Hello! I have a paper and presentation to do. So far, I answered all the questio

Question

Hello!

I have a paper and presentation to do.
So far, I answered all the questions except one that I'm really struggling with.
Here is the question:

-Convincing US firms to serve foreign markets from the US instead of investing overseas.
-Urge firms to serve foreign markets from the US instead of investing overseas.

For this question, you can either support or refute the statement.
I chose to refute, but you can support.

All arguments must present strong data to back up.
I'm struggling to find good arguments and data to back up my points.

I would really appreciate any help.

Thank you.

Explanation / Answer

There are more points in favor i think. MAny of these US firms invest overseas to take advantage of lower labour costs, lower tax rates and favorable regualtions. Most of their sales come from these foreign markets so it makes sense to have production establishments in those markets. If there were to cater to those markets locally, it would not only increase production costs but also decrease their competitive advantage as their foreign rivals will succeed in gaining higher market share. These firms will then have to struggle to enlarge their customer base.

If these companies become loss-making entities it would affect jobs in the US too. Investing in foreign markets inproves operational efficiency

Just to give you a few quick pointers:

For data you can refer World Investment Report which is published by UNCTAD (UN conference on Trade on development) every year. You will find data on World's largest organizations there. Look for 5-10 US firms and Use figures from this report on their foreign assets, foreign sales and foreign employees.

If you have to write against, you can use data to say so and so firm has more foreign assets than foreign sales. You will find such companies in UNCTAD report.

Comment if you need more help with data analysis.

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