With an uncertain regulatory and tax system (and the world’s highest corporatetax rate) and a declining economy under President Barack Obama, businesseshave less incentive to operate within the United States.
And according to a Wall Street Journal analysis of 35 U.S.-based multinationalcompanies, such as Walmart and Honeywell, three-fourths of the jobs addedby these businesses were in their overseas branches. These companies addedjobs “at three times the rate they added domestic jobs,” according to the analysis.
According to the analysis, the global branches of these companies are doingbetter because of overseas revenue. In fact, the study found “60% of the revenuegrowth between 2009 and 2011 at the companies in the Journal‘s analysis camefrom outside the U.S.”
This study, according to The Wall Street Journal, was “consistent with more extensive surveys by the U.S. Commerce Department, which found that U.S.-based multinational companies added jobs in the U.S. between 2004 and 2010,but added far more jobs overseas.”
Much of revenue increase abroad has come from emerging Asian nations. Onecompany, Honeywell, saw its overseas sale rise 28 percent, which was “morethan twice as fast as the 12% increase in U.S. sales.”
A Honeywell spokesman told The Wall Street Journal that “company expectshalf of its revenue growth in the next five years to come from emerging marketssuch as China and India” and will “invest in building strong leadership teams and[research and development] and production capabilities where the growth is andour customers are.”
Because of Obama’s mismanagement of the economy and penchant for over regulation, businesses are finding it harder to compete in and be asprofitable as they could be at home, which leads to less hiring, which makes itharder for the country to come out of the recession.