The market development and investment climate in US has been evergreen with a large number of products and services. USA companies account for 21.67% of the world’s GDP. All listed organizations in the US average around 33% world market capitalization. Even more, US markets generated more than 14% annual compounded growth ( in rupee terms) from the year 1980 to 2010. With markets so well developed, there is less concern for ongoing or increasing investment scale.
The recent up gradations
A little study of the sectors and growth in US shows few changes in reforms. This has been substantial in education, investment, healthcare, labour and many other sectors. US economy shows no signs of slowing down, although the FED observed a mild deceleration in growth of GDP, recently. The major up gradation in the investment scenario after the 2008 crisis, has been the Dodd-Frank reform and the consumer protection act. This act was passed in 2010 to counter the financial setbacks from crisis such as the one that occurred in 2008. This act lowers the risks in some parts of the US financial system. Under the act, companies deemed “too big to fail” are monitored for their performance in order to undertake measures such that there is no economic collapse. Under this act money is provided for easier liquidation of the financial assets of the companies with weakness in financial system. The act can break large banks into smaller ones due to their large size influencing financial weakness. Similar provisions in the act also allow for preventing predatory loans, improving clarity for consumers as well as moving towards less riskier loans and mortgages for customers. With the inclusion of the Volcker rule, the act proposes to regulate and restrict the way banks involve in the trading and investment in derivatives. Also it brings the credit rating agencies to provide accurate data on the ratings which assess the financials of businesses and governments. This act along with the medical and health policies act, stem the market in US for further expansion and investment. Before and after the crisis on a rough estimate, there is more than $ 5 billion of external investment every day in US.
The up gradation would lead to better credit rating and investments due to many reasons. First and foremost is the lower level of financial market development in other countries. Second, is the regulatory reforms in other countries as well as highly liquid and efficient markets in US, which are not the aspects which can deter consumerism or investments? Thus, the up gradation in the investment market and other markets in US though termed lower and with loose framework would be step ahead in steering clear of financial distress, innovation and creating more development in the years to come. Burden of taxation is an issue where there have been many changes due to the investment climate and market up gradation in US. The present nature of sectorial investments, market up gradation from financial stability, provisions to acts in health, education and finance all relate to lowering risk of entrepreneurship and allow greater benefits in terms of market capitalization, returns on investment, stability and growth. To start up business in US You must have ESTA visa prior to visit.
