U.S. Multinational Food Manufacturers Choose Production in Foreign Markets Over Exports

Margaret Malanoski

Food Review/ National Food Review, 1994, vol. 17, issue 3

Abstract: U .S. food manufacturers supply their products to foreign consumers primarily through local production in foreign markets. In fact, exports pale in comparison to sales by foreign affiliates of U.S. firms. In 1992, processed food sales from U.S.-owned foreign affiliates totaled $89 billion- almost four times U.S. export sales of processed foods. And while U.S. exports of processed foods continued to grow, the gap between them and foreign affiliate sales more than doubled between 1982 and 1992 (fig. 1). Foreign production also occurs through licenses between U.S. and foreign firms. These agreements allow foreign firms to produce and sell the U.S. firms' products in specified foreign markets (see "International Licensing of Foods and Beverages Makes Markets Truly Global," elsewhere in this issue).

Keywords: Industrial Organization; International Relations/Trade (search for similar items in EconPapers)
Date: 1994
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Persistent link: https://EconPapers.repec.org/RePEc:ags:uersfr:266157

DOI: 10.22004/ag.econ.266157

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