Table of Contents
California has been a valuable state in both the American and global economies. The influence the state has is based on several factors that give the state superiority over others. The power it has is depends on three different factors namely the political, social, and economic strategies. The large market for business opportunities is obliged to the strategic West location which has given California a direct link to other neighboring states and the outer world. This aspect has also provided it with an access to other related factors like a diverse ethical population that has encouraged different business practices across several markets in the world. California has further integrated various economic boosters that have supported its contribution to the two economies. The economic advantages enjoyed by California manifest in port activity, service trade, services and goods, and foreign direct investment. Although the benefits have enhanced a high ground for the state, there are also other weaknesses that still drag the country to other economic challenges. California’s political, economic and social systems have ensured that the strengths characterized by each aspect are outweighing the weaknesses to make it an economic powerhouse emulated by both the country at large and other global economies in the world.
The Strength of California Economic, Political, and Social Systems
In general, California has attracted significant position in the world and the US Economy. The political, economic, and social systems have taken a center stage towards the influence. It has a large commercial diverse area with the market opened to other regions like the Asian, European, and African markets. This attribute is supported by the location of a modernized port located on its west coast. The local market facilitates room for both medium-sized and small scale ventures that attract investors from both within the state, the country, and other regions. The mode of business has encouraged economic development in the area. It is estimated that the small scale ventures comprise a huge percentage of both the export and import business products in the state (Kroll et al., 6-10). The markets have played a crucial part in creating a competitiveness edge for economic development in the state that eventually influences the country and the world in general. The transport system has been the major benefit ranging from water, rail, air, and road transport. The resources set for the water system are seen by the developed port that handles huge numbers of cargos over the years. The system established in the harbor has further reduced the issue of illegal business practices that have ensured the state maximizes its profits. The airlines in the country are supported by two major airports that are used for exportation and importation of goods and other services that are contributing to the economy. The rail and road transport infrastructures have also encouraged business activities to boost the economy through reducing transportation costs (Kroll et al., 12-13). The four types of transportation systems can be emulated by other states and the rest of the world to encourage their levels of the economy per capita.
The other supporting system of the economy is the availability of diverse products for service, production, and manufacturing industries. The state commands a significant part of the services sector that runs from consultation firms to entertainment. California is considered the home of cinematography as it hosts the biggest film production business in the country and the world that has generated revenue for the state. This fact has encouraged the American nation and other nations in the world to see a country like India setting up a similar service industry to raise its economic status. The production and manufacturing sectors have enjoyed the different resources that have worked to the advantage of the economy of the state (Rawls, Richard & Marlene, 27-35). It is estimated that the country’s agriculture is supported through the large-scale production of American wine, dairy products, flowers, and cotton.
The social system in the California also functions as another contributing factor to the economy of the state that acts as an example to the country and other economic regions in the world. The diverse ethical society has encouraged different business practices in the country that have promoted economic growth. In the population composition of California, there are several nationalists who work or get employed in the different sectors of the state. This situation has encouraged diversity and prevented clogging of given industry. The various service, production, and manufacturing sectors require both skilled and manual labor that the population readily provides (Knecht, 278). Employees’ wages have supported the social system through promoting the working relationships in the various sectors of the state. The workers in California are considered to receive the highest payment in the country including other benefits. Such a system has encouraged creativity and commitment in various working stations that have supported a broader access to other international markets and eventually provides links that have improved networks for the medium and small scale businesses. It has supported the ventures participation in the expansion of the economy in a supply chain, distribution, and production.
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The different innovations made in the region have also worked to its advantage. Some of the capitalist in the area were involved in several changes that saw the creation of the Silicon Valley. Such an initiative supported the formation of other corporations that have been significant contributors to revenue in the state, other states, and other parts of the world where they have established their subsidiaries. Silicon Valley has emerged as a technology hub through the available skilled labor in the region. The area has developed a social environment of creativity where both locals and outsiders are given the opportunity to showcase their talents and skills in various fields. Some of the established business entities out of the motivation and influence of the social system in the area entail Yahoo, Apple, Intel, Google, and HP business brands.
The political system in California has also contributed significantly to the economic powerhouse of the region. Politics greatly determine the type of policies that will eventually affect the two other systems of social and economic perspective. The state has seen through different governs and representatives to both the national and local houses of representatives. The local leaders have been the major boosters towards the direct legislations that affect the running of the state. From this approach, one sees laws surrounding migration being debated upon from different angles. Immigration policies have encouraged the movement of different ethical and cultural groups that, as seen earlier, supported the social life of the locals in promoting new ideas and providing the needed skills. The political system has also embarked on formulating new trade policies that will ensure the state concentrates on the increased merchandises being exported and the inward direct investments that are necessary for strengthening its economy and creating more job opportunities for locals and foreigners (Rigby & Sébastien). The political policies have further considered other factors that surround such policies like its imports, foreign investments, and service trade that affect international businesses both in the country and around the globe. Further, the state also embarked on making legislations and policies that would assist its business firms to identify the right suppliers and partners in other parts of the country and abroad while at the same time encouraging outside investors to take a similar approach in California.
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The political system has further attracted economic development through facilitating some of the programs mandated by public agencies and organs. One of the attracted areas that have seen recent changes to political policies is the California port which the policy makers believe require more support as it is one of the major economic supporters of the state. Although the harbor can support its functions, it could make sense when the state conducts its operations to boost the much-needed revenue. Such a political system is a compelling example for the US nation and other countries as it has established proper economic policies in different parts of the country as well as promoted economic development in any area (Rawls, Richard & Marlene, 13-21). Further, the state has proven that a symbiosis between the social, political, and economic systems will influence the growth of any economy as each section needs the other to advance. For example, changes in social factors will require amendments and changes to political policies that will eventually determine the economic outcomes.
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The Weaknesses of California Economic, Political, and Social Systems
California has enjoyed economic influence on both the national and other global markets. However, the strengths in its economic, social, and political systems have also presented loophole that has acted to its detriment as an influence to the two, the United States and global economies. Some of the weaknesses established in its economic system vary depending on the different sectors in the state. First, the state is less involved in outward direct foreign investments. Here, California had discriminately invested in limited nations and other countries in the US based on specific industries of manufacturing and non-manufacturing that involve a majority of if companies to assemble or manufacture its products through a multinational enterprise relationship of networks. Further, such investment has only been limited to technology industries like electronic equipment, electric equipment, and industrial machinery. The outcome has created a negative approach by foreign investors both within the country and across the global market. California’s inward direct foreign investment has been significantly affected as foreigners have found it hard to invest in the state and replicate what they do. The differences in the economic classes also challenge the economic system of the country. For example, in the Great Central Valley of the state, the area is populated with less substantial citizens affected by poverty. The different growing rates and the various levels of economic vigor will eventually put pressure on the intended general economy surrounding the state’s poorest and wealthiest societies. The problem seems to continue as the state is developing its economy. Although California has tried to balance the economic zones, the solution is to take the time to improve.
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The weaknesses in the social system have also affected California’s economic growth. The state expresses massive flaws in some of the major regulations that are meant to boost the economy. This evidence has brought new challenges to the country as other locals have considered moving out of the state. The policies on migration have encouraged settlement of other nationalities in the territory. The approach given to the legislation has attracted more populations from other nations and countries. Such movement has caused pressure on the available resources like housing and other necessities (Knecht, 280). The new population competing for the limited opportunities causes a reduction in employees’ wages that will see the rise in costs if the needed services like housing become unaffordable. Further, the consequence also reduces the necessity of expertise as the different ventures will not afford to pay or hire them (Kroll et al., 12-13). Other global markets and the country must consider such measures to avoid any adverse income to their respective areas. Those moving out are the middle class with the necessary expertise and financial capability to invest in their state, but they opt to find other places where they can find more opportunities. As a result, the state faces more inequalities in the economic classes of the people.
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The political policies have also encouraged an increase in the rate at which communities consume some of the available commodities. Such high populations give pressure on any available opportunity in the state that eventually creates the class divides. It offers a negative picture of some of the used structures in the state to the country and other global markets as they will not wish to use a system that will subdivide the people into different social classes. The strength of economic system has also encouraged a new social structure in the state. California has experienced several incidents of collective and organized crimes that have had a significant effect on the economy. Criminal activities have affected the country through the flaws of legislations that cause an increase in expenses in some of the cities in the state, and reduction business investments due to increased insecurity in some areas. The political arena has also seen some of the policies not favorable for the development of cities in another field. An example can be adduced from the California Policy that favors particular economic development is certain regions and limits the creativity and skill needed by other cities (Senik). The weaknesses depicted by the three systems greatly affect the demand for some of the structures identified by the state to act in their advantage as some of the loopholes identified might be grievous for their local application. Understanding such a structure will entail a precautionary approach that may seem discriminative but work for the benefit of those concerned.
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In conclusion, California has shown a significant example not only to the American business world but also to other global markets that get to learn its system, especially in economic, social, and political spheres. The three aspects have promoted economic growth in the various sectors in the state to make California compete favorably across all markets, both domestic and international. The advantages enjoyed by the country have also been influenced by other factors like its location next to the ocean that has offered an avenue for different markets. As seen in the above discussion, the strengths of the economic system have been the biggest factors. This fact has ranged from small scale venture, large scale businesses, and different industries that have created vast opportunities for both the locals and foreigners. The diversity seen has attracted considerable inward and outward investments. The social system has also supported the economic structure through creating a new culture for people. The locals are encouraged to participate in innovations that are necessary for a continuation of different sectors. The other aspect of the social system is the integration of different cultures that promote the exchange of ideas and availability of both skilled and unskilled labor. Lastly, the strengths surrounding the political structure have seen legislation of proper policies that promote positive economic and social cultures that are crucial for a given state’s or country’s growth. The discussion has also considered some of the weaknesses identified in the three systems that may challenge the growth of California’s economy. The limited outward foreign investment poses a threat to the state. The other issue is increased immigration of other nations and citizens from other countries, and outmigration of California residents to new places. However, the strengths given outweigh the weakness of the used system making California an economic hub that needs to be emulated by the rest of the country and other global economies.