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U.S. affiliates of foreign companies: operations in 1991.

The rate of growth in most measures of the operations of U.S. affiliates of foreign companies slowed again in 1991 or turned negative, but the share of the U.S. economy accounted for by affiliate operations was up slightly, according to preliminary results Of BEA's latest annual survey of foreign direct investment in the United States (FDIUS).(1)

Largely reflecting a falloff in new investments, employment growth for U.S. affiliates of foreign companies slowed to 2 percent in 1991 from a 5-percent increase in 1990 (table 1). Sales decreased slightly after an 11-percent increase; the largest sales declines were in wholesale trade and in petroleum. The gross product of U.S. affiliates increased 6 percent after increasing 8 percent. Net income decreased $6.2 billion - from a loss of $ 4.5 billion to a loss of $ 10.7 billion; most of the decrease was accounted for by petroleum and manufacturing affiliates. In contrast, the total assets of U.S. affiliates grew faster in 1991; the pickup, from an 8-percent increase to a 12-percent increase, was partly traceable to a single large acquisition.(2)


Despite the generally slower growth in affiliate operations in 1991 than in 1990, U.S. affiliates' share of the U.S. economy - whether measured in terms of gross product, employment, or assets - was up slightly. In terms of gross product, the affiliates' share of the gross domestic product of all nonbank U.S. businesses rose from 5.8 percent to 6.0 percent. In terms of employment, the affiliates' share of the employment of all nonbank J.S. businesses rose from 5.0 percent to 5.2 percent.(3) In terms of assets, U.S. manufacturing affiliates' share of the book value of all U.S.-manufacturing-business assets rose from 18.9 percent to 19.2 percent.

This article first briefly discusses several characteristics of U.S. affiliates in terms of the latest survey results. It then discusses changes in affiliate employment, shares of the U.S. economy accounted for by affiliates, and estimates for majority-owned U.S. affiliates. In the discussion, information from outside sources, including press reports on specific companies, is used to supplement BEA's survey data.

Characteristics of U.S. Affiliates

The overall profile of affiliate operations in 1991 was similar to that in other recent years in terms of profitability, share of investment in "high-technology" industries, share of U.S. merchandise trade, and compensation per employee.

Profitability. - Profitability of U.S. affiliates - as measured by the share of gross product accounted for by profit-type return - continued to fall far short of that of all U.S. businesses in 1991. By this measure, the profitability of U.S. affiliates was -1.1 percent in 1991, down from -0.1 percent in 1990.(4) Before turning negative in 1990, the share of profit-type return in affiliate gross product had fallen steadily from 13 percent in 1984 to 4 percent in 1989. In comparison, the share of gross domestic product of U.S. corporate business accounted for by corporate profits fluctuated rather narrowly around 10 percent over the entire period 1984-91.

The lower profitability of FDIUS in recent years may partly reflect the relative newness of much FDIUS; because of start-up and restructuring costs, new investments typically have lower rates of return than more mature investments. In addition, foreign investors may have been more concerned with maximizing long-term, rather than short-term, profits; many recent investments consisted of acquisitions of financially distressed U.S. companies, which foreign investors presumably hoped to restore to profitability. Finally, foreign investors may have been mote interested in maximizing global profits rather than the profits of their U.S. operations alone; their focus on such factors as economies of scale and the advantages of vertical integration, expansion of market share, avoidance of tariff and nontariff barriers to trade, and tax considerations may have held down profits on their U.S. operations.(5)

Technology. - Affiliates in what might be described as "high-technology" manufacturing industries accounted for less than two-fifths of the output of all manufacturing affiliates in 1991. Their share, at 37 percent, was up slightly from 36 percent in 1990.(6) From 1980 to 1991, the annual rate of growth in the gross product of U.S. affiliates in "high-technology" manufacturing industries was 16 percent, considerably higher than the 9-percent growth rate by affiliates in all other manufacturing industries. (The difference in the rates tended to be greater during the earlier-years of this period.)

Merchandise trade. - In 1991, the merchandise trade deficit of affiliates exceeded the overall U.S. trade deficit; however, at 81.3 billion, the 1991 deficit of affiliates was in line with the levels of recent years, and it continued to be dominated by a deficit for wholesale trade affiliates, which in 1991 totaled $60.1 billion.

Over the years, many foreign companies (particularly from Japan) have established wholesale trade affiliates in the United States to handle the distribution and marketing of their products rather than exporting the goods directly to unaffiliated U.S. customers. This practice has been particularly prevalent in the wholesaling of motor vehicles and electrical goods. Although the level of exports shipped by wholesale trade affiliates has been substantial, it has been consistently much lower than the level of imports shipped to wholesale trade affiliates.

In considering the impact Of FDIUS on merchandise trade flows, it should be noted that some affiliates may produce goods in the United States that otherwise would have been exported to the United States by their foreign parent companies. The extent of such substitution of domestic (U.S.) production for imports is unknown, but it may be growing over time: As foreign-owned businesses mature, they may tend to produce more of their own parts and components or rely more heavily upon domestic suppliers. BEA estimates that in 1991 roughly 85 percent of the value of sales by U.S. affiliates was accounted for by local content, up from roughly 81 percent in 1987.(7)

Employee compensation. - In 1991, affiliates' compensation per employee was $36,200, 26 percent higher than for all other nonbank U.S. businesses. This difference is consistent with establishment, or plant, data for earlier years, which indicated that foreign-owned establishments tend to be concentrated in high-wage industries to a greater degree than other U.S. establishments.(8) Variations in occupational mix, business location, and labor market conditions may also help explain some of the difference.

Employment in 1991

This section discusses affiliate operations in terms of employment. Because employment is not directly affected by inflation, it probably provides a more accurate indication of changes in the levels and shares of real economic activity than other available measures.

Employment by U.S. affiliates increased 75,000 in 1991, to 4,809,000, after increasing 223,000 in 1990. The primary factor behind the slowdown in employment growth was a drop in acquisition and establishment activity, as the weakening U.S. economy helped make new investments less attractive and more difficult to finance.(90 Affiliates making new investments (but not also selling or liquidating a business) added 237,000 employees, down from 482,000 added in 1990 (table 2). The increase in employment due to expansions of existing operations, at 97,000, was also smaller than in 1990. These increases in employment were largely offset by sizable decreases in employment due to sales and liquidations of businesses (127,000) and to cutbacks in existing operations (140,000). The decreases partly reflected foreign companies' responses to weakened U.S. demand.


By industry

By industry of affiliate, the largest increases in employment were in retail trade (35,000), services (28,000), and insurance (27,000) (table 3); several industries posted small decreases. The increase in retail trade was more than accounted for by the acquisition of a convenience-store chain by two Japanese companies and by several acquisitions and expansions involving European-owned affiliates. The increase in services was largely due to increases by several European-owned affiliates. The increase in insurance was more than accounted for by a French company's acquisition of a stake in a large life insurance firm and several other acquisitions of smaller companies by European investors.

These changes in affiliate employment are based on data classified by industry of affiliate (see the upper third of table 3). For this classification, an affiliate's primary industry - that is, the industry that accounts for the largest portion of its sales - is determined, and all data are shown in that industry even if the affiliate also has activities in secondary industries. This classification is used in most of the tables in this article that present data by industry.

Sales and employment data are also classified by industry of sales (for the employment data, see the middle third of table 3). For this classification, an affiliate's sales and employment in secondary industries are shown in those industries rather than in the affiliate's primary industry.(10) Data classified by industry of sales are preferable for analyses of the various activities in which diversified affiliates are engaged. The pattern of change in employment by industry of sales may differ from the pattern by industry of affiliate because changes in employment in affiliates' secondary industries may not parallel changes in their primary industries. A change in an affiliate's industry classification may also cause these patterns to differ; when employment is classified by industry of affiliate, all employees are shifted from the old to the new industry, but when it is classified by industry of sales, changes in employment for an industry reflect only actual changes in affiliates' employment in that industry. Both of these factors tend to be particularly important for years in which foreign direct investors acquire many large, diversified U.S. firms.

By industry of sales, the largest increases in affiliate employment in 1991 were in services (37,000), retail trade (27,000), and insurance (23,000). A sizable share of the increase in services reflects expansions and acquisitions by affiliates of European or Canadian investors. The increases in retail trade and insurance largely reflect the acquisitions noted in the discussion of employrnent by industry of affiliate.

By country

By country of ultimate beneficial owner (UBO), the largest increases in employment by U.S. affiliates were attributable to UBO' in Japan (77,000) and France (25,000) (see the lower third of (table 3).(11) For Japan, most of the increase was accounted for by the acquisition of the convenience-store chain and by other acquisitions. For France, the increase was more than accounted for by the acquisition of the stake in the large insurance company and the acquisitions of two manufacturers of electrical equipment.

At the end of 1991, affiliates with British UBO'S had the largest employment, at 1,061,000. Employment by affiliates with Canadian UBO's (718,000) was the second largest, and employment by affiliates with Japanese UBO's (707,000) was third. These rankings were the same as for 1988-90.

By State

By State, the largest increases in affiliate employment were in New York (14,000) and Texas (10,000); a few States had small decreases. In manufacturing, many States had small increases in affiliate employment; the largest decreases were in Indiana and California (9,000 each).

At the end of 1991, the level of U.S. affiliate employment was highest in California (555,000), followed by New York (362,000) and Texas (310,000). In manufacturing, the level of employment was highest in California (207,000), followed by Ohio (128,000) and Illinois (119,000).

Share of the U.S. Economy

Two measures - employment and total assets - are used in this section to gauge the share of the U.S. economy accounted for by U.S. affiliates. In terms of employment, the size of affiliates is compared with that of all U.S. businesses by industry and by State. The comparisons by industry use affiliate employment data classified by industry of sales because these data correspond most closely to the data classified by industry of establishment that are used for all U.S. business employment.

In terms of total assets, the comparison is restricted to manufacturing because comparable data classified by industry of enterprise for both U.S. affiliates and all U.S. businesses are available only for manufacturing.

In terms of employment

In 1991, nonbank U.S. affiliates of foreign companies accounted for 5.2 percent of employment by all nonbank U.S. businesses, up slightly from 5.0 percent in 1990 (table 4). Much of the increase in share reflected a decrease in employment by all nonbank U.S. businesses.


By major industry, affiliate shares of employment were highest in mining (12.4 percent) and manufacturing 11.5 percent); the share was lowest in communication and public utilities (1-3 percent). Within manufacturing, affiliate shares were highest in petroleum and coal products (39.7 percent) and in chemicals and allied products (31.2 percent).

The largest increases in affiliate shares were in electric and electronic equipment and in instruments and related products. In electric and electronic equipment, the increase primarily reflected a drop in overall employment in that industry; for affiliates, employment reductions by existing affiliates were more than offset by increases due to acquisitions, several of the largest of which were made by French companies. In instruments and related products, the increase was accounted for by an increase in affiliate employment, due largely to recent acquisitions, together with a decrease in overall employment in that industry.

By State, the largest increase in the affiliate share was in New Hampshire (up 0.9 percentage point, to 6.7 percent) (table 5); the increase was accounted for by acquisitions, combined with a decrease in total employment in that State. For manufacturing, the largest increases were in Nevada (up 2.6 percentage points, to 11.8 percent), Delaware (up 2.3 percentage points, to 20.6 percent), and West Virginia (up 1.8 percentage points, to 21.6 percent) (table 6). In Nevada, most of the increased share was accounted for by acquisitions. In both Delaware and West Virginia, the increased shares reflected new investments combined with decreases in manufacturing employment in those States.


At the end of 1991, the affiliate share of total employment was highest in Delaware (13.7 percent), followed by Hawaii (12.1 percent). A large portion of the share in Delaware reflects the employment of a large minority-owned affiliate. The affiliate share of manufacturing employment was highest in West Virginia (21.6 percent); a sizable portion of this share reflects the employment of several affiliates with European or Canadian UBO's.

In terms of assets

In manufacturing, U.S. affiliates' share of the book value of total assets of all U.S. manufacturing businesses increased to 19.2 percent in 1991 from 18.9 percent in 1990 (table 7).(13) In both years, affiliates' shares of manufacturing assets were substantially higher than their shares of manufacturing employment; two factors account for most of the difference. First, affiliates are more concentrated than other U.S. businesses in capital-intensive industries, such as chemicals and allied products and petroleum and coal products, that have relatively low employment-to-assets ratios. Second, most of the growth in affillate operations in recent years has been through acquisitions, and a company's assets are often revalued in an acquisition to reflect the new, usually higher, value implicit in the acquisition price; consequently, the portion of assets that has been recently revalued is probably higher for affiliates than for all U.S. businesses.(14)

The largest increase in affiliate asset shares in manufacturing was in primary metals and reflected several acquisitions of large firms. The largest decrease in affiliate asset shares in manufacturing was in rubber and plastics products; it reflected an increase in overall assets, combined with a decrease in affiliates' assets, in that industry.

Majority-Owned U.S. Affiliates

The estimates presented thus far have covered the operations of all U.S. nonbank affiliates - that is, all U.S. nonbank companies that are owned 10 percent or more by a foreign direct investor. This section covers only the estimates for nonbank majority-owned U.S. affiliates (MOUSA's), which are affiliates that are owned more than 50 percent by foreign direct investors.

Table 8 shows estimates of selected items - total assets, employment, sales, and gross property, plant, and equipment - for MOUSA's and gives their shares of the affiliate totals for these items. Most of the MOUSA shares are high because most U.S. affiliates are majority owned.

The following discussion covers MOUSA shares of total assets and employment of all nonbank affiliates by industry, by area, and by country. The distributions of MOUSA shares of sales and of gross property, plant, and equipment are not discussed, but they tend to be similar to those of assets and employment.

In 1991, MOUSA's accounted for 80 percent of the total assets and 82 percent of the employment of all nonbank U.S. affiliates. Their shares of assets and of employment were high in most industries. By major industry, their shares were highest in wholesale trade (96 percent of assets and 93 percent of employment) and lowest in "other industries."

In manufacturing, MOUSA's accounted for 82 percent of the assets and 84 percent of the employment of all U.S. manufacturing affiliates. The shares were highest in food and kindred products (98 percent of assets and 99 percent of employment) and lowest in primary and fabricated metals (65 percent of assets and 67 percent of employment).

By area, the asset share for MOUSA's was highest for affiliates with UBO's in Asia and Pacific (86 percent), and the employment share was highest for affiliates with UBO's in Europe (86 percent). The MOUSA shares of both assets and employment were lowest for UBO's in the United States.(15) By country, MOUSA's With UBO's in Switzerland had particularly high shares of both assets (97 percent) and employment (94 percent).

The preceding section of this article discussed the shares of all-U.S.-business employment and assets accounted for by all nonbank U.S. affiliates - both majority and minority owned. When only MOUSA's are used in the calculation of these shares, the affiliate share of all-U.S.-business employment in 1991 was 4.3 percent (compared with 5.2 percent for all affiliates), and the share of all-U.S.-business assets in manufacturing was 16.0 percent (compared with 19.2 percent). In 1990, the MOUSA shares were 4.0 percent of employment and 15.7 percent of assets.

Table5 9.1 through 15.2 follow.


Establishment Data for Manufacturing

Later this year, detailed establishment data on the manufacturing operations of U.S. affiliates of foreign companies will be published for 1989 and for 1990. The new data are the result of an ongoing project by BEA and the Bureau of the Census to link BEA's enterprise, or consolidated company, data for foreign-owned U.S. companies with the Census Bureau's establishment, or plant, data for all U.S. companies.

The new data will update and extend the initial results of the project, which covered all affiliates for 1987 and were published last year in Foreign Direct Investment in the United States. Establishment Data for 1987 (U.S. Government Printing Office, June 1992). An article that includes summary data and analysis appeared in the October 1992 Survey of Current Business. The initial data link was for 1987 because that was a benchmark, or census, year for both the BEA data on direct investment and the Census Bureau data on all U.S. businesses. The 1987 data link covered establishments in all of the major industry divisions of the Standard Industrial Classification (sic) and were classified into over 800 individual industries.

The forthcoming publications for 1989 and 1990 will present data on the manufacturing establishments of foreign-owned U.S. companies; the data are derived from a link to establishments covered by the Census Bureau's Annual Survey of Manufactures (ASM). In addition to the data items previously published for 1987 (number of establishments, employment, payroll, and shipments or sales), the publications will include data on most of the items covered by the ASM, such as value added, cost of materials, production worker hours and wages, capital expenditures, and inventories. The data will be presented by detailed manufacturing industry (at the four-digit sic level), by State, and by country of ultimate beneficial owner.

The establishment data from the link project complement the enterprise data for foreign-owned U.S. companies that are presented in the accompanying article. The enterprise data are used for analyzing the overall significance of, and trends in, foreign direct investment and for examining issues - such as the profitability or taxation of foreign-owned U.S. companies - for which data are available only at the enterprise level.

The establishment data facilitate analyses of the activities and importance of foreign-owned U.S. companies in specific, detailed industries. Whereas the enterprise data classify each company, which may be highly diversified, in a single industry, the establishment data permit each plant or location of a company to be classified separately. Furthermore, the level of industry classification can be much more detailed for individual establishments than is appropriate for consolidated enterprises, whose operations may span many narrowly defined industries. As a result, foreign-owned establishments can be classified into 459 manufacturing industries, whereas foreign-owned enterprises can be classified into only 55 manufacturing industries.

(1.) A U.S. affiliate is a U.S. business enterprise in which there is foreign direct investment - that is, in which a single foreign person owns or controls, directly or indirectly, 10 percent or more of the voting securities of an incorporated U.S. business enterprise or an equivalent interest in an unincorporated U.S. business enterprise. An affiliate is called a U.S. affiliate to denote that it is located in the United States; in this article, "affiliate" and "U.S. affiliate" are used interchangeably. "Person" is broadly defined to include any individual, corporation, branch, partnership, associated group, association, estate, trust, or other organization and any government (including any corporation, institution, or other entity or instrumentality of a government). (2.) These estimates of total assets include all assets of affiliates, irrespective of the share of total assets that was financed by foreign direct investors. The estimates are available only on a book-value, or historical-cost, basis.

BEA provides another direct investment measure - the foreign direct investment position in the United States - that represents the net financing of affiliates supplied by foreign parent companies. Estimates of the position, unlike those of assets, are valued in current-period prices, as well as at historical cost. The most recent estimates of the position are presented in

"The international Investment Position of the United States in 1991," Survey of Current Business 72 (June 1992): 46-59; those estimates will be updated in the June 1993 Survey. (3.) The comparable figures for majority-owned U.S. affiliates, which account for most U.S. affiliates, are 4.0 percent of employment of all nonbank U.S. businesses in 1990 and 4.3 percent in 1991. (4.) Table 14, at the end of the article, presents profit-type return and other components of affiliate gross product by industry for 1990-91. This table and tables 13.1 and 13.2, which present total gross product by industry cross-classified by country, update tables presented in "Gross Product of U.S. Affiliates of Foreign Direct Investors, 1987-90," Survey 72 (November 1992): 47-54. (5.) For analysis of these and related issues, see "Rates of Return on Direct Investment," Survey of Current Business 72 (August 1992): 79-86. (6.) These results, which are based on survey data at the enterprise - or company - level, are in line with results recently published at the establishment - or plant - level. In 1992, BEA and the Census Bureau published Foreign Direct Investment in the United States: Establishment Data for 1987 (see inside back cover for order information), which contained results of a link between BEA's enterprise data for affiliates and the Census Bureau's establishment data for all U.S. companies; data in this publication showed that foreign-owned establishments in "high-technology" industries accounted for 29 percent of employment by all foreign-owned U.S. manuficturing establishments in 1987. Also in that vear, foreign-owned establishments' share of total U.S. employment in high-technology industries averaged 12 percent, almost twice their 7-percent share in other manufacturing industries.

The industries were classified as "high-techology" according to the percentage of employees engaged in research and development activities. Summary information and analysis of the link project for 1987, including a detailed explanation of how industries were classified as "high technology," appeared in "Foreign Direct Investment in the United States: Establishment Data for 1987," Survey 72 (October 1992): 44-78. For further information about ongoing link projects, see the box on page 91 of this issue. (7.) For a discussion of the methodology for using BEA's data on the operations of U.S. affiliates to estimate the local of U.S. affiliates' sales, see "Gross Product of U.S. Affiliates of Foreign Companies, 1997-87," Survey 70 (June 1990): 52. 8. In the BEA-Census Bureau link project for 1987 (see footnote 6), payroll per employee for foreign-owned establishments in all industries combined was $25,1000, 29 percent higher than for U.S.-owned establishments; in manufacturing, it was $28,000, 12 percent higher than U.S.-owned manufacturing establishments. (Large differences between payroll per employee of foreign-owned and U.S.-owned establishments were also observed in the results of a link between BEA and Bureau of Labor Statistics data for 1989 and 1990). In analyzing the establishment data for 1987, which could be disregarded by datained industry level to control for industry mix, roughly two-thirds of the difference in payroll per employee in manufacturing was found to reflect a greater concentration of foreign-owned establishments in relatively high-wage industries. (9.) For a more detailed discussion of new direct investment in the United States in 1991, see "U.S. Business Enterprises Acquired or Established by Foreign Direct Investors in 1991," Survey 72 (May 1992): 69-79. (10). Employment classified by industry of sales should generally approximate that classified by industry of establishment (plant), because an affiliate that has an establishment in an industry usually also has sales in that industry. However, if one establishment of an affiliate provides all of its output to another establishment of the affiliate, the affiliate will not have sales in the industry of the first establishment. For example, if an affiliate operates both a metal mine and a metal-manufacturing plant and if the entire output of the mine is used by the manufacturing plant, all of the affiliate's sales will be in metal manufacturing, and none in metal mining. When the mining employees are distributed by industry of sales, they are classified in manufacturing even though the industry of the establishment is mining.

The establishment-level data discussed in footnote 6 and in the box on page 91 show employment classified by industry of establishment, irrespective of whether the associated output is used by other establishments within the enterprise or is sold to outside firms or individuals. (11.) The UBO is that person, proceeding up a U.S. affiliate's ownership chain, beginning with and including the foreign parent, that is not owned more than 50 percent by another person. The foreign parent is the first foreign person in the affiliate's ownership chain. Unlike the foreign parent, the UBO of an affiliate may be located in the United States. The each U.S. affiliate is identified to ascertain the person that ultimately owns or controls and that, therefore, ultimately derives the benefits from owning or controlling the U.S. affiliate. (12.) In table 4, in order to make the affiliate data as consistent as possible with the all-U.S.-business data, petroleum is not shown as a separate major industry, as it normally is in direct investment statistics. Instead, the various petroleum subindustries are distributed among the other major industries. Thus, petroleum extraction is included in mining; petroleum refining, in manufacturing; gasoline service stations, in retail trade; and so on. However, for integrated petroleum companies whose operations include several phases of the industry - such as extraction, refining, and marketing - all employees involved in these operations are included in petroleum and coal products manufacturing when employment is classified by industry of sales (see footnote 10). Such companies may sell some crude petroleum to outsiders, but the employment associated with these sales cannot be separately identified and included in mining. In contrast, in the all-U.S.-business data, which are classified by industry of establishment, the employment of integrated companies is distributed among the activities of the companies' individual establishments, and only employees in manufacturing are included in petroleum and coal products manufacturing. Thus, if the affiliate share of employment in petroleum and coal products were calculated from the data shown in table 4, it would be significantly overstated because affiliate employment in this industry includes a substantial number of nonmanufacturing employees. The share cited in the text includes a rough adjustment to exclude these employees.

This adjustment also slightly reduces the affiliate share of total U.S. manufacturing employment, to 11.4 percent in 1991. As part of the adjustment, the employees subtracted from petroleum and coal products should be added to other petroleum-related subindustries. It is likely that most of these employees would be added to retail trade gasoline service stations) or mining (oil and gas extraction); however, information on the number of employees that should be added to each industry is not available. (13.) U.S. affiliates' shares of assets cover only manufacturing because comparable data on assets of U.S. businesses in other industries are not available. For the same reason, U.S. affiliates' shares of sales (which are also shown in table 7 but which are not discussed here) cover only manufacturing. All-U.S.-manufacturing-business assets and sales are from the Census Bureau's Quarterly Financial Report for Manufacturing, Mining, and Trade Corporations (QFR). Comparisons for mining and trade are not appropriate, because the QFR data for these industries cover only corporations with assets over $50 million. The exclusion of unincorporated businesses and small corporations from the QFR mining and trade data means that a significant portion of the all-U.S.-business activity in these industries is missing. (14.) Comparisons based on sales, unlike those based on assets, are not distorted by differences in valuation, because sales are generally valued at current prices.

A comparison of affiliates' share of all-U.S.-manufacturing sales with their share of all-U.S.-manufacturing assets may indicate the importance of differences in valuation. U.S. affiliates' share of total sales in 1991 was 1.8 percent - lower than their 19.2-percent share of total assets but higher than their 11.5-percent share of employment. These percentages suggest that some of the difference between the asset and employment-based shares may be due to differences in asset valuation. (15.) The definition of direct investment is based on whether a U.S. company has a foreign parent rather than on the location of the UBO. Thus, while all U.S. affiliates have a foreign parent, some may have a UBO that is located in the United States.
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Author:Bezirganian, Steve D.
Publication:Survey of Current Business
Date:May 1, 1993
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