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The U.S. Bureau of Economic Analysis (BEA) estimates the return on investments of foreign subsidiaries of U ….S. multinational companies over the period 1982--2006 averaged 9.4 percent annually after taxes; U.S. subsidiaries of foreign … foreign and domestic locations. Used abroad, it generates profits for foreign subsidiaries with no foreign direct investment …
Persistent link: https://www.econbiz.de/10012464663
Since 1980, foreign investors have timed their purchases and sales of U.S. Treasurys to yield particularly low returns … horizon. In comparison, the IRRs achieved by domestic investors are at least 1% higher, while the IRRs achieved by the Federal … Reserve are similarly low. Our results are consistent with theories where foreign investors are price-inelastic buyers of safe …
Persistent link: https://www.econbiz.de/10013210117
Foreign investors' changing appetite for risk-taking have been shown to be a key determinant of the global financial … frictions, and who act as global intermediaries in that they take on foreign asset risk. In this setup, an exogenous increase in … premia and lower global asset values. Moreover, when U.S. uncertainty rises, the exchange rate in the foreign country vis …
Persistent link: https://www.econbiz.de/10013210054
features costly coordination failures by foreign investors which can sometimes be avoided by suitably tailored CCOs. The …
Persistent link: https://www.econbiz.de/10015056204
This paper evaluates the influence of host-country financial development on the global operations of multinational firms. Using detailed U.S. data, we provide evidence that host-country financial development increases entry by multinational affiliates, while also decreasing affiliate sales in...
Persistent link: https://www.econbiz.de/10012458618
Within Japanese multinational firms, parent exports from Japan to a foreign region are positively related to production … higher, the greater the production abroad by the firm's foreign affiliates. Japanese firms' behavior in this respect is … firms seem to allocate the more capital-intensive parts of their production to their foreign affiliates, mostly in high …
Persistent link: https://www.econbiz.de/10012471148
Foreign-owned establishments in the United States pay higher wages, on average, than domestically-owned establishments … wages in favor of foreign establishments remains even when these other determinants of wages are taken into account. Within … manufacturing, the extent of foreign ownership in an industry in a state had no impact on wages in 1987 when these other factors …
Persistent link: https://www.econbiz.de/10012471884
Foreign-owned establishments in the United States pay higher wages, on average, than domestically-owned establishments …. The foreign-owned establishments tend to be in higher-wage industries and also to pay higher wages within industries. They … in general and wages in domestically-owned establishments tend to be higher in states and industries in which foreign …
Persistent link: https://www.econbiz.de/10012473977
Multinational firms (MNEs) dominate trade flows, yet their global production decisions are often ignored in firm-level studies of exporting and importing. Using newly merged data on US firms' trade and multinational activity by country, we show that MNEs are more likely to trade not only with...
Persistent link: https://www.econbiz.de/10014322875
This paper examines the question of whether less-developed countries' (LDCs') experiences with foreign direct …
Persistent link: https://www.econbiz.de/10012468315