This article examines whether the sizable amount of excess capacity abroad in recent years has eased U.S. inflationary pressures by keeping import prices from rising as fast as the prices of U.S.-produced goods. The analysis finds that overall import price growth has roughly kept pace with U.S....

Few studies have investigated how the large and persistent swings of the dollar over the past two decades have affected the profits of U.S. manufacturing firms. Using an econometric model of manufacturing profits, this article evaluates the overall impact of exchange rate changes on aggregate...

With the rise in foreign direct investment in U.S. manufacturing during the 1980s, the affiliates of foreign multinationals have become potentially important sources of improved U.S. international competitiveness. This article describes the growing foreign presence in the U.S. manufacturing...

Finished goods are claiming an increasing share of U.S. imports, while their share of U.S. exports has remained virtually unchanged in recent years. These divergent developments may suggest some erosion of the United States' traditionally strong competitive position in the production of finished...

The purchasing managers' index is a widely watched but virtually untested indicator of manufacturing activity. This article examines how well the index lives up to its billing as a leading indicator. The author also explores whether the index supplies information about the economy beyond that...

U.S. imports of manufactured goods increased rapidly between 1975 and 1985. During the same period, real wages of U.S. manufacturing workers stagnated. The author investigates whether the increased competition from imports affected earnings within industries and contributed to the sluggish...