Posted on 05/31/2011 7:05:20 PM PDT by khnyny
“Business should be run for profit, with American values and as a proud USA company.”
Put feelings into business and i’ll guarntee you will go broke!
Just like I told employees, leave your personal shit at home and keep it out of the workplace!
Do you have a link to the 2005 NBER study?
Ray Mataloni “Operations of U.S. Multinational Companies” http://www.bea.gov/scb/pdf/2007/11%20November/1107_mnc.pdf Mihir A. Desai, C. Fritz Foley, and James R. Hines Jr., “Foreign Direct Investment and Domestic Economic Activity,” National Bureau of Economic Research, Working Paper no. 11717, October 2005.
http://www.bus.umich.edu/otpr/WP2005-13.pdf
More Jobs Abroad, More Jobs at Home
Investing abroad is not about “shipping jobs overseas.” There is no evidence that expanding employment at U.S.- owned affiliates comes at the expense of overall employment by parent companies back home in the United States. In fact, the evidence and experience of U.S. multinational companies points in the opposite direction: foreign and domestic operations tend to compliment each other and expand together. A successful company operating in a favorable business climate will tend to expand employment at both its domestic and overseas operations. More activity and sales abroad often require the hiring of more managers, accountants, lawyers, engineers, and production workers at the parent company.
Consider Caterpillar Inc., the Peoria, Illinois-based company known for making giant earth-moving equipment. From 2005 through 2007, the company enjoyed booming global sales because of strong growth in overseas markets, especially those with resources extracted from the ground. According to the company’s 2007 annual report, Caterpillar earned 63 percent of its sales revenue abroad, including $1 billion in sales in China alone. As a result, Caterpillar ramped up employment at its overseas affiliates during that time from 41,238 to 50,788, an increase of almost 10,000 workers. During that same three-year period, the company expanded its domestic employment from 43,878 to 50,545, a healthy increase of 6,667.5
Caterpillar’s experience is not unusual for U.S. multinational companies. A 2005 study from the National Bureau of Economic Research found that, during the 1980s and 1990s, there was “a strong positive correlation between domestic and foreign growth rates of multinational firms.” After analyzing the operations of U.S. multinational companies at home and abroad, economists Mihir A. Desai, C. Fritz Foley, and James R. Hines Jr. found that a 10 percent increase in capital investment in existing foreign affiliates was associated with a 2.2 percent increase in domestic investment by the same company and a 4 percent increase in compensation for its domestic workforce. They also found a positive connection between foreign and domestic sales, assets, and numbers of employees.6 “Foreign production requires inputs of tangible or intellectual property produced in the home country,” the authors explained. “Greater foreign activity spurs higher exports from American parent companies to foreign affiliates and greater domestic R&D spending.”7
http://www.cato.org/pub_display.php?pub_id=10652
The purpose of being in business is to make money. Hiring people and making less money is counter productive.
Yesterday a blonde Teamsters union skag was commenting on Walmart unionization efforts said “they make millions. They should pay their workers a living wage”
The reporter asked her if there were chains tieing the clerks to the cash registers of if they were free to leave.
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