ÆäÀÌÁö À̹ÌÁö
PDF
ePub

CONCLUSION

We cannot ignore nor fail to correct the growing power of these giant multinational concerns. They feel no allegiance to any national entity. They support no government on ideological grounds. They have no qualms about investing in democratic or totalitarian, capitalistic or socialistic, civilian or military governments as long as their profit goals can be realized.

Let me conclude with a reference to public opinion. Sentiment against multinationals runs so high, that the public-by a margin of almost two to one—currently thinks that the Federal government should discourage, rather than encourage, the international expansion of U.S. companies. Many more simply do not buy the idea that corporate growth abroad has increased employment at home. Seven Americans out of ten are convinced that the main reason U.S. firms go abroad is "to take advantage of cheap foreign labor and that this costs jobs here."

Here are the results of a nationwide public opinion survey conducted by the Opinion Research Corporation for businessmen. Forty-two percent of total public opinion is strongly opposed to expansion of U.S. companies abroad. Even a majority of the managers are opposed to expansion (37 percent opposed against only 30 percent in favor of expansion). Perhaps most surprising are the results when broken down by party preference. Even the majority of Republican voters are on my side in this controversy. Republicans strongly oppose expansion 40 percent opposed to 30 percent in favor.

The Foreign Trade and Investment Act of 1973 is designed to put our industry on an even footing with foreign competition and make domestic investment just as attractive as investment abroad. By controlling predatory trade practices and regulating the American based transnational firm, the Hartke approach to trade policy will put America back on the path to a world of free and fair trade.

[merged small][merged small][merged small][merged small][merged small][ocr errors][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][ocr errors][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small]

Overall, the Public Favors Curtailment of U.S. Companies'
Expansion Abroad by Almost a Two-to-One Margin.

"In your opinion, do you think the federal government should encourage the expansion of U.S.
companies abroad, or discourage their expansion?"

[blocks in formation]

"Take no action," "No opinion" omitted.

[blocks in formation]

WORLD'S 15 LARGEST MANUFACTURING CORPORATIONS RANKED BY ASSETS IN 1972

[blocks in formation]

U.S. DIRECT FOREIGN INVESTMENT AND RATES OF RETURN, 1972 AND 1971

[blocks in formation]

1 Book value of all foreign direct investment at end of year (this B1 table does not report "mining
and smelting" and "other industries" separately as does Department of Commerce, but B1 does
include such investments in columns representing totals. 1972 figures are preliminary and will be
revised next year.

2 1972 data is preliminary; 1971 data differs from that published a year ago in B1 since Department
of Commerce this year reports revised 1971 data.

Definitions: Direct foreign investment total (dollar figures) represent year-end book values (i.e., assets less debts or "net assets"). Rate of return (percent figures) represent net earnings (i.e parent share of foreign subsidiary plus branch earnings) divided by book values. Net earnings of foreign subsidiaries equal parent equity in earnings after provision for foreign income taxes, perferred dividends, and interest payments; while net earnings of foreign branches are after foreign income

taxes but before depletion charges and U.S. taxes. n.a.-Not available (i.e., either less than $500,000 plus or minus or combined in other accounts).

4 Sum of country figures not equal to area total since some 12 smaller West European countries such as Austria and Portugal (all representing end-1972 book value of $1,318,000,000) are included in total.

5 Direct investment figures for Europe do not include any investments in Eastern European (Comecon) countries.

Sum of country figures not equal to area total since some smaller African countries are included in total. Source: Business Internatoinal, Nov. 23 1973.

[graphic]

TOTAL EARNINGS AND EXPENSES OF ARAMCO

(Millions of Dollars)

9,000

[graphic]

8,000

7,000

6,000

5,000

4,000

3,000

2,000

1,000

1963 1964 1965 1966 1967 1968 1969 1970 1971 1972 1973

[merged small][graphic][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed]
« ÀÌÀü°è¼Ó »