The competitive position of U.S. manufacturing firms
Keywords:US manufacturing, competitiveness, production base, multinationals
With the continuing high value of the dollar there has recently been concern over the long-term impact on the competitiveness of US manufacturers. This study distinguishes between the competitiveness of US firms and the advantages of the United States as a production base. It is found that, although the US share of world trade has declined since the early 1970s, the share held by US firms, as opposed to firms producing in the United States, has increased. It is argued that US multinationals have overcome the decline in the comparative advantage of the United States as a production base by moving abroad.
JEL: F23, L60