global business alliance
TRANSCRIPT
Global Business AllianceThriving in Minnesota As A Foreign-Owned Enterprise Seminar
Meredith Beeson, Director State AffairsMarch 2021
Global Business Alliance
• Encourage investment in U.S. operations• Increase American employment • Boost economic growth & resiliency
GBA represents nearly 200 American companies with global heritage.
Who We Are
What We Do
Advocate for fair treatment of foreign-based companies and promote policies that:
For more information please visit:GlobalBusiness.org
A Snapshot of US Competitiveness
Source: Bureau of Economic Analysis
Changes in 2020 FDI Inflows for Selected Top 2019 Recipient Economies (percent)
United Kingdom
Italy
Russian Federation
Germany
Brazil
United States
Australia
France
Canada
Indonesia
Mexico
China
India
Source: UNCTAD
Annual Foreign Direct Investment in the United States
- 41%
Foreign direct investment in the United States has fallen since 2016.
A Snapshot of US Competitiveness
Source: YouGov 11/26/16-1/16/21 : BEA : Global Trade Alert : YouGov 1/31/21-2/2/21 : UNCTAD
57413692
Annual foreign direct investment in the U.S. dropped 41 percent between 2016 and 2019.
The number of Americans who believe the U.S. economy “is getting worse” has increased 57 percent since November 2016.
America fell to the #2 slot behind China in new global foreign direct investment.
Protectionist trade policies imposed during the Trump administration increased 36 percent compared to the previous four years.
Only nine percent of Americans “think the economy is getting better.”
31%33%
37%34% 34%
27%
32%
38%35%
30%
36%
26%
22%
28%
62%
54%52%
53%
59% 59%
54%51% 51%
54%
50%
64% 64%
54%
20%
30%
40%
50%
60%
70%
Data from NBC News/Wall Street Journal polls and The Economist/YouGov polls of registered voters.
All in all, do you think things in the nation are generally headed in the right direction, or do you feel things are off on the wrong track?
Right Direction
Wrong Track
Since the 2016 Election
-26Gap
Americans Are Pessimistic
Policies Impacting America’s Global Competitiveness
Policy Themes
Economic Recovery
Supply Chain Accountability
‘Technological Sovereignty’
Political Participation
Workforce Innovation
Environmental Responsibility
Trade Priorities
China
Each of these themes contain important policy considerations and implications for America’s competitiveness in attracting FDI.
Not an exhaustive list.
Investing in America
24%
80%
15%
17%
20%
of U.S. exports
of all new manufacturing jobs in the past five years
of U.S. private-sector research & development
of all U.S. corporate income tax revenue
higher employee compensation than the private-sector average
Source: IRS; BEA, November 2020
FDI in the USGlobal Companies
$82,600Good Paying Jobs
Across the nation, U.S. workers at international companies earn 20 percent higher compensation than the economy-wide average – making $82,600 annually.
7.8 MILLIONRecord Number of FDI Jobs
Nationally, 7.8 million U.S. workers are employed by international companies.
123%Building Stronger Communities
International companies increased their charitable contributions by 123 percent in the past decade, while the economy-wide average grew by 19 percent.
From 2013 to 2018, America’s FDI employment…
26%while the country’s overall
private-sector employment
10%
Source: GBA
Create High-Quality Jobs
Fuel Innovation
Strengthen Communities
Improve U.S. Competitiveness
FDI Jobs: Minnesota
• Graph shows FDI jobs as percentage of total employment.
• Minnesota is close to national average.
For more information see: www.globalbusiness.org/state/minnesota
Global Companies Are Leaders• International businesses contribute heavily to the strengthening
of their communities and have done so for decades.• International companies are:
• Innovative• Sustainable• Ethical• Community-focused
For more information check out:globalbusiness.org/invested
Investment Considerations• Educated, diverse workforce•Infrastructure investment•Thriving supplier network•Business environment•Proximity to customers
Investment Decisions
• Streamline communications •Deepen multiculturalism•Welcome executives and their families •Foster innovative community networks•Customized services with an eye on global trends•Parity with broader business community
Supporting Invested Companies
•Vaccine roll-out•Supply chain resiliency•Federal coordination & stimulus•Workforce innovation•Predictability
2021 & Beyond
State Insights
• 2021 Policy Trends (So Far)• Vaccine roll-out and COVID-19 response• Re-opening of economies• Improved fiscal health projections• Business liability• Supply chain resiliency• GBA Priorities
• Fair taxation and procurement policies• Global connections education • Economic recovery
Key Take-Aways
• International companies support economic growth and help enhance the state’s resiliency
• When Minnesota is open for business, we all benefit• GBA can be a resource
• Comparative state investment data• Keep us informed of economic development activity• Reach out with any questions
About GBAGlobal Business Alliance (GBA) actively promotes and defends an open economy that welcomes international companies to invest in America. Our members are American companies with global heritage and are an indispensable part of our nation’s economic success. When America is open for business, we all benefit.
© 2021 All rights reserved.
For further questions, please contact Meredith Beeson at:[email protected]