Elements affecting Business in North America

There are 23 nations that make up the continent of North America, which is located in the northern hemisphere. It is surrounded by the Pacific Ocean to the west and south and the Atlantic Waters to the east. With a population of roughly 600 million people, North America is a region of about 25 million square kilometers. The geography, politics, and culture of a place are only a few aspects that influence commercial activity.
Geographical Factors North America has two distinct climate patterns: a tropical climate, which is felt as you move southward near the equator, and a humid climate, which is felt by the nations in the western section. Due to their frigid environment, these weather patterns are suitable for human habitation, setting and running of businesses as they are cold and humid, thus attracting many people and forming a potential target market for businesses. There are numerous beaches in North America like Myrtle, Nantucket, and East Hampton among others which create a tourist attraction both local and foreign which forms an excellent market for holiday resorts and hotels (Petraeus, Zoellick, & O'Neil, 2014). North America has fertile soils where farmers can engage in agricultural activities to grow crops for sale such as coffee, cotton, hemp, and sugarcane among others which are then exported to create revenues. Apart from the crops being exported, some of them could be sold locally generating profits for the farmers and various food stores which will sell the crops to the public.

Customs, Culture, and Traditions

The custom of gender equality is promoted in North American countries as they empower women. However, other countries do not consider women empowerment such Yemen because of Sharia Law and this affects international business activities. When businesspeople from Yemen conduct business activities with U.S and discover women are in charge, they tend to pull back from the business deals. Punctuality is a tradition valued by people and business organizations from North America as it leads to increased productivity and profits in businesses. Most countries get in involved with Mexico in international business activities because it is more organized due to punctuality; hence, prone to succeed in business endeavors (Petraeus, Zoellick, & O'Neil, 2014). Business people from North American countries have a culture of bringing gifts when invited by other international business people to show that they appreciate and value them and this improves global business activities. Businesspeople from Canada issue gifts to international businesspeople to show friendship and appreciation and attract other foreign countries due to their quality of showing gratitude and modesty

Economic Influences

The North American economy is very diverse because the U.S and Canada have a more sophisticated and modern economic system while the economy of Mexico is not is not developed as such. Mexico has poor manufacturing, transportation and power system that inhibit its development. Regarding technology on a worldwide scale, the U.S is the largest and the most advanced and has a GDP of around $46,000. Businesses in the U.S are enjoying high levels of flexibility innovation than any other country (Petraeus, Zoellick, & O'Neil, 2014). Similarly, Canada has a top technological industry-based economy and has a market-oriented system. The economy of Canada symbolizes an advanced production pattern and high living standards among the citizens. Canada’s economy is based on capitalization costs and conservative lending practices from financial institutions. The public sector of Canada contributes to around 70% of the country’s GDP and industry contributing 28%, and finally, agriculture contributes 2% of the country’s GDP.

Political situations and Business Regulations

The North American countries are politically stable with policies that help govern the civilians peacefully and justly. Politics directly affect international relations, and when countries are not politically stable, business environments get affected negatively. Since North America is politically stable, many investors and product consumers have developed. The investors, both foreign and local have established businesses, thus improving the economic growth of the countries locally and with foreign countries. There are several business regulations in North American countries put in place to ensure business activities are fair and run smoothly. Business regulations act as a standardization tools to prevent unfairness while conducting business activities (Campbell & Campbell, 2007). Business regulations attract foreign investors and businesspeople as they seek markets where all policies are stipulated to keep their business and finances safe. In Mexico, starting a business requires licenses from relevant authorities, and there is no minimum capital requirement for starting a business, all of these are qualities that attract foreign investors.

Global Business Decision

For an international organization to do business in various countries in North America emerge successful, there are several things to consider such conducting a market survey to understand the infrastructure, politics and economic stability. The organization should learn the culture of the locals for easy interactions and also assess the cost of running a business in a country which includes rents among other items. Another important aspect for business success is seeking legal counsel to know the taxes and work permits for setting up a business in order to understand the privileges and laws governing businesses (Campbell & Campbell, 2007). By considering the aspects as mentioned above, international organizations will realize success in their business ventures. Some of the products and services that can be successful in North America are such as latest Apple products, Coca-cola, and PlayStations since they are the most popular items in many of the North American Countries.

Cross-Cultural Teams

There are several benefits of working with cross-cultural teams such as the employees get to learn to interact and appreciate new people and their cultures. People from diverse cultures have different views which can inspire creativity and innovation, thus improving the business organization positively (Mietusch, 2012). North America is composed of friendly populations, this culture of friendship makes teams considerate and thoughtful when making decisions.

Summary

North America comprises of 23 countries, some of the factors of these countries that affect business activities such as the geographical properties, politics, and culture. Due to existence of a large number of beaches, North America attracts tourists and forms a basis for a tourism market business. Most of the people from North American countries such as Mexico are punctual, which is considered a positive quality as it portrayal a high level of preparedness and organization which are useful for international business activities because it leads to productivity.

Regarding the economy, Northern American countries possess diverse economies as both U.S and Canada have a modern economy which is more complicated compared that of Mexico. The transport and manufacturing industry in Mexico is poor thus, inhibiting its prosperity. The U.S has a GDP of almost $45, 000 and its businesses are flexible. Countries in North America are politically stable, and this positively affects international businesses as a foreign investor will easily take part in the businesses, thus improving the economy of the country. Business regulations help standardize business activities keeping investors safe.

An international organization can conduct business activities in North America, however, several things to consider include, performing a market survey, learning the culture of the local region before establishing the business. Support from legal counsel helps guide the international organization on the legal policies and the cost required for running the business. All this information is crucial as it gives an insight of the market to the investor. Working with culturally diverse teams has benefits such as getting new views to inspire innovation for the improvement of the business organization.





























References

Campbell, D., & Campbell, C. T. (2007). Legal aspects of doing business in North America. Salzburg, Austria: Yorkhill Law Pub.

Mietusch, A. (2012). Cross-cultural team building. Munich: Grin Verlag.

Petraeus, D. H., Zoellick, R. B., O'Neil, S. K., (2014). North America: Time for a new focus.