Economies operating under the free enterprise system usually have higher chances of expanding their operations to other areas. When a country liberalizes its markets, new investors are attracted to develop businesses. A free enterprise economy encourages transfer of technology multilaterally between countries that want to take part in the business and thus widens the financial opportunities or pool (Barnes, 2004, p 127). Free enterprise also encourages learning of foreign languages, which facilitates mutual understanding between the partners and thus supports globalization. Centrally controlled economy does not attract investors due to its inflexibility nature. An economy experiencing external economic shocks like imported inflation or currency depreciation takes long for the state to get the economy back to normal. Many companies fear the risky nature of the regime to operate their businesses under this condition. Hence a free enterprise economy is preferred
Various indicators determine the viability of a business and among them are the sociocultural aspects. This is because the society has some perceived priorities that determine the demand and supply of utilities and other commodities. Demographic characteristic of a society, that is, the distribution of people in a society in terms of age, gender, income and social class affects the manner in which business is conducted (Bowen, B. (2008). For example, “age specific” commodities, Contraceptives have a good market close to institutions of higher learning than any other place. Since then, they were rarely used; firms producing along this line may benefit. Upholding a society perceived values and lifestyle in business is mandatory and it is done through supplying what is requested and on time. Apart from that, since the inception of many religions, the dressing codes have always been dictated by the clergy according to the reading from Bibles or Holy Korans. As a result of industrialization and emergence of new technology, followers have changed against the clergy. Considering that a firm was started to make clothing and other jeweler recommended by the holy books, it is certain that as time goes, this firm may close down its operations due to change in culture.
People of a certain country have a mutual responsibility for the prosperity and future of their country. People have to be patriotic to overcome self-interest, unless it is beneficial to their mother countries or states to have corporate citizenship. The U.S. government should create and implement policies that encourage global corporate citizenship at various levels, for example, federal level, state, or local level. In my opinion, the U.S. government should support such policies to enable its citizens to invest in other entities. A balance regional development plan requires moving people, material and technology to areas where they are most needed; it is through acquiring of corporate citizenship that such ambitious plans are fulfilled as people will move freely. In this regard, government entities should be facilitated to implement policies that will encourage global corporate citizenship (MRSC, 2011).
Barnes, J. (2004). Reading economic geography. Blackwell Publishing. pp. 127.
Bowen, B. (2008). After the Downsizing: A Case Study of a Commercial Activities Competition Reorganization. Minnesota: Capella University. School of Business. ProQuest, p. 42-47
Municipal Research and Service Center of Washington (2011). Strategies for Reconnecting
Citizens and Government MRSC Focus. Retrieved on 30th July from: http://www.mrsc.org/focuspub/strategiesmrscfocus.aspx