Spurring U.S. Productivity, Generating American Prosperity

October 17, 2018

International companies are among the most successful businesses in the world, having proven their mettle in their home markets, outperforming competitors, and then moving on to compete on the global stage. Along the way, these companies and their management have accumulated invaluable institutional knowledge, industry know-how, and refined senses of management best practices. They have learned how to get the most from their human, physical and financial capital. When these companies invest in the United States, they “import” this knowledge and these best practices.

Tables 3 and 4 include variables that speak to the aggregate economic performance of international companies and the broader economy. How much value added are they creating? How much revenue are they generating? Is that revenue being generated in a sustainable way—by consuming more inputs of labor, materials, and overhead (rather than by charging higher prices), and by integrating operations into the broader economy? Are the companies focused on cultivating markets, not only in the United States, but abroad?

Tables 3 and 4 Economic Bedrock

Between 2001 and 2015, international companies as a whole increased their:

With respect to these performance metrics, the relative importance of international companies to U.S. manufacturing is even more pronounced.

Between 2001 and 2015 international manufacturers increased their:


Economic Bedrock Cover Final

Economic Bedrock

International companies form a critical part of America’s economic bedrock—providing a stable foundation of excellence that strengthens our economy and supports our workforce.

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