Thursday, February 14, 2019

You have been hired as a consultant for an airline, Yorkville Airlines, headquartered in New Brunswick, Canada, which believes there is potential for outsourcing aircraft maintenance to the United States. Because of your knowledge of the United States, you have been asked to provide a report on the American business environment that would include overviews of the United State’s economic system and the role of government in conducting business in the United States. In addition to the overview, it should specifically outline how these compare to Canada.

The American business environment, meaning the sets of relevant circumstances under which American companies do business, is robust, advanced, and fertile for wide-ranging innovations. Relevant to the aeronautics industry, the United States is a known leader in manufacturing and technology needed in aircraft construction and maintenance.
The role of government in America's mixed economic system is a regulatory one, although private enterprise is emphasized. A mixed economy functions with both private enterprise and government regulatory policy playing a role in directing the economy. Government sets policies and regulates such areas as corporations, environmental impact, and labor rights. The power of private enterprise comes from American belief in the power of capitalism.
Canada's business environment is similarly a mix of capitalism and government regulation of business. The significant differences between business environments in Canada and the United States are those of strength in technology, work force, and size of economy, as measured by Gross National Income (GNI); the US is ranked first and Canada eighth (NationMaster.com 2003-2019).
https://hbr.org/2009/07/government-in-your-business

https://www.nationmaster.com/country-info/compare/Canada/United-States/Economy


It is the erosion of the status and bargaining power of private-sector labor unions that has driven a corresponding decline of the social status and economic power of the once-vaunted middle class as the foundation of American prosperity. While some labor unions still have considerable political influence, contemporary corporate business models take advantage of the US government's absence of hands-on involvement in both organized labor and corporate governance. Unlike Canada's socialist model, no level of government in the US can mandate hiring practices for the benefit of organized labor, and in fact, it is a common principle of conservative politics to regard strong organized national labor as an economic cost rather than a benefit and as a "socialistic" threat to free market capitalism. As a result, the continued growth of the mammoth American service sector economy is modeled on part-time, temporary, low-wage, non-employee benefit positions in which service vendors are hired by corporations as independent contractors, which provides enormous relief, from corporate payroll taxes.
The tax issue is another key difference between the US and Canadian systems, and like the labor factor, another advantage for American corporations or others doing business in the US. The economies of the different states vary, as with the Canadian provinces, but there are no federal mandates requiring minimum wage, full-time or permanent employment or employee benefits, and indeed many states have done even more to create condition more attractive to intentional investment like tax breaks, easing environmental restrictions and "right to work" hiring which lifts the requirements in some factories that required employers to maintain a closed union shop. These examples are part of a process of modern economic development known as the so-called "race to the bottom" in which "organic" economic value is extracted from the local region and passed to the corporation which is not a member of that community, and while it is not unique to the US, the Canadian system has much stricter regulation over more of the national economy with much less political and social division as to common expectations , with private sector interests having a much less outsize influence over government economic and financial policy.
Fortunately for Canadian businesses looking to outsource a service operation, especially in a rural or economically depressed area such as the northeastern US/Canadian border region, the combination of abundant low-wage contract labor with other state or local financial incentives make the idea a viable, attractive one.


The American business environment is very similar to Canada's. They are both trading partners and work closely with each other in many industries.
Business in America is covered by all three levels of government: federal, state, and local. This means that all three levels have to comply with federal laws and regulations, and all legislation that is passed on the federal level is therefore applied to every state and locality. For example, U.S Supreme Court decisions must be followed by everyone, however state rulings must only be followed by the state. This creates very different laws, regulations, and work environments in each state and region. In contrast, Canada has only provincial and federal jurisdictions. The federal government is limited in what they can apply to each province, therefore there is not much overlap.
Workers in the United States are restricted more in their rights to unionize. This is partly due to each state law being different. Some states in the U.S have strict requirements for unions, and often try to prevent the right to unionize. In U.S law, when a business is sold, they don't necessarily the guarantee the continued right to collective bargaining, however in Canada this right is carried over. Lastly, in Canada the unions are protected under the Charter of Rights and Freedoms, whereas in the U.S constitution protection is very limited.
Because of the highly capitalistic nature in the country, the U.S leans towards business rights more than the rights of the employees. This is not to say that Canada does not. However, Canada is seen to have better worker protections. Both governments have intervened in their respective business spheres. The U.S applies federal laws to all states and localities, and often the Court hears cases pertaining to employment laws.


The economic system in the United States is mixed. It embraces both socialism and capitalism in that private assets are safeguarded and people are given some degree of economic freedom. Conversely, the economic system encourages government intervention in economic affairs to meet social goals. For this reason, the government can impose restrictions in both public and private economic sectors. Canada’s economic system is similar to that of the US in that it is market-oriented and allows government regulation.
The US government plays various roles when it comes to conducting business. It authorizes different entities to run businesses. Businesses are required to register with the relevant authorities before they begin operations. Similarly, businesses in Canada must register with the relevant provincial authorities.

No comments:

Post a Comment

What is the theme of the chapter Lead?

Primo Levi's complex probing of the Holocaust, including his survival of Auschwitz and pre- and post-war life, is organized around indiv...