This Article utilizes extensive data culled from seven manufacturing industries and 22 countries over 10 years to determine how tariffs, wages and industrial relations environments affect U.S. multinational corporations’ decisions to locate assets and employment abroad. Ultimately, the Article concludes, that while a low wage base, a decentralized bargaining structure and minimal recriminations for layoffs do influence corporate locational decisions, they are not dispositive. Rather, they find that host country market size - that is, GDP - was the key determinant of locational decisions for U.S. corporations. Furthermore, the Article finds that tariff reduction-legislation such as NAFTA and GATT do not lead to a hemorrhaging of U.S. jobs or assets abroad. In contrast to previous data studies on the same subject which have used data from only one-year or used data aggregated at the national level, the authors employ industry-level panel data from the Bureau of Economic Analysis, plus other data sources which have been merged to reach their conclusions
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