Similarly, how these companies create jobs in America when venturing abroad remains a dynamic process. They may both expand and reduce jobs as strategies and opportunities evolve. They must also retain the flexibility to refine what they make, how and where they make it, and how and where they sell it in order to compete amid intense international competition.
The report shows American companies engaging globally to be a richly diverse group in size, employment, industry, markets, and customers. Fittingly, there is no single strategy for U.S. companies to follow to succeed when they venture abroad.
Rather, globally engaged American companies must create, implement, and change strategies from a global perspective, with dynamic differences in successful strategies both across companies and within companies over time. They require flexibility to experiment, learn, fail, adjust, and succeed in the global economy.
Figure 1: The share of key activities in the overall U.S. private sector accounted for by U.S.-headquartered multinational companies in 2010.
About the Author: Dr. Matthew Slaughter is an Associate Dean for Faculty, Signal Companies’ Professor of Management, and Faculty Director of the Center for Global Business and Government at the Tuck School of Business at Dartmouth. Read his bio.