IV.

Government Regulation:
The government in US, they regulates private enterprise in many ways.
Economic regulation seeks, either directly or indirectly, to control prices.
Regulation falls into two general categories.
Antitrust Law:
 Another form of economic regulation, antitrust law, seeks to
strengthen market forces so that direct regulation is unnecessary.
The government and sometimes, private parties have used antitrust
law to prohibit practices or mergers that would unduly limit.
Government Control Over Private Companies:
 The government also exercises control over private companies to
achieve social goals, such as protecting the public's health and
safety or maintaining a clean and healthy environment. For
example: the Occupational Safety and Health Administration
protects workers from hazards they may encounter in their jobs; the
Environmental Protection Agency seeks to control water and air
pollution.
Tax Regulations:
Wages and incomes grow when the demand for labor grows. The demand
for labor grows when the rewards for starting and expanding businesses
grow. However, in American, we’ve been running the growth machine on
rewind. Higher taxes and more regulations penalize expansion and start-
ups. The costs are passed on to workers in the form of fewer jobs and
lower wages.
An individual may be subject to one of these four types of income tax:
 Ordinary income - this includes all income earned from salary,
commission, and business income. Some investment gains, such as
bond interest and withdrawals from traditional IRAs and company
retirement plans, are taxed at "ordinary income" rates.
 Capital gains - this refers to income resulting from the appreciation
of a capital asset (e.g. stocks, real estate, coins). Capital gains are
not realized until the asset is sold. Capital gains are classified as
short-term or long-term:
-Short-term - assets held for 12 months or less are considered short-
term capital gains and are taxed at ordinary income rates.
-Long-term - assets held for longer than 12 months benefit from
reduced tax rates (based on your marginal tax bracket). Ordinary
income earners pay a capital gains tax rate of 15%, while those in
who are considered to be high income earners pay 20%.
 Dividends - prior to 2003, dividends were taxed at ordinary income
rates along with bond interest. Due to a change in tax law,
"qualified" stock dividends (common and preferred) are now taxed
like capital gains, with a maximum income tax rate of 15%. REIT
dividends do not qualify for this special treatment.
 Passive income - income from sources such as real estate limited
partnerships or directly owned (but professionally managed) real
estate is taxable at ordinary income rates and can only be reduced
by passive losses, not by capital gain losses.
V. Social - Cultural and Geographical Proximity:
Cultural and Social:
 The United States is a nation founded by all classes of society,
and therefore the culture is diverse.  The majority of Americans
are from other countries and cultures.
 Americans are generally comfortable, you can also see that
through movies.  Maybe you will be shocked if you are not used
to being talked about by a stranger wait in line ( or waiting to buy
movie tickets for example).