This is the final installment in a series of articles that demonstrate why European and other non-US companies should not be discouraged from doing business in America by 10 legal myths which these articles have debunked.
The 10 legal myths are:
1. The costs of entry into the US, including the costs of business formation, are very great and, thus, prohibitive.
2. Forming a business in the US takes a very long time with too many hurdles to overcome.
3. There are so many methods of market entry that it is impossible to know which is best for my company.
4. There are too many governmental regulations that will make it very difficult to grow a business in the US.
5. If we enter the US we may be jeopardizing our valuable intellectual property.
6. & 7. The risk of liability and lawsuits relating to our products and/or services is too great. The US is very litigious and that is too threatening to a small company like ours.
8. The possibility of many employee lawsuits scares us.
9. There are no effective ways to control the risks to our business if we come to the US.
10. It is almost impossible to locate trusted advisers including reliable and cost-effective lawyers and accountants.
As these articles have persuasively shown, none of these myths is true. And, with careful planning the business risks normally associated with them can be significantly reduced and, often, eliminated. With careful planning by your company and trusted advisors, you can materially increase the chances of having a “soft landing” and a successful expansion to the US.
There are many reasons why you should consider expanding to the U.S. Here are a few:
World’s Largest Market
The United States offers the largest consumer market on earth with a GDP of $20 trillion and 325 million people. Household spending is the highest in the world, accounting for nearly a third of global household consumption. At the same time, free trade agreements with 20 other countries provide enhanced access to hundreds of millions of additional consumers – and the United States continues to work with companies to increase opportunities for U.S. exporters.
Nexus of Innovation
The United States is a recognized leader in research and development (R&D), and registers more international patents than any other country. Today’s innovators are safeguarded by a robust intellectual property protection framework, while the innovators of tomorrow are nurtured at leading universities and incubators across the nation. Companies of all sizes help make innovation in the United States a global enterprise, benefiting from – and contributing to – a flourishing ecosystem for invention and inspiration.
Ease of Doing Business
The United States is consistently ranked among the best internationally for its overall competitiveness and ease of doing business. Backed by a regulatory environment that is particularly conducive to starting and operating a business, U.S. business culture encourages free enterprise and competition. As a stable democracy with a transparent and predictable legal system, all companies – regardless of national origin – compete on an even playing field
The U.S. workforce is diverse, skilled, innovative and mobile – and U.S. workers are among the most productive in the world. Looking to the future, the United States has prioritized collaborative mechanisms with public and private-sector organizations to ensure that the workforce is able to meet the needs of a 21st century economy.
Access to Capital
The United States hosts the most developed, liquid, flexible, and efficient financial markets in the world. A wide range of funding sources – from banks and investment firms to venture capitalists and angel investors – enable innovation and expansion, giving companies in the United States an important advantage.
With these resources, laws and regulations and business climate, the U.S. is a nation where your companies will be welcome and where you will have a great opportunity to expand sales of your goods and services. And as you have seen from these articles, the well-known Legal Myths are just that – myths that are easily debunked when the facts are closely examined.
Global Commerce Education can help you to have an “easy landing” with its offerings of exposure to market opportunities, cultural training, recommending and supervising trusted advisors such as lawyers, accounts and consultants, and more. See www.g2experience.org.
Welcome to America!!!
Compliments of Global Commerce Education, a member of the EACCNY
This article first appeared on the EACCNY website. It is the 11th and final installment in a series of articles written by Marc S. Friedman, Director of Professional Relations at Global Commerce Education, Inc. as a collaboration with the European American Chamber of Commerce in New York.