Why U.S. Corporations Go Abroad

Paper Summary:

Increasing numbers of U.S. multinational corporations are going global. Some move to tax havens and others relocate to cut costs and for risk management. This paper examines the benefits of Corporate reincorporations - the ability to reach global markets offer these companies competitiveness with foreign corporations. The paper shows that some of these companies are also moving because of the high U.S. corporate taxes.

From the Paper:

"When Multinationals move abroad, they are also involved in a process of risk reduction. As U.S. corporations have expanded their global reach they are better able to put the U.S. workforce in direct competition with foreign workers, thus increasing their profits while driving down our wages, and general standard of living. Global corporations are better able to use technology to downsize their workforces, thus creating anxiety among working people who no longer feel secure about the future of their jobs."

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