1. www.bea.gov Summary Estimates for Multinational Companies Released 4/19/10 J. Steve Landefeld, Director April 22, 2010

2. www.bea.gov 2 Summary Table - U.S. Multinational Companies 20072008Change Employment (millions) U.S. Parents23.222.9-1.3% Foreign affiliates10.310.51.7% Capital expenditures ($ billions) U.S. Parents507.7519.72.3% Foreign affiliates172.7188.59.1% Sales ($ billions) U.S. Parents9,215.59,509.03.2% Foreign affiliates4,978.35,520.210.9% Source: BEA

3. www.bea.gov 3 Employment Growth Fastest Abroad Source: BEA

4. www.bea.gov 4 Falling Parent Share of MNC Employment Source: BEA

5. www.bea.gov 5 Possible Explanations ▪ Resource-seeking  Lower-wage labor  More abundant natural resources ▪ Market-seeking  Liberalization in host government policies toward direct investment  Faster rates of economic growth abroad A shift in the location of production that is:

6. www.bea.gov 6 Affiliates Sell Abroad What They Produce Abroad Source: BEA Destination of Sales by Foreign Affiliates

7. www.bea.gov 7 Markets Growing Faster Abroad trendline Sources: World Bank and BEA U.S. Share of World GDP

8. www.bea.gov 8 Local Markets Important Where Employment is Growing Country of affiliate Employment increase in 1989- 2007 % of sales to local market All countries+4.9 million59% China+676,00072% Mexico+613,00068% United Kingdom+443,00067% France+283,00067% India+266,00077% Canada+196,00075% Source: BEA

9. www.bea.gov 9 Summary Table - U.S. Affiliates of Foreign Multinational Companies 20072008Change Employment (millions) 5.65.5-1.0% Capital expenditures ($ billions) 190.2190.70.3% Sales ($ billions) 3,353.13,406.51.6% Source: BEA

10. www.bea.gov 10 Little Recent Growth for U.S. Affiliates Source: BEA Employment by U.S. Affiliates of Foreign MNCs

11. www.bea.gov 11 Most Growth Occurred in Late 1990’s * Equals nominal outlays deflated by the U.S. GDP deflator; source: BEA. Real Outlays* for New U.S. Affiliates

12. www.bea.gov 12 But Output of U.S. Affiliates Continues to Rise

13. www.bea.gov 13 EU-Owned Companies Account for Most of Growth Country of UBO Employment increase in 1997- 2007 Share of increase All countries+814,000100% France+148,00018% Sweden+81,00010% Italy+69,0008% Germany+66,0008% Switzerland+65,0008% United Kingdom+44,0005% UBO: Ultimate beneficial owner; Source: BEA