Direct Investment Abroad and the Multinationals: Effects on the United States Economy, Prepared for the Use of Subcommittee on Multinational Corporations of ..., August 19751975 - 136 pages |
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Common terms and phrases
affiliates of U.S. after-tax assets assumption balance of payments benchmark survey billion capital export capital formation capital income capital outflow capital/labor ratio consumption Current Business Department of Commerce direct investment abroad displacement distribution dividends domestic capital stock domestic investment earnings effects of foreign employment equipment expenditures estimated factor shares factors of production firms flow foreign affiliates foreign direct investment foreign income foreign investment foreign operations foreign profits foreign tax credit gains gross home country host income tax increase industry investors labor income Line loss marginal product ment multinational corporations oil companies parent companies petroleum plant and equipment production function profits tax rate of return reduced stabilization policy Survey of Current Table tax rate taxes paid TECHNICAL FOOTNOTE terms of trade tion transfer U.S. corporations U.S. direct investment U.S. economy U.S. exports U.S. investment abroad U.S. multinational U.S. tax vestment
Popular passages
Page 72 - Consider two investments, the one at home and the other abroad, with equal risks of repudiation or confiscation or legislation restricting profit. It is a matter of indifference to the individual investor which he selects. But the nation as a whole retains in the one case the object of the investment and the fruits of it; whilst in the other case both are lost. If a loan to improve a South American capital is repudiated, we have nothing. If a Poplar housing loan is repudiated, we, as a nation, still...
Page 69 - ... communities. It is to the emigration of English capital that we have chiefly to look for keeping up a supply of cheap food and cheap materials of clothing, proportional to the increase of our population ; thus enabling an increasing capital to find employment in the country, without reduction of profit, in producing rannufactured articles with which to pay for this supply of raw produce.
Page 76 - The Distribution of Gains between Investing and Borrowing Countries," American Economic Review, vol.
Page 72 - The more new countries were opend up, the more apparent did the sectional conflict become. The likelihood that foreign investment would reduce the cost of British imports was less overwhelming, the fear that industries competing with our own would be fostered was more intense. Cheap capital for other countries and improving terms of trade and real wages were no longer synonymous. Foreign investment, it was apparent, might lower the standard of living instead of raising it.
Page 70 - English labour would sink. They would ask more money for all those commodities, in the production of which no improvement had taken place, and we should have less to offer for them. We might find it easier to obtain cottons, but we should find it more difficult to...
Page 71 - ... design. It was only by a rare coincidence of interests that the most profitable risks happened to fructify in cheaper and cheaper foodstuffs and raw materials. Capitalists were ready enough, at a price, to finance schemes of less advantage to their countrymen — the building of sultans' palaces,1 the mining of diamonds, the purchase of warships, the construction of strategic railways. At the same time, a rising standard of living amongst wage-earners was not entirely dependent upon reductions...
Page 9 - A BILL To amend the tariff and trade laws of the United States to promote full employment and restore a diversified production base ; to amend the Internal Revenue Code of 1954 to stem the outflow of United States capital. Jobs, technology, and production, and for other purposes Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled.
Page vii - The views and conclusions expressed in this study are those of the authors and are not necessarily those of the Subcommittee or any of its members. The Subcommittee recognizes fully the controversial nature of this subject and is publishing the study in the hope that it will contribute to a more fruitful dialogue about US foreign policy and the multinational corporations.
Page xxi - In 1968, she reports, foreign affiliates' manufacturing sales abroad were more than twice those of US manufactured exports. Some of her major conclusions are: "In the long run, perhaps the major effect of foreign investment is through its impact on domestic capital formation in the US To the extent that domestic capital formation is displaced, foreign investment will reduce the level of income originating within the US as well as the labor share in national income . . . "The private net rate of return...
Page 91 - A Note on United States Direct Investment and Human Capital " Journal of Political Economy, October 1971, pp. 1171-1175. » Leonard A. Lupo, "Worldwide Sales by US Multinational Companies," Survey of Current Business, Department of Commerce, Vol.