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 America’s Economic Competitiveness

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.

Foreign Direct Investment in the United States

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

Fastest FDI Job Growth States

Source: BEA (2013-2018)

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:mbeeson@globalbusiness.org