U S Multinational Corporations and the Balance of Payments

The report discusses the question of whether or not multinational corporations (MNC) have the potential for helping solve the US balance of payments problem. Of particulr interest is the NATO imposed foreign exchange deficit. The paper examines the balance of payments problem from 1950-on, and shows how the NATO deficit relates to the overall problem. It examines the NATO costs and foreign exchange expenditures. The opposing views of labor and management are discussed with regard to how MNC affect exports, imports, and employment and how US tax laws affect foreign investiment and the balance of payments. The Burke-Hartke proposed legislation and its impact on foreign investment are discussed.