Why Is America the World’s Most Competitive Economy?

November 12, 2018

It has never been a more exciting time now to be an American than it has ever been before. Whether it would be the DOW reaching record highs or unemployment reaching record lows, the United States has shocked billions throughout the world with the progress it has made in such a short time. One title the United States has regained for the first time in nearly a decade is that of being the world’s most competitive economy – ranking just above Singapore, Germany, Switzerland, and Japan in that respective order.

A Competitive Economy – What Does That Mean?

The World Economic Forum, an international organization that specializes in gathering and reporting statistical data on countries throughout the world, released in their Global Competitiveness Report of 2018 that the United States takes first place as the most competitive economy, right above Singapore.

There are multiple features of a country that are used to measure its competitiveness:

1. Infrastructure
2. Information & Communications Technology
3. Macroeconomic Stability
4. Social Stability
5. Political Stability
6. Health
7. Skills
8. Labor Market

The United States scored an 85.6 out of 100, with the most points being received due to its innovation powered by its business practices and entrepreneurial culture.  In addition, the report also put emphasis on the United States’ strong labor market and exceptional financial system.

What Makes the United States’ Business Culture Different?

The American business culture can be traced back to the concept of the American Dream, which promised that every individual can succeed and grow in the United States by working hard, no matter where they come from.

The Business Communication Style Americans Use Is Very Direct

It is extremely common for many non-U.S. citizens doing business within the United States to find the typical phrases such as “let’s get to the point” and “what’s the bottom line” surprisingly blunt and in many cases shocking.  Most countries throughout the world do not have such a direct style of communication when it comes to business.

Time Is Money in America

It’s very likely that we’ve all heard this phrase at some point in our lives.  Many from around the world will be able to confirm that Americans always seem to be in a rush, and it is no different in the business world.  Americans are very preoccupied with time, and equate wasting time to wasting money.

Americans Are Straightforward with Negotiations and Contracts

Touching back on the phrase “let’s get to the point”, Americans are always seeking to get straight to the ‘point’, or the signed contract, when it comes to negotiations and contacts.  Americans view negotiations as problems that need to be solved, and contracts as a solution that represents each party and their needs.

While many Americans do find value in building a professional intimate relationship with their clients, they do not see it as a pre-requisite in order to begin negotiating and ultimately signing contacts with their clients.

Where Is America at Risk?

While it is true that the United States took the number one spot as the most competitive economy in the world, there are also some areas in which the United States did not score as well as one would hope.  According to the authors of the Global Competitiveness Report of 2018, the United States is at risk in the following areas:

1. Social Stability – The United States’ economy is under threat from a “weakening social fabric”. Following the election in 2016, it has been very obvious that Americans continue to become divided from one another due to social issues.
2. Corruption – There is still corruption in both business and politics throughout the United States.
3. Security & IT – Security threats have increased due to the nation’s homicide rate increasing, while IT security threats come from cyber attacks committed by foreign nations against the United States.

What to Look Forward to

With all of that said, it is definitely an exciting time to be an American.  As our country continues to strive and we continue to dominate industries with our innovation – the United States is still able to show its power and remain relevant in 2018.

The threats that social instability, corruption, and security & IT issues pose to the United States should not be taken lightly.  These threats are the kind that have been responsible for tearing down entire nations from within.

However, we at Apex United can say with absolute confidence that our country will be able to eliminate these threats as it continues to strengthen and grow.