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Business ideas and techniques

Within the Porter’s Diamond Framework, it is possible to state, that the American industry is: a) characterized by a strong firm strategy, with a high level of competition in the hotel industry, serving as the major driver for the overall industry development.

b) the level of customer capability to purchase high-quality products is sufficient to provide the basis for creating additional hotel facilities with the attraction of foreign investments; c) the U. S. government supports creation of opportunities for the close cooperation with the industries related to hotel maintenance, as well as easy exchange and protection of business ideas and techniques; d) local workforce possesses high skills and experience to work in the hotel industry, but its cost (monitored by the government) leads to the need of hiring and delivering Pakistani personnel to work in the hotel.

(Bowen & Kotler, 2006) GOVERNMENT strong firm strategy and high level of competition are the major drivers of the country’s industry development the customer the cost of local workforce demand level is is too high, leading to the need high enough to to hire and transfer Pakistani create favorable workforce into the U. S. conditions for additional hotel facilities’ construction and development vast opportunities are created for the close cooperation with the industries, related to hotel maintenance Pic. 1. Analyzing U. S. industry through Porter’s Diamond Model.

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Among other factors of success the phenomenal growth of hotel industry in the U. S. over the past decade should be mentioned. ‘The rapid development was fueled by robust economic expansion; the concomitant growth in demand for business and leisure travel by both American and international visitors have stimulated sustained development of lodging accommodations’. (Rutherford & Haglund, 2007) A wide range of hotel products along with well-developed infrastructure is a good start for any business initiated by a foreign investor.

With the growing competition in the hotel industry, it is expected that the competition in searching highly qualified work force will grow, creating favorable environment for creation of additional hotel facilities, aimed at teaching and employing consumer-driven personnel. In international relation, the U. S. constitutes the largest tourism share in the world economy. The level of tourism spending in 2005 was equal to $82 billion; the total increase of the U. S. share in the international business has grown 16% during 2004-2005. The number of international travelers visiting the U. S. in 2005 was equal to 49. 4 million.

The average annual growth of overseas visitors’ number is 7%. The average length of stay is 7. 8 nights, the major purposes of overseas traveling are leisure, holiday and recreation, with business constituting only 31 percent of the total amount of overseas visitors. (Rutherford & Haglund, 2007) This statistical data implies the need to aim the creation of the hotel at both leisure and recreation travelers to expand the range of visitors and to diversify the range of the offered hotel services.

Political economy of international trade The major political instrument used by the USA to encourage international trade, especially with the developing countries, is liberalization. Pic. 2. Exports, imports and the U. S. trade balance. (U. S. International Trade Commission, 2006) Moreover, it is generally admitted, that the American market is the most attractive and the single largest one for the developing countries. Thus, choosing the U. S. as the territory for creating a hotel by Pakistani investor is an initially good choice.

‘The integration and liberalization of financial markets over the past 20 years has allowed capital to flow to its best uses, with broad benefits globally’. (Soysa, 2003) This liberalization means that foreign investors are able to invest into the stocks and bonds of the U. S. origin – this has become an efficient step in promoting macroeconomic growth of the developing countries, simultaneously opening the gates for foreign investors willing to invest into other areas of the American economy. (Soysa, 2003)

As long as liberalization of foreign investments is seen as the two-way street, and as traditionally foreign investors use the U. S. generated income for the support and expansion of their home business, building hotel in the U. S. will mean becoming an effective American taxpayer, providing the Pakistani investor with a wide choice of business forms and experiences available in the free-market economy. 74. 9% of foreign investors in the U. S. have not reported any serious obstacles in the investment process. (Rutherford & Haglund, 2007), as a result, the U. S. economy may be supposed the most suitable for foreign investments.

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