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A Warning Sign from Global Companies
Multinational companies have long been vital to the U.S. economy, accounting for a large share of GDP, R&D spending, exports, and capital investment--not to mention labor-productivity growth and good-paying jobs. But in the past decade, a worrisome trend developed: As MNCs pursued faster growth abroad, their role in the U.S. economy declined on many measures. Breaking down the numbers, Slaughter and Tyson examine where MNCs are moving their activities (emerging markets), which sectors they are adding jobs in (services), and what, if anything, the U.S. can do to make itself more attractive to MNCs.