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Homogeneity of Culture: Challenges and Opportunities for America

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The United States of America is considered to be a significant target, attracting the immigrants from over the world because of the education and job opportunities. America provides a huge potential and a good place for the representatives of different religions, races and origins. A mixture and diversity of cultures evokes a question about the identity and culture of the original Americans. This research will explore the question whether the immigrants have contributed to the development of the USA.

Since 1970s, America has faced a dramatically growing foreign direct investment. This increase has been accompanied by academic interest in the phenomenon. In spite of the fact that the information on the foreign direct investments in America has been easily available, there are hardly any statistical investigations concerning entry mode choice. These papers refer to culture as to the customary values, beliefs, and social constraints that are transmitted from one generation to another by social, religious, and ethnic groups. But the definition leaves out a lot of aspects that an ordinary person would identify as a culture; besides, these aspects have an influence on the economic outcomes. Contrary to it, the definition makes an emphasis on dimensions which are essential for its economic application.   

However, nowadays better techniques and more reliable data have made it possible to distinguish systematic differences in the preferences of people. Time is considered to be an essential factor which influences economic choices of people. As soon as we accept this heterogeneity, it becomes critical to explain its origin. The culture is one more significant component which may play an important role. That is why economists should drop their preconception against cultural explanation and develop a methodology which helps to incorporate cultural hypothesis into the economic discourse. 

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