Title: Benefits of Trade with China
Headings: U.S. Department of the Treasury
U.S. Department of the Treasury
Press Center
Benefits of Trade with China

Content: Globally engaged U.S. multinationals on average pay their employees about 20 percent above the national average. U.S. multinationals have been one of the main drivers of overall U.S. productivity growth over the last three decades, and accounted for over half of U.S. productivity growth between 1977 and 2000, and for half of the increase in U.S. productivity growth between 1995 and 2000. Studies show that economic activity abroad by U.S. multinational companies complements domestic economic activity. One dollar of additional foreign capital spending is associated with $3.50 of additional domestic capital spending. And when multinationals hire abroad they also expand employment here at home. While U.S. multinationals account for 25 percent of total U.S. output and 20 percent of employment, they account for a disproportionately high share of U.S. goods exports (49 percent), goods imports (31 percent), physical capital expenditures (29 percent), and research and development spending (68 percent).