Introduction
The United States of America is a federal constitutional republic comprising fifty states and a federal district. The country is situated almost entirely in the western hemisphere: its forty-eight contiguous states and Washington, D.C., the capital district, lie in central North America between the Pacific and Atlantic Oceans, bordered by Canada to the north and Mexico to the south; the state of Alaska is in the northwest of the continent with Canada to its east, and the state of Hawaii is in the mid-Pacific. The United States also possesses fourteen territories, or insular areas, that are scattered around the Caribbean and Pacific.
At 3.79 million square miles (9.83 million km²) and with over 300 million people, the United States is the third or fourth largest country by total area, and third largest by land area and by population. The United States is one of the world's most ethnically diverse nations, the product of large-scale immigration from many countries. Its national economy is the largest in the world, with a nominal 2006 gross domestic product (GDP) of more than US$13 trillion.
Economy
The United States of America has the largest and most technologically powerful economy in the world, with a per capita GDP of $43,500. 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. US business firms enjoy greater flexibility than their counterparts in Western Europe and Japan in decisions to expand capital plant, to lay off surplus workers, and to develop new products. At the same time, they face higher barriers to enter their rivals' home markets than foreign firms face entering US markets. US firms are at or near the forefront in technological advances, especially in computers and in medical, aerospace, and military equipment; their advantage has narrowed since the end of World War II. The onrush of technology largely explains the gradual development of a "two-tier labor market" in which those at the bottom lack the education and the professional/technical skills of those at the top and, more and more, fail to get comparable pay raises, health insurance coverage, and other benefits. Since 1975, practically all the gains in household income have gone to the top 20% of households. The response to the terrorist attacks of 11 September 2001 showed the remarkable resilience of the economy. The war in March-April 2003 between a US-led coalition and Iraq, and the subsequent occupation of Iraq, required major shifts in national resources to the military. The rise in GDP in 2004-06 was undergirded by substantial gains in labor productivity. Hurricane Katrina caused extensive damage in the Gulf Coast region in August 2005, but had a small impact on overall GDP growth for the year. Soaring oil prices in 2005 and 2006 threatened inflation and unemployment, yet the economy continued to grow through year-end 2006. Imported oil accounts for about two-thirds of US consumption. Long-term problems include inadequate investment in economic infrastructure, rapidly rising medical and pension costs of an aging population, sizable trade and budget deficits, and stagnation of family income in the lower economic groups. The merchandise trade deficit reached a record $750 billion in 2006.
Market Overview
The U.S. is in fact made up of hundreds of different geographic and demographic consumer markets – many with distinct tastes, purchasing behaviours, distribution systems, regulations and climates. For example, if you do a basic geographical segmentation, you’ll find the country consists of 50 states; the capital city Washington, District of Columbia (DC); and various territories including Puerto Rico, the US Virgin Islands and areas of the Pacific Ocean. Seven of these states have economies larger than Australia’s national economy. California alone has the seventh largest economy in the world. If you segment on geography and industry, you’ll find the United States can be divided into six distinct regions:
The Northeast (Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island and Vermont). This region is known for its culture, educational system and medical institutions.
The Middle Atlantic (Delaware, Maryland, New Jersey, New York, Pennsylvania and Washington, DC). Finance, communications and pharmaceutical industries are most prevalent.
The South (Alabama, Arkansas, Florida, Georgia, Kentucky, Louisiana, Mississippi, North Carolina, South Carolina, Tennessee, Virginia, West Virginia and parts of Missouri, Oklahoma and Texas). Due to the area’s temperate weather and sprawling lands, agriculture has been the primary industry but manufacturing and tourism have also become important.
The Midwest (Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota and parts of Missouri, Nebraska, North Dakota, Ohio, South Dakota and Wisconsin). The region is often referred to as the nation’s breadbasket because of its abundant production of oats, wheat and corn. The area is not densely populated, with fewer big cities than its neighbours to the east. The largest city is Chicago, a major port and transportation hub.
The Southwest (Arizona, Nevada, New Mexico, western Texas and parts of Oklahoma). The land in this region is generally flat and dry, and the weather is very hot. The region has many deserts and is home to Las Vegas, one of the fastest growing cities in the US and a premier global gambling centre.
The West (Alaska, California, Colorado, Hawaii, Idaho, Montana, Nevada, Oregon, Utah, Washington and Wyoming). This area of the country is best known for its natural beauty and adventure sport industries. California is the nation’s most populous state and is famous for its movie and high-technology industries.
Market Challenges
Even after dividing the country by region, industry and population, many exporters would still be overwhelmed by the scale of supply needed to meet consumer demands in the U.S. Sometimes even looking at a single customer in the U.S. can be staggering. To illustrate, a supermarket chain called Bristol Farms in the US has 13 stores in Los Angeles and is considered to be a small, boutique retailer catering to the upper-end of the market. Each one of these stores has an annual turnover of between US$20–50 million, and a single month’s order from Bristol Farms for a product like a biscuit (cookie) could represent a total year’s production for a small supplier.
The U.S. market With 300 million consumers, the US market may overwhelm many suppliers who assume the US is a single, homogenous export market. With such scale and volume, it becomes critical for exporters to segment the market, become highly targeted and identify a niche.
Breaking the U.S. market into manageable sectors can be done in a variety of ways, the most common methods are a mix of geographic, demographic, psychological and behavioural indicators. The method used will depend on the industry and product. A simple SWOT (strengths, weaknesses, opportunities and threats) analysis of a market segment combined with basic internet research
can provide valuable information and often drive the decision of whether or not to enter the market.
Fortunately, the U.S. is information rich and there are free market research, industry publications, statistics, associations, databases and studies readily available to help you identify your segment. This information can help you determine everything from the age and wealth of your target customers to their preferences and shopping behaviours.
For example, if you produce an organic energy bar suited to the male fitness market, you are likely to be able to use the internet to identify the most health-conscious cities in the U.S., cross-referenced with cities with the highest number of fitness clubs and largest male populations under the age of 40. These findings would then help you focus on one or two cities to conduct more systematic and targeted research.
Market Opportunities
Investing In The United States
Market Entry Strategy
Every distribution channel you can possibly think of,
and a few you probably haven’t, exists in the US. This
is hardly surprising considering the sheer volume
of people and companies spread across a landmass
(contiguous 48) comparable to that of Australia.
Everyone wants their products and services delivered on
time and at the lowest possible cost. As a result, the US
distribution sector is highly fragmented and complex.
Selecting the right distribution channel involves
considering several factors, including at the most basic
level, the final price of your product. Exporters using
a traditional distribution channel in the US, such as
importer to distributor to wholesaler to retailer, often
find the product’s price has doubled or tripled by the
time it reaches the retailer.
Factors to consider
Examine the following aspects of your business and goals
before choosing a channel to market:
> Number of customers. If you only have a few customers, you
may wish to sell directly to them. If you have a large number
of customers, you may wish to sell directly to the larger ones
and use other means to service your smaller accounts.
> Location of customers. If your customers are geographically
concentrated, you may want to set up your own
warehouse facility or office near them. If your customers
are geographically dispersed, it may be more sensible to
use the services of a fulfilment warehouse, wholesaler or
distributor.
> Price of product/service. If your product or service
is a high-volume, low-priced unit, your distribution
options will be considerably different to a high-priced,
low-volume product. Higher priced items are often
better suited to selling through a specialist broker or
manufacturer’s representative with the support of direct
shipping or a fulfilment warehouse.
> Complexity of product. Fulfilment warehouses,
wholesalers, distributors and many other players in the
distribution channel do not typically provide intensive
support and technical advice before or after the sale.
If your product or service involves a lot of relationship
management, consultative support or technical services,
you will need to consider setting up your own local office
or managing a sales force of agents.
Using an Agent or Distributor
Sales agents, brokers and manufacturer’s
representatives. Companies in these roles act as your
sales force. Their central role is to complete the order
and build ongoing customer relationships. They often
specialise by geography, industry or target customer.
Typically these agents operate on sales commissions,
though their role does not include taking ownership
of the goods or services, and they are not responsible
for warehousing or delivery of the product.
Exporters coming to the US
often think distributors are the best option because
they look after all aspects of US business, from importing
to marketing to bearing the cost of poor sales or debts.
However, distributors in the US often want exclusive
distribution rights, high-discount or preferential pricing
and full control over the final pricing, servicing and
marketing of your products.
Exclusive distribution contracts limit you to supplying
one customer in a given market. It is very important
to understand the market well and to know the key
stakeholders before entering an exclusive agreement.
It would be disastrous to enter an agreement with a future
competitor that wants to lock you out of the market.
An exclusive distribution agreement should have strict
performance guidelines and boundaries. It should
usually only be considered after you have done business
in the market for some time.
Establishing an Office
While the list above provides a quick description of
many of the most common forms of market entry
and distribution channels, other more traditional
options might also be suitable. These include opening
a branch office, joint ventures, licensing agreements,
co-operative production and marketing, selling under
private label and taking orders at trade shows.
It is possible to incorporate a company
online for as little as US$100. There are also various
locations in the US, such as Delaware, where
incorporating can be done quickly, easily and cheaply
through a law firm on your behalf. It is important,
however, to remember the structure of your corporation
in the US will have legal and tax implications, making
proper legal and financial advice a sound investment.
Franchising
According to Financial Times, if sales by US franchise businesses were translated into national product, they would qualify as the 7th largest economy in the world. In the United States, franchising falls under the jurisdiction of a number of state and federal laws. Franchisors are required by the Federal Trade Commission to have a Uniform Franchise Offering Circular (UFOC) to disclose potential franchisees about their purchase. This disclosure must take place 10 business days prior to solicitation (franchisor agrees to offer the prospective franchisee a license). Each state may require the UFOC to contain specific requirements. This means that many franchisors have a unique UFOC for each state or sometimes are able to include all state specific requirements into one document.
The franchise agreement is a standard part of franchising. It is the essential contract signed by the franchisee and the franchisor that formalizes and specifies the terms of the business arrangement, as well as many issues discussed in less detail in the UFOC. Unlike the UFOC, the franchise agreement is a fluid document, crafted to meet the specific needs of the franchise, with each having its own set of standards and requirements. But much like a lease, there are elements commonly found in every agreement.
Most franchise agreements should discuss the following issues:
The monetary costs involved in the bestowal of the franchise
Property issues including the building, location, supplies, and equipment
Operational procedures and practices, and how these preserve and protect the franchise system
Territorial concerns
The services and aspects earned from payment of the franchise fee
The exact nature of the training and assistance provided to the franchisee
The nature of the franchise marketing program
Recurring fees and recurring fee structures
Bookkeeping requirements
The key clauses that most UFOCs have in common are:
Identifying information as to franchisor.
Business experience of franchisor's directors and executive officers.
Business experience of the franchisor.
Litigation history.
Bankruptcy history.
Description of franchise.
Initial funds required to be paid by a franchisee.
Recurring funds required to be paid by a franchisee.
Affiliated persons the franchisee is required or advised to do business with by the franchisor.
Obligations to purchase.
Revenues received by the franchisor in consideration of purchases by a franchisee.
Financing arrangements.
Restriction of sales.
Personal participation required of the franchisee in the operation of the franchise.
Termination, cancellation, and renewal of the franchise.
Statistical information concerning the number of franchises (and company-owned outlets).
Site selection.
Training programs.
Public figure involvement in the franchise.
Financial information concerning the franchisor.
There is no federal registry of franchising or any federal filing requirements for information, rather, states are the primary collectors of data on franchising companies, and enforce laws and regulations regarding their spread.
Because litigation is expensive, the majority of franchisors have inserted mandatory arbitration clauses into their agreements with their franchisees. Since 1980, the U.S. Supreme Court has dealt with cases involving direct franchisor/franchisee conflicts at least four times, and three of those cases involved a franchisee who was resisting the franchisor's motion to compel arbitration. Two of the latter cases involved large, well-known restaurant chains (Burger King and Subway); the third involved Southland Corporation, the parent company of 7-Eleven.
Direct Marketing
It may not always be possible or efficient to sell direct to one or more of your U.S. buyers. However, when it is possible, it is often the preferred and most cost-effective option. Due to a need to manage smaller supply volumes, it is not uncommon for exporters to work directly with one or two corporate customers in the U.S.
Joint Ventures & Licensing
Selling to the Government
The U.S. General Services Administration is the United States federal government’s business manager, buyer, real estate developer, telecommunications manager, and IT solutions provider. GSA offers businesses the opportunity to sell billions of dollars worth of products and services to federal agencies through contract vehicles. Most GSA contracts are for standard services and "commercial off-the-shelf" (COTS) products and equipment in three major areas:
- General-purpose supplies, equipment, and services;
- Building construction, repair, and maintenance; and
- Information technology and network services.
GSA also buys or leases
- Office space and other real estate; and
- Vehicles for all federal agencies.
GSA actively seeks out large and small businesses able to provide nationwide or local services and products. GSA contracts are advertised, awarded, and managed by GSA headquarters and GSA Regional offices. Managers of federal buildings also purchase products and services.
GSA advertises locally and nationally. All GSA contracting opportunities over $25,000 are advertised on FedBizOpps. This site is available 24 hours a day, seven days a week, and allows vendors to register to receive e-mail notification of opportunities in their areas of interest.
GSA is an advocate for today's small, small disadvantaged, women-owned, HUBZone (Historically Underutilized Business Zone), veteran, and service-disabled veteran-owned businesses. GSA has established goals for awarding contracts to these businesses and for subcontracting with small businesses. Some small business programs also have "set asides" under which certain contracts are reserved for competition among small or small disadvantaged businesses.
Distribution & Sales Channels
Selling Factors & Techniques
The solution for Australian exporters is often guerrilla
marketing, which involves using an unconventional,
low-cost approach to make an impact on consumers.
Guerrilla marketing techniques rely on creativity and the
dedicated allocation of available resources – even if those
are only people, energy and flexibility – to marketing
activities that help you achieve the sales volume and
customer loyalty needed to run a profitable and sustainable
business in the US.
Some of the most common techniques used by Australian
exporters in the market include:
> Website/internet strategies. A website is a good
foundation for any guerrilla marketing approach and
is a valuable opportunity to build your brand, inform
customers and impact buying decisions. Americans
demand extremely high-quality websites, and you must
meet these expectations or sales will suffer. Think about
ways to use blogs, e-newsletters, special offers, viral
campaigns and other incentives to maintain impact.
For more information on the importance and simplicity
of using internet strategies in the US, see Austrade’s
E-commerce in the US – a practical guide for Australian
exporters at www.austrade.gov.au/eguideUS.
> Publicity instead of advertising. Attracting editorial
coverage in media that reaches your target audience
is generally a far more effective way to influence
buyers than purchasing advertising space. Editorial
endorsements carry incredible weight in the eyes of
the US consumer, and media attention will help drive
sales and create brand awareness. Identify industry
publications in Australia and the US, make contact
with editors and send press releases, samples, articles
and reviews of your product or service.
> Influential users or recognised reference sites. Pick one
or two well-respected reference sites and focus your
energy on getting them to endorse your company.
For example, if you produce medical equipment, getting
the Cedars-Sinai hospital in Los Angeles to buy your item
would give you credibility with just about any other
hospital in the country.
> Celebrity endorsement. The best way to approach
celebrities is to target their publicists or managers and
pass on a free gift of your product or service. If you
include a small, self-addressed envelope and comment
card, you may get feedback from the celebrity that can
be used in marketing materials.
> Memberships in associations and chambers. This is
a traditional but still highly effective way to access
networks, information and business in any new market.
> Sponsorship. The US market attaches a lot of credibility
to charity events and the organisations that support
them. Your company may be a good match for a local
non-profit. Commercial events can also offer worthwhile
sponsorship opportunities with good logo placement,
media exposure and access to captive audiences.
> Small gifts or incentives for your sales force.
Thanking your customers and rewarding your sales
force with Australian gifts such as a quality bottle of
wine can deliver remarkable results.
US corporations regularly spend millions on advertising campaigns in an attempt to gain or
defend market share. Unfortunately, most Australian companies have dramatically smaller
budgets for US promotions.
Electronic Commerce
E-commerce, catalogues and television retailing. Selling direct is also a great option for exporters who sell their products or services through virtual channels such as the internet, catalogues and television. These virtual channels are often overlooked by many exporters entering the U.S. More than seven per cent of U.S. retail sales already occur online and more than 70 per cent of U.S. households regularly purchase goods and services through these channels. Setting up physical distribution systems to support these sales channels can be as easy as pay-per-click downloads; couriering supplies directly from your home country via commercial companies like DHL and FedEx; selling directly to the catalogue or television retailer’s preferred distributor; or using the services of a fulfilment warehouse.
Trade Promotion & Advertising
Trade shows are still an important part of the US commercial landscape and there are thousands
of events held every year for everything from gaming technology to quilting supplies. The main trade show capitals of the US include Atlanta,
Chicago, Las Vegas, Los Angeles, New York and Orlando, but
events are held throughout the country.
Trade shows provide a one-stop shop where companies
can meet new and existing buyers, distributors, agents
and media. They also provide a great opportunity for new
suppliers to test product or service offerings on the market,
observe their competition and discuss trends. However, this
exposure does come at a price. Australian exporters should
think carefully about whether exhibiting is the best option
for their company.
US buyers are aware that the majority of new exhibitors
are short-lived operations that will be out of business within
a year. As a result, buyers often test a company’s viability
by waiting to see if it returns to the trade show a second
or third year. This trend is confirmed by the many exporters
who begin to make significant sales in their third year
of exhibiting.
If you aren’t going to commit to exhibiting for several years,
consider attending rather than participating. Many trade
shows will evict attendees they find trying to actively sell
on the trade show floor without actually exhibiting, so
concentrate on gathering market intelligence and attending
seminars and networking events instead.
If you do decide to exhibit, be sure to research the available
trade shows to ensure they attract the sort of attendees
you need, eg trade versus consumers. Most trade shows will
have attendee numbers, profiles and exhibitor lists on their
websites. You can easily see which events your competition
or target partners are attending.
Below are some links to relevant articles
that can help you review your objectives and
activities before, during and after a trade show.
These are only a sampling of the thousands
of free articles and checklists available on the
internet. You should also be sure to review the
many additional marketing and promotional
support activities provided by the show
organisers for exhibitors.
Pricing
While any pricing strategy has to take into account the basic need to cover costs and provide a reasonable profit margin, exporters to the United States should avoid the temptation to use their domestic price points as the foundation of a U.S. pricing strategy. When pricing for US customers it is important to remember many of them have never dealt with an international supplier before and may not understand export pricing.
Sales Service & Customer Support
Protecting Your Intellectual Property
Protecting your brand
or intellectual property should be a priority in the US.
Even if you feel you wouldn’t have the financial capacity
to prosecute trademark or patent infringements,
you should still register your trademark or patent
with the US Patent and Trademark Office online at
www.uspto.gov or via a low-cost service provider.
Due Diligence
Experiencing The United States
Culture
The United States is a culturally diverse nation, home to a wide variety of ethnic groups, traditions, and values. The culture held in common by the majority of Americans is referred to as "mainstream American culture," a Western culture largely derived from the traditions of Western European migrants, beginning with the early English and Dutch settlers. German, Irish, and Scottish cultures have also been very influential. Certain Native American traditions and many cultural characteristics of enslaved West Africans were absorbed into the American mainstream. Westward expansion brought close contact with the culture of Mexico, and large-scale immigration in the late nineteenth and early twentieth centuries from Southern and Eastern Europe introduced many new cultural elements. More recent immigration from Asia and especially Latin America has had broad impact. The resulting mix of cultures may be characterized as a homogeneous melting pot or as a pluralistic salad bowl in which immigrants and their descendants retain distinctive cultural characteristics.
While American culture maintains that the United States is a classless society, economists and sociologists have identified cultural differences between the country's social classes, affecting socialization, language, and values. The American middle and professional class has been the source of many contemporary social trends such as feminism, environmentalism, and multiculturalism. Americans' self-images, social viewpoints, and cultural expectations are associated with their occupations to an unusually close degree. While Americans tend to greatly value socioeconomic achievement, being ordinary or average is generally seen as a positive attribute. Women, formerly limited to domestic roles, now mostly work outside the home and receive a majority of bachelor's degrees. The changing role of women has also changed the American family. In 2005, no household arrangement defined more than 30% of households; married childless couples were most common, at 28%. The extension of marital rights to homosexual persons is an issue of debate, with more liberal states permitting civil unions and Massachusetts recently having legalized same-sex marriage.
Mainstream American culinary arts are similar to those in other Western countries. Wheat is the primary cereal grain. Traditional American cuisine uses ingredients such as turkey, white-tailed deer venison, potatoes, sweet potatoes, corn, squash, and maple syrup, indigenous foods employed by Native Americans and early European settlers. Slow-cooked pork and beef barbecue, crab cakes, potato chips, and chocolate chip cookies are distinctively American styles. Soul food, developed by African slaves, is popular around the South and among many African Americans elsewhere. Syncretic cuisines such as Louisiana creole, Cajun, and Tex-Mex are regionally important. Fried chicken, which combines Scottish and African American culinary traditions, is a national favorite. Iconic American dishes such as apple pie, pizza, hamburgers, and hot dogs derive from the recipes of various European immigrants. So-called French fries, Mexican dishes such as burritos and tacos, and pasta dishes freely adapted from Italian sources are widely consumed. During the last two decades of the twentieth century, Americans' daily caloric intake rose 24%, as the share from food consumed outside the home went from 18 to 32%. Frequent dining at fast food outlets such as McDonald's is closely associated with what government researchers call the American "obesity epidemic." The popularity of well-promoted diets such as the Atkins Nutritional Approach has sent sales of "carb-conscious" processed food soaring.
Americans generally prefer coffee to tea, with more than half the adult population drinking at least one cup a day. American liquors include bourbon and Tennessee whiskey, applejack, and Puerto Rican rum. The martini is the characteristic American cocktail. The average American consumes 81.6 liters of beer per year. American-style lagers, typified by the leading Budweiser brand, are light in body and flavor; Budweiser owner Anheuser-Busch controls 50% of the national beer market. In recent decades, wine production and consumption has increased substantially, with winemaking now a leading industry in California. In contrast to European traditions, wine is often drunk before meals, substituting for cocktails. Marketing by U.S. industries is largely responsible for making orange juice and milk (now often fat-reduced) ubiquitous breakfast beverages. Highly sweetened soft drinks are widely popular; sugared beverages account for 9% of the average American's daily caloric intake, more than double the rate three decades ago. Leading soft-drink producer Coca-Cola is the most recognized brand in the world, just ahead of McDonald's.
Apart from professional business attire, U.S. fashions are eclectic and predominantly informal. While Americans' diverse cultural roots are reflected in their clothing, particularly those of recent immigrants, cowboy hats and boots and leather motorcycle jackets are emblematic of specifically American styles. Blue jeans were popularized as work clothes in the 1850s by merchant Levi Strauss, a German immigrant in San Francisco, and adopted by many American teenagers a century later. They are now widely worn on every continent by people of all ages and social classes. Along with mass-marketed informal wear in general, blue jeans are arguably U.S. culture's primary contribution to global fashion. The country is also home to the headquarters of many leading designer labels such as Ralph Lauren and Calvin Klein. Labels such as Abercrombie & Fitch and Eckô cater to various niche markets.
Sports in the United States are an important part of the national culture. However, the sporting culture of the U.S. is different from that of many other countries, especially those in Europe. Compared to any other nation, Americans prefer a unique set of sports. The most popular sport in most countries (soccer) is a minor sport in the U.S. compared to the four most popular team sports (baseball, American football, basketball and ice hockey). The major leagues of each of these sports enjoy massive media exposure and are considered the pre-eminent competitions in their respective sports since relatively few other countries play them (especially football) to any significant extent. Also, sports are organized differently in the U.S. than in many other countries, with schools and colleges and universities playing an important role.
Business Customs
While Americans and many English-speaking countires like Canada, the United Kingdom, and Australian may appear similar in language and culture, the U.S. is actually quite different. Understanding these idiosyncrasies will ensure you are better equipped to negotiate deals and develop long-term business relationships. Below are some primary aspects to consider:
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Americans often build relationships through business, not business through relationships. Work out the details of the deal first, the relationships may come later.
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Active selling is expected, often to a degree that may be regarded as excessive in some other countries.
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Time is money, so be well prepared with samples, packaging and sales sheets. Know your return on investment calculations or sales forecasts, pricing and logistics. Deadlines are real and short; respond quickly or risk losing the business.
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Know your competitive advantage over specific U.S. suppliers, as well as your domestic and international track record.
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Being direct is a virtue; ask for what you want, say what you mean and do as you say. Being shy and unassertive may be seen as a weakness in the US. Americans won’t take offence to well-phrased, direct questions because they always reserve the right to say no.
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Be positive. Business visitors to the U.S. have a tendency to be self-effacing or downplay achievements can clash with Americans’ can-do attitude and tendency to take information at face value.
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Effective follow-up is essential and often involves persistent and repetitive attempts to make contact. If you have called or emailed someone 2–3 times and have not heard back from them, do not assume they are disinterested. Instead, remember that persistence is expected in the US; it may take you as many as 10–12 attempts to get a response, whether positive or negative.
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Business conduct in the U.S. is generally conservative, polite and succinct; it is important to clarify benefits for the prospective customer.
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Be aware of the cultural differences in the United States. It is the land of immigrants, so be prepared to conduct due diligence regarding the U.S. company culture before you arrive. In general, the East Coast and Central United States tend to me more conversative, while the the West Coast tends to me more casual. The South is known for its hospitality.
The majority of Australian companies doing business in the
US are small operations that often have only a handful of
employees and a limited budget. The key to success is not
being large but having a strong product or service offering and
being able to clearly articulate your competitive advantage.
US buyers are time poor and bombarded with marketing
collateral and sales pitches from hundreds of companies.
As a result, it is extremely difficult to get their attention. Success
in the United States is often based on persistence. It is not
uncommon for a buyer to need to hear your message numerous
times before they can differentiate it from all the others.
You should increase your chances of getting noticed by
keeping the message concise and diversifying the channels
you use to deliver it, such as email, telephone, publications,
third parties and personal visits. Americans were the
inventors of the 30-second sales pitch. Whether you like or
loathe the idea, the level of marketing noise bombarding
buyers and the number of competitors makes it a necessity.
You need to be sure you can move a US buyer from passive
disinterest to curious engagement as quickly and effectively
as possible – ideally in 30 to 60 seconds.
This concise pitch should include the following four elements:
> Articulate the problem your product addresses, the solution
it provides and why it’s better than its competitors. For
example, “My software solves the problem of product
tracking in the retail industry and provides a 30 per cent
higher savings rate than my two top competitors”.
> Use American English. It sounds like common sense, but
many Australian exporters speak in metric units, reference
Australian locations and use Australian slang in US pitches.
> Try to reference companies that are already active in the
US when establishing your advantage or credibility.
Whether presenting testimonials or claims against
competitors, the US buyer needs to quickly understand
who you are in context of his or her current environment.
> Be specific about the benefits. Avoid using generalities
such as improved return-on-investment, productivity
or sales. Instead provide specific numbers, data and
percentage increases on aspects of business that show
you understand the buyer’s concerns.
Travel Advisory
Terrorism is a threat throughout the world. You should exercise caution and monitor developments that might affect your safety in the United States because of the risk of terrorism. Pay close attention to your personal security and monitor the media for information about possible new safety or security risks. The United States authorities released a new National Intelligence Estimate on the terrorist threat to the US homeland on 17 July 2007 which concluded that "the United States currently is in a heightened threat environment." US officials have said that the US has "no credible information pointing to a specific imminent attack or the timing or execution of such an attack". But they have indicated that "the warning is clear" and that they are taking it seriously.
There has been no change to the US Department of Homeland Security's Advisory System Threat Level. This remains at Code Orange for the airline sector, indicating a "high" risk of terrorist attack. It is at Code Yellow or "elevated" for all other sectors, indicating a significant risk of terrorist attack. A number of security enhancements have been made since the June 2007 terrorist incidents in London and Glasgow, including an increase in the general security presence and vetting at ports of entry.
Crime rates are higher in the larger cities, such as New York, Los Angeles and Houston than in some other western countries. Tourists are often targeted for petty crimes such as pickpocketing and theft, particularly on public transport.
If you are travelling from an airport in the United States, either domestically or internationally, there are limitations on carrying liquids, gels, lotions and other items of similar consistency. You may carry through security checkpoints only travel-sized (85g or less) toiletries that fit comfortably in one, litre-sized, clear plastic, zip-top bag. Larger amounts of prescription liquid medications, baby formula and diabetic glucose treatments must be declared at the checkpoint for additional screening. After clearing security at United States airports, travellers can take onboard beverages and other items purchased in the boarding area beyond the security checkpoint. If you are unsure of these requirements, check with your airline or on the United States Transport Security Administration's website.
The Department of Homeland Security (DHS) launched a new program in February 2007 to help travellers resolve possible "watch list" (terrorism based list of people identified by the Terrorist Screening Centre) misidentification issues online with any of the many DHS component agencies. The DHS Traveler Redress Inquiry Program (DHS TRIP) can be accessed at www.dhs.gov/trip.
Outside tourist areas, in Louisiana and Mississippi. there is still significant communication, transport, and infrastructure damage caused by Hurricane Katrina in August 2005. It is recommended that you make accommodation arrangements before you visit these areas and check on local conditions with the hotel.
If you are caught in a disaster in the United States you can register that you are safe and well on the Red Cross "Safe and Well" website so your family and friends may review the site and confirm your safety.
The United States is subject to a wide range of natural hazards including: hurricanes, tsunamis, volcanoes, and earthquake activity around the Pacific Basin including Hawaii; tornadoes in the midwest and southeast; mud slides in California; forest fires in the west; and flooding. If you are in affected areas, you should monitor media reports and follow the instructions of local authorities. Mandatory evacuation orders are issued on occasion and apply to everyone, including Australians.
Severe hurricanes occur in the Gulf and Atlantic coastal regions of the United States.
The hurricane season is June to November when landslides, mudslides and flooding may occur. In the case of a hurricane, monitor local media reports and follow the instructions of local emergency officials. Television and radio services provide extensive advice from local, state and federal authorities in the event of a hurricane.
The direction and strength of hurricanes can change with little warning. You can check the latest hurricane information at the National Hurricane Center website.
In the event of an approaching hurricane, you should identify your local shelter. Flights in and out of affected areas could be delayed or suspended. Available flights may fill quickly. You should contact your airline for the latest flight information. The hurricane could also affect access to sea ports in the region. In some areas, adequate shelter from a severe hurricane may not be available to all who may choose to stay. You should familiarise yourself with your hotel or cruise ship evacuation plans. You should carry your travel documents at all times (i.e. Passport, picture ID's, etc.) or secure them in a safe, waterproof location. We also suggest that you contact friends and family in Australia with updates about your welfare and whereabouts. For further information, see our Travel Bulletin: Severe Weather – Cyclones, Hurricanes and Typhoons.
When considering travel to areas often affected by tropical storms you should give careful thought to the possible dangers and inconveniences should a storm strike. Those who decide to continue their travel plans should devise an emergency plan to follow in the event of a severe weather conditions. Ensure you protect your vital documents, including your passport and airline tickets, from water damage by placing them in a waterproof container such as a zip-lock bag.
All oceanic regions of the world can experience tsunamis, but in the Indian and Pacific Oceans, there is a more frequent occurrence of large, destructive tsunamis because of the many large earthquakes along major tectonic plate boundaries and ocean trenches. See the Tsunami Awareness brochure.
If a natural disaster occurs, follow the advice of local authorities.
Before you go, organize a variety of ways of accessing your money overseas, such as credit cards, travellers' cheques and cash. Check with your bank whether your ATM card will work overseas.
Make two photocopies of valuables such as your passport, tickets, visas and travellers' cheques. Keep one copy with you in a separate place to the original and leave another copy with someone at home.
While travelling, don't carry too much cash and remember that expensive watches, jewellery and cameras may be tempting targets for thieves.
When you are in the United States of America, be aware that local laws and penalties, including ones that appear harsh by standards of some other westernized countries, do apply to you. Penalties for drug-related offences, including marijuana use, are severe and provide for minimum mandatory sentences.
The United States recognises dual nationality. Dual nationals are required by United States law to travel with both passports and use their United States passport to enter and exit the country.
Visa Requirements
Generally, a citizen of a foreign country who wishes to enter the United States must first obtain a visa, either a nonimmigrant visa for temporary stay, or an immigrant visa for permanent residence. The visa allows a foreign citizen, to travel to the United States port-of entry and request permission of the U.S. immigration inspector to enter the U.S. The "visitor" visa is a nonimmigrant visa for persons desiring to enter the United States temporarily for business (B-1) and for pleasure or medical treatment (B-2). As examples, if the purpose of your planned travel is recreational in nature, including tourism, amusement, visits with friends or relatives, rest, medical treatment, and activities of a fraternal, social, or service nature, then a vistor visa (B-2) would be the appropriate type of visa for your travel. As additional examples, if the purpose for your planned travel is to consult with business associates, travel for a scientific, educational, professional or business convention, or conference on specific dates, settle an estate, or negotiate a contract, then a business (B-1) visitor visa would be the appropriate type of visa for your travel. After reviewing this website information, should you need additional information about business related (B-1) visitor visas, select Business Visa Center .
AIR TRAVEL
Implemented on January 23, 2007, ALL PERSONS traveling by air between the United States and Canada, Mexico, Bermuda, and the Caribbean region are required to present a passport or other valid travel document to enter or re-enter the United States.
LAND AND SEA TRAVEL
The following summarizes information available on the Department of Homeland Security’s website.
- JANUARY 31, 2008
U.S. and Canadian citizens will need to present either a WHTI-compliant document, or a government-issued photo ID, such as a driver’s license, plus proof of citizenship, such as a birth certificate. DHS also proposes to begin alternative procedures for U.S. and Canadian children at that time.
- SUMMER 2008
At a later date, to be determined, the departments will implement the full requirements of the land and sea phase of WHTI. The proposed rules require most U.S. citizens entering the United States at sea or land ports of entry to have either a U.S. passport; a U.S. passport card; a trusted traveler card such as NEXUS, FAST, or SENTRI; a valid Merchant Mariner Document (MMD) when traveling in conjunction with official maritime business; or a valid U.S. Military identification card when traveling on official orders.
The implementation date will be determined based on a number of factors, including the progress of actions undertaken by the Department of Homeland Security to implement the WHTI requirements and the availability of WHTI compliant documents on both sides of the border. DHS and DOS expect the date of full WHTI implementation to be in the summer of 2008. The precise implementation date will be formally announced with at least 60 days notice.
Note: The passport requirement does NOT apply to U.S. citizens traveling to or returning directly from a U.S. territory.
U.S. PASSPORT AND OTHER TRAVEL DOCUMENTS
- U.S. Passport: U.S. citizens may present a valid U.S. passport when traveling via air, land or sea between the U.S. and the aforementioned Western Hemisphere countries.
- The Passport Card: This limited-use, wallet-size passport card is not yet available and is under development. When available it will only be valid for land and sea travel between the U.S. and Canada, Mexico and the Caribbean region (includes Bermuda).
- Other Accepted Travel Documents: SENTRI, NEXUS, FAST and the U.S. Coast Guard Mariner Document. Members of the U.S. Armed Forces on active duty traveling on orders are exempt from the passport requirement. DHS has more information on these travel documents. This information may be seen at www.dhs.gov.
ABOUT WHTI
The Western Hemisphere Travel Initiative is a result of the Intelligence Reform and Prevention Act of 2004 (IRTPA), requiring all travelers to present a passport or other document that denotes identity and citizenship when entering the U.S.
The Department of Homeland Security (DHS) announced on February 22 its intent to propose, as part of the Notice of Proposed Rulemaking on the Western Hemisphere Travel Initiative (WHTI), significant flexibility regarding travel documents required for U.S. and Canadian children as part of WHTI requirements for U.S. land and sea border entry in 2008.
The goal of the initiative is to strengthen U.S. border security while facilitating entry for U.S. citizens and legitimate foreign visitors by providing standardized documentation that enables the Department of Homeland Security to quickly and reliably identify a traveler.
Telecommunications
Transportation
Language
The United States does not have an official language, but English is spoken by about 82% of the population as a native language. The variety of English spoken in the United States is known as American English; together with Canadian English it makes up the group of dialects known as North American English. 96% of the population of the U.S. speaks English well. The Spanish language is the second-most common language in the country, spoken by almost 30 million people (or 12% of the population) in 2005.
Health
The standard of medical facilities and care throughout the United States compares favourably with that available in other westernized countries. Medical costs in the United States are, however, extremely high. A visit to a doctor in the United States for even minor complaints can cost several hundred dollars, excluding laboratory tests or medication costs. In the absence of accepted health insurance (or proof of ability to pay), payment would generally be required up front.
We strongly recommend that you take out comprehensive travel insurance that will cover any overseas medical costs, before you depart. Confirm that your insurance covers you for the whole time you'll be away and check what circumstances and activities are not included in your policy. The Australian Embassy and Consulates-General cannot assist with medical expenses. Remember, if you can't afford travel insurance, you can't afford to travel.
Your doctor or travel clinic is the best source of information about preventive measures, immunisations and disease outbreaks overseas. The World Health Organization (WHO) provides information for travellers and our 'Travelling Well' brochure also provides useful tips for staying healthy and travelling with medicines while overseas.
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Temporary Entry of Materials & Personal Belongings
U.S. Law & Government
Government & Politics
The United States is the world's oldest surviving federation. It is a constitutional republic, "in which majority rule is tempered by minority rights protected by law." It is fundamentally structured as a representative democracy, though U.S. citizens residing in the territories are excluded from voting for federal officials. The government is regulated by a system of checks and balances defined by the United States Constitution, which serves as the country's supreme legal document and as a social contract for the people of the United States. In the American federalist system, citizens are usually subject to three levels of government, federal, state, and local; the local government's duties are commonly split between county and municipal governments. In almost all cases, executive and legislative officials are elected by a plurality vote of citizens by district. There is no proportional representation at the federal level, and it is very rare at lower levels. Federal and state judicial and cabinet officials are typically nominated by the executive branch and approved by the legislature, although some state judges are elected by popular vote. The voting age is eighteen and voter registration is the individual's responsibility; there are no mandatory voting laws.
The federal government is composed of three branches:
- Legislative: The bicameral Congress, made up of the Senate and the House of Representatives makes federal law, declares war, approves treaties, has the power of the purse, and has the rarely used power of impeachment, by which it can remove sitting members of the government.
- Executive: The president is the commander-in-chief of the military, can veto legislative bills before they become law, and appoints the Cabinet and other officers, who administer and enforce federal laws and policies.
- Judiciary: The Supreme Court and lower federal courts, whose judges are appointed by the president with Senate approval, interpret laws and can overturn laws they deem unconstitutional.
The House of Representatives has 435 members, each representing a congressional district for a two-year term. House seats are apportioned among the fifty states by population every tenth year. As of the 2000 census, seven states have the minimum of one representative, while California, the most populous state, has fifty-three. Each state has two senators, elected at-large to six-year terms; one third of Senate seats are up for election every second year. The president serves a four-year term and may be elected to the office no more than twice. The president is not elected by direct vote, but by an indirect electoral college system in which the determining votes are apportioned by state. The Supreme Court, led by the Chief Justice of the United States, has nine members, who serve for life.
All laws and procedures of both state and federal governments are subject to review, and any law ruled in violation of the Constitution by the judicial branch is overturned. The original text of the Constitution establishes the structure and responsibilities of the federal government, the relationship between it and the individual states, and essential matters of military and economic authority. Article One protects the right to the "great writ" of habeas corpus, and Article Three guarantees the right to a jury trial in all criminal cases. Amendments to the Constitution require the approval of three-fourths of the states. The Constitution has been amended twenty-seven times; the first ten amendments, which make up the Bill of Rights, and the Fourteenth Amendment form the central basis of individual rights in the United States.
Politics in the United States have operated under a two-party system for virtually all of the country's history. For elective offices at all levels, state-administered primary elections are held to choose the major party nominees for subsequent general elections. Since the general election of 1856, the two dominant parties have been the Democratic Party, founded in 1824 (though its roots trace back to 1792), and the Republican Party, founded in 1854. The current president, George W. Bush, is a Republican; following the 2006 midterm elections, the Democratic Party controls both the House and the Senate. The Senate has two independent members—one is a former Democratic incumbent, the other is a self-described socialist; every member of the House is a Democrat or Republican. An overwhelming majority of state and local officials are also either Democrats or Republicans. Since the Civil War, only one third-party presidential candidate—former president Theodore Roosevelt, running as a Progressive in 1912—has won as much as 20% of the popular vote.
Within American political culture, the Republican Party is considered "center-right" or conservative and the Democratic Party is considered "center-left" or liberal, but members of both parties have a wide range of views. In an August 2007 poll, 36% of Americans described themselves as "conservative," 34% as "moderate," and 25% as "liberal." On the other hand, a plurality of adults, 35.9%, identify as Democrats, 32.9% as independents, and 31.3% as Republicans. The states of the Northeast, Great Lakes, and the West Coast are relatively liberal-leaning—they are known in political parlance as "blue states." The "red states" of the South and the Rocky Mountains lean conservative.
Foreign Relations
The United States has vast economic, political, and military influence on a global scale, which makes its foreign policy a subject of great interest around the world. Almost all countries have embassies in Washington, D.C., and many host consulates around the country. Likewise, nearly all nations host American diplomatic missions. However, Cuba, Iran, North Korea, Bhutan, and Sudan do not have formal diplomatic relations with the United States.
American isolationists have often been at odds with internationalists, as anti-imperialists have been with promoters of Manifest Destiny and American Empire. American imperialism in the Philippines drew sharp rebukes from Mark Twain, philosopher William James, and many others. Later, President Woodrow Wilson played a key role in creating the League of Nations, but the Senate prohibited American membership in it. Isolationism became a thing of the past when the United States took a lead role in founding the United Nations, becoming a permanent member of the Security Council and host to the United Nations headquarters. The United States enjoys a special relationship with the United Kingdom and strong ties with Australia, New Zealand, Japan, Israel, and fellow NATO members. It also works closely with its neighbors through the Organization of American States and free trade agreements such as the trilateral North American Free Trade Agreement with Canada and Mexico. In 2005, the United States spent $27.3 billion on official development assistance, the most in the world; however, as a share of gross national income (GNI), the U.S. contribution of 0.22% ranked twentieth of twenty-two donor states. On the other hand, nongovernmental sources such as private foundations, corporations, and educational and religious institutions donated $95.5 billion. The total of $122.8 billion is again the most in the world and seventh in terms of GNI percentage.
The president holds the title of commander-in-chief of the nation's armed forces and appoints its leaders, the secretary of defense and the Joint Chiefs of Staff. The United States Department of Defense administers the armed forces, including the Army, the Navy, the Marine Corps, and the Air Force. The Coast Guard falls under the jurisdiction of the Department of Homeland Security in peacetime and the Department of the Navy in times of war. In 2005, the military had 1.38 million personnel on active duty, along with several hundred thousand each in the Reserves and the National Guard for a total of 2.3 million troops. The Department of Defense also employs approximately 700,000 civilians, disregarding contractors. Military service is voluntary, though conscription may occur in wartime through the Selective Service System. The rapid deployment of American forces is facilitated by the Air Force's large fleet of transportation aircraft and aerial refueling tankers, the Navy's fleet of eleven active aircraft carriers, and Marine Expeditionary Units at sea in the Navy's Atlantic and Pacific fleets. Outside of the American homeland, the U.S. military is deployed to 770 bases and facilities, on every continent except Antarctica. Due to the extent of its global military presence, scholars describe the United States as maintaining an "empire of bases."
U.S. military spending in 2006, over $528 billion, was 46% of the entire military spending in the world and greater than the next fourteen largest national military expenditures combined. (In purchasing power parity terms, it was larger than the next six such expenditures combined.) The per capita spending of $1,756 was approximately ten times the world average. At 4.06% of GDP, U.S. military spending ranked 27th out of 172 nations. The official Department of Defense budget in 2006, $419.3 billion, was a 5% increase over 2005. The estimated total cost to the United States of the war in Iraq through 2016 is $2.267 trillion. As of October 23, 2007, the United States had suffered 3,834 military fatalities during the war and over 28,100 wounded.
Law
The law of the United States was originally largely derived from the common law of the system of English law, which was in force at the time of the Revolutionary War. However, the supreme law of the land is the United States Constitution and, under the Constitution's Supremacy Clause, laws enacted by Congress and treaties to which the U.S. is a party. These form the basis for federal laws under the federal constitution in the United States, circumscribing the boundaries of the jurisdiction of federal law and the laws in the fifty U.S. states and territories.
In the United States, the law is derived from four sources. These four sources are constitutional law, administrative law, statutory law, and the common law (which includes case law). The most important source of law is the United States Constitution. All other law falls under, and is subordinate to, that document. No law may contradict the United States Constitution. For example, if Congress passes a statute that conflicts with the Constitution, the Supreme Court may find that law unconstitutional.
Notably, a statute does not disappear automatically merely because it has been found unconstitutional; it must be deleted by a subsequent statute. Many federal and state statutes have remained on the books for decades after they were ruled to be unconstitutional. However, under the principle of stare decisis, no sensible lower court will enforce an unconstitutional statute, and any court that does so will be reversed by the Supreme Court.
The United States and most Commonwealth countries are heirs to the common law legal tradition of English law; for example, U.S. courts have inherited the principle of stare decisis. A small number of important British statutes in effect at the time of the Revolution have been independently enacted in nearly identical form by U.S. states. Two examples that many lawyers will recognize are the Statute of Frauds and the Statute of 13 Elizabeth. Such English statutes are still regularly cited in contemporary legal writings about their modern American descendants.
Although the courts of the various Commonwealth nations are often influenced by each other's rulings, American courts rarely follow post-Revolution Commonwealth rulings unless there is no American ruling on point, the facts and law at issue are nearly identical, and the reasoning is strongly persuasive. The earliest American cases, even after the Revolution, often did cite contemporary British cases, but such citations gradually disappeared during the 19th century as American courts developed their own principles to resolve the legal problems of the American people. Today, the vast majority of American legal citations are to domestic cases. Sometimes, courts, and casebook editors, do make exceptions for opinions on issues of first impression by brilliant British jurists, like William Blackstone or Lord Denning.
Some adherents of originalism and strict constructionism such as Justice Antonin Scalia of the United States Supreme Court argue that American courts should never look for guidance to post-Revolution cases from legal systems outside of the United States, regardless of whether the reasoning is persuasive, with the sole exception of cases interpreting international treaties to which the United States is a signatory. This position follows inevitably from the philosophy of originalism, which posits not only that the Constitution is the ultimate source of judicial authority in the U.S., but that the only proper analysis of the document consists of discerning the document's original meaning at the time of its adoption. Therefore, discussion of British law that post-dated the Constitution is irrelevant as it sheds no light on the original meaning of the Constitution. Others, such as Justices Anthony Kennedy and Stephen Breyer, disagree, and cite foreign law from time to time, where they believe it is informative, persuasive, useful or helpful. However, foreign law has never been cited as binding precedent, but merely as a reflection of the values of larger Anglo-American civilization. (See Lawrence v. Texas--one U.K. court decision, Dudgeon v. United Kingdom, was cited by the Supreme Court majority as being informative of the shared values of Anglo-American civilization.)
Federal law in the United States originates with the Constitution, which gives Congress the power to enact statutes for certain limited purposes like regulating commerce. Nearly all statutes have been codified in the United States Code. Many statutes give executive branch agencies the power to create regulations, which are published in the Federal Register and codified into the Code of Federal Regulations. Regulations generally also carry the force of law under the Chevron doctrine. Many lawsuits turn on the meaning of a federal statute or regulation, and judicial interpretations of such meaning carry legal force under the principle of stare decisis.
The fifty American states are separate sovereigns with their own state constitutions and state governments. They retain plenary power to make laws covering anything not preempted by the federal Constitution, federal statutes, or international treaties ratified by the federal Senate.
Nearly all states started with the same British common law base, with the notable exception of Louisiana; Louisiana law has always been strongly influenced by the French Napoleonic Code. The passage of time has resulted in enormous diversity in the laws of the states. State courts have expanded the old common law rules in different directions (through their traditional power to make law under the doctrine of stare decisis), and state legislatures have passed various statutes expanding or overriding many judge-made laws.
Unlike other common law jurisdictions, all American states have codified some or all of their statutory law into legal codes. Codification was an idea borrowed from the civil law through the efforts of American lawyer David Dudley Field. New York's codes are known as "Laws." California and Texas simply call them "Codes." Most other states use terms such as "Revised Statutes" or "Compiled Statutes" for their codes. California, New York, and Texas have separate subject-specific codes, while all other states and the federal government use a single code divided into numbered titles.
In some states, codification is often treated as a mere restatement of the common law. Judges are free to liberally interpret the codes unless and until their interpretations are specifically overridden by the legislature. In other states, there is a tradition of strict adherence to the plain text of the codes.
The advantage of codification is that once the state legislature becomes accustomed to writing new laws as amendments to an existing code, the code will usually reflect democratic sentiment as to what the current law is (though the entire state of the law must always be ascertained by reviewing case law to determine how judges have interpreted a particular codified statute).
In contrast, in jurisdictions with uncodified statutes, like the United Kingdom, determining what the law is can be a more difficult process. One has to trace back to the earliest relevant Act of Parliament, and then identify all later Acts which amended the earlier Act, or which directly overrode it. For example, when the UK decided to create a Supreme Court of the United Kingdom, lawmakers had to identify every single Act referring to the House of Lords that was still good law, and then amend all of those laws to refer to the Supreme Court.
States have delegated lawmaking powers to thousands of agencies, townships, counties, cities, and special districts. And all the state constitutions, statutes and regulations are subject to judicial interpretation like their federal counterparts.
Thus, at any given time, the average American citizen is subject to the rules and regulations of several dozen different agencies at the federal, state, and local levels, depending upon one's current location and behavior.
Efforts by various organizations to create "uniform" state laws have been only partially successful. The two leading organizations are the American Law Institute (ALI) and the National Conference of Commissioners on Uniform State Laws (NCCUSL). The most successful and influential uniform laws are the Uniform Commercial Code (a joint ALI-NCCUSL project) and the Model Penal Code (from ALI).
Apart from model codes, the American Law Institute has also created Restatements of the Law which are widely used by lawyers and judges to simplify the task of summarizing the current status of the common law. Instead of listing long, tedious citations of old cases (in order to invoke the long-established principles contained in those cases), they can simply cite a Restatement section to refer to a particular common law principle.
As noted above, much of Louisiana law is derived from the Napoleonic Code; the adherence to French legal traditions stems from its time as a French colony. Puerto Rico is also a civil law jurisdiction of the United States. However, the criminal law of both jurisdictions has been necessarily modified by common law influences and the supremacy of the federal Constitution.
Many states in the southwest that were originally Mexican territory have inherited several unique features from the civil law that governed when they were part of Mexico. These states include Arizona, California, Nevada, New Mexico, and Texas. For example, these states all have a community property system for the property of married persons (Idaho, Washington, and Wisconsin have also adopted community property systems, but they did not inherit them from a previous civil law system that governed the state). Another example of civil law influence in these states can be seen in the California Civil Code, where the law of contracts is treated as part of the law of obligations (though the rules actually codified are clearly derived from the common law).
Many of the western states, including California, Colorado, New Mexico, and Wyoming use a system of allocating water rights known as the prior appropriation doctrine, which is derived from Spanish civil law. It should be noted that each state has modified the doctrine to suit its own internal conditions and needs.
Several legal innovations first arose in the United States, and some of those innovations have been adopted by other countries. The most broadly influential innovation of 20th century American law was the rule of strict liability for defective products, which originated with judicial glosses on the law of warranty. In 1963, Roger J. Traynor of the Supreme Court of California threw away legal fictions based on warranties and imposed strict liability for defective products as a matter of public policy in the landmark case of Greenman v. Yuba Power Products. The American Law Institute subsequently adopted the Greenman rule in Section 402A of the Restatement (Second) of Torts, which was published in 1965 and was very influential throughout the United States. Outside the U.S., the rule was adopted by the European Economic Community in the Product Liability Directive of July 1985, and by Japan in June 1994.