Multinationals: The "Who Is Us" Debate

A review of the relevant economic data and a thorough analysis of the US public policy implications of the globalization trend produce the following conclusions. First, US multinational corporations remain significantly more national than multinational and are major engines of growth for the US economy. Second, many foreign-owned US subsidiaries are playing an increasingly important role in the US economy and their presence should be welcomed. However, financial, legal, cultural and management-accountability realities will differentiate many foreign-owned US subsidiaries from US companies for the foreseeable future. Third, as part of the US government's efforts to remove foreign trade barriers, US officials must also seek to eliminate foreign investment barriers. Fourth, US government technology programs must balance a preference for participation by US companies with a need to be open to any company, regardless of nationality, that can provide high value-added production and technology resources to the US economy.