You have been hired as a consultant for an airline, Yorkville Airlines, headquartered in New Brunswick, Canada, which believes there is potential for outsourcing aircraft maintenance to the United States. Because of your knowledge of the United States, you have been asked to provide a report on the American business environment that would include overviews of the United State’s economic system and the role of government in conducting business in the United States. In addition to the overview, it should specifically outline how these compare to Canada.

Expert Answers

An illustration of the letter 'A' in a speech bubbles

The American business environment, meaning the sets of relevant circumstances under which American companies do business, is robust, advanced, and fertile for wide-ranging innovations. Relevant to the aeronautics industry, the United States is a known leader in manufacturing and technology needed in aircraft construction and maintenance.

The role of government in America's mixed economic system is a regulatory one, although private enterprise is emphasized. A mixed economy functions with both private enterprise and government regulatory policy playing a role in directing the economy. Government sets policies and regulates such areas as corporations, environmental impact, and labor rights. The power of private enterprise comes from American belief in the power of capitalism.

Canada's business environment is similarly a mix of capitalism and government regulation of business. The significant differences between business environments in Canada and the United States are those of strength in technology, work force, and size of economy, as measured by Gross National Income (GNI); the US is ranked first and Canada eighth ( 2003-2019).

Approved by eNotes Editorial
An illustration of the letter 'A' in a speech bubbles

The economic system in the United States is mixed. It embraces both socialism and capitalism in that private assets are safeguarded and people are given some degree of economic freedom. Conversely, the economic system encourages government intervention in economic affairs to meet social goals. For this reason, the government can impose restrictions in both public and private economic sectors. Canada’s economic system is similar to that of the US in that it is market-oriented and allows government regulation.

The US government plays various roles when it comes to conducting business. It authorizes different entities to run businesses. Businesses are required to register with the relevant authorities before they begin operations. Similarly, businesses in Canada must register with the relevant provincial authorities.

See eNotes Ad-Free

Start your 48-hour free trial to get access to more than 30,000 additional guides and more than 350,000 Homework Help questions answered by our experts.

Get 48 Hours Free Access
Approved by eNotes Editorial