Introduction
North American region is made up of countries with different demographic characteristics. The region consists of both the developed and emerging economies. It holds the largest market share of the global business market. The notable countries in this region include Canada, United Staes and Mexico. Many of the leading multinational companies in the global market come from the region. This makes it play a critical role in the global economic development and growth. The United States which is one of the leading countries in the world plays a critical role in shaping the economic and political landscape of this region. Due to the rapid growth of the countries within this region coupled with the diversity of the consumers, the presence of large multinational firms and huge markets, it is important to evaluate the business environment that exists in this region. The evaluation of the business environment in North America can help make informed decisions regarding the appropriate investment strategy to pursue in such markets.
The Business Environment in North America
The assessment of the business environment can consider a num ber of factors that have a significant influence on the operation of businesses in a given region (Hamilton & Webster 2015). North America is a huge area that consists of 28 independent states. The largest country in North America is Canada followed by the United States. The two countries that include Canada and the United States occupy approximately 80 % of the whole continent. This shows that the United States and Canada play a critical role towards spurring the economic growth in the region. Notably, the United States, Canada and Mexico are the most attractive regions for travellers and investors ( Sueyoshi & Yuan, 2016) .
Delegate your assignment to our experts and they will do the rest.
One of the important elements eviden t in the business environment in North America is the existence of a huge market for various goods and services. The region is the leading in terms of population and diversity of individuals. The United States and Canada has a huge population composed of people from diverse backgrounds. The existence of a huge market base can attract many investors in the global market. Canada with a large geographical area, huge and diverse population and stable economic and political environment is offers huge potential market and investment opportunities to the companies operating in the region. It is the home to many companies in the global market.
Another important characteristic of the North American region is the level of technological development. The United States is arguably the leading country in terms of technological advancement. Majority of the leading technology companies such as Google, Facebook, Microsoft, Apple, and Amazon among others are located in the United States which is a major player in the economic landscape of North America.
Another important element in the North American market is the continuous growth of the Hispanic market. The Hispanic consists of a huge percentage of the entire population in the United States. The rapid growth in the Hispanic population offer opportunities to many companies who are interested in investing in the region ( NxBizSuccess, 2017) . Ideally, the Hispanic market has a huge spending power and this can create high demand for goods and services. In the past, the majority of the companies failed to focus on the Hispanic market segment. However, as the number of the Hispanic population continues to grow, it is important for the firms to consider entering the market in order to capitalize on the prevailing market opportunity.
The establishment of the North American Free Trade Agreement (NAFTA) by the member countries was seen as an important step towards improving the economic growth in the region. NAFTA has significantly contributed to the free flow of goods and services between the member countries ( Ito, 2010) . In essence, NAFTA has ensured that the advanced nations such as the United States and Canada trade with the emerging economies within the North American region. As a result, it has helped facilitate the technological transfer from the advanced economies to the less advanced economies.
The political landscape in the region is a major factor that can hinder the economic integration. The countries within the region are independent and have a different set of rules. Each country in the NAFTA agreement has specific objectives and interest that it pursues in the free trade agreement among the members in the region ( Mulroney 2011) . Currently, the United States and Mexico has certain political differences. Such political differences can negatively impact on the business relations between the two countries.
Strategic Consideration for the Firms in North America
Firms should ensure that they develop effective strategies that can help them become successful and enjoy sustainable growth in the region where they operate. In order to ensure the success of a company in the business environment, it is important for the managers to analyse the business environment and come up with the strategies that match the prevailing environment (Canadian Broadcasting Company, 2013). Given the current business environment in the United States, it is important that organizations with the interest in entering the market develop and implement effective marketing decisions to help them become successful.
Multinational companies with an interes t in entering North America should consider the cultural background. The region is composed of people with different cultural backgrounds and thus companies should be able to adapt to such a culture. The success of a company in the foreign or domestic market depends on its ability to adapt to a given culture ( Hamilton & Webster, 2015) . It is necessary for organizations to recognize the important role that culture plays towards determining their success in the market. Since North America is made up of several countries with people from different ethnic groups, it is important that companies develop marketing strategies that are acceptable to people from all cultural groups. Multinational companies such as Google and Apple are an example of companies that are successful in the North American region due to their effective marketing strategies that adhere to the cultural norms of the market (Carey 2010). In order to succeed in the North American region, the multinational companies should adapt to each nation’s culture. This implies that they should modify their business model to conform to the needs of each country.
Location is another major element that companies interested in North America should consider when entering the market. In many of the countries in North America, firms from a particular industry are often concentrated in one area. The strategy enables organizations from a particular industry to share common resources and thus reduce their operation costs ( CAFTA, 2011) . For example, the majority of the technology companies are concentrated around the Silicon Valley and this helps them to share important resources and infrastructure. The identification of an appropriate location of the business should consider the targeted customers (Deutsch, 2015). A company that operates in North America should locate a place that is near to the targeted customers. For instance, companies such as Wal-mart often consider locating in regions that are near their targeted customers.
The other strategic consideration is the political and economic environment that prevailed in the region. Given that North America is composed of many countries with distinct political and economic environment, it is important that firms assess the business environment before entering the market ( Pinkerton & Davis, 2015) . The political situation and government policies can either encourage or hinder the development of a particular company or industry ( Warwick, 2016) . Notably, there is a need for the multinational businesses to determine how the prevailing economic conditions and situation favour their business models. In the United States, there are policies that are designed to help protect the local companies. The trade relationship between different countries can also have an impact on the investment decision of a company. For example, the United States and China have poor trade relationship and this makes it difficult for the Chinese firms to invest in the country.
The level of competition is another important strategic consideration for the firms interested in entering the North American market. In Canada, the USA and Mexico, the level of competition among the firms are high given the existence of many multinational companies that operate in the region ( Crane & Matten, 2016) . The high level of competition can affect the ability of the firms to succeed in the market. Although there is a high level of competition among firms in the North America region, it is necessary for companies to make appropriate strategies to counter the level of competition ( Kirton & Maclaren, 2018) . This can include developing an appropriate business model to meet the needs of the local customers. Furthermore, the majority of the firms in the region often prefer to diversify so as to help reduce the risk associated with dealing with one product line.
Conclusion
The North America region remains to play an important role in shaping the global business environment. The region is composed of many states that are either developed or developing. Canada and the USA are the leading countries in terms of economic development and growth. Evidently, the majority of the leading multinational corporation is situated in this region especially in the USA and Canada. One of the major development that is seen to facilitate economic growth and development in the region is the establishment of the North American Free Trade Agreement (NAFTA). The free trade agreement makes it possible for the countries in the region to engage in free trade. It has helped the region to share important resources and knowledge. Although the region boasts of huge economic growth, multinational companies that operate in the region should come up with appropriate strategies to ensure their success in the market.
References
CAFTA (2011). Video: CAFTA-DR. USAID. Retrieved on https://www.youtube.com/watch?v=uuFJvO93HWM on October 1, 2018
Canadian Broadcasting Company (2013). The Bottom Line: Where Canada’s Economy Stands. Retrieved from https://www.youtube.com/watch?v=uAMgJeohM_E on October 1, 2018
Carey A. (2010). Video: Lecture by Al Carey, President of Frito-Lay North America. Retrieved from https://www.youtube.com/watch?v=DmVDiAiIkFE on October 1, 2018
Crane, A., & Matten, D. (2016). Business ethics: Managing corporate citizenship and sustainability in the age of globalization . Oxford University Press.
Deutsch, K. W. (2015). Political Community and the North American Area (Vol. 2305). Princeton University Press.
Hamilton, L., & Webster, P. (2015). The international business environment . Oxford University Press, USA.
Ito, T. (2010). NAFTA and productivity convergence between Mexico and the US. Cuadernos de economía , 47 (135), 15-55.
Kirton, J. J., & Maclaren, V. W. (2018). Forging the Trade-Environment-Social Cohesion Link: Global Challenges, North American experiences. In Linking Trade, Environment, and Social Cohesion (pp. 1-24). Routledge.
Mulroney B. (2011). Symposium on Business Globalization, George Mason University. Retrieved from https://www.youtube.com/watch?v=5xA3sX06BKU on October 1, 2019
NxBizSuccess (2017). Video: The Hispanic Market: A Huge and Growing Opportunity. Retrieved from https://www.youtube.com/watch?v=5CnuyZIkOQw on October 1, 2018
Pinkerton, E., & Davis, R. (2015). Neoliberalism and the politics of enclosure in North American small-scale fisheries. Marine Policy , 61 , 303-312.
Sueyoshi, T., & Yuan, Y. (2016). Marginal Rate of Transformation and Rate of Substitution measured by DEA environmental assessment: Comparison among European and North American nations. Energy Economics , 56 , 270-287.
Warwick, P. (2016). Emerging economy universities, the next big thing? How will they challenge the dominance of North American and European Universities
