SOME FACTS ABOUT THE COMPANIES * Combined worldwide sales of $133 billion. * Some 27% of these sales ($36 billion) to foreign customers. * Exports of $9.4 billion with over 55% going to their foreign affiliates. * A surplus of exports over imports of almost $5 billion. * Gross investment of $97 billion of which $77 billion was in the US. MORE FACTS ABOUT THE COMPANIES STUDIED They accounted for... OVER 16% Of 1970 US factory shipments OVER 26% Of 1970 US nonagricultural exports OVER 40% Of 1970 US foreign manufacturing investment OVER 70% Of 1970 US balance of payments foreign direct investment outflows WHAT WE FOUND Foreign Investment Creates Jobs at Home The companies studied increased their net US payrolls by more than 26% between 1960 and 1970. In the same period, US manufacturers as a whole increased their payrolls by less than 11%: NET US EMPLOYMENT INCREASESAMPLE VS ALL US MANUFACTURERS 1960-70 26.4% The sample 10.8% All US manufacturers In 1951, the 3M Company had 12,000 US employees and foreign investments of about $8 million. Jobs directly related to ` international operations totaled 380. In 1971, 3M's domestic payroll was 37,900 and its foreign investment $691 million. One out of every eight US employees-4600 workers-owed their jobs to foreign operations. WHAT WE FOUND The Larger the Foreign Investment, the Faster the Rate of Employment Growth in the US In the 11-year period ending 1970, the sampled companies with the most intensive foreign investment increased their US payrolls three times faster than firms with the least intensive foreign investment. 41.8% Most intensive group of foreign investors 22.2% 2nd-most intensive group 18.3% 3rd-most intensive group Least intensive group WHAT WE FOUND Foreign Investment Promotes Overall Sales During the 1960-70 period, the analyzed companies increased sales to US customers by 104%. Sales to foreign customers rose by more than 300%. THE SURVEYED COMPANIES' SALES ROSE... 104% To US customers 306% To non-US customers DURING THE 1960-70 PERIOD WHAT WE FOUND Foreign Investment Produces Chiefly for Local Overseas Markets More than half the companies replying to the question, "Where do you sell goods produced in your overseas plants?" estimated that between 90% and 100% of sales were to the local market in which the plants were located. All companies replying estimated that 75% or more of sales from their foreign plants were in the local plant-area market. Owens-Illinois' foreign plants had sales of $229 million in 1970. More than 99% of the goods were sold to local foreign customers. |