Gains from Global Engagement : Overview - PowerPoint PPT Presentation

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Gains from Global Engagement : Overview

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  1. Gains from Global Engagement : Overview Trade: US Exporters vs. Non-exporters US Importers vs. Non-importers Firms: - 0.6 to1.3% faster sales growth - More like to receive FDI - 8.5% less likely to face bankruptcy - More likely to use adv. mfg. technology Workers: - 2 to 4% faster annual growth in employment - Approximately $1000 more in annual salaries per 10% of company input - Benefits for all workers on average 37% imported higher FDI: US Multinationals vs. US US-located companies with FDI Non-multinationals vs. US companies without FDI (comparable plants) (comparable plants) Firms: - US labor productivity 11% higher - 2-4% faster growth - 31% more adv. mfg technologies - 27% more adv. mfg technologies Workers: - 7 to 15% wage premium - 13 , 19% wage premium to white, blue collar workers respectively Source: Lewis and Richardson, Why Global Commitment Really Matters, IIE 2001