The American economy is not in a state of degradation, rather it is in the process of becoming a better economic system, according to a California businessman.

Roger Hendrix, founder of The Hendrix Information Group Inc., a management consulting firm specializing in planning processes for management and personal development, told the Salt Lake Rotary Club Tuesday that America is in the transition stage to becoming an international leader.Hendrix said there are seven essential changes a country must make if it hopes to become part of "The New World Economy," and the United States has already made several of them.

These changes include relying more on technology and employment service programs, becoming a nation of undifferentiation, changing from a military economy to a consumer economy, employing more women and minorities, establishing global education and international democratization and balancing efficiency and competitiveness

"Our greatest task is to become more productive," Hendrix said. He said America can improve its economy by establishing more international corporations and service-oriented businesses.

Service businesses will evolve into the most competitive industries in the world, Hendrix said. "The assumption is if you have less people in manufacturing, you will lose power. But without a strong service sector, manufacturing will be in trouble."

More and more businesses should also sell their products abroad, until it's hard to distinguish one major city from another because the businesses and products are so similar, Hendrix said. Local businesses will have to learn to compete with international corporations by learning how to edge out the international products.

Hendrix also said there should be international democratization so the governments can anticipate the needs of its people and global education curriculums. "In the future, one of the most important things will be high literacy." He said a poor intellectual nation will not be able to compete on an international level.