U.S. Economy: An Analysis of Globalization, Market & Cost Factors

This essay examines the multifaceted impact of globalization on the United States, focusing on market dynamics, cost factors, and environmental considerations. It highlights how globalization has fostered interaction and integration among people, companies, and the government, driven by advancements in transportation and communication. The analysis covers the influence of market forces, the role of the U.S. government in economic affairs, and the challenges entrepreneurs face in managing cash flows. Furthermore, it explores the internal and external environmental factors affecting businesses in the U.S., including its diverse geography and regulatory environment. The essay also discusses the concept of comparative advantage and how globalization has contributed to America's wealth and high standard of living, ultimately concluding that globalization has significantly impacted American citizens by opening up markets and increasing the influence of multinational corporations.

0Running head: GLOBALIZATION OF U.S.A
Globalization of U.S.A
Name of the student
Globalization
Name of the university
Author note

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Table of Contents
Introduction................................................................................................................................2
Market factors............................................................................................................................2
Cost factors of doing business....................................................................................................2
Environmental factors................................................................................................................3
Competitive advantage factors which benefits the United States..............................................3
Conclusion..................................................................................................................................4

2GLOBALIZATION OF U.S.A
Introduction
The globalization is a kind of process of interaction and integration which takes place
between people, companies and the government worldwide. Globalization have increased as
a result of advances in transportation. With the rise in global interaction, there is a rise of
international trade, culture and ideas (Bräutigam & Gallagher ,2014). The economies of scale
are known as the cost advantage that the firms usually obtain as a result of their scale of
operation where he cost per unit will be decreasing with the rise in scale. Globalization can
also be defined as the ongoing process through which the regional economies, cultures and
societies become integrated with the network of trade and communication.
Market factors
The forces of the demand and supply represents the influence of self interested buyers
and sellers on price and quantity of the goods. The market forces are the competitive
pressures in a free market which will impact the output and the price levels. The primary
market forces are generally the supply and demand. The economy of United States are
generally known as the capitalist economy. The United States have the mixed economy
(Gwynne & Cristobal, 2014).. The government of the UNITED States have always player an
important role in the economic affairs of the nation. The government of America also played
an important role in the economy with the financial policies which can influence inflation.
The United States of America is known to be have a mixed economy since the privately
owned business and the government, both plays an important role.
Cost factors of doing business
One of the challenge that the entrepreneur faces is the management of the cash flows.
The prices and the interest rates, consumer confidence along with the effect of the invisible
hand. Many business have found the factoring or the process of selling the accounts (Steger,
2017). Factoring is also used by the firms which have large volumes of business to business
sales on the credit.
Environmental factors
The United States of America is the second largest democracy in the world. There
are many factors which affects the business. There are both external and internal factors
which will affect the business environment of the place. The internal factors are those factors
which is present within the premise of an organization. The financial factors includes
financial policies and capital structures which affects the financial positions and he capital
structures of the business performance (Gwynne & Cristobal, 2014). On the other hand the
external factors are those factors which is present outside the firms and are regarded as
uncontrollable in nature. The environmental factors of the United States of America which
will impact the business will be that it has a diverse geography, wildlife and climate. The
diversity will drive a large amount of business in the country. Although The United States OF
America faces some of the toughest weather conditions in the world. As the country have
already suffered 218 climate disasters which can work against the environment. The
businesses usually come under the regulatory environment of the place from where they
operate. The United States of America have also offered a strong legal system.
Competitive advantage factors which benefits the United States
Globalization have introduced the concept of comparative advantage. The
comparative advantage can be defined as the ability of the country fir producing the goods
more efficiently and also inexpensively. The united states have also benefitted from

3GLOBALIZATION OF U.S.A
comparative advantage in labour costs. Although the less developed countries have benefitted
a lot from globalization by the comparative advantage. The globalization also means rise in
the integration of the world markets. The globalization have also helped the Americans wins
the war of the communism. Globalization made the Americans wealthy and also helped them
to enjoy the world’s highest standard of living. This stated with the invention of THE
General Agreement on Trade and Tariff (GATT) (Oliveira & Hecht, 2016).
Conclusion
The globalization have highly impacted the American citizens in a great way. More
markets have been opened up in the United States as a result of globalization. There have
been huge rise of the multinational corporations and the influence have also highly increased.
With the help of globalization, American corporations can also sell their products outside the
country. The cheap prices have helped the Americans to raise their standard of living

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