Fact: The percentage of foreign direct investment by U.S. global manufacturers into fast-growing, low-wage economies decreased 57% between 1999 and 2003.
A version of this article appeared in the March 2005 issue of Harvard Business Review.
Global Manufacturers at a Crossroads
Fact: The percentage of foreign direct investment by U.S. global manufacturers into fast-growing, low-wage economies decreased 57% between 1999 and 2003. Conventional wisdom holds that multinationals increase their foreign direct investment as opportunities arise in low-cost, emerging markets. But a Deloitte Research study of global investment by U.S. manufacturers finds the opposite: In industries ranging […]
Summary.
Reprint: F0503F
As multinationals decrease their direct investment in low-wage markets, they’re opening the door to dangerous competitors, says Deloitte consultant Peter Koudal.