Question by Ogunlana Opemipo on Apr 19, 2014
Q. Looking at MNC's, the top ranked companies are originating from the United States or are present in the United States. What enhances the success of these firms in the United States market and not other markets?
There are many reasons for this. Let me bring up three important ones here. First, from a historical point of view, the Second World War created a huge opportunity for US businesses. Western Europe was physically in shambles due to the destruction caused by six years of war. Infrastructure, factories, the labor force, everything was in tatters. US firms had a clear opportunity to jump in and build their business with no local competition. This not only meant that they began or extended their journey of internationalization, but they were able to grow big and grow big unhindered by local competition, making the growth fast and profitable.
Second, the infrastructure to support business is fabulous on at least two counts. On the one hand financing is readily available. The venture capital availability in the US makes a huge impact on the growth of new entrepreneurial businesses. Thus, the emergence of household names like Apple, Microsoft, and Google in the last three decades. On the other hand, the world class universities like, Harvard, Stanford, MIT, and others, that are open to students from around the world, often brought in with generous scholarships, creates a potential talent pool that is outstanding.
Third, the US has a very friendly business environment with the government strongly supporting business by creating a regulatory environment that is conducive to business. Indeed, the comparatively liberal and open immigration policy, which is part of this, contributes heavily by providing an outstanding and very hard working talent pool. As research shows, the level of education and success in the first generation immigration population is higher than the population average.