Competitive Advantage of The US

This article discusses the competitive advantage of the United States of America in terms of political stability, economic strength, and the role of the government. It also highlights the challenges faced by the country in maintaining its competitive edge.

Running head: COMPETITIVE ADVANTAGE OF THE US
Competitive Advantage of The US
Name of the Student:
Name of the University:
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COMPETITIVE ADVANTAGE OF THE US
Country of choice:
The country of the choice for the research would be the United States of America.
Competitive advantage of the US: Sources and challenges:
The following are the competitive advantages of the United States of America:
Political stability:
The United States of America is a politically strong which, is one of its biggest sources
of competitive advantage. A stable federal government under the leadership of the president rules
the country. The stability of the American government is a source of strength to the country
because it enables the government form strong industrial policies, which enables the industries to
function smoothly. This is evident from the fact the country is home to global companies like
Apple Inc, Nike Inc and Amazon Inc. However, the conflict between the ruling party and the
opposition parties tends to challenge the stability of the government and its policies (Usa.gov,
2019.
Economically strong:
The second point of competitive strength of the United States of America lies its strong
economic condition. Firstly, the American economy is one of the richest economies in the world
with an expected GDP of $ 21.345 trillion in 2019. Secondly, the country is home to the leading
stock exchanges in the world namely, NYSE and NASDAQ. These stock exchanges under the
supervision of the government form strong policies for the stock market. The US stock market is
one of the strongest and largest in the world, which enables the listed companies to acquire
immense amount of capital, thus boosting their financial strength. These listed companies in turn
produce finished goods and services of high value, thus in turn contributing to the GDP of the

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country (Gulser et al., 2019). The third source of competitive advantage, which the US enjoys,
over most of the economies is that resident multinational companies markets products in the
global market, thus earning foreign currency reserve for the country. However, the rise of strong
foreign competitors like Alibaba.com (competitor to Amazon) and Samsung Electronics
(competitor to Apple) challenge the market position, revenue generation and consequent foreign
reserve earning of American companies. The fourth advantage, which the American economy
enjoys in the international market, is the high value of USD in the international currency market.
This high value of USD is a strength since it enables the American economy acquire resources at
lower rates and sell at higher rates from and to most of the countries respectively. However,
weakening of the USD compared to other international currencies like EUR and AUD challenge
this easy access to global resources, which the American economy enjoys. However, slowing
down of the American and its growing dependence of emerging markets like India and China
poses challenges to the economic dominance of the former in the global market (Claudia, 2018).
Role of the government:
The Government of US plays the roles of lawmaker and facilitator of trade and
commerce. The government makes laws, which enable the industries to flourish in the country.
The government forms bilateral trade agreements with other economies, thus facilitating the
resident American companies to expand globally.
Does the government provide additional investment?
The government provides additional investments and subsidies to companies.

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What could increase their advantage?
The departments of the Government of the US can increase their advantages by being
more dynamic and curbing their bureaucracy.
References:
Claudia, O. (2018). Relevance of Big Data for Business and Management. Exploratory Insights
(Part I) [Ebook] (13th ed.). Retrieved from
https://doaj.org/article/08effeefe8544eebacbaa7750bf8767f
Gulser, M., Berrin, G., Shifei, C., & Ilhan, M. (2019). Studies in Business and Economics |
Sciendo. Retrieved 12 September 2019, from
https://content.sciendo.com/view/journals/sbe/sbe-overview.xml?lang=en
Usa.gov. (2019). Retrieved 12 September 2019, from https://www.usa.gov/