Globalizing America
July 21st, 2007
If you're new here, you may want to subscribe to my RSS feed. Thanks for visiting!
Or at least the American corporates. A very interesting report in The New York Times details how the largest American corporates are increasingly growing outside America–both through exports and off shore subsidies, and how it is changing the game fo American workers and investors.
The charge offshore seems certain to continue because chief executives want to invest where they expect growth to occur. The 10 companies with the largest foreign sales in 2006 were some of the biggest names in American business: Exxon Mobil, Ford Motor, General Motors, General Electric, Hewlett-Packard, the Altria Group, ConocoPhillips, I.B.M., the American International Group and Procter & Gamble, according to S.& P. Those figures include only the sales of their offshore subsidiaries, not goods or services exported from the United States. “Corporate profit growth is going to do better than it would have done if these companies had ignored the opportunities elsewhere,” says Nigel Gault, an economist at Global Insight, an economic consulting group in Lexington, Mass.[link]
More interesting is the effect on workers. While domestic workers have no doubt suffered, those who are engaged in managing offshore entities have gained. Maybe in future, potential employees would pay more attention to the division of the company they are to serve rather than just the company or their job profile.
If you enjoyed this post, make sure you subscribe to my RSS feed!