Matthew Slaughter, Dartmouth: Globally Engaged U.S. Companies Essential to American Growth and Job Creation

December 6, 2012

U.S. economic growth and job creation increasingly rely on the success of American companies in the global economy, reports a new economic study by Business Roundtable (BRT) and the U.S. Council for International Business (USCIB).

Authored by Dr. Matthew Slaughter of the Tuck School of Business at Dartmouth College, the paper, American Companies and Global Supply Networks: Driving U.S. Economic Growth and Jobs by Connecting with the World, details the critical links between globally engaged U.S. companies, their international operations and supply networks, and U.S. economic growth and jobs, including:

• Growth in demand abroad continues to surpass growth in demand in America.
• In 2010, globally engaged U.S. companies employed 28.1 million Americans, performed $253.8 billion in R&D, made $587.3 billion in capital investments in the United States and bought more than $8.0 trillion in goods and services from U.S. suppliers.
• U.S. companies of all sizes are globally engaged and pursuing new customers in the global marketplace. In fact, about 26% of U.S.-based multinational companies are classified by the U.S. government as small businesses.
• International operations of U.S. companies primarily serve foreign markets; with over 90% of the foreign production by U.S. companies sold to foreign customers, not imported back to the United States.

The economic study explains why U.S. companies need to pursue a mix of international and domestic business strategies to be competitive, reinforcing the need for U.S. policies that improve U.S. competitiveness and enhance the ability of U.S. companies to compete in the global marketplace. Earlier this year, BRT CEOs released a strategy called Taking Action for America that provides BRT’s policy solutions for U.S. economic growth and job creation.