World Country Guide

Business Profile

Economy
The US economy is the world’s largest, most powerful and most diverse. The roots of this lie in the physical expansion and development of the country during the 19th century. As a result, the USA benefited from a unique combination of mass immigration, technological and marketing innovations, exploitation of natural resources, the expansion of international trade, historical fortune (hugely destructive wars that caused immense damage to other world powers but left the USA virtually untouched) and the fostering of a political and economic system well designed to exploit them. The enormous influence of US-based multinational companies in the world economy has not only afforded unique global influence to the US government but also allowed its currency to acquire unique international status. Large areas of the USA, particularly in the Midwest, are under cultivation and produce a wide range of commodities: the most important of these are cotton, cereals and tobacco, all of which are exported on a large scale. The principal mining operations produce oil and gas, coal, copper, iron, uranium and silver. The US manufacturing industry is a world leader in many fields including steel, vehicles, aerospace, telecommunications, chemicals, electronics and consumer goods. Since the late 1970s, however, the biggest employer has been the service sector, particularly finance (including banking, insurance and equities), leisure and tourism. Services now account for three quarters of output and employment. New computer-based industries associated with the Internet, which began revolutionising lifestyles and commerce during the late 1990s, rose quickly, burned brightly and died suddenly. Toward the close of 2000, many of these ‘dot-com’ industries plunged into bankruptcy. The USA’s technology sector went into decline and the country found itself in recession.
Annual growth averaged around 4 to 5 per cent during the late 1990s, but slipped to 2.2 per cent as the economy slowed down. The events of September 2001 added to the pessimistic outlook for the economy, as several industries (notably civil aviation and tourism) suffered a sudden fall in demand. In addition to important IT and telecommunications industries, traditional manufacturing industries, such as steel, were also depressed. Toward the end of 2003, a BSE scare caused a major upheaval in the USA’s meat industry, particularly affecting its exports (mainly to Japan). The internationally controversial war on Iraq has also threatened many trade friendships and lowered the value of the US Dollar (US$1 in 1990 had the same buying power as US$1.42 in 2003), although the USA’s economic might has been maintained.
Unemployment reached 5.2 per cent in February 2005.
The USA’s most important trade relationship is with Canada (which accounts for approximately 20 per cent of all US trade). The two countries concluded a free trade agreement in 1989: this accord formed the basis for the North American Free Trade Agreement (NAFTA), to which Mexico became a signatory in 1992. (NAFTA is of similar proportions to the EU in terms of population and economic output.) Other major trading partners are Japan, the UK and Germany, followed by other members of the EU.

Business
Businesspeople are generally expected to dress smartly, although a man may wear a short-sleeved shirt under his suit in hot weather. Normal business courtesies should be observed, although Americans tend to be less formal than Europeans. Appointments and punctuality are normal procedure and business cards are widely used. Dates in America are written month-day-year: 4 July 2006 would thus be abbreviated as 7/4/06. Write out the month in full to avoid confusion. Office hours: Mon-Fri 0900-1730.

Commercial Information
The following organisations can offer advice: The Partnership for New York City, 1 Battery Park Plaza, 5th Floor, New York, NY 10004 (tel: (212) 493 7400; fax: (212) 344 3344; e-mail: info@pfnyc.org; website: www.nycp.org); or The US Chamber of Commerce, 1615 H Street, NW, Washington, DC 20062 (tel: (202) 659 6000 or (800) 638 6583; e-mail: intl@uschamber.com; website: www.uschamber.org); or the Trade Information Center, US Department of Commerce (tel: (800) 872 8723; fax: (202) 482 4473; e-mail: tic@ita.doc.gov; website: www.tradeinfo.doc.gov); or the National Foreign Trade Council, 1625 K Street, NW, Suite 200, Washington, DC 20006 (tel: (202) 887 0278; fax: (202) 452 8160; e-mail: nftcinformation@nftc.org; website: www.nftc.org); or British American Business Inc, 52 Vanderbilt Avenue, 20th Floor, New York, NY 10017 (tel: (212) 661 4060; fax: (212) 661 4074) or the UK office at 75 Brook Street, London W1K 4AD, UK (tel: (020) 7467 7400; fax: (020) 7493 2394; website: www.babinc.org).

Conferences/Conventions
If for no other reason than its role in the world economy, the USA is an important conference destination; there are State, city and regional travel and convention organisations in every part of the country, each actively promoting its own assets. With so much information available, the real problem for the organiser is to find some way of getting through it all. There are several magazines aimed at helping the conference organiser; they include Meeting & Conventions Magazine (website: www.meetings-conventions.com), Successful Meetings Magazine (website: www.successmtgs.com) and Corporate Meetings and Incentive Magazine (website: www.meetingsnet.com). Home to three of the 10 largest convention venues in the USA, Las Vegas was the most popular US trade show venue in 2004, hosting some 174 shows, followed by New York City, Chicago, Atlanta, Dallas, Orlando, New Orleans, San Diego, San Francisco and Washington, DC. Organisers interested in US venues should contact the US Travel Industry Association or the travel organisations listed in the individual State sections. In addition to the State organisations, addresses of travel and convention organisations for cities and counties are also included.