Download Global Operations and Value Added of U.S. Multinational Companies in 2008 and more Lecture notes Economic Analysis in PDF only on Docsity!
V
August 2010 205
U.S. Multinational Companies
Operations in the United States and Abroad in 2008
By Kevin B. Barefoot and Raymond J. Mataloni Jr.
ALUE ADDED and employment of U.S. multina
tional companies (MNCs) decreased in 2008, re
flecting divergent changes in their U.S. domestic and
foreign operations, according to preliminary results
from the annual survey of U.S. direct investment
abroad conducted by the Bureau of Economic Analysis
(BEA).^1 The worldwide current-dollar value added of
U.S. MNCs—the combined value added of U.S. parent
companies and their majority-owned foreign affiliates
(hereafter, “foreign affiliates”)—decreased 1.8 percent;
value added of U.S. parents decreased 6.5 percent, and
value added of their foreign affiliates increased 9.1 per
cent (table 1). The worldwide employment of U.S.
MNCs decreased 0.5 percent; employment of U.S. par
ents decreased 1.5 percent, and employment of foreign
affiliates increased 1.9 percent.
In real terms, decreases in the value added of U.S.
MNCs appear to have been widespread by area and by
industry. In the United States, the real value added of
U.S. parents probably declined faster than the 6.5 per
cent decrease in current dollars because average U.S.
prices continued to rise in 2008. Abroad, the real value
added of foreign affiliates in manufacturing decreased
4.8 percent. Real value added of foreign affiliates in
non-manufacturing industries is not estimated by
BEA, but the available evidence on prices and exchange
rates suggests that this is the only major segment of the
U.S.-MNC universe that experienced real growth in
U.S. MNCs were disproportionately negatively af
fected by the global financial crisis and economic
downturn because of their industrial and geographic
concentrations. Two industries that were among those
most strongly affected by the downturn, manufactur
ing and finance and insurance, accounted for a rela
tively high share of value added of U.S. MNCs.
1. A U.S. MNC comprises a U.S. parent company and its foreign affiliates.
For both conceptual and practical reasons, the examination of foreign oper
ations of U.S. MNCs in this article generally focuses on data for majority-
owned foreign affiliates rather than data for all foreign affiliates. Conceptu
ally, most data users prefer using the data for majority-owned affiliates
because such affiliates are unambiguously under U.S. control; foreign affili
ates that are minority-owned by a U.S. resident could be under the control
of foreign investors. In addition, some of the data items necessary for the
examination of foreign operations of U.S. MNCs are more easily collected
for majority-owned affiliates, and most foreign affiliates are majority
owned; majority-owned affiliates accounted for 85.2 percent of the employ
ment by all nonbank foreign affiliates in 2008.
Automobile manufacturing was particularly affected as
automobile sales fell both in the United States and in
several countries where U.S. MNCs have major opera
tions. Geographically, the United States and other
member countries of the Organisation for Economic
Co-Operation and Development accounted for over 90
percent of the value added of U.S. MNCs worldwide in
2008, but economic growth rates in these countries
were slower, on average, than those in other countries.
In contrast, U.S. MNCs in certain other industries
and geographic areas experienced strong growth in
- Mining is one of the few industries in which the
value added of parents and affiliates both displayed
strong increases. In that industry, MNC value added
Table 1. Selected Statistics for U.S. Multinational Companies, U.S.
Parents, and Foreign Affiliates, 2007–
Value added Number of employees
Billions of dollars (^) Percent change
Thousands (^) Percent
2007 2008 2007 2008 change
U.S. multinational companies ............. Bank 1 .......................................... Nonbank ..................................... Parents ........................................... Bank ........................................... Nonbank ..................................... Majority-owned foreign affiliates ..... Bank 2 .......................................... Nonbank .....................................
- Consists of bank parents and their bank and nonbank affiliates.
- Includes nonbank affiliates of bank parents, in addition to affiliates in banking.
Acknowledgments
The 2008 annual survey was conducted under the
direction of David H. Galler, Patricia C. Walker, and
Barbara K. Hubbard. James Y. Shin supervised the
editing and processing of the reports. The following
staff contributed to the processing and editing of the
survey or to the related computer programming:
Catherine E. Ama, Gregory L. Brace, Kirsten L. Brew,
Christina D. Briseno, William T. Coulter, Zemirah T.
Courtney, James J. Crim, Laura A. Downey, Andre
Garber, Mark D. Goddard, Kenneth T. Grier, David L.
Grayton, Carole J. Henry, Jennifer A. Jones, Neeta B.
Kapoor, James P. Lashley, Da-Chin Lin, Kevin McCar
thy, Marcia S. Miller, Amanda M. Petersen, Robert B.
Platner, Kevin J. Reagan, Robert L. Ruiz, Myriam B.
Rullan, Aqeel A. Sahibzada, Gary E. Sowers, Nancy F.
Steffen, Monique N. Sumpter, and Jeff W. Wilson.
206 U.S. Multinational Companies August 2010
increased 25 percent, as a sharp increase in the price of
crude oil did not result in a significant decrease in
worldwide production or consumption of petroleum
products.^2 By country, employment and value added
of foreign affiliates in emerging markets—such as Bra
zil, Russia, India, and China, known collectively as the
2. Crude oil prices increased 39 percent in 2008 on the basis of 12-month
averages of the refiners’ acquisition cost of domestic and imported crude oil
from the Energy Information Administration of the U.S. Department of
Energy. This source also reports that worldwide consumption of crude oil
decreased 0.4 percent, and production increased 1.0 percent.
BRIC countries—grew rapidly, buoyed by continued
strong economic growth.
Beginning with the 2007 survey, whose results were
published last year, BEA has collected data on both
bank and nonbank U.S. MNCs in its annual surveys
(previously, only data for nonbank MNCs were col
lected). The new survey data indicate that the value
added of bank MNCs decreased 5.0 percent to $188.
billion, while that by nonbank MNCs decreased 1.
percent to $3,608.1 billion. The remainder of the arti
cle will generally focus on nonbank MNCs because
Key Terms
The following key terms are used to describe U.S. multi- U.S. MNC over which the parent is presumed to have a
national companies (MNCs) and their operations.^1 degree of managerial influence.
This article focuses on the operations of majority-
U.S. MNCs owned foreign affiliates; for these affiliates, the combined
U.S. multinational company (U.S. MNC). The U.S. par- ownership of all U.S. parents exceeds 50 percent. In
ent and its foreign affiliates. (In this article, an MNC is 2008, these affiliates accounted for 85.2 percent of the
usually defined as the U.S. parent and its majority-owned employment of all foreign affiliates of U.S. MNCs.
foreign affiliates.)
U.S. parent. A person, resident in the United States, Measures of operations^2
that owns or controls 10 percent or more of the voting Value added. The portion of the goods and services sold
securities, or the equivalent, of a foreign business enter- or added to inventory or fixed investment by a firm that
prise. “Person” is broadly defined to include any indi- reflects the production of the firm itself. It represents the
vidual, branch, partnership, associated group, firm’s contribution to gross domestic product in its
association, estate, trust, corporation, or other organiza- country of residence, which is the value of goods and ser
tion (whether or not organized under the laws of any vices produced by labor and property located in that
state), or any government entity. If incorporated, the country. Compared with sales, value added is a prefera-
U.S. parent is the fully consolidated U.S. enterprise con- ble measure of production because it indicates the extent
sisting of (1) the U.S. corporation whose voting securities to which a firm’s output results from its own production
are not owned more than 50 percent by another U.S. cor- rather than from production that originates elsewhere.
poration and (2) proceeding down each ownership chain Sales data do not distinguish between these two sources
from that U.S. corporation, any U.S. corporation whose of production. Value added can be measured as gross
voting securities are more than 50 percent owned by the output minus intermediate inputs; alternatively, it can be
U.S. corporation above it. A U.S. parent comprises the measured as the sum of the costs incurred (except for
domestic operations of a U.S. MNC, covering operations intermediate inputs) and the profits earned in produc
in the 50 states, the District of Columbia, the Common- tion. The value-added statistics presented in this article
wealth of Puerto Rico, and all other U.S. areas. were prepared by summing the cost and profits data col-
U.S. direct investment abroad. The ownership or con- lected in the annual and benchmark surveys of U.S. direct
trol, directly or indirectly, by one U.S. person of 10 per- investment abroad.^3
cent or more of the voting securities of an incorporated Employment. The number of full-time and part-time
foreign business enterprise or the equivalent interest in employees on the payroll at yearend. If the employment
an unincorporated business enterprise. of a parent or an affiliate was unusually high or low
Foreign affiliate. A foreign business enterprise in because of temporary factors (such as a strike) or large
which there is U.S. direct investment, that is, in which a seasonal variation, the number that reflects normal oper-
U.S. person owns or controls (directly or indirectly) 10 ations or an average for the year was requested.
percent or more of the voting securities or the equivalent.
Foreign affiliates comprise the foreign operations of a
2. Statistics on the operations of U.S. MNCs cover the survey respon
dent’s fiscal year ending in the reference year of the data.
1. For a comprehensive discussion of the terms and the concepts used, 3. For the derivation of the current-dollar value-added estimates, see
see Raymond J. Mataloni Jr., “A Guide to BEA Statistics on U.S. Multi- Raymond J. Mataloni Jr. and Lee Goldberg, “Gross Product of U.S. Mul
national Companies,” SURVEY 75 (March 1995): 38–55. tinational Companies, 1977–91,” SURVEY 74 (February 1994): 57.
208 U.S. Multinational Companies August 2010
added of affiliates that were newly acquired or
established (chart 1).
● U.S. MNCs continued to account for a large share of
the U.S. trade in goods. Trade associated with U.S.
parents or their foreign affiliates accounted for 46.
percent, or $595.6 billion, of total U.S. exports of
goods and for over a third, or $768.1 billion, of total
U.S. imports of goods.
● Nonbank U.S. parents acquired or established 300
nonbank foreign affiliates, which had a combined
value added of $6.4 billion and a combined employ-
ment of 120,600 workers. This was a notable
decrease from 2007 when 434 new affiliates were
acquired or established, which may have reflected
MNCs’ budget constraints and weak consumer
demand related to the global financial crisis and
economic downturn.
● U.S. MNCs’ expenditures for research and develop-
ment (R&D) totaled $236.1 billion. U.S. parents
accounted for about 85 percent of the total; how-
ever, R&D expenditures by foreign affiliates grew
strongly.
● The combined value added of foreign affiliates in
Brazil, Russia, India, and China increased by about
25 percent to $83.9 billion. This continued a period
of rapid growth in value added of affiliates in these
countries, which increased their share of the value
added of foreign affiliates worldwide from 4.4 per-
cent in 2004 to 6.9 percent in 2008. The growth
likely was stimulated by various steps taken by the
governments of these countries to improve their
business climate, as well as the emergence of a grow-
ing middle class, which has created local demand
for the types of goods and services produced by
MNCs. In 2008, the great majority of total sales by
affiliates in these countries were to local customers.
● U.S. MNCs with operations in many countries had
higher labor productivity than those with opera-
tions in only a few countries. U.S. parents with for-
eign affiliates in 10 or more countries had an
average value added per employee of $154,000,
compared with an average of $100,000 for U.S. par-
ents with foreign affiliates in a single country.
Research suggests that the parents with higher labor
productivity earn higher profits, which allows them
to operate profitably in a wide range of foreign
countries, including those with challenging foreign
business climates; see the box “Global Scope and
Productivity.”
An improvement introduced with the 2008 survey
results is an expansion from 27 to 29 in the number of
countries for which separate estimates of the real value
added of foreign affiliates in manufacturing are avail-
able. The two host countries that have been added,
China and Singapore, together accounted for 8.8 per-
cent of the real value added of manufacturing affiliates
in the reference year (2005), raising the share for which
country-level detail is available from 75.0 percent to
83.8 percent of the global total. The new estimates in-
dicate that the real value added of manufacturing affil-
iates in China increased at a double-digit rate in 2008,
while that of affiliates in Singapore declined (see “Real
value added in manufacturing” on page 217).
The remainder of this article examines worldwide
operations of U.S. MNCs, operations of U.S. parents,
and operations of their foreign affiliates.
Worldwide Operations of U.S. MNCs
This section examines the 2008 worldwide operations
of U.S. MNCs in all industries as well as the 2008
change in four aspects of the worldwide operations of
nonbank U.S. MNCs: value added, employment, U.S.
trade in goods, and R&D.
Data Availability
The final statistics on the worldwide operations of
U.S. multinational companies (MNCs) for 2007 and
the preliminary statistics for 2008 are presented in this
article The statistics are based on the 2007 and 2008
annual surveys of U.S. direct investment abroad.
More detailed statistics are available on BEA’s Web
site.
The final statistics for U.S.-MNC operations for
1977 and for 1982–2006 are available in publications
or in data files that can be downloaded free of charge
from the Web site at www.bea.gov.
More information about these products and how to
obtain them is available on the BEA Web site at
www.bea.gov; click on “International,” “About Inter-
national,” “International Investment Division Product
Guide.”
The Bureau has a free service on its Web site that
allows users to interactively access detailed statistics
on the operations of U.S. multinational companies, on
the operations of foreign-owned companies in the
United States, and on other aspects of U.S. direct
investment abroad and foreign direct investment in
the United States. For an introductory guide to this
service, see Ned G. Howenstine, “Primer: Accessing
BEA Direct Investment Data Interactively,” SURVEY 86
(May 2006): 61–64.
August 2010 SURVEY OF CURRENT BUSINESS 209
Chart 1. Value Added and Change in Value Added of Nonbank MNCs by Country in 2008
Value Added
More than $30 billion
$8 billion to $30 billion
$2 billion to $8 billion
$500 million to $2 billion
$100 million to $500 million
Less than $100 million
More than 25 percent
15 percent to 25 percent
10 percent to 15 percent
5 percent to 10 percent
0 percent to 5 percent
Less than 0 percent
See note*
Percent Change in Value Added
NOTE. The percent change is undefined because value added changes sign between 2007 and 2008, value added was zero in 2007 or 2008, or value added was less than $100 million in 2007 or 2008—for these
countries, small dollar changes may produce large percent changes.
U.S. Bureau of Economic Analysis
August 2010 SURVEY OF CURRENT BUSINESS 211
U.S. MNCs in all industries
Current-dollar value added of U.S. MNCs in all indus
tries decreased 1.8 percent in 2008 to $3,796.3 billion.
Value added of U.S. MNCs in banking (that is, MNCs
for which the U.S. parent is in banking) decreased 5.
percent to $188.2 billion, and that of nonbank U.S.
MNCs decreased 1.6 percent to $3,608.1 billion. Em
ployment by U.S. MNCs in all industries decreased 0.
percent to 33.0 million workers. Employment of U.S.
MNCs in banking increased 11.0 percent to 1.8 million
workers, and that of nonbank U.S. MNCs decreased
1.1 percent to 31.2 million workers. Much of the in
crease in employment in banking and the decrease in
employment in nonbank industries resulted from the
reclassification of some large, diversified U.S. financial
firms to banking from nonbanking because their U.S.
parent companies became bank holding companies in
2008.^4
Nonbank U.S. MNCs
Value added
In current dollars, the value added of nonbank U.S.
MNCs decreased 1.6 percent in 2008 to $3,608.1 bil
lion (table 3). The value added of U.S. parents de
creased 6.0 percent to $2,396.3 billion, and the value
added of foreign affiliates in U.S. dollars increased 8.
percent to $1,211.9 billion.
The real value added of parents probably declined
faster than the 6.0 percent decrease in current dollars
because average U.S. prices continued to rise at a rate
of 1.5 percent in 2008 (as measured by the implicit
4. Because an MNC is categorized in banking if the U.S. parent is catego
rized in banking, the foreign affiliates of these firms all became affiliates of
MNCs in banking. This contributed to the shift in employment toward
MNCs in banking.
Table 3. Value Added of Nonbank U.S. Multinational Companies, by
Industry of Parent, 2007 and 2008
[Millions of dollars]
2007 2008 Change Percentchange
All industries........................................................ 3,668,153 3,608,142 –60,011 –1. Mining.............................................................................. 103,662 129,355 25,693 24. Utilities............................................................................. 83,674 77,486 –6,188 –7. Manufacturing.................................................................. 1,769,210 1,751,719 –17,491 –1. Of which: Food ............................................................................ 110,795 113,239 2,444 2. Chemicals ................................................................... 304,000 322,417 18,417 6. Primary and fabricated metals .................................... 72,938 67,275 –5,663 –7. Machinery ................................................................... 100,396 102,218 1,822 1. Computers and electronic products ............................ 180,589 189,924 9,335 5. Electrical equipment, appliances, and components .... 36,359 39,092 2,733 7. Transportation equipment............................................ 310,306 289,662 –20,644 –6. Wholesale trade .............................................................. 182,282 190,842 8,560 4. Information ...................................................................... 369,623 348,410 –21,213 –5. Finance (except depository institutions) and insurance .. 291,150 194,368 –96,782 –33. Professional, scientific, and technical services ............... 213,491 226,344 12,853 6. Other industries............................................................... 655,060 689,617 34,557 5.
price deflator for value added of U.S nonfarm busi
nesses). The available evidence on changes in prices
and exchange rates suggests that the real value added of
foreign affiliates increased in 2008. The 8.2 percent in
crease in their current dollar value added exceeded the
increase that could be attributed to the combined ef
fects of the 2.9 percent average rate of inflation in host
countries and the 2.0 percent depreciation of the dollar
against major foreign currencies.^5 Estimates of real
value added for foreign affiliates in manufacturing pre
sented later in this article show a drop of 4.8 percent,
indicating that the increase for affiliates was in non-
manufacturing industries.
Employment
In 2008, employment by nonbank U.S. MNCs de
creased 1.1 percent to 31.2 million workers, reflecting
partly offsetting changes for U.S. parents and foreign
affiliates. The employment by U.S. parents decreased
2.1 percent to 21.1 million; the largest decreases were
in “other industries,” in manufacturing, and in non
bank finance and insurance. The decrease in “other in
dustries” was concentrated in “administration,
support, and waste management” (mainly temporary
employment services); the decrease in manufacturing
was largest in transportation equipment, mainly motor
vehicles; and the decrease in nonbank finance and in
surance was concentrated in nonbank finance. The 2.
percent decrease in parent employment, which mainly
reflected decreases by companies that were parents in
both 2007 and 2008, was greater than the 0.6 percent
decrease in employment for all U.S. private nonbank
industries.
Employment by foreign affiliates increased 1.1 per
cent to 10.1 million. By area, the largest increases in
level were in Asia and Pacific (mainly China and In
dia). By industry, the largest increases were in “other
industries” (mainly retail trade and “accommodation
and food services”) and “professional, scientific, and
technical services.”
U.S. trade in goods
In 2008, U.S. exports of goods that involved nonbank
U.S. parents or their majority-owned or minority-
owned nonbank foreign affiliates—MNC-associated
5. The rate of inflation in 12 major euro area countries and in 15 other
major host countries averaged 2.9 percent in 2008. Together, these coun
tries accounted for 73 percent of total value added of foreign affiliates in
2008. The average inflation rate (weighted by foreign affiliate value added)
in these countries was derived from GDP implicit price deflators from the
World Bank Web site. The weighted average U.S.-dollar price of the curren
cies of these countries in foreign exchange markets increased 2.0 percent in
212 U.S. Multinational Companies August 2010
exports—increased 6.4 percent to $595.6 billion (table
4). The increase in exports of goods by all U.S. busi
nesses was nearly twice as large (12.1 percent); as a re
sult, the MNC-associated share of total U.S. exports of
goods decreased, falling to 46.3 percent in 2008. The
MNC-associated share of total U.S. exports of goods
has been declining in recent years, falling 16.2 percent
age points over the last decade.
MNC-associated imports of goods increased 6.
percent to $768.1 billion in 2008. The increase was
similar to that in total U.S. imports of goods (7.5 per
cent). As a result, the MNC-associated share of total
U.S. imports of goods remained essentially unchanged,
at 36.5 percent, in 2008. Over the last decade, the
MNC-associated share of total U.S. imports of goods
has decreased slightly, declining 1.4 percentage points.
The increase in MNC-associated exports of goods in
2008 reflected increases in both trade between U.S.
parents and their foreign affiliates (intra-MNC trade)
and trade between U.S. MNCs and “others” (trade be
tween U.S. parent companies and foreigners other than
Table 4. U.S. Trade in Goods Associated with
Nonbank U.S. MNCs, 2007 and 2008
[Millions of dollars]
MNC-associated U.S. exports, total ............................................................. 559,984 595, Intra-MNC trade ........................................................................................... 214,051 227, Shipped by U.S. parents to their MOFAs ................................................. 203,949 215, Shipped by U.S. parents to their other foreign affiliates 1 .......................... 10,102 12, MNC trade with others ................................................................................. 345,932 367, Shipped by U.S. parents to foreigners other than their own affiliates ...... Of which:
Shipped by U.S. parents to their foreign parent groups 2 .................. Shipped to foreign affiliates by U.S. persons other than their own
parents................................................................................................. 42,096 44, To MOFAs ............................................................................................ 42,000 44, To other foreign affiliates^3 ..................................................................... 96 n.a. MNC-associated U.S. imports, total ............................................................. 720,779 768, Intra-MNC trade ........................................................................................... 267,376 276, Shipped by MOFAs to their U.S. parents ................................................. 253,125 262, Shipped by other foreign affiliates to their U.S. parents 1 .......................... 14,251 13,
MNC trade with others ................................................................................. 453,403 492, Shipped to U.S. parents by foreigners other than their own affiliates ...... Of which:
Shipped to U.S. parents by their foreign parent groups 2 .................. Shipped by foreign affiliates to U.S. persons other than their own
parents................................................................................................. 56,527 60, By MOFAs............................................................................................ 51,523 55, By other foreign affiliates ..................................................................... Addenda:
All U.S. exports of goods.................................................................................. 1,148,199 1,287, U.S.-MNC-associated U.S. exports as a percentage of total ....................... 48.8 46. Intra-U.S.-MNC exports as a percentage of total ......................................... 18.6 17. All U.S. imports of goods ................................................................................. 1,956,962 2,103, U.S.-MNC-associated U.S. imports as a percentage of total ....................... 36.8 36. Intra-U.S.-MNC imports as a percentage of total......................................... 13.7 13.
- This number is calculated as total exports (imports) between U.S. parents and all of their foreign affiliates (as reported for U.S. parents) less exports (imports) between U.S. parents and MOFAs (as reported for MOFAs).
- Pertains to U.S. parents that are, in turn, owned 10 percent or more by a foreign person. The foreign parent group consists of (1) the foreign parent of the U.S. parent, (2) any foreign person, proceeding up the foreign parent’s ownership chain, that owns more than 50 percent of the person below it, and (3) any foreign person, proceeding down the ownership chain(s) of each of these members, that is owned more than 50 percent by the person above it.
- This number is calculated as total exports (imports) associated with “other” (that is, minority-owned and 50-percent owned) foreign affiliates (as reported for affiliates) less the estimate of exports (imports) between U.S. parents and “other” foreign affiliates that are calculated as described in footnote 1. However, these esti mates may be imprecise because of differences in the coverage of the data reported for U.S. parents and for foreign affiliates. No estimate of exports can be made for 2008 because the difference was especially large in that year. MNC Multinational company MOFA Majority-owned foreign affiliate n.a. Not available
their own affiliates and trade between foreign affiliates
and U.S. residents other than their own parents). Ex
ports by U.S. parents to their foreign affiliates in
creased 6.4 percent to $227.7 billion (chart 2), and U.S.
exports between U.S. MNCs and others also increased
6.4 percent to $367.9 billion. By industry of foreign af
filiate, the largest increase in intra-MNC exports was
to affiliates in wholesale trade. By industry of U.S. par
ent, the largest increase in exports between U.S. MNCs
and others was by parents in manufacturing and
wholesale trade.
The increase in MNC-associated imports of goods
reflected increases in both imports shipped by foreign
affiliates to their U.S. parents (intra-MNC trade) and
U.S. MNC trade with others. Imports by U.S. parents
from their foreign affiliates increased 3.3 percent to
$276.1 billion, and U.S. imports between U.S. MNCs
and others increased 8.5 percent to $492.0 billion. By
industry of foreign affiliate, the largest increases in in-
tra-MNC U.S. imports were shipped by affiliates in oil
and gas extraction and in petroleum and coal products
manufacturing. By industry of U.S. parent, the largest
increase in imports between U.S. MNCs and others
was to parents in petroleum and coal products manu
facturing.
Research and development
Expenditures for R&D performed by nonbank U.S.
MNCs decreased 0.9 percent to $236.1 billion in 2008
(table 5). Expenditures by U.S. parents decreased 2.
percent to $199.1 billion, whereas expenditures by for
eign affiliates increased 7.4 percent to $37.0 billion. As
a result, the parent share of worldwide R&D by U.S.
MNCs fell from 86 percent to 84 percent. The decrease
was most pronounced in computers and electronic
products and in chemicals.
The 0.9 percent decrease in R&D by U.S. MNCs was
Table 5. Research and Development Performed by Nonbank U.S.
Multinational Companies by Industry of Parent, 2007–
[Millions of dollars]
2007 2008 Change
Percent change
All industries ............................................................ 238,124 236,096 –2,028 –0. Mining .................................................................................. 707 796 89 12. Utilities ................................................................................. 29 17 –12 –41. Manufacturing ...................................................................... 188,898 183,933 –4,965 –2. Of which: Food................................................................................. 2,399 2,265 –134 –5. Chemicals........................................................................ 60,980 59,748 –1,232 –2. Primary and fabricated metals......................................... 1,277 1,409 132 10. Machinery ........................................................................ 8,545 9,383 838 9. Computers and electronic products................................. 46,672 44,450 –2,222 –4. Electrical equipment, appliances, and components......... 2,337 2,652 315 13. Transportation equipment ................................................ 53,765 51,465 –2,300 –4. Wholesale trade................................................................... 6,266 6,890 624 10. Information........................................................................... 20,146 20,738 592 2. Finance (except depository institutions) and insurance....... 180 109 –71 –39. Professional, scientific, and technical services.................... 17,988 18,988 1,000 5. Other industries ................................................................... 3,828 4,530 702 18.
214 U.S. Multinational Companies August 2010
million workers. Much of the increase in employment
in banking and the decrease in employment in non
bank industries resulted from the change in the classi
fication of some parent companies as mentioned
earlier.
Nonbank U.S. parents
Value added
Value added in nonbank finance and insurance de
clined $83.4 billion or 35.6 percent (table 6). The un
precedented drop in this industry reflected the changes
in the classification of some parent companies as well
as the turmoil created by the financial crisis, which de
pressed asset values, raised uncertainty, and con
strained firms’ financial liquidity.
Value added of parents in manufacturing decreased
$62.9 billion or 6.0 percent in 2008. Decreases were
widespread by manufacturing industry, but they were
largest in petroleum and coal products, transportation
equipment, and paper. In petroleum and coal prod
ucts, value added decreased $31.2 billion or 20.9 per
cent, as market conditions did not allow U.S.
producers to pass on to customers the full value of in
creases in the cost of crude oil. In transportation
equipment, value added decreased $13.9 billion or 6.
percent, primarily reflecting the sharp decline in U.S.
car sales. In paper, value added decreased $6.6 billion
or 19.1 percent, primarily reflecting divestitures by
some U.S. parents and a sharp drop in sales in second
ary lumber operations partly related to a sharp de
crease in U.S. new home starts.
By contrast, value added of parents in mining in
creased $21.8 billion or 33.6 percent, reflecting the
sharp rise in crude oil prices.
The 6.0 percent decrease in current-dollar value
added of nonbank U.S. parents was mostly accounted
Table 6. Value Added of Nonbank U.S. Parent Companies, by Major
Industry, 2007 and 2008
[Millions of dollars]
2007 2008 Change Percent change
All industries......................................................... 2,548,433 2,396,288 –152,145 –6. Mining............................................................................... 65,072 86,905 21,833 33. Utilities.............................................................................. 79,605 73,127 –6,478 –8. Manufacturing................................................................... 1,043,919 981,043 –62,876 –6. Of which: Food ............................................................................. 73,155 67,396 –5,759 –7. Paper............................................................................ 34,616 28,015 –6,601 –19. Petroleum and coal products........................................ 149,408 118,175 –31,233 –20. Chemicals .................................................................... 177,366 187,217 9,851 5. Primary and fabricated metals ..................................... 52,375 47,410 –4,965 –9. Machinery..................................................................... 68,126 66,512 –1,614 –2. Computers and electronic products ............................. 113,459 113,586 127 0. Electrical equipment, appliances, and components ..... 24,076 25,969 1,893 7. Transportation equipment............................................. 208,994 195,136 –13,858 –6. Wholesale trade ............................................................... 136,530 137,355 825 0. Information ....................................................................... 310,190 295,728 –14,462 –4. Finance (except depository institutions) and insurance ... 233,957 150,564 –83,393 –35. Professional, scientific, and technical services ................ 150,083 158,196 8,113 5. Other industries................................................................ 529,076 513,370 –15,706 –3.
for by decreased value added of continuing parents (ta
ble 7, line 4). There was also a decrease related to the
departure of U.S. parents that sold or liquidated their
last foreign affiliate (line 5). These decreases were
partly offset by an increase related to unallocated
changes (line 6) and an increase related to the addition
of new parents to the U.S. MNC universe (line 3).
Research and development
In 2008, expenditures for R&D performed by nonbank
U.S. parents decreased 2.2 percent to $199.1 billion. In
contrast, R&D performed by all U.S. businesses in
creased 5.2 percent; as a result, the parent share of to
tal private R&D performed in the United States
decreased to 70.3 percent in 2008, from 75.6 percent in
2007 (table 8).
The 2.2 percent decline in U.S. parents’ expendi
tures for R&D was less pronounced than the 29.7 per
cent decline in their profit-type return. The
production of intangible assets, which often occurs
through R&D, allows businesses to maintain or im
prove their competitiveness, which is particularly im
portant in international markets. Thus, multinational
companies often attempt to avoid substantial cuts in
R&D spending during difficult economic times even
Table 7. Sources of Change in the Value Added
of Nonbank U.S. Parent Companies
[Millions of dollars]
1 2007 level ............................................................................................ 2,548, 2 Total change ........................................................................................ –152, 3 New parents 1 ................................................................................... 1, 4 Changes for continuing parents 2 ..................................................... –131, 5 Parents departing the universe 3 ...................................................... –25, 6 Other changes 4 ................................................................................ 4, 7 2008 level ............................................................................................ 2,396,
- Parents that established or acquired their first foreign affiliate in 2008.
- Covers businesses that were parents in both 2007 and 2008. It consists of changes in their existing oper ations and changes from parents acquiring, establishing, selling, or liquidating parts of their consolidated oper ations. BEA generally requires survey respondents to fully consolidate their U.S.-parent operations.
- Parents that sold or liquidated their last foreign affiliate and those that went out of business in 2008.
- Equals the change in the value added of parents not accounted for in lines 3-5, such as changes resulting from the addition to the survey universe of parents that were required to report in earlier years but did not. Line 6 will also capture any measurement error in the items on the other lines, because it is calculated as the differ ence between line 2 and the sum of lines 3, 4, and 5.
Table 8. Research and Development Performed by Nonbank U.S.
Parent Companies and by
All U.S. Businesses, 1997–
[Millions of dollars]
Performed by parents
Performed by all U.S. businesses 1
R&D by parents as a percentage of R&D by all U.S. businesses
1997.............................................. 106,800 157,739 67. 1998.............................................. 113,777 169,180 67. 1999.............................................. 126,291 182,711 69. 2000.............................................. 135,467 199,539 67. 2001.............................................. 143,017 198,505 72. 2002.............................................. 136,977 193,868 70. 2003.............................................. 139,884 200,724 69. 2004.............................................. 164,189 208,301 78. 2005.............................................. 177,598 226,159 78. 2006.............................................. 184,428 247,669 74. 2007.............................................. 203,678 269,267 75. 2008.............................................. 199,105 283,238 70.
- The data were obtained from the National Science Foundation Web site www.nsf.gov/statistics/infbrief/ nsf10322/.
August 2010 SURVEY OF CURRENT BUSINESS 215
when their budgets are tight. In addition, much R&D
spending is directed toward long-term projects that
would be inefficient to stop temporarily because of
funding constraints.
Underlying the 2.2 percent decline in expenditures
for R&D performed by U.S. parents were offsetting
changes by industry (table 9). Decreases in R&D were
especially large in manufacturing, down $6.7 billion,
to $152.5 billion. Decreases in computers and elec
tronic products, transportation equipment, and chem
icals mainly reflected divestitures and other
retrenchment in response to weak business conditions.
Increases in R&D were especially large in professional,
scientific, and technical services (primarily computer
systems design and related services).
Operations of Foreign Affiliates
This section examines the 2008 operations of foreign
affiliates in all industries as well as the 2008 change in
two aspects of the operations of nonbank foreign affili
ates of nonbank U.S. parents: value added and research
and development. For nonbank foreign affiliates of
nonbank U.S. parents, it also examines the distribution
by country and by industry of newly acquired or estab
lished affiliates and the affiliates’ shares of host country
GDP. Statistics on other selected aspects of the opera
tions of foreign affiliates—such as assets, employment,
and capital expenditures—are presented in tables 18.
to 20.2.
Foreign affiliates in all industries
Current-dollar value added of foreign affiliates in all
industries increased 9.1 percent in 2008 to $1,267.
billion, in contrast to the 6.5 percent decrease in value
added of U.S. parents. Value added of nonbank affili
ates of nonbank U.S. parents increased 8.2 percent to
$1,211.9 billion, largely reflecting increases in continu-
Table 9. Research and Development Performed by Nonbank U.S.
Parent Companies by Major Industry, 2007 and 2008
[Millions of dollars]
2007 2008 Change Percent change
All industries............................................................. 203,678 199,105 –4,573 –2. Mining................................................................................... 644 691 47 7. Utilities.................................................................................. 29 17 –12 –41. Manufacturing....................................................................... 159,182 152,507 –6,675 –4. Of which: Food ............................................................................. 1,862 1,801 –61 –3. Chemicals .................................................................... 51,033 49,077 –1,956 –3. Primary and fabricated metals ..................................... 991 1,101 110 11. Machinery .................................................................... 7,398 8,106 708 9. Computers and electronic products ............................. 41,169 37,472 –3,697 –9. Electrical equipment, appliances, and components..... 2,056 2,301 245 11. Transportation equipment ............................................ 43,543 41,510 –2,033 –4. Wholesale trade ................................................................... 5,876 6,451 575 9. Information ........................................................................... 17,981 18,148 167 0. Finance (except depository institutions) and insurance ....... 180 107 –73 –40. Professional, scientific, and technical services .................... 16,162 17,072 910 5. Other industries.................................................................... 3,623 4,111 488 13.
ing operations. Value added of bank foreign affiliates
increased 32.8 percent to $55.1 billion.
The increase
was primarily accounted for by a $13.6 billion increase
by bank affiliates in the United Kingdom. Employ
ment by affiliates in all industries increased 1.9 percent
to 10.6 million workers. Employment of nonbank af
filiates of nonbank U.S. parents increased 1.1 percent
to 10.1 million workers, and that of bank affiliates in
creased 22.5 percent to 0.4 million workers. The dif
ferences in rates of growth in employment for the two
foreign-affiliate groups partly resulted from the reclas
sification of some U.S. parent companies from non-
banks to banking as mentioned earlier.
Nonbank foreign affiliates of nonbank U.S.
parents
Value added
Current-dollar value added of nonbank foreign affili
ates of nonbank U.S. parents increased 8.2 percent to
$1,211.9 billion in 2008. By area, the increases in value
8. In addition to affiliates in banking, bank foreign affiliates include non
bank affiliates of bank parents, which are included because they are
reported together with affiliates in banking on a specialized form for banks
that lacked much of the detail collected for nonbank affiliates of nonbank
parents.
Revisions
The statistics of MNC operations in 2008 are prelimi
nary. The employment and sales statistics replace the
advance summary statistics that were released on
April 16, 2010. From the advance to the preliminary
statistics, employment was revised down 1.1 percent
and sales was revised down 1.0 percent.
The final statistics for MNC operations in 2007 are
also presented. The final statistics for employment
and sales replace the summary statistics in the April
news release and the preliminary statistics that were
published in the August 2009 SURVEY OF CURRENT BUSI
NESS. From the summary to the final statistics,
employment was revised down 0.9 percent and sales
was revised down 0.1 percent. From the preliminary
to the final statistics, employment was revised down
1.7 percent and sales was revised down 0.5 percent.
In addition to the statistics for the levels of U.S.
MNC employment and sales, the April news release
included 2007–2008 growth rates. The revisions to
the levels of the 2007 and 2008 statistics discussed
above resulted in revisions to the growth rates;
employment growth was revised down 0.1 percentage
point and sales growth was revised down 1.0 percent
age point.
August 2010 SURVEY OF CURRENT BUSINESS 217
was in mining. “Other industries” (mainly manage
ment of companies and enterprises and retail trade),
manufacturing, and wholesale trade also had increases,
while nonbank finance and insurance and information
both had decreases.
The increase in affiliate value added largely reflected
changes for continuing affiliates (table 11, line 6); in
creases related to unallocated changes (line 8) and the
addition of new affiliates to the U.S. MNC universe
(line 3) were not as large and were partly offset by a de
crease related to the departure of affiliates that were
sold or liquidated (line 7).
Newly acquired or established affiliates. Although
most of the increase in the value added of foreign affil
iates in 2008 resulted from expansions in continuing
affiliates, the addition of affiliates that were newly ac
quired or established during the year also contrib
uted. Data for these affiliates show which U.S. MNCs
have been expanding their operations through new
business enterprises and thus can provide some evi
dence of the countries and industries that have offered
attractive investment opportunities to U.S. MNCs. In
2008, nonbank U.S. parents acquired or established
300 nonbank foreign affiliates, which had a combined
value added of $6.4 billion and a combined employ
ment of 120,600 workers (see table 12 on page 218).
While sizable, this is a notable decrease from 2007,
when nonbank U.S. parents acquired or established
434 nonbank foreign affiliates with a combined value
added of $12.3 billion.
By area, five countries—the United Kingdom,
France, the Netherlands, Germany, and Canada—ac
counted for over 40 percent of the number of new affil
iates in 2008, for over 40 percent of their value added,
and roughly a third of their employment. All five of
these countries are high-income countries, and affili
ates in these countries, except those in the Nether
lands, primarily serve local markets. The BRIC
Table 11. Sources of Change in Value Added of Nonbank
Majority-Owned Foreign Affiliates
[Millions of dollars]
1 2007 level ....................................................................................................... 1,119, 2 Total change.................................................................................................... 92, 3 New foreign affiliates................................................................................... 6, 4 Acquired by U.S. parents ........................................................................ 2, 5 Established by U.S. parents.................................................................... 3, 6 Changes for continuing affiliates^1 ................................................................ 77, 7 Sales or liquidations of foreign affiliates...................................................... –13, 8 Other changes^2 ........................................................................................... 21, 9 2008 level ....................................................................................................... 1,211,
- Covers businesses that were affiliates in both 2007 and 2008. It consists of changes in their existing oper ations and changes from foreign affiliates acquiring, establishing, selling, or liquidating parts of their consoli dated operations. BEA permits survey respondents to consolidate affiliate operations that are in the same country if the affiliates are also in the same industry or are integral parts of a single business operation.
- Equals the change in the value added of foreign affiliates not accounted for in lines 3–7, such as changes resulting from the addition to the survey universe of affiliates that were exempt from reporting in earlier years and affiliates that were required to report in earlier years but did not. Line 8 will also capture any measurement error in the items on the other lines, because it is calculated as the difference between line 2 and the sum of lines 3, 6, and 7.
countries of Brazil, Russia, India, and China together
accounted for 8.3 percent of all new affiliates, 6.0 per
cent of new affiliate value added, and 34.5 percent of
new affiliate employment.^10 The large share of total
new employment primarily reflected the labor-inten
sive production technologies used by the manufactur
ing and “professional, scientific, and technical
services” industries in which U.S. MNCs invested in
these countries.
By industry, new manufacturing affiliates accounted
for 27.7 percent of all new affiliates, for 43.1 percent of
their employment, and for 32.8 percent of their value
added. New wholesale trade affiliates accounted for
only 7.7 percent of all new affiliates and 3.1 percent of
their employment, but for 45.7 percent of their value
added.
Affiliate share of host-country GDP. Value added
of foreign affiliates represents these firms’ contribu
tions to their respective host countries’ GDP. Among
the 51 host countries listed in table 13 on page 219, the
share of GDP in 2008 accounted for by nonbank for
eign affiliates of nonbank U.S. parents ranged from
20.8 percent in Ireland to 0.1 percent in Saudi Arabia.
In only 2 of the 51 host countries—Ireland and Sin
gapore—did the value added of foreign affiliates of
U.S. MNCs account for more than 10 percent of GDP.
Seven of the top ten countries with high foreign affili
ate shares of host-country GDP are high income coun
tries, namely Ireland, Singapore, Canada, Norway, the
United Kingdom, Switzerland, and Hong Kong. The
relatively high affiliate shares of host country GDP in
these countries can be traced to some of the following
factors: widespread use of a common language with
the United States, marketing and commercial legal sys
tems similar to those in the United States, favorable in
tellectual property laws, the availability of a skilled
work force, political stability, and low corporate tax
rates.
Despite the rapid growth of foreign affiliates in the
BRIC countries, they combined to account for an aver
age of only 1.0 percent of their collective host coun
tries’ GDP in 2008. This share was little changed from
2007 because the rapid growth in affiliate value added
in 2008 of 24.2 percent did not significantly exceed the
rapid growth in the host countries’ GDP of 21.6 per
cent.
Real value added in manufacturing. In addition to
the current-dollar estimates of value added of foreign
10. The term “BRIC” was coined by Goldman Sachs’ head of global eco
nomic research Jim O’Neill, to describe the four countries where economic
development has been especially rapid.
218 U.S. Multinational Companies August 2010
affiliates, BEA prepares estimates of the real value
added of foreign affiliates in manufacturing that re
move the effects of changes in prices and exchange
rates. These estimates provide more meaningful com
parisons of value added of foreign affiliates across
countries and over time than the current-dollar esti
mates. Comparisons across countries are enhanced
because the estimates in real terms are based on pur
chasing power parity (PPP) exchange rates rather than
on market exchange rates.^11 Comparisons over time
are enhanced because the estimates are denominated
in chained (2005) dollars that account for both
changes in prices and changes in the industry mix of
production by manufacturing affiliates. The real value
added estimates are restricted to manufacturing be
11. To translate the value-added estimates that are denominated in for
eign currencies into U.S. dollars for international comparisons, PPP
exchange rates generally are preferable, because they approximate the num
ber of foreign currency units required in a foreign country to buy the goods
and services that are equivalent to those that can be bought in the United
States with 1 U.S. dollar. A distinguishing feature of PPP exchange rates is
that they are based on the prices of all goods and services produced or sold
in a country, both those that are traded internationally and those that are
not. For details and for a description of the original methodology used to
derive the estimates of real value added, see Raymond J. Mataloni Jr., “Real
Gross Product of U.S. Companies’ Majority-Owned Foreign Affiliates in
Manufacturing,” Survey 77 (April 1997): 8–17. The original methodology
was significantly improved when the industry detail of the producer price
indexes used for deflation was increased from 6 manufacturing industries
to 22 manufacturing industries in 2006.
cause the required source data are not available for
other industries.
The real value added of foreign affiliates in manu
facturing decreased 4.8 percent to $439.2 billion in
2008 (see table 14 on page 220). The 29 countries for
which estimates are available accounted for 76.7 per
cent of the total.^12 The real value added of manufac
turing affiliates in these countries decreased 8.
percent to $336.8 billion, in line with a 9.8 percent de
crease in total manufacturing production in these
countries (chart 3). The decreases were widespread
across countries and were largest in the United King
dom, Germany, and Canada. In the United Kingdom,
real value added of foreign affiliates decreased $6.2 bil
lion to $42.5 billion, mainly in transportation equip
ment manufacturing. In Germany, real value added
decreased $3.1 billion to $44.7 billion, mainly in com
puter and electronic products and transportation
12. Previously, estimates were available for 27 countries and covered 75.
percent of the total in the reference year (2005). The preparation of esti
mates for China and Singapore was made possible by newly available host-
country data on producer prices by industry. The reference year estimates
for these two countries are somewhat less precise; due to source data limita
tions, they are based on economywide PPP exchange rates rather than
industry-specific PPP exchange rates. Economywide PPP exchange rates
are not ideally suited for translating production by MNCs, because the
product weights, which cover both traded and nontraded goods and ser
vices, are not necessarily representative of the types of goods and services
produced by MNCs.
Table 12. Newly Acquired or Established Nonbank Majority-Owned Foreign Affiliates
by Major Area and Industry of Affiliate, 2007 and 2008
2007 2008
Number of newly acquired or established affiliates Value added(millions^ Number ofemployees
Number of newly acquired or established affiliates Value added(millions employees^ Number of
Total Acquired Established of dollars)^ (thousands)^ Total Acquired Established of dollars)^ (thousands)
Total..................................................................................... 434 201 233 12,250 153.4 300 125 175 6,408 120. By area Canada........................................................................................ 42 23 19 1,249 18.2 19 9 10 678 7. Europe......................................................................................... 245 127 118 6,309 70.0 193 86 107 4,281 50. Latin America and Other Western Hemisphere .......................... 67 18 49 2,194 11.2 40 9 31 94 6. Africa ........................................................................................... 4 2 2 54 2.7 6 2 4 18 3. Middle East.................................................................................. 5 3 2 152 1.6 2 1 1 8 1. Asia and Pacific........................................................................... 71 28 43 2,291 49.7 40 18 22 1,329 51. High-income countries 1 ............................................................... 359 167 192 8,073 93.1 247 96 151 5,562 63. Upper-middle-income countries^1 ................................................. 2 0 2 8 0.1 2 0 2 –12 2. Lower-middle-income-countries 1 ................................................. 30 15 15 2,682 43.5 26 13 13 294 36. Low-income countries^1 ................................................................ 43 19 24 1,487 16.7 26 10 16 566 17.
By industry Mining.......................................................................................... 19 12 7 2,246 5.1 8 4 4 175 3. Utilities......................................................................................... 2 2 0 (D) (D) 1 0 1 (D) (D) Manufacturing.............................................................................. 135 104 31 6,530 66.0 83 60 23 2,104 52. Of which: Food ........................................................................................ 7 2 5 276 5.0 6 6 0 271 9. Chemicals ............................................................................... 54 51 3 648 18.8 22 20 2 989 9. Primary and fabricated metals ................................................ 4 1 3 361 8.0 6 5 1 349 6. Machinery................................................................................ 4 2 2 65 1.6 9 8 1 149 2. Computers and electronic products ........................................ 19 17 2 704 5.4 8 3 5 11 7. Electrical equipment, appliances, and components ................ 4 4 0 87 3.5 10 10 0 225 7. Transportation equipment........................................................ 7 6 1 1,335 8.9 7 2 5 –3 0. Wholesale trade .......................................................................... 28 20 8 692 7.4 23 7 16 2,929 3. Information .................................................................................. 20 11 9 364 4.1 18 10 8 437 8. Finance (except depository institutions) and insurance .............. 45 10 35 922 7.1 28 5 23 14 0. Professional, scientific, and technical services ........................... 15 7 8 (D) (D) 8 0 8 (D) (D) Other industries........................................................................... 170 35 135 1,229 52.6 131 39 92 697 52. Of which: Holding companies.................................................................. 115 19 96 –27 0.0 100 30 70 –395 3.
D Suppressed to avoid disclosure of data of individual companies.
- As classified by the World Bank. NOTE. The statistics in this table cover only newly acquired or established affiliates. They exclude data for consolidated units of existing affiliates that were acquired or established during the year.
220 U.S. Multinational Companies August 2010
Offsetting these increases was a decrease in R&D ex
penditures in the United Kingdom, down 14.1 percent
or $0.8 billion. Within the United Kingdom, the de
crease was concentrated in manufacturing, specifically
transportation equipment and chemicals manufactur
ing. There was also a decrease in defense-related R&D,
particularly aerospace.
R&D expenditures in the BRIC countries continued
to grow; the share of affiliate R&D expenditures in
these countries grew to 8.1 percent of total affiliate
R&D in 2008 from 4.1 percent in 2004. The 2008 in
crease was partly due to strong growth in India and
Brazil, both of which experienced double-digit growth
in affiliate R&D. Indian affiliates’ R&D expenditures
increased 52.4 percent or $0.2 billion. By industry, a
large portion of the Indian R&D expenditures were in
computers and electronic products manufacturing and
in professional, scientific, and technical services. The
growth in R&D expenditures by Indian affiliates ap
pears to be driven by the expanded capabilities for
R&D and government support in India, which in
cludes the development of an R&D infrastructure, re
search funding, and increased education for human
resource development.
Brazilian affiliates’ R&D expenditures increased
30.3 percent or $0.2 billion. By industry, a majority of
the Brazilian R&D expenditures were in transportation
equipment and computers and electronic products
manufacturing. The increase in transportation equip
ment reflects a continued emphasis on developing flex
ible fuel vehicles (vehicles that run on more than one
fuel, usually gasoline blended with ethanol), which
currently make up about 75 percent of total produc
tion of light vehicles in Brazil.
By industry sector, the largest increase in R&D ex
penditures was in manufacturing, followed by profes
sional, scientific, and technical services. The increase
in manufacturing reflected sizable growth in comput
ers and electronic products manufacturing in which
R&D increased $1.5 billion and helped offset a notable
decrease in R&D in transportation equipment manu
facturing, which declined $0.5 billion.
Table 14. Real Value Added by Majority-Owned Foreign Affiliates in Manufacturing by Country, 1999–
Billions of chained (2005) dollars Share of all-countries total (percent)
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
All countries ................. 395.1 409.5 399.9 406.0 404.8 438.6 435.2 447.9 461.5 439.2 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100. 29 selected countries 352.7 363.3 355.2 361.8 354.8 376.1 364.7 368.9 366.4 336.8 89.3 88.7 88.8 89.1 87.6 85.8 83.8 82.4 79.4 76. Australia..................... 8.0 9.1 9.2 8.1 8.2 8.8 8.6 8.5 8.3 7.9 2.0 2.2 2.3 2.0 2.0 2.0 2.0 1.9 1.8 1. Austria ....................... 2.3 2.3 2.2 2.0 1.7 2.1 2.3 2.5 2.7 2.5 0.6 0.6 0.6 0.5 0.4 0.5 0.5 0.6 0.6 0. Bulgaria ..................... () 0.2 0.2 0.2 0.2 0.2 0.3 0.3 0.2 0.2 () () () () () () 0.1 0.1 () () Canada...................... 60.9 63.3 59.1 57.8 57.4 59.6 49.2 47.8 44.2 41.2 15.4 15.5 14.8 14.2 14.2 13.6 11.3 10.7 9.6 9. China ......................... 8.1 11.0 11.7 13.9 15.9 20.2 26.9 29.2 30.4 33.8 2.1 2.7 2.9 3.4 3.9 4.6 6.2 6.5 6.6 7. Czech Republic ......... 2.5 2.6 3.1 3.1 3.0 3.9 4.0 3.8 4.4 4.4 0.6 0.6 0.8 0.8 0.7 0.9 0.9 0.8 1.0 1. Denmark.................... 1.3 1.4 1.1 1.4 1.1 1.1 1.3 1.3 1.4 1.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0. Finland....................... 0.9 1.0 0.9 0.8 0.6 1.1 1.1 1.2 1.3 1.2 0.2 0.2 0.2 0.2 0.1 0.3 0.3 0.3 0.3 0. France........................ 27.2 27.0 27.0 26.6 25.8 25.1 25.4 24.3 23.3 21.8 6.9 6.6 6.8 6.6 6.4 5.7 5.8 5.4 5.0 5. Germany.................... 56.8 46.3 45.6 44.5 39.3 47.2 47.1 48.4 47.8 44.7 14.4 11.3 11.4 11.0 9.7 10.8 10.8 10.8 10.4 10. Greece....................... 0.7 0.7 0.6 0.6 0.7 2.3 2.6 2.5 2.6 2.6 0.2 0.2 0.2 0.1 0.2 0.5 0.6 0.6 0.6 0. Hungary..................... 2.1 2.3 2.0 2.7 2.2 1.8 2.4 2.8 4.1 3.5 0.5 0.6 0.5 0.7 0.5 0.4 0.6 0.6 0.9 0. Ireland ....................... 14.8 16.7 17.9 23.1 21.3 20.7 21.7 22.8 22.0 20.5 3.7 4.1 4.5 5.7 5.3 4.7 5.0 5.1 4.8 4. Italy............................ 24.3 23.2 24.3 22.8 21.2 20.3 18.8 17.3 16.0 13.9 6.2 5.7 6.1 5.6 5.2 4.6 4.3 3.9 3.5 3. Japan......................... 10.1 14.4 17.7 15.7 15.9 15.3 8.0 8.4 8.5 8.0 2.6 3.5 4.4 3.9 3.9 3.5 1.8 1.9 1.8 1. Lithuania.................... 0.2 0.4 0.4 0.3 0.2 0.3 0.3 0.4 0.2 0.1 0.1 0.1 0.1 0.1 0.0 0.1 0.1 0.1 () () Mexico ....................... 23.2 24.2 24.4 25.3 25.8 23.8 22.9 23.8 23.5 22.3 5.9 5.9 6.1 6.2 6.4 5.4 5.3 5.3 5.1 5. Netherlands ............... 15.9 16.1 15.7 16.2 15.1 15.7 17.7 14.9 13.8 13.7 4.0 3.9 3.9 4.0 3.7 3.6 4.1 3.3 3.0 3. Norway ...................... 2.2 2.0 2.2 2.3 2.1 2.1 2.3 1.7 1.8 1.9 0.6 0.5 0.6 0.6 0.5 0.5 0.5 0.4 0.4 0. Poland ....................... 2.4 4.3 4.9 5.4 6.2 7.4 7.5 8.4 8.6 6.3 0.6 1.1 1.2 1.3 1.5 1.7 1.7 1.9 1.9 1. Portugal ..................... 1.6 3.9 3.7 3.8 3.7 3.6 3.3 3.0 2.9 1.0 0.4 1.0 0.9 0.9 0.9 0.8 0.8 0.7 0.6 0. Singapore .................. 9.8 14.0 9.5 11.0 13.1 15.2 11.1 15.1 16.2 14.5 2.5 3.4 2.4 2.7 3.2 3.5 2.6 3.4 3.5 3. Slovak Republic ......... 0.3 0.2 1.1 1.7 1.8 2.1 2.1 2.5 2.0 1.6 0.1 () 0.3 0.4 0.4 0.5 0.5 0.6 0.4 0. Slovenia..................... 0.1 0.2 0.2 0.2 0.2 0.2 0.2 0.3 0.2 0.2 () () () () () () () 0.1 () (*) South Korea............... 2.4 3.4 3.1 4.4 4.3 5.3 6.0 6.9 7.5 7.2 0.6 0.8 0.8 1.1 1.1 1.2 1.4 1.5 1.6 1. Spain ......................... 10.8 10.9 10.9 11.0 10.4 10.1 10.4 10.5 11.3 8.6 2.7 2.7 2.7 2.7 2.6 2.3 2.4 2.3 2.4 2. Sweden...................... 3.0 3.8 3.7 3.8 4.9 5.6 4.6 5.1 4.9 3.3 0.8 0.9 0.9 0.9 1.2 1.3 1.1 1.1 1.1 0. Switzerland................ 3.4 4.1 2.4 2.7 2.9 3.7 4.3 5.5 7.8 7.3 0.9 1.0 0.6 0.7 0.7 0.8 1.0 1.2 1.7 1. United Kingdom......... 58.2 53.6 50.2 51.4 50.8 51.2 52.5 49.1 48.7 42.5 14.7 13.1 12.6 12.7 12.5 11.7 12.1 11.0 10.6 9. All other countries.......... 43.2 46.7 45.3 44.9 50.3 62.6 70.5 79.1 95.5 103.5 10.9 11.4 11.3 11.1 12.4 14.3 16.2 17.7 20.7 23. Residual^1 ....................... –1.6 0.2 –0.4 –1.7 –1.5 0.0 –0.2 0.5 –0.6 –2. .............. .............. .............. .............. .............. .............. .............. .............. .............. ..............
- Less than $500,000 or less than 0.05 percent.
- Because the formula for the chain-type quantity indexes uses weights of more than one period, the corresponding chained-dollar estimates are usually not additive. The residual line is the difference between the first line and the sum of the most detailed lines.
August 2010 SURVEY OF CURRENT BUSINESS 221
Statistics on U.S. Direct Investment Abroad
BEA collects two broad sets of data on U.S. direct invest- research and development expenditures. Separate statis
ment abroad: (1) financial and operating data of U.S. tics are available for all affiliates and for affiliates that are
multinational companies and (2) international transac- majority-owned by their U.S. parent(s).
tions and direct investment position data. This article International transactions and direct investment
presents highlights of statistics derived from the first set position statistics. The international transactions statis
of data; the statistics derived from the second set of data tics cover a foreign affiliate’s transactions with its U.S.
are usually published in the July and September issues of parent(s), so these statistics relate to the U.S. parent’s
the SURVEY OF CURRENT BUSINESS.^1 share, or interest, in its affiliate rather than to the affili-
Financial and operating statistics. The financial and ate’s size or level of operations. These statistics are key
operating statistics provide a picture of the overall activi- components of the U.S. international transactions
ties of foreign affiliates and U.S. parent companies using accounts (ITAs), the international investment position,
a variety of indicators of their financial structure and and the national income and product accounts. The
operations. The statistics on foreign affiliates cover the major data items are capital flows (recorded in the finan
entire operations of the affiliate, regardless of the share of cial account of the ITAs), which measure the funds that
U.S. ownership. These statistics cover items that are used U.S. parents invest in their foreign affiliates, and income
to analyze the characteristics, performance, and eco- (recorded in the current account), which measures the
nomic impact of multinational companies, such as sales, return on those investments.
value added, employment and employee compensation, Direct investment position statistics are stock (cumula
capital expenditures, goods exports and imports, and tive) measures, showing the total outstanding level of
U.S. direct investment abroad at yearend. Statistics are
1. See Marilyn Ibarra, “Direct Investment Positions for 2009: Country
and Industry Detail,” SURVEY 90 (July 2010): 20–35 and Jeffrey H. Lowe, provided both at historical cost and at current-period
“Direct Investment, 2006–2008: Detailed Historical-Cost Positions and prices.^ The historical-cost statistics are published by
Related Capital and Income Flows,” SURVEY 89 (September 2009): 208– country and by industry.
Table 15. Research and Development Performed by Majority-Owned
Nonbank Foreign Affiliates by Major Area and by Major Industry of
Affiliate, 2007 and 2008
2007 2008 Change
Percent change
All areas, all industries ................................................
By area Canada............................................................................... Europe................................................................................ Of which: France ........................................................................ Germany .................................................................... Netherlands................................................................ Russia ........................................................................ United Kingdom ......................................................... Latin America and Other Western Hemisphere ................. Of which: Brazil .......................................................................... Mexico........................................................................ Africa.................................................................................. Middle East ........................................................................ Asia and Pacific.................................................................. Of which: Australia ......................................................................... China.............................................................................. India ............................................................................... Japan ............................................................................. By industry Mining................................................................................. Utilities................................................................................ Manufacturing..................................................................... Of which: Food ........................................................................... Chemicals .................................................................. Primary and fabricated metals ................................... Machinery .................................................................. Computers and electronic products ........................... Electrical equipment, appliances, and components... Transportation equipment .......................................... Wholesale trade ................................................................. Information ......................................................................... Finance (except depository institutions) and insurance ..... Professional, scientific, and technical services .................. Other industries..................................................................
n.a. 1,
96 336 n.a. 524
n.a.
–6.
–5.
n.a.
–10.
- Less than $500,000. n.a. Not available Tables 16.1 through 20.2 follow.
Millions of dollars Thousands of Total employees Sales Net Capital Research and Value Compensation assets Total Goods Services income expenditures development expenditures
Less than $500,000 (+/–). D Suppressed to avoid disclosure of data of individual companies.
- 222 U.S. Multinational Companies August - Table 16.1. Selected Statistics for Nonbank U.S. Parents by Industry of U.S. Parent, - income Investment - All industries 20,271,992 8,593,134 5,635,404 2,560,899 396,831 726,126 495,361 203,678 2,548,433 1,386,455 21,548.
- Mining 372,743 115,840 85,830 29,256 754 34,344 38,853 644 65,072 17,663 183.
- Oil and gas extraction.................................................................................... 215,169 54,292 51,865 (D) (D) 19,861 26,147 14 33,395 3,982 31.
- Other 157,574 61,547 33,965 (D) (D) 14,483 12,706 631 31,677 13,681 151.
- Utilities 577,040 241,401 38,334 197,709 5,358 21,650 33,861 29 79,605 19,997 214.
- Manufacturing 5,309,803 3,925,273 3,682,735 182,608 59,929 340,480 174,194 159,182 1,043,919 569,947 7,216.
- Food 350,636 344,673 (D) (D) 11 25,107 8,961 1,862 73,155 38,774 645.
- Beverages and tobacco products 174,801 95,900 (D) (D) 1,795 22,865 3,630 336 45,236 14,832 178.
- Textiles, apparel, and leather products 21,719 29,617 29,582 (D) (D) 1,491 553 152 8,687 6,446 133.
- Wood products 11,942 10,309 10,022 (D) (D) 369 477 46 2,219 1,556 29.
- Paper 133,960 93,760 92,684 1,019 58 9,047 4,273 1,474 34,616 19,312 237.
- Printing and related support activities 26,479 23,171 22,928 243 0 788 757 45 9,827 5,085 138.
- Petroleum and coal products......................................................................... 723,445 868,474 843,142 24,865 468 97,809 27,669 2,583 149,408 29,356 277.
- Chemicals...................................................................................................... 1,013,406 537,082 533,395 3,559 128 88,624 22,148 51,033 177,366 93,432 900.
- Basic chemicals......................................................................................... 137,887 125,693 124,894 798 (*) 4,053 5,016 1,601 23,630 12,437 123.
- Resins and synthetic rubber, fibers and filaments..................................... 100,870 65,027 (D) (D) 120 6,639 3,305 2,541 19,802 9,453 96.
- Pharmaceuticals and medicines 559,307 226,427 225,353 1,066 8 59,167 10,006 41,962 88,770 47,796 394.
- Soap, cleaning compounds, and toilet preparations.................................. 129,648 58,485 (D) (D) 0 13,126 1,664 2,780 25,961 11,785 145.
- Other 85,695 61,450 (D) (D) 0 5,639 2,157 2,149 19,202 11,961 140.
- Plastics and rubber products......................................................................... 91,350 84,449 (D) (D) 0 5,175 2,941 1,304 28,811 18,284 285.
- Nonmetallic mineral products 49,592 35,323 35,128 195 0 1,386 3,028 406 11,453 8,048 114.
- Primary and fabricated metals 184,586 179,227 175,084 4,065 78 13,954 5,944 991 52,375 31,091 461.
- Primary metals 119,176 117,646 116,130 1,438 78 9,390 4,474 439 30,943 16,252 234.
- Fabricated metal products......................................................................... 65,410 61,581 58,955 2,627 0 4,564 1,470 553 21,432 14,839 227.
- Machinery...................................................................................................... 291,315 229,119 214,840 10,847 3,431 20,856 7,397 7,398 68,126 43,785 610.
- Agriculture, construction, and mining machinery 136,540 88,647 (D) (D) 3,332 9,149 3,366 2,429 20,705 12,765 156.
- Industrial machinery 42,184 36,854 34,940 1,915 0 6,266 1,426 2,155 13,751 6,972 107.
- Other 112,591 103,617 (D) (D) 99 5,442 2,606 2,815 33,670 24,048 345.
- Computers and electronic products............................................................... 619,154 377,668 343,647 34,004 17 38,522 17,327 41,169 113,459 71,289 871.
- Computers and peripheral equipment....................................................... 150,269 122,774 (D) (D) 0 13,325 3,475 8,027 22,588 15,104 200.
- Communications equipment...................................................................... 150,272 72,036 66,616 5,420 0 5,509 2,119 12,043 24,239 13,554 161.
- Audio and video equipment....................................................................... (D) 8,248 (D) (D) 0 12 242 (D) 1,970 1,682 24.
- Semiconductors and other electronic components 190,660 100,468 100,244 223 1 10,654 10,006 15,374 36,454 21,787 230.
- Navigational, measuring, and other instruments....................................... 113,421 72,865 62,862 9,987 16 9,004 1,465 5,202 28,066 18,974 250.
- Magnetic and optical media....................................................................... (D) 1,278 (D) (D) 0 19 19 (D) 143 188 3.
- Electrical equipment, appliances, and components 96,166 80,807 79,856 951 0 8,167 2,101 2,056 24,076 14,590 236.
- Transportation equipment.............................................................................. 1,369,790 844,956 703,387 88,921 52,647 656 63,552 43,543 208,994 150,624 1,736.
- Motor vehicles, bodies and trailers, and parts........................................... 690,570 480,934 448,640 25,074 7,221 –42,674 47,398 15,610 71,456 59,682 766.
- Other 679,220 364,022 254,747 63,848 45,427 43,330 16,154 27,933 137,538 90,942 969.
- Furniture and related products 20,234 24,509 24,077 110 322 1,187 560 244 8,969 6,390 116.
- Miscellaneous manufacturing........................................................................ 131,227 66,228 62,422 2,865 941 4,477 2,876 4,540 27,141 17,051 243.
- Wholesale trade 815,088 916,529 835,092 71,347 10,091 44,109 28,061 5,876 136,530 72,127 1,064.
- Professional and commercial equipment and supplies 56,870 67,567 (D) (D) 24 4,231 1,174 1,625 14,844 8,878 90.
- Petroleum and petroleum products (D) 147,024 144,812 2,205 7 8,063 (D) (D) 23,418 4,819 41.
- Drugs and druggists’ sundries....................................................................... (D) 181,668 (D) (D) 0 3,431 (D) (D) 9,543 4,731 82.
- Other 561,813 520,270 446,927 63,284 10,060 28,384 17,007 3,653 88,725 53,700 849.
- Information 1,528,907 667,533 71,475 593,658 2,400 77,795 70,941 17,981 310,190 149,946 1,910.
- Publishing industries 198,345 103,320 44,405 57,634 1,282 20,722 4,508 12,267 46,419 32,789 353.
- Motion picture and sound recording industries.............................................. 47,858 16,566 6,146 10,421 0 273 412 (D) 5,114 2,887 52.
- Broadcasting and telecommunications.......................................................... 1,125,172 468,929 15,912 452,569 448 46,003 60,460 (D) 214,995 88,676 1,148.
- Broadcasting, cable networks, and program distribution........................... 317,573 124,514 13,983 110,450 80 16,968 5,772 (D) 48,066 20,111 261.
- Telecommunications.................................................................................. 807,600 344,415 1,928 342,119 368 29,036 54,688 1,262 166,929 68,565 886.
- Information services and data processing services 157,531 78,717 5,013 73,034 670 10,798 5,560 4,277 43,662 25,593 356.
- Finance (except depository institutions) and insurance 9,679,324 1,001,194 10,633 689,191 301,371 70,671 43,090 180 233,957 147,649 1,136.
- Finance, except depository institutions 4,778,225 344,650 (D) 174,732 (D) 10,569 28,894 (D) 97,892 75,897 407.
- Securities, commodity contracts, and other intermediation....................... 4,207,576 279,058 (D) 128,404 (D) 5,959 5,724 (D) 85,407 66,148 305.
- Other finance, except depository institutions............................................. 570,649 65,592 (D) 46,328 (D) 4,610 23,170 (D) 12,484 9,749 101.
- Insurance carriers and related activities........................................................ 4,901,099 656,544 (D) 514,459 (D) 60,101 14,196 (D) 136,065 71,752 729.
- Professional, scientific, and technical services 373,329 254,038 21,158 230,550 2,330 41,072 8,314 16,162 150,083 101,748 1,164.
- Architectural, engineering, and related services 24,418 32,668 4,959 27,704 5 1,441 625 149 14,023 12,186 155.
- Computer systems design and related services 189,964 100,978 (D) 85,083 (D) 18,539 4,130 10,081 59,116 36,799 382.
- Management, scientific, and technical consulting 16,880 14,908 (D) 14,852 (D) 1,212 534 (D) 10,989 9,043 69.
- Advertising and related services 56,016 22,063 0 22,063 0 1,314 586 (D) 11,001 9,154 92.
- Other 86,052 83,421 1,629 80,848 944 18,567 2,440 5,852 54,954 34,565 464.
- Other industries 1,615,758 1,471,325 890,148 566,580 14,597 96,006 98,046 3,623 529,076 307,377 8,657.
- Agriculture, forestry, fishing, and hunting 6,961 9,252 9,174 38 40 118 276 13 2,406 2,012 63.
- Construction 38,083 50,158 45,823 4,304 31 –355 680 (D) 11,021 12,297 160.
- Retail trade 411,617 818,372 807,479 10,738 155 30,234 28,580 (D) 203,731 97,740 4,001.
- Transportation and warehousing 382,704 248,625 7,479 241,131 15 15,631 23,241 (D) 115,205 75,609 1,024.
- Real estate and rental and leasing................................................................ 151,926 53,034 3,461 36,379 13,194 8,320 22,946 (D) 25,059 12,285 171.
- Real estate 67,221 22,138 (D) 12,421 (D) 5,203 4,632 0 10,149 4,619 36.
- Rental and leasing (except real estate)..................................................... 84,705 30,896 (D) 23,958 (D) 3,116 18,314 (D) 14,911 7,666 135.
- Management of nonbank companies and enterprises 194,599 3,756 (D) (D) 0 22,475 625 0 12,778 1,003 24.
- Administration, support, and waste management 145,860 112,754 8,762 103,364 628 6,907 5,475 (D) 62,830 45,139 1,218.
- Health care and social assistance................................................................. 45,014 44,653 (D) 43,758 (D) 2,118 2,063 (D) 25,814 17,732 316.
- Accommodation and food services 122,464 70,221 2,878 66,840 503 5,702 7,152 (D) 36,902 24,497 1,149.
- Accommodation......................................................................................... 65,489 16,693 (D) 16,641 (D) 947 3,848 0 9,619 5,295 209.
- Food services and drinking places............................................................ 56,975 53,528 (D) 50,199 (D) 4,756 3,304 (D) 27,283 19,202 939.
- Miscellaneous services 116,530 60,502 3,459 (D) (D) 4,856 7,007 265 33,330 19,064 527.
- August 2010 SURVEY OF CURRENT BUSINESS - Table 16.2. Selected Statistics for Nonbank U.S. Parents by Industry of U.S. Parent, - income Investment - All industries 16,841,239 8,727,800 5,941,963 2,493,764 292,073 220,904 478,833 199,105 2,396,288 1,373,115 21,103. added of employees
- Mining 378,261 141,241 106,421 33,940 880 34,371 43,801 691 86,905 18,934 196.
- Oil and gas extraction................................................... 219,505 67,355 (D) (D) 63 11,520 30,926 16 42,008 4,408 34.
- Other 158,756 73,886 (D) (D) 816 22,852 12,875 675 44,897 14,527 162.
- Utilities 564,253 258,285 59,436 194,661 4,188 11,281 37,137 17 73,127 20,382 197.
- Manufacturing 5,314,675 4,107,867 3,871,419 170,407 66,041 221,084 169,349 152,507 981,043 569,632 7,082.
- Food 362,930 381,224 376,428 4,727 69 24,469 9,245 1,801 67,396 38,225 647.
- Beverages and tobacco products................................. 207,138 95,727 92,426 (D) (D) 10,970 3,352 368 41,943 15,880 179.
- Textiles, apparel, and leather products......................... 20,878 30,430 30,414 (D) (D) 602 613 136 8,446 6,547 124.
- Wood products 11,786 12,199 (D) (D) (D) 180 507 74 2,460 1,837 35.
- Paper............................................................................ 117,847 90,175 89,040 1,048 87 –1,688 4,209 1,152 28,015 17,879 221.
- Printing and related support activities.......................... 21,947 23,476 23,223 254 0 901 680 96 10,967 6,464 128.
- Petroleum and coal products........................................ 732,391 1,018,889 991,301 27,179 408 69,280 35,542 2,642 118,175 30,740 292.
- Chemicals 1,036,738 550,833 545,305 5,440 87 79,826 22,385 49,077 187,217 91,763 872.
- Basic chemicals 134,110 130,556 130,106 450 (*) 1,383 5,537 1,695 22,936 12,025 115.
- Resins and synthetic rubber, fibers and filaments.... 101,685 70,054 (D) (D) (D) 2,672 3,700 2,611 13,362 8,482 90.
- Pharmaceuticals and medicines 587,181 230,882 228,079 (D) (D) 53,500 8,720 40,013 96,945 47,345 383.
- Soap, cleaning compounds, and toilet preparations 134,160 56,932 (D) (D) 0 17,005 1,975 2,494 33,901 12,719 155.
- Other 79,603 62,410 61,588 821 0 5,266 2,453 2,264 20,073 11,192 127.
- Plastics and rubber products........................................ 88,211 86,589 (D) (D) 0 610 2,604 1,291 23,549 17,409 265.
- Nonmetallic mineral products....................................... 60,990 38,035 37,755 280 0 –477 2,813 361 10,989 8,063 105.
- Primary and fabricated metals 175,658 187,091 185,175 1,798 118 7,987 6,116 1,101 47,410 29,146 395.
- Primary metals......................................................... 113,950 128,633 127,561 954 118 4,247 4,789 474 27,932 16,175 211.
- Fabricated metal products........................................ 61,709 58,458 57,615 844 0 3,739 1,328 627 19,478 12,971 184.
- Machinery 307,372 234,257 218,523 12,779 2,954 18,232 8,504 8,106 66,512 44,935 603.
- Agriculture, construction, and mining machinery 123,419 91,234 86,359 2,040 2,835 8,295 3,583 2,598 19,854 13,550 165.
- Industrial machinery................................................. 63,765 38,041 (D) (D) 0 5,243 1,710 2,016 13,823 7,801 114.
- Other 120,188 104,981 (D) (D) 119 4,695 3,212 3,491 32,835 23,585 324.
- Computers and electronic products 568,180 375,440 345,269 30,156 16 33,949 15,983 37,472 113,586 77,564 917.
- Computers and peripheral equipment...................... 132,480 127,526 114,915 12,611 0 14,092 3,430 6,962 23,287 21,250 267.
- Communications equipment..................................... 126,649 65,197 59,076 6,121 0 10,913 2,365 9,074 27,320 12,348 145.
- Semiconductors and other electronic components 178,092 98,730 98,479 250 (*) –765 8,382 15,357 27,262 22,583 224. Audio and video equipment...................................... (D) (D) (D) (D) 0 (D) (D) (D) (D) (D) J
- Navigational, measuring, and other instruments...... 115,950 74,162 63,507 10,640 15 9,570 1,598 5,547 33,443 19,714 254.
- Electrical equipment, appliances, and components 106,019 88,629 86,942 1,687 0 5,935 2,326 2,301 25,969 15,380 243. Magnetic and optical media (D) (D) (D) (D) 0 (D) (D) (D) (D) (D) G
- Transportation equipment............................................. 1,328,595 797,648 660,970 77,452 59,226 –33,055 50,539 41,510 195,136 143,459 1,694.
- Motor vehicles, bodies and trailers, and parts.......... 635,423 413,838 384,186 12,388 17,264 –67,513 35,211 13,902 48,582 49,717 696.
- Other 693,172 383,810 276,784 65,064 41,962 34,458 15,328 27,609 146,554 93,742 997.
- Furniture and related products..................................... 18,216 22,165 21,709 (D) (D) –186 455 248 6,245 5,642 94.
- Miscellaneous manufacturing....................................... 149,780 75,059 71,109 3,342 608 3,549 3,476 4,772 27,030 18,699 259.
- Wholesale trade 820,367 967,132 890,125 67,399 9,608 26,746 34,148 6,451 137,355 72,828 1,048.
- Professional and commercial equipment and supplies 70,716 67,437 64,067 3,344 26 –2,720 (D) 2,176 8,472 8,513 91.
- Petroleum and petroleum products 150,732 195,881 (D) (D) 17 15,341 (D) (D) 34,732 4,800 37.
- Drugs and druggists’ sundries 57,189 193,463 (D) (D) 0 2,747 403 (D) 9,192 5,994 97.
- Other 541,729 510,351 441,889 58,897 9,565 11,378 15,436 3,652 84,958 53,521 822.
- Information 1,455,358 651,495 67,529 582,142 1,824 18,252 67,081 18,148 295,728 149,096 1,830.
- Publishing industries 204,924 107,119 49,315 56,597 1,207 13,538 5,017 13,784 52,870 35,867 355.
- Motion picture and sound recording industries 46,709 15,672 5,249 10,423 0 36 448 (D) 4,363 2,955 49.
- Broadcasting and telecommunications 1,058,953 457,194 8,719 448,091 385 –274 56,638 (D) 198,734 88,223 1,122. - distribution............................................................ 276,732 117,405 (D) 109,034 (D) –17,713 6,084 (D) 40,521 19,988 284. Broadcasting, cable networks, and program
- Telecommunications................................................. 782,221 339,789 (D) 339,057 (D) 17,439 50,554 (D) 158,213 68,234 837.
- Information services and data processing services 144,772 71,509 4,245 67,032 232 4,952 4,978 2,925 39,761 22,051 303.
- insurance 6,328,316 818,396 10,474 615,014 192,907 –164,757 25,793 107 150,564 123,500 1,036. Finance (except depository institutions) and
- Finance, except depository institutions 2,043,523 180,593 (D) 107,476 (D) –53,859 13,300 (D) 75,457 51,561 297. - intermediation 1,852,876 149,227 (D) 86,768 (D) –49,848 (D) (D) 74,826 47,168 252. Securities, commodity contracts, and other
- Other finance, except depository institutions 190,647 31,366 (D) 20,708 (D) –4,012 (D) 0 631 4,392 45.
- Insurance carriers and related activities....................... 4,284,793 637,803 (D) 507,539 (D) –110,898 12,493 (D) 75,107 71,939 738.
- Professional, scientific, and technical services 366,167 280,496 25,342 253,170 1,984 38,898 8,923 17,072 158,196 111,515 1,191.
- Architectural, engineering, and related services 31,084 47,573 10,279 37,071 223 1,077 807 151 18,099 16,543 175.
- Computer systems design and related services 182,221 107,804 14,072 92,980 752 19,124 4,772 11,070 62,606 39,454 385.
- Management, scientific, and technical consulting 17,786 15,467 1 15,448 18 1,049 322 24 11,537 10,021 73.
- Advertising and related services 54,005 21,165 0 21,165 0 1,297 533 1 11,165 9,059 87.
- Other 81,071 88,487 990 86,506 992 16,350 2,489 5,826 54,788 36,438 469.
- Other industries 1,613,843 1,502,889 911,218 577,029 14,642 35,030 92,600 4,111 513,370 307,227 8,520.
- Agriculture, forestry, fishing, and hunting 6,704 9,974 9,889 38 47 –951 315 8 1,781 1,939 59.
- Construction................................................................. 39,253 53,894 48,519 5,341 34 80 651 (D) 14,021 13,720 171.
- Retail trade................................................................... 404,033 823,527 813,319 10,145 63 23,213 24,269 (D) 201,241 99,552 4,038.
- Transportation and warehousing 362,658 261,209 9,622 250,979 608 908 23,500 (D) 110,865 71,471 980.
- Real estate and rental and leasing............................... 151,656 49,428 1,994 34,754 12,680 –3,817 22,982 (D) 22,030 11,403 159.
- Real estate............................................................... 65,628 18,917 81 11,393 7,443 –3,358 5,516 0 7,837 3,925 35.
- Rental and leasing (except real estate).................... 86,028 30,511 1,913 23,361 5,237 –459 17,466 (D) 14,193 7,478 124.
- Management of nonbank companies and enterprises. 211,252 8,168 (D) (D) 0 17,467 1,040 1 11,599 1,278 25.
- Administration, support, and waste management........ 130,100 115,725 10,375 104,810 540 2,045 4,439 (D) 53,263 42,446 1,061.
- Health care and social assistance................................ 45,940 47,507 (D) (D) 7 1,707 2,323 (D) 27,385 18,933 316.
- Accommodation and food services 134,225 71,685 9,937 61,090 658 –138 6,548 57 38,863 25,910 1,197.
- Accommodation 72,689 16,180 (D) 16,132 (D) –6,325 3,284 0 8,792 5,731 200.
- Food services and drinking places........................... 61,536 55,505 (D) 44,958 (D) 6,187 3,264 57 30,070 20,179 996.
- Miscellaneous services 128,020 61,771 4,593 57,174 4 –5,486 6,534 298 32,322 20,575 509.
224 U.S. Multinational Companies August 2010
Table 17. Selected Statistics for Nonbank Foreign Affiliates by Country of Affiliate, 2007 and 2008
Millions of dollars
Thousands of employees
Millions of dollars
Thousands of Total assets Sales Net employees income
U.S.
exports of goods shipped to affiliates
U.S.
imports of goods shipped by affiliates
Compensation of employees Total assets^ Sales^
Net income
U.S.
exports of goods shipped to affiliates
U.S.
imports of goods shipped by affiliates
Compensation of employees
All countries ................................................... 14,449,484 5,522,695 844,721 256,147 323,903 476,824 11,731.9 12,504,725 6,107,864 956,357 269,752 337,057 490,124 11,879. Canada ................................................................ 1,065,258 562,209 53,585 78,036 (D) 54,602 1,114.6 955,514 617,615 66,148 78,100 (D) 55,806 1,082. Europe ................................................................. 9,124,062 2,851,301 451,070 66,780 80,526 277,823 4,811.2 7,419,907 3,147,942 525,813 74,868 83,297 280,524 4,820. Austria.............................................................. (D) (D) (D) 304 373 3,024 40.4 (D) (D) (D) 304 365 3,132 44. Belgium ............................................................ 307,856 126,223 16,410 3,690 (D) 11,553 139.8 341,018 148,235 16,071 4,909 (D) 12,015 140. Czech Republic ................................................ (D) (D) (D) 112 (D) (D) L (D) (D) (D) 165 (D) (D) L Denmark .......................................................... (D) (D) (D) 171 318 (D) L (D) (D) (D) 271 332 (D) L Finland ............................................................. (D) 13,512 1,055 374 265 1,528 24.0 (D) (D) (D) 384 273 1,620 24. France .............................................................. 333,993 227,287 12,694 (D) 6,963 35,443 652.8 352,752 243,870 13,330 (D) 7,942 36,206 636. Germany .......................................................... 629,481 356,354 20,404 8,804 (D) 50,098 684.9 600,177 388,658 21,984 10,720 (D) 51,611 671. Greece ............................................................. (D) (D) (D) 116 4 (D) L (D) (D) (D) 88 (D) (D) L Hungary ........................................................... 41,126 22,446 2,210 222 583 1,592 67.6 38,957 23,425 2,687 173 743 1,663 63. Ireland .............................................................. 539,373 228,141 66,142 4,903 20,864 6,184 95.0 656,134 252,976 80,900 3,073 23,098 6,711 91. Italy .................................................................. 204,563 153,279 10,582 (D) 2,751 14,783 276.2 195,708 163,086 11,819 2,110 2,863 15,395 268. Luxembourg ..................................................... 807,314 15,621 60,811 299 74 1,025 13.4 918,930 18,732 89,926 410 99 1,059 14. Netherlands...................................................... 1,303,499 260,371 113,570 (D) 4,764 15,636 234.5 1,276,966 318,605 147,566 (D) 5,699 17,954 244. Norway ............................................................. 69,274 44,620 4,946 308 817 2,635 34.0 72,870 60,818 8,886 272 828 2,933 35. Poland .............................................................. 32,718 32,435 2,439 313 247 2,629 131.4 35,598 39,734 2,434 316 209 3,269 142. Portugal............................................................ 43,497 13,954 3,412 169 180 (D) K (D) (D) (D) 178 133 (D) L Russia .............................................................. (D) (D) (D) (D) 3 (D) M (D) (D) (D) 1,100 4 (D) M Spain................................................................ 197,117 108,569 10,756 1,201 1,299 11,624 216.8 173,940 114,266 9,939 (D) 1,404 12,209 211. Sweden ............................................................ (D) (D) (D) (D) (D) (D) L (D) (D) (D) 517 (D) (D) L Switzerland ...................................................... 440,678 240,629 49,141 9,284 (D) 8,375 90.4 447,230 280,209 53,398 11,531 (D) 9,020 95. Turkey............................................................... 21,101 26,437 –2,881 (D) (D) 1,528 48.0 19,725 30,556 2,217 (D) 268 1,698 48. United Kingdom ............................................... 3,683,735 681,653 31,243 14,105 14,947 86,554 1,357.8 1,727,600 681,792 9,193 15,985 13,601 78,920 1,328. Other ................................................................ 101,448 44,846 15,818 302 87 2,559 138.8 113,740 55,121 19,943 419 105 3,191 147. Latin America and Other Western Hemisphere 1,922,200 637,048 184,164 54,532 66,785 42,743 2,348.8 1,913,412 691,555 187,832 57,525 68,742 46,758 2,321. South America ................................................. 357,230 261,943 30,646 (D) 5,836 21,253 882.0 341,832 302,615 30,273 11,394 (D) 24,491 909. Argentina...................................................... 44,301 34,003 3,154 1,117 783 2,399 123.5 46,613 42,609 2,874 1,271 1,132 3,008 132. Brazil ............................................................ 175,344 134,513 11,365 4,507 (D) 12,689 484.1 160,699 157,495 13,318 6,034 (D) 14,860 505. Chile............................................................. 37,942 29,189 8,442 714 (D) 1,910 82.2 32,456 29,152 4,303 957 (D) 1,778 76. Colombia...................................................... (D) (D) (D) 1,001 1,060 (D) L (D) (D) (D) (D) 1,299 (D) L Ecuador........................................................ 4,589 3,708 –52 73 (D) 198 11.5 4,118 4,398 200 113 (D) 209 12. Peru ............................................................. 25,554 13,893 2,343 205 (D) 976 42.0 24,136 15,374 1,608 225 (D) 960 39. Venezuela .................................................... (D) 22,758 3,439 (D) 182 1,475 57.2 (D) (D) (D) (D) 104 1,794 58. Other ............................................................ (D) (D) (D) (D) (D) (D) J (D) (D) (D) 369 (D) (D) J Central America ............................................... 261,644 226,690 17,562 43,081 54,762 19,014 1,371.0 251,838 239,951 14,711 43,952 53,243 19,791 1,319. Costa Rica ................................................... (D) (D) (D) 630 1,640 (D) L (D) (D) (D) 508 1,748 (D) K Honduras ..................................................... 2,166 3,781 157 (D) 722 (D) K (D) (D) (D) 939 924 (D) K Mexico.......................................................... 205,177 197,311 13,183 39,264 51,780 16,462 1,154.9 193,682 207,031 10,268 40,262 49,834 17,299 1,107. Panama........................................................ (D) 9,145 3,184 1,063 (D) (D) K (D) 9,520 3,282 1,111 (D) (D) K Other............................................................ 6,619 (D) (D) (D) (D) 578 64.8 6,437 11,415 353 1,132 (D) 646 69. Other Western Hemisphere ............................. 1,303,326 148,415 135,957 (D) 6,188 2,476 95.8 1,319,742 148,989 142,849 2,179 (D) 2,477 92. Barbados...................................................... (D) (D) (D) 117 (D) 75 1.8 (D) (D) (D) 109 188 63 1. Bermuda ...................................................... 742,136 78,915 72,883 452 (D) (D) K 685,213 65,617 66,269 422 (D) (D) K Dominican Republic ..................................... (D) 4,520 324 (D) (D) 315 32.0 (D) 4,678 353 (D) (D) 183 24. United Kingdom Islands, Caribbean ............ 367,987 30,231 39,131 197 (*) 304 6.9 329,460 34,413 49,788 310 167 451 9. Other............................................................ 159,033 (D) (D) (D) (D) (D) K 259,206 (D) (D) (D) (D) (D) K Africa ................................................................... 166,402 97,335 24,135 1,406 (D) 5,046 212.6 197,015 110,624 42,072 1,412 (D) 5,447 219. Egypt................................................................ 16,377 10,393 1,801 22 (D) 403 35.5 19,373 13,556 2,236 25 3 515 38. Nigeria.............................................................. (D) 17,946 3,891 5 (D) (D) I (D) 20,817 4,226 5 (D) (D) J South Africa ..................................................... 21,972 27,841 3,016 (D) (D) 2,599 84.7 20,679 28,858 2,597 (D) 364 2,568 82. Other ................................................................ (D) 41,154 15,427 (D) 2,367 (D) L (D) 47,393 33,013 (D) 5,600 (D) L Middle East ......................................................... 145,747 95,811 21,971 1,150 2,929 5,557 111.1 160,235 120,970 26,619 1,151 (D) 6,296 122. Israel ................................................................ (D) (D) (D) 198 (D) 3,403 68.3 34,216 (D) (D) 309 1,421 3,899 79. Saudi Arabia .................................................... 23,305 26,737 7,201 179 (D) 897 16.7 21,315 30,596 7,111 102 (D) 959 16. United Arab Emirates....................................... 12,348 19,090 796 (D) (D) 502 10.5 (D) 24,702 1,014 (D) (D) 625 12. Other ................................................................ (D) (D) (D) (D) (D) 754 15.6 (D) (D) (D) (D) (D) 813 14. Asia and Pacific .................................................. 2,025,816 1,278,992 109,795 54,243 61,656 91,054 3,133.6 1,858,643 1,419,158 107,873 56,695 60,749 95,293 3,313. Australia ........................................................... 297,057 158,769 15,515 4,978 2,044 19,179 327.9 280,155 177,554 18,282 5,704 2,947 20,033 322. China................................................................ 129,198 139,407 10,893 4,356 (D) 7,846 788.8 161,987 171,733 12,472 (D) 7,516 10,365 950. Hong Kong ....................................................... 217,601 93,802 10,299 4,922 (D) 5,158 124.4 123,980 89,558 5,588 5,483 (D) (D) M India ................................................................. 49,486 33,215 2,630 621 (D) 4,269 341.2 47,440 41,203 3,058 1,042 (D) 5,346 384. Indonesia ......................................................... 56,159 27,390 6,911 351 (D) 1,646 107.2 54,369 28,023 8,421 540 302 1,599 108. Japan ............................................................... 654,603 298,748 14,277 12,235 6,665 31,628 619.5 595,861 321,119 12,235 12,197 (D) 31,988 583. Korea, Republic of............................................ 99,625 99,558 6,112 (D) 2,983 6,433 120.8 83,849 104,939 5,010 3,084 3,165 6,003 122. Malaysia........................................................... 44,464 48,489 4,680 2,661 (D) 1,743 112.2 44,819 52,151 6,113 (D) 9,670 1,853 107. New Zealand.................................................... 14,731 13,251 671 332 122 1,376 32.2 (D) (D) (D) 441 (D) 1,343 31. Philippines........................................................ 23,871 16,597 1,526 1,439 1,039 1,080 117.9 21,916 16,996 1,751 1,297 811 1,220 126. Singapore......................................................... 254,098 246,454 27,983 (D) (D) 5,406 124.1 250,131 286,667 28,497 (D) (D) 5,714 131. Taiwan .............................................................. 106,444 43,928 3,100 3,482 (D) 2,632 104.5 101,939 44,317 –434 (D) (D) 2,714 102. Thailand ........................................................... 51,049 46,249 3,427 1,543 5,280 1,734 156.4 49,026 52,100 3,688 1,653 7,404 1,887 169. Other ................................................................ 27,430 13,135 1,770 263 3 925 56.6 (D) (D) (D) 302 (D) (D) L Addenda: European Union(27) 1 ....................................... 8,431,301 2,401,246 372,237 56,391 72,342 260,217 4,364.2 6,680,147 2,595,481 430,073 61,447 72,646 260,773 4,331. OPEC 2 ............................................................. 274,187 158,927 40,604 3,096 3,730 6,049 219.6 321,286 197,585 63,814 3,162 (D) 6,893 239.
- Less than $500,000 (+/–). Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, the United Arab Emirates, and Venezuela. In 2008, Ecuador D Suppressed to avoid disclosure of data of individual companies. became a member.
- The European Union (27) comprises Austria, Belgium, Bulgaria, Cyprus, the Czech Republic, Denmark, Estonia, NOTE. The following ranges are given in employment cells that are suppressed: A—1 to 499; F—500 to 999; G—1, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Poland, to 2,499; H—2,500 to 4,999; I—5,000 to 9,999; J—10,000 to 24,999; K—25,000 to 49,999; L—50,000 to 99,999; M— Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, and the United Kingdom. 100,000 or more.
- OPEC is the Organization of Petroleum Exporting Countries. In 2007, its members were Algeria, Angola, Indonesia,
