The United States is located on the North American continent between Canada and Mexico. It borders both the North Atlantic Ocean and the North Pacific Ocean. The country’s total area is 9,826,675 sq km, making it the 3rd largest country in the world, behind Russia and Canada..
The US government is a constitution-based federal republic with strong democratic tradition. It’s made up of 50 states and 1 district (Washington, DC), along with 14 island dependent territories.
At the federal level, the U.S. has a common law system based on English common law. State legal systems are also based on common law except for Louisiana, which is based on the Napoleonic civil code.
The country withdrew its acceptance of compulsory International Court of Justice (ICJ) jurisdiction in 2005. (What does this mean?) It withdrew acceptance of the International Criminal Court ( ICCt) jurisdiction in 2002.
Atlanta (Georgia) International Airport is the world’s busiest airport.
The Hollywood Bowl (Hollywood, California) is the world’s largest amphitheater.
The first motion picture theater opened in Los Angeles (California) in 1902.
The State of Kentucky has the largest cave system in the world – the Mammoth cave system has over 200 miles of caves.
Although English is the most commonly spoken language used in the US and is the language used in government, the country has no official language.
The United States Navy has the second largest air force in the world. The United States Air Force has the first.
John Wilkes Booth shot Lincoln in a theater and was found in a warehouse. Lee Harvey Oswald shot Kennedy from a warehouse and was found in a theater.
The Pentagon is the largest office building in the world by area.
The US has the largest and most technologically powerful economy in the world, with a per capita GDP of $48,100. In this market-oriented economy, private individuals and business firms make most of the decisions, and the federal and state governments buy needed goods and services predominantly in the private marketplace.
The global economic downturn, the sub-prime mortgage crisis, investment bank failures, falling home prices, and tight credit pushed the United States into a recession in mid-2008. GDP contracted until the third quarter of 2009, making this the deepest and longest downturn since the Great Depression. Due to the government’s large-scale budget and monetary stimulus plan, which among others stimulated household consumption, the economy recovered in 2010, with a growth of 3%. In 2011, growth again slowed down as a result of the downturn in private investment, a drop in exports and the growth in public spending. Due to the risk posed by the eurozone crisis on the US economy, weak growth is expected for 2012.
Always get a credit application and a credit report on the US business you plan to sell to on credit. Make sure you have the company’s correct legal name so the credit reporting agency can provide you accurate information.
In general, the probability of collecting on a past due account at 30 days past due is 93.1%; at 90 days past due the likelihood of collecting decreases to 73.1%; at 6 months it decreases to 50%; at 1 year to 25%; at 2 years just 10.5%. Do not hold onto your claims for more than a maximum of 90 days past the due date.
There are strict Statutes of Limitations in each US state which determine how long you have to collect on your past due accounts. The statute of limitations on open account terms is just three years in many states. Where a contract has been negotiated, the statute of limitations is usually three to six years. Most purchasers in the US are very aware of these time limits. Those that don’t plan to pay count on the fact that foreign creditors are not aware of these statutes.
It is a good idea to utilize Final and Binding Arbitration, where possible, to handle collection disputes. The United States is a signatory to the 1958 NY Convention on the Enforcement of Foreign Arbitration Awards. This link will provide information on Domesticating a Foreign Arbitration Award.
If you find yourself in the position of having to consider legal action, consider these 10 questions first. Should you have to file a lawsuit in the United States, you should be aware of the collection suit process and what will be required of you.
Economic Freedom: The United States’ economic freedom score (2012 Index of Economic Freedom) of 76.3 drops it to 10th place in the 2012 Index. Its score is 1.5 points lower than last year, reflecting deteriorating scores for government spending, freedom from corruption, and investment freedom. The US is ranked 2nd out of three countries in the North America region, and its overall score remains well above the world and regional averages.
Market Access: Foreign corporations have the opportunity to do business throughout the United States. The federal government provides equal treatment to domestic and foreign investors. While not granting special tax packages or concessions to foreign investors, the government does refrain from imposing discriminatory tax burdens on them.
US business firms face higher barriers to enter their US rivals' home markets than foreign firms face entering US markets.
Regulatory System: The US regulatory environment is a combination of open competition and consumer protection. There is much bureaucracy as the laws that govern the US are legislated and enforced by the central (Federal) government, state governments, county governments, city, town and village governments and other municipal entities.
Intellectual Property Rights: The US has a well-developed system of licensing that protects patents, trademarks and copyrights. Each has its own set of rules and procedures. The holder of a US patent, trademark or copyright may sue the infringer through the US federal court system. The holder may also obtain an injunction and sue for damages.
Exchange Control: The Treasury Department regulates capital and exchange controls in the US. It imposes no general restrictions on remittances of profits, dividends, interest, royalties or fees to non-residents.
Corruption: The United States’ overall score was 7.1 (ranking 24th out of 183) in Transparency International’s 2011 Corruption Perceptions Index.
What is considered appropriate business attire varies by geographic region, day of the week and industry. "Casual Friday" is common in many companies. High technology companies often wear casual clothes every day. For an initial meeting, dressing conservatively is always in good taste.
In most situations, you can begin calling people by their first names; most will insist that you call them by their nickname, if they have one. In formal circumstances, you may want to use titles and surnames as a courtesy until you are invited to move to a first name basis, which will happen quickly.
Business cards are exchanged without formal ritual. It is quite common for the recipient to put your card in their wallet, which may then go in the back pocket of their trousers. This is not an insult.
Americans are direct. They value logic and linear thinking and expect people to speak clearly and in a straightforward manner.
Americans will use the telephone to conduct business that would require a face-to-face meeting in most other countries. They do not insist upon seeing or getting to know the people with whom they do business.
Arrive on time for meetings since time and punctuality are important to Americans. The concept "time is money" is taken seriously in US business culture. Meetings may appear relaxed, but they are taken quite seriously. If there is an agenda, it will be followed. If you make a presentation, it should be direct and to the point. Use statistics to back up your claims, since Americans are impressed by hard data and evidence.
Be aware that the United States is the most litigious society in the world. There are lawyers who specialize in practically every industry and segment of society.
This information is provided by ABC-Amega Inc. Providing international receivable management and debt collection services for exporters to more than 200 countries including the United States. For further information, contact [email protected].