Reasons to Investment in the USA market

The US market is one of the most lucrative markets in the world. Some of the reasons the

foreign manufacturers of different products develop the same conclusion to invest in the US

market and build their plants there as the US market is one of the leading consumer marketplaces

as it has a GDP of $20 trillion and a population of 325 million people (Selectusa, 2022).

Comparatively consumers in the US have greater spending power when compared to the

spending power of consumers from other nations as the annual income of the average household

is $61,000 or more. And to make the US market more lucrative and hold its position as one of

the leading markets continuous market researches are conducted, new and innovative products

are developed and introduced in the market, identification of correct marketing and branding

tactics are made much easier, following sound business practices.

Furthermore, other reasons to choose the US to build plants for high-end products like

automobiles, cell phones, tires, and others are:

1. Ease of doing business: While compared to other countries, the US market has scored quite

high in ease of doing business as it was able to rank 6 number out of 190 world economies in

2019 (World bank, 2021). US market has been assisted by different regulatory bodies which

has made it much easier to establish and conduct business there. Moreover, US business

culture also supports healthy competition and free enterprises. It is a democratic nation and

has predictable legal and political system which facilities stable working environment even

for foreign comapnies.

2. Talented and skilled workforce: It is a well-known fact that the workforce available in the US

is quite skilled, innovative, and diverse. They also have the highest productivity level while
 being compared to other nations' workforces. As automobiles, smartphones, and others

require a high level of skilled manpower, the US market is the perfect location for them to set

up their plants there.

3. Availability of various funding sources: Another reason to invest in the US market is that it

has the most elastic, liquid, advanced, and economical market in the world. So, the US

provides various funding sources in the market such as a bank, investment organizations,

project investors, and angel investors irrespective of the nature of the business and its home

country.

4. Good quality products: People trust the quality of the product manufactured in the US as the

US government doesn’t compromise on the quality that is being offered in the market. And

the manufacturing units are under strict monitoring along with that they must meet the

baseline requirement that has been set for them.

Picture 1: Graphical representation
 Reference

Selectusa (2022) For Investor - Information, Service, and Tools for investors, International
Trade Administration | Trade.gov. Selectusa. https://www.trade.gov/selectusa-
investor#:~:text=There%20is%20no%20shortage%20of,chain%2C%20infrastructure
%20and%20workforce%20factors.

World bank (2021) Ease of doing business rank (1=most business-friendly regulations) - united
states, data.worldbank.org. Doing Business.
https://data.worldbank.org/indicator/IC.BUS.EASE.XQ?locations=US.