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Quantitative Ranking and Political Stability in the USA

QuantitativeRanking and Political Stability in the USA

QuantitativeRanking and Political Stability in the USA

TheUnited States of America operates on strong constitutionality basis,which sets the precedence of a strong democratic system ofgovernment, both at the states level and the federal level. Though itoperates as a federal government, the people wield a lot of powerboth at state and federal levels through their power to elect theleaders of choice (Alt&amp Lassen, 2014 Hill,Cronk &amp Wickramasekera, 2013). Through a democratic country, thepeople have no much control over legislation as the latter isachieved through their elected representatives. For a very longperiod, the United States of America has consistently been exuding astable business environment maintaining high standards of politicalstability as well as lowest business risks globally (Hill et al.,2013). The political stability devoid of civil unrest, capitalcontrols, and armed conflicts as well as preparedness of the countryto avert and or control disasters scenarios effectively andefficiently, makes it a highly favorable business hub globally.

Thelegal/regulatory system in the USA and its benefit

TheUnited States of America is quite flexible on matters of businessinvestment both to local and foreign investors. The restrictionschange on the basis of the field of operations with more regulationsbeing enforced on foreign investments on security, information,aviation, broadcasting, insurance, banking and defense (Alt&amp Lassen, 2014).The legal system in the United States is highly decentralized.Moreover, it is critical to note that the country has experienced ahigh level of standardization especially in regulations andstructures, which has allowed all investors to operate equallywithout undue influence. Carpenterand Dunung (2012) opine that although standardization looks at theoperation of firms and their strategies in markets, it also points tothe normalization of systems in compliance and standards. Thus,most of the business areas fall under the prerogative of the state’slaws. On the other side, there are areas that fall fully under thefederal government regulations. These range from public security,import and export and matters related to immigration. On somebusiness areas, the legal roles are shared between the states and thefederal government, especially on matters environment, tax andemployment laws (Carpenter&amp Dunung, 2012).There exist a high level of equality between a resident and anon-resident investor when it comes to establishing a businessventure. For instance, there is no foreign exchange controls orapproval from any financial authorities required as well as thefinancing means (Hill et al., 2013). Generally, there is a free flowof capital and the conducive business environment in most of thestates to both local and foreign investors such that, it ranksAmerica amongst the bust business hubs globally.

Thelevel of corruption and its impact on business activities

Underthe Country Risk Tier Report 2016, the United States of America ranksamongst the leading nations in the fight against corruption. Thereexist clear and transparent legal framework, environment and systemsas well as the financial institutions and insurance systems.Instances of inadequate reporting, lack of accountability andtransparency are so limited thus, the nation has enhanced monitorsof corruption (Alt&amp Lassen, 2014 Hillet al., 2013). There also exist very effective bodies and mechanismswithin the judiciary and federal systems to handle cases ofcorruption efficiently, both at states and federal level of thegovernment. Consequently, the level of corruption in the country hasmaintained the lowest levels. Corruption keeps investors away as theyfear the political and the economic risks associated with the vice.These aspects combined together with the conducive legal andpolitical environment for business investment endear the USA tomillions of investors as a leading destination for both individualand corporate investments.

References

Alt,J. E., &amp Lassen, D. D. (2014). Enforcement and public corruption:evidence from the American states.&nbspJournalof Law, Economics, and Organization,&nbsp30(2),306-338.

Carpenter,M., &amp Dunung, S. (2012). Internationalstrategy. Challenges and opportunities in international business.Flatworld Knowledge

Hill,C. W., Cronk, T., &amp Wickramasekera, R. (2013).&nbspGlobalbusiness today.McGraw-Hill Education (Australia).