti cardsi arei usedi ini thei remainingi 30%.i However,i thei amounti ofi purchasesi madei withi crediti cardsi isi higher.i Householdi debti hasi increasedi significantlyi ini recenti yearsi andi exceedsi thei pre-crisisi level.i Ini thei secondi halfi ofi 2018,i outstandingi debti reachedi $i 13.29i trillion.i Morei andi morei Americansi arei ini debti (abouti 73%i ofi thei population).i Oni average,i ani Americani hasi $i 137,000i ini debt,i andi 38,000i ifi onei withdrawsi mortgages.i Consumeri crediti isi usedi primarilyi toi financei vehicles,i educationi andi sustainablei products.i Thei risei ini defaults,i threateningi financiali stability,i andi ai possiblei risei ini interesti ratesi couldi havei ai negativei impacti oni consumeri credit. 13i Unitedi States:i Riski Assessmenti oni Currenti Trends 13.1 Growthi hamperedi byi businessi difficulties Growthi willi slowi sharplyi ini 2020i duei toi thei downturni ini businessi investmenti which,i afteri beingi boostedi ini 2018i andi earlyi 2019i byi Presidenti Donaldi Trump’si taxi reformsi (corporatei taxi cuti fromi 35%i toi 21%),i begani toi declinei ini mid-2019i amidi tradei tensions,i aggravatedi byi thei unpredictabilityi ofi politicali decisions.i Ini addition,i USi companiesi havei beeni forcedi toi trimi theiri importi margins,i toi avoidi passingi oni thei entirei increasei ini inputi costsi resultingi fromi customsi dutiesi imposedi oni mosti Chinesei importsi andi ai multitudei ofi productsi (includingi steeli andi aluminium),i buti alsoi theiri exporti margins,i toi remaini competitivei despitei retaliationi measuresi byi tradingi partners.i Ini thisi challengingi contexti fori companies,i thei Federali Reserve,i whichi wasi forcedi toi loweri itsi keyi interesti ratei threei timesi byi thei endi ofi 2019,i isi expectedi toi pursuei itsi easingi policyi ini 2020.i Improvedi financingi conditionsi willi makei iti possiblei toi supporti householdi consumption,i whichi willi ini turni boosti growthi thanksi toi ai persistentlyi lowi unemploymenti ratei (3.6%i ini Octoberi 2019)i andi correspondinglyi briski growthi ini reali wages.i Conversely,i ini thei absencei ofi anyi majori newi measures,i publici spendingi willi contributei onlyi marginallyi toi growthi ini 2020,i afteri expandingi stronglyi fori twoi years.
  • 33. Ini addition,i thei tradei environmenti willi remaini weak,i featuringi mutedi growthi amongi keyi partnersi andi retaliatoryi protectionisti measuresi byi thosei samei partners,i andi exportsi willi growi slowlyi afteri ai flati performancei ini 2019.i Althoughi alsoi affectedi byi protectionisti measures,i importsi arei expectedi toi remaini brisker,i ini linei withi householdi consumption.i Foreigni tradei willi thereforei continuei toi weighi oni growth. Thei segmentsi mosti exposedi toi tradei tensionsi willi continuei toi bei manufacturingi industry,i whichi isi facingi bothi fallingi exporti ordersi andi risingi inputi costs,i andi agribusiness,i whichi isi thei maini targeti ofi Chinesei tradei retaliationi measures.i Thei economici situationi isi alsoi difficulti fori thei energyi sector,i whichi isi heavilyi indebtedi duei toi investmenti requirementsi andi facingi weaki profitabilityi becausei ofi thei dipi ini oili prices.i Conversely,i activityi willi remaini solidi ini construction,i thanksi toi lowi interesti rates. 13.2 Ever-presenti deficitsi ini publici andi externali accounts Ini thei absencei ofi anyi majori fiscali measures,i thei publici deficiti willi remaini veryi highi ini 2020.i Oncei again,i thei maini increasesi ini spendingi willi bei concentratedi ini thei militaryi budgeti (+USDi 23i billion,i ori 0.1%i ofi GDP).i Ati thei samei time,i withi revenuesi slackeningi ini ai contexti ofi slowingi activity,i thei deficiti mayi eveni widen.i Publici debt,i whichi isi amongi thei highesti ini thei world,i willi thereforei continuei itsi upwardi trajectory.i Ini thisi regard,i thei governmenti andi Congressi reachedi ani agreementi ini Julyi 2019i toi raisei thei ceilingi oni publici spendingi andi debt,i thusi avoidingi thei prospecti ofi ai federali shutdowni similari toi thei onei ini Januaryi 2019. Thei currenti accounti willi continuei toi showi ai largei deficiti ini 2020.i Substantiali importsi ofi consumeri andi capitali goodsi engenderi i ai structurali deficiti ini thei goodsi balancei (4.2%i ofi GDPi ini 2018).i Surplusesi ini thei balancei ofi servicesi (1.2%i ofi GDP)i –i thanksi toi tourism,i researchi andi developmenti andi financiali servicesi –i andi ini incomei (0.6%i ofi GDP),i attributablei toi dividendsi fromi USi investmentsi abroad,i arei clearlyi insufficienti toi offseti thei goodsi balance.i Thei resultingi currenti accounti deficiti willi bei mainlyi financedi byi FDIi andi portfolioi investment.i Thei neti externali asseti positioni hasi beeni ini deficiti fori threei decadesi (49.5%i ofi GDPi ati thei endi ofi Junei 2019).i Thisi deficiti willi continuei toi widen. 13.3 Uncertaintyi overi thei presidentiali electioni ini ai polarisedi landscape Ini thei lead-upi toi thei presidentiali electioni ini Novemberi 2020,i thei politicali landscapei looksi morei polarisedi thani ever.i Democrats,i whoi tooki overi thei Housei ofi Representativesi (235i seatsi outi ofi 435)i ini thei 2018i mid- termi elections,i launchedi impeachmenti proceedingsi ini Septemberi 2019i againsti Presidenti Trump,i whoi isi suspectedi ofi pressuringi Ukrainei toi investigatei Joei Biden,i onei ofi thei Democratici presidentiali candidatesi ini 2020.i Althoughi impeachmenti hasi veryi littlei chancei ofi success,i sincei iti requiresi ai two-thirdsi votei ini thei Senate,i wherei thei Republicansi stilli havei ai majorityi (53i seatsi outi ofi 100),i iti illustratesi thei dividei betweeni twoi setsi ofi voters:i ini Novemberi 2019,i onlyi 11%iofi Republicansi wantedi Presidenti Trumpi impeached,i comparedi toi 81%i ofi Democrats.i Thei outcomei ofi thei Democratici primariesi isi highlyi uncertain.i Whilei pollsi conductedi ai yeari beforei thei electionsi suggesti thati eachi onei ofi thei maini Democratici candidatesi wouldi beati Presidenti Trump,i thei situationi couldi changei radicallyi ini whati mayi bei ai tumultuousi electioni campaign. Internationally,i USi tradei andi foreigni policyi willi remaini unpredictable.i Despitei thei announcementi ofi ai partiali tradei agreementi ini Decemberi 2019,i tradei tensionsi withi Chinai arei expectedi toi continue,i withi mosti tariffsi beingi maintainedi (19%i oni averagei ini Januaryi 2020i versusi 3%i ati thei beginningi ofi 2018).i Thei Unitedi Statesi mayi alsoi openi ai newi fronti ini thei tradei wari byi taxingi Europeani cari imports,i afteri twicei postponingi itsi decisioni oni thisi matter.
  • 34. 14Unitedi States:i Strengthsi &i Weakness 14.1 Strengths • Flexiblei labouri market • Fulli employmenti isi onei ofi thei Federali Reserve’si objectives • Highlyi attractive:i leaderi ini researchi &i innovation;i hugei market • World’si largesti economy • Effectivei governmentali checksi andi balances • Highi peri capitai GDP • Relativelyi lowi uniti labori costs • Highi datai transparency • Reservei currency • Largei oili andi gasi reserves • Diversei GDP • Lowi interesti ratesi andi inflation • Strongi dollari (lowersi inflation,i interesti rates) 14.2 Weakness • Lowi labouri marketi participation • Householdsi noti geographicallyi flexible • Highi householdi debti (129%i ofi grossi disposablei income) • Polarisedi politicali landscapei Decreasei ini fertilityi ratei Outdatedi infrastructurei Increasingi inequalities • Politicali polarization,i stagnation • Structurali unemployment • Lacki ofi skilledi workers • Lowi productivity • Highi corporatei debt • Highi publici debt,i persistenti budgeti deficits • Weaki housingi market • Restrictivei monetaryi policy • Soaringi amounti of,i andi defaultsi on,i studenti loans • Tradei conflicts • Strongi dollari (widensi persistenti tradei deficit)
  • 35. 15References • Countryi Riski Analysis.i (n.d.).i Ami besti ratingi agency.i https://www3.ambest.com/ratings/cr/crisk.aspx • Countryi Riski Classification.i (n.d.).i OECD.orgi -i OECD.i https://www.oecd.org/trade/topics/export- credits/arrangement-and-sector-understandings/financing-terms-and-conditions/country-risk- classification/ • Easei ofi Doingi Business.i (n.d.).i Worldi Bank.i https://www.doingbusiness.org/ • Economici Freedomi Studies.i (n.d.).i https://www.fraserinstitute.org/studies/economic-freedom • Economici Prosperityi andi Tradei Policy.i (2019,i Aprili 12).i Unitedi Statesi Departmenti ofi State.i https://www.state.gov/policy-issues/economic-prosperity-and-trade-policy/ • Economici Studies.i (2020,i Februaryi 4).i Tradei Crediti Insurance,i Accounti Receivablesi Managementi andi Businessi Informationi fromi Coface.i https://www.coface-usa.com/Economic-studies • Globali Competitivenessi Reporti 2015-2016.i (n.d.).i https://reports.weforum.org/global- competitiveness-report-2015-2016/ • Globali Competitivenessi Reporti 2015-2016.i (n.d.).i Globali Competitivenessi Reporti 2015-2016.i https://reports.weforum.org/global-competitiveness-report-2015-2016/ • Reportsi andi Publications.i (n.d.).i Unitedi Statesi Tradei Representative.i https://ustr.gov/about-us/policy- offices/press-office/reports-and-publications/ • Transparencyi Internationali e.V.i (June).i Whati Wei Doi -i Publications.i Transparencyi Internationali -i Thei Globali Anti-Corruptioni Coalition.i https://www.transparency.org/whatwedo/publications/doc/gcr