Multinationals: no strings attached

Journal Article · · Foreign Policy; (United States)

DOI:https://doi.org/10.2307/1148464· OSTI ID:6516291

Vernon, R

The Carter Administration contends that the United States government has a policy toward American enterprises that own and manage subsidiaries abroad and that it amounts to a benign neutrality, an intention neither to promote nor to discourage overseas investment. Most foreign and American businessmen disagree. U.S. government policy toward overseas operations of American business has always been a confused issue, the author says. At some point, the U.S. has put some form of pressure on almost every one of the world's 159 sovereigns. The Federal government has repeatedly restrained U.S. firms in the operation of their holdings in foreign countries. U.S. firms are required by law to disclose censurable political or commercial transactions abroad, an obligation that no other government imposes. And the government levies taxes on the foreign activities of American corporations that, according to various studies, are more burdensome than the taxes of their foreign competitors. Multinational enterprises now play an important role in the U.S. economy, the output of these overseas facilities amounting to about 40% of home output, and are likely to maintain that position in the future. This paper evaluates the policies of past decades to see if they are sufficient in the present situation.

• Research Organization: Harvard Univ., Cambridge, MA
• OSTI ID: 6516291
• Journal Information: Foreign Policy; (United States), Journal Name: Foreign Policy; (United States) Vol. 33; ISSN FRPLA
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
290200* -- Energy Planning & Policy-- Economics & Sociology
293000 -- Energy Planning & Policy-- Policy
Legislation
& Regulation
ECONOMY
FOREIGN POLICY
GLOBAL ASPECTS
GOVERNMENT POLICIES
INDUSTRY
INVESTMENT
MANAGEMENT
MULTINATIONAL ENTERPRISES
NORTH AMERICA
OPERATION
REGULATIONS
TAXES
USA