Tuesday, April 04, 2006

Why U.S. Business Is Winning

An interesting article by Sebastian Mallaby on why Why U.S. Business Is Winning.

Here are a few reasons:

-The first answer is that competition is fiercer. The United States has relatively few trade and regulatory barriers for firms to hide behind, so bad companies either shape up quickly or go bust.

-The next explanation for American superiority is a healthy indifference to first sons. Bloom and Van Reenen report that the practice of handing a family firm down from father to oldest son is five times more common in France and Britain than in the United States.

-The best guess about the "X factor" is that America's business culture is peculiarly well-suited to contemporary challenges.

-Moreover, America's business culture is perfectly matched to globalization. American executive suites and MBA courses are full of talented immigrants, so American managers think nothing of working in multicultural firms.

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