Operations of U.S. affiliates of foreign companies: preliminary results from the 2007 Benchmark Survey.

Anderson, Thomas ; Zeile, William J.

MAJORITY-owned U.S. affiliates of foreign companies accounted for 6 percent of U.S. private industry value added in 2007, according to preliminary statistics derived from the Bureau of Economic Analysis (BEA)2007 Benchmark Survey of Foreign Direct Investment in the United States. Unlike previous statistics in this series, this figure includes value added by bank affiliates as well as nonbank affiliates; coverage of previous statistics on value added by affiliates was limited to nonbanks. (1) The measures of value added by banks are based on new data collected on the benchmark survey and represent a major improvement to the statistics by closing a significant gap in the industry coverage of majority-owned U.S. affiliates ("U.S. affiliates"). (2) The new data will also be collected on the follow-on annual surveys, beginning with the 2008 survey. (3) In 2007, the current-dollar value added of U.S. affiliates totaled $657.6 billion, with $29.6 billion attributable to bank affiliates and $628.0 billion attributable to nonbank affiliates.

Employment by U.S. affiliates totaled 5.5 million workers in 2007, and their share of U.S. private industry employment was 4.6 percent (table 1). (4) Total employment for U.S. affiliates in 2007 was slightly lower than in the 2002 benchmark survey year (the last year for which data on bank affiliate employment were collected), as employment gains associated with acquisitions of U.S. companies by foreign direct investors since 2002 were more than offset by employment reductions associated with foreign divestitures. Because total U.S. employment in private industries increased faster than U.S. affiliate employment, the affiliate share of employment decreased from 4.9 percent to 4.6 percent.

The slight decrease in affiliate employment from 2002 to 2007 was in sharp contrast to the sharp increase between the benchmark survey years 1997 and 2002, when record levels of acquisitions by foreign direct investors in 1999 and 2000 boosted affiliate employment by over 25 percent, much more than the 6 percent increase in total U.S. private industry employment in 1997-2002. (5)

For majority-owned nonbank affiliates (for which annual data for years before 2007 are available), value added in current dollars increased 1.9 percent in 2007, from $616.3 billion to $628.0 billion (table 2). The increase in nonbank affiliate value added was the smallest since 2001, when it declined as a result of selloffs and reduced production. Increases among finance affiliates were almost completely offset by declines among affiliates in petroleum and manufacturing industries. Because current-dollar U.S. value added in private industries grew slightly faster, the affiliates' share of value added in nonbank private industries fell slightly from 6.1 percent to 6.0 percent (chart 1). De spite the decline, the share of value added accounted for by nonbank U.S. affiliates was the second highest recorded since these statistics were introduced in 1988. The highest share was recorded in 2006.

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Employment by nonbank affiliates rose in 2007 for the third consecutive year to 5,347,000, an increase of 0.2 percent. Despite these increases, employment by nonbank affiliates was substantially lower in 2007 than at its peak in 2000, which followed several years of rapid employment gains due to acquisitions of U.S. companies by foreign investors.

The following are additional highlights of the operations of bank and nonbank U.S. affiliates in 2007:

* The United Kingdom was the largest investing country in terms of value added, followed by Germany and Japan.

* The share of total U.S. employment accounted for by affiliates was highest in Delaware, followed by South Carolina.

* The shares of total U.S. employment accounted for by affiliates were highest in mining and manufacturing.

* Affiliates accounted for 15 percent of the research and development (R&D) performed by all U.S. businesses, with more than 80 percent of the affiliate R&D being performed for the affiliates' own account.

* Employees covered by collective bargaining agreements accounted for 12 percent of the total employment of U.S. affiliates, much higher than the 8 percent union-represented share of employment for all U.S. businesses.

* Affiliates accounted for 19 percent of U.S. exports of goods and for 27 percent of U.S. imports of goods. Among the major U.S. trading-partner countries, the affiliate share of U.S. exports was highest for Switzerland and Japan, and the affiliate share of U.S. imports was highest for Japan.

* About 70 percent of the imports of U.S. affiliates were goods intended for resale without further manufacture by the affiliates, reflecting the dominance of affiliate import activity by wholesale trade affiliates.

This article examines both current patterns and recent trends in affiliate operations. It begins by discussing production and employment data collected annually and then discusses data collected only in benchmark years, including detailed data for R&D, union-represented employment, and trade in goods. Several additional measures of U.S.-affiliate operations are presented in tables at the end of this article.

Affiliate Production and Employment

Two key measures--value added and employment--are used to gauge the magnitude of U.S. affiliate operations relative to the U.S. economy. Value added by affiliates is their contribution to U.S. gross domestic product; the contribution of affiliates to total private business activity is measured by their share of U.S. value added in private industries. At the industry level and the state level, employment is the measure used to gauge the affiliate share of economic activity because it is available at a more detailed level than the statistics on affiliate value added.

Value added

In 2007, the value added of majority-owned U.S. affiliates (including bank affiliates) was $657.6 billion (table 1). To improve the coverage of the statistics on the operations of U.S. affiliates, the data needed to calculate the value added of bank affiliates were collected for the first time for 2007. As a result, the value added totals cannot be compared with those for previous years (see the box "2007 Benchmark Survey"). (6)

By country of ownership. In 2007, about three-fourths of the value added by majority-owned affiliates was accounted for by seven investing countries--Canada, France, Germany, Japan, the Netherlands, Switzerland, and the United Kingdom (chart 2 and table 3). Affiliates with ultimate beneficial owners (UBOs) in the United Kingdom accounted for the largest share of affiliate value added (see the box "Key Terms"). British-owned affiliates accounted for 18 percent of affiliate value added and for about 1 percent of total U.S. private industry value added. German-owned affiliates had the second-largest share of affiliate value added, while Japanese-owned affiliates had the third-largest share. (7)

The industry distributions of affiliate activity varied considerably by country of ownership. British-owned affiliates were involved in a wide range of industries, notably pharmaceuticals manufacturing and petroleum wholesaling. German-owned affiliates were concentrated in a few manufacturing industries--chemicals, machinery, and motor vehicles--and in information and in finance. Japanese-owned affiliates were particularly active in motor vehicles manufacturing and wholesaling industries, which together accounted for almost one-third of Japanese affiliate value added. Netherlands-owned affiliates were concentrated in petroleum manufacturing, which accounted for more than one-third of affiliate value added, and also had significant value added from retail trade. Manufacturing accounted for the majority of the value added of Swiss-owned affiliates, with pharmaceuticals being especially prominent. French-owned and Canadian-owned affiliates were most active in manufacturing and finance. Canadian-owned affiliates were also active in mining.

Other countries of UBOs with substantial affiliate value added were Bermuda, Sweden, Australia, and Belgium. The value added for Bermuda partly represents the activity of U.S. firms that reorganized their ownership structure so that the U.S. firm was replaced by a newly formed corporation in Bermuda as the top-tier parent of the corporate group. (8) The majority of the value added by Swedish-owned affiliates was in manufacturing. Australian-owned affiliates were active in both manufacturing and real estate and rental and leasing, and Belgian-owned affiliates were most prominent in retail trade.

By industry of UBO. In 2007, the largest share of affiliate value added--43 percent--was accounted for by affiliates whose UBOs were in manufacturing (table 4). Affiliates in finance and wholesale trade together accounted for 18 percent of affiliate value added. UBOs that were individuals, estates, or trusts accounted for 11 percent of affiliate value added, and governments and government-related entities accounted for 3 percent of affiliate value added.

By industry of affiliate. In 2007 affiliates classified in manufacturing accounted for the largest share of U.S. affiliate value added (42 percent) (table 5). Within manufacturing, the largest industry in terms of value added was chemicals, which accounted for 10 percent of total affiliate value added. More than half of the value added in chemicals was accounted for by manufacturers of pharmaceuticals and medicines, but manufacturers of basic chemicals also provided substantial value added. Affiliates in transportation equipment manufacturing also contributed substantially to affiliate value added, especially those in motor vehicles but also those in other transportation equipment industries, such as aerospace manufacturing.

Outside of manufacturing, affiliates classified in wholesale trade, which includes several large affiliates with secondary operations in manufacturing, accounted for the second-largest share of value added, at 15 percent. The inclusion of banks raised the share of value added accounted for by affiliates classified in finance and insurance to 11 percent. (Prior to the inclusion of banking, the share of affiliate value added accounted for by finance and insurance affiliates was significantly lower; for example, in 2006, it was 6 percent.) The professional, scientific, and technical services industry, in which affiliate activity has grown considerably in recent years, was responsible for 4 percent of affiliate value added. The largest share was accounted for by computer systems design. Among "other industries" which contributed 16 percent to the total, affiliates in mining and in administration, support, and waste management had the largest shares of value added, each accounting for about 4 percent of the total.

Employment

In 2007, employment by majority-owned affiliates was 5,520,000, accounting for 4.6 percent of all private employment in the United States. Employment by majority-owned affiliates decreased 1 percent between 2002 and 2007, as reductions due to selloffs by affiliates more than offset increases due to acquisitions, which were relatively small, especially in 2002-2005.

By industry. As has been the case for several years, in 2007, the affiliate share of U.S. employment was highest in mining (15 percent) and in manufacturing (12 percent), both industries in which multinational corporations play a leading role (table 6).

Within manufacturing, the share of U.S. employment accounted for by affiliates was largest in chemicals (28 percent), nonmetallic mineral products (26 percent), and motor vehicles, bodies and trailers, and parts (24 percent). About half of affiliate employment in chemicals was in pharmaceuticals. In nonmetallic mineral products, the majority of the employees are in the cement and concrete products industry. In motor vehicles manufacturing, a majority of the employees are in auto parts manufacturing.

Outside of manufacturing, the shares of industry employment accounted for by affiliates are highest in wholesale trade and information (7 percent each). In finance, affiliates accounted for just less than 6 percent of industry employment. About one-third of affiliate employment in finance was in banking; in nonbank finance and insurance, most of the employment by affiliates was in the securities and commodities industry and in insurance industries. In professional, scientific, and technical services, affiliates accounted for 4 percent of total U.S. employment; computer systems and related services and architectural and engineering services were the most prominent. In other services-oriented industries--such as educational services, health care, and arts, entertainment, and recreation--the shares of U.S. employment accounted for by affiliates was less than 1 percent.

Between 2002 and 2007, employment by affiliates in manufacturing fell by 125,200, and that in nonmanufacturing industries increased by 74,300. The decline in manufacturing was especially large in computers and electronic products and motor vehicles manufacturing. In both industries, the decreases were largely accounted for by affiliates that sold off parts of their operations to domestic businesses.

Despite the overall decrease in affiliate manufacturing employment, there were substantial increases in affiliate employment in several manufacturing industries, including other transportation equipment, food and beverages and tobacco, primary metals, and petroleum and coal products. In the other transportation equipment industry, the increase in employment was due to growth by affiliates in aerospace manufacturing. In food manufacturing, the increase was largely due to acquisitions by foreign investors. In primary metals, the increase was largely due to acquisitions by foreign direct investors in the iron and steel industry. In petroleum and coal products, the increase was largely due to both acquisitions and growth at existing affiliates in the petroleum industry.

The increase in affiliate employment in nonmanufacturing industries was more than accounted for by the increase by affiliates in professional, scientific, and technical services of 117,000 employees. The increase was largely due to the growth of affiliates in computer systems design and also reflected the expansion of affiliates providing accounting services.

By state. Majority-owned U.S. affiliates in Delaware had the largest share--7.3 percent--of private employment in 2007 (table 7). Most of the employment of affiliates in Delaware was by European-owned affiliates, especially British-owned affiliates. The second-largest share--6.9 percent--was accounted for by affiliates in South Carolina, especially French-owned and German-owned affiliates. Affiliates' shares of employment were also notably high in Connecticut, New Hampshire, and New Jersey. In all of these states, European-owned businesses accounted for a majority of the employment by affiliates.

In most states, affiliates with European UBOs accounted for the largest shares of affiliate employment. However, Japanese investors were especially prominent in Hawaii, where they accounted for over one-half of affiliate employment and were particularly active in the hospitality industry. Japanese-owned affiliates also accounted for substantial shares of affiliate employment in Kentucky and Tennessee, where they were active in transportation equipment manufacturing. Canadian investors were especially prominent in several states, including Kansas, South Dakota, and Nevada.

While overall employment by affiliates changed little between 2002 and 2007, employment by affiliates grew substantially in several states, notably Kansas, Ohio, and Virginia. In Kansas, where affiliate employment grew more than 50 percent between 2002 and 2007, the growth was mainly due to the entry of new affiliates in transportation equipment manufacturing and in information. As a result, affiliates' share of employment in the state rose from 3.1 percent to 4.6 percent. In Ohio, the entry of new affiliates in transportation and warehousing and in manufacturing, especially paper mills and iron manufacturing, accounted for a large share of the growth. In Virginia, the expansion of several affiliates in wholesale trade, transportation and warehousing, and manufacturing as well as the entry of affiliates in finance accounted for much of the growth in employment.

Employment by affiliates declined substantially in Wisconsin. The decline was due both to selloffs of foreign-owned businesses to domestic owners and to reductions in employment by existing affiliates. Employment by affiliates also declined substantially in Hawaii, which had the largest share of employment accounted for by affiliates in 1988-2001. The decline in employment by affiliates in Hawaii was largely due to selloffs of affiliates to domestically owned companies.

Affiliates accounted for the largest shares of total manufacturing employment in the District of Columbia (24.7 percent), South Carolina (21.6 percent), and Delaware (19.6 percent) (table 8). The high share of manufacturing employment by affiliates in the District of Columbia partly reflects a very small level of overall activity in manufacturing in the District. In South Carolina, manufacturing employment is largely at firms owned by European investors, especially from Germany and France, with Japanese investors also accounting for a substantial share. In Delaware, Canadian and British investors accounted for much of the manufacturing employment. By region, affiliates account for the largest share of manufacturing employment in the Southeast.

Manufacturing employment by affiliates decreased substantially between 2002 and 2007 in several states, notably Michigan, Wisconsin, and Illinois. In Michigan, the decline was due to selloffs by affiliates in motor vehicles and household appliance manufacturing. These changes reduced affiliates' share of manufacturing employment in the state from 12.3 percent to 8.9 percent. In Wisconsin, the decrease was due to the selloff of affiliates in the paper manufacturing, in transportation equipment manufacturing, and in fabricated metal product manufacturing industries, reducing affiliates' share of manufacturing employment from 10.4 percent to 6.3 percent. In Illinois, reductions by affiliates in transportation equipment manufacturing also accounted for much of the decrease; reductions by affiliates in the printing industry were also significant. These changes lowered affiliates' share of manufacturing employment in Illinois from 11.7 percent to 9.9 percent.

Expanded Information From the Benchmark Survey

The 2007 benchmark survey of foreign direct investment in the United States provides information on U.S. affiliate research and development (R&D), employment, and trade in goods that is collected only in benchmark surveys every 5 years. The data on affiliate R&D include expenditures broken down by source of funding--that is, according to whether the R&D is funded by the U.S. affiliates, by member firms of the affiliates' foreign parent groups, by the federal government, or by others. The data on affiliate employment include the number of employees that are covered by collective bargaining agreements (and thus are represented by unions). The data on trade in goods include exports and imports by country of destination or origin; they also include imports of goods by intended use--that is, whether the goods are intended for further manufacture, for resale without further manufacture, or as additions to the affiliates' capital stock.

Research and development

In 2007, expenditures for R&D performed by majority-owned U.S. affiliates totaled $39.8 billion; these expenditures accounted for 15 percent of the R&D performed by all U.S. businesses, a share substantially higher than the affiliate shares of value added or employment (table 9). In contrast to the slight decrease in affiliate employment between the benchmark survey years 2002 and 2007, the R&D of affiliates increased 45 percent, compared with a 39 percent increase in R&D of all U.S. businesses. Part of the increase was a result of acquisitions of R&D-performing companies by existing U.S. affiliates.

About three-fourths of the R&D performed by affiliates was accounted for by affiliates in manufacturing, mainly in the chemicals, transportation equipment, and Computer and electronic products industries (table 10). Most of the remaining R&D was performed by affiliates in wholesale trade, particularly affiliates with substantial secondary operations in manufacturing, information, or professional, scientific, and technical services.

In 2007, 84 percent of the total R&D performed by U.S. affiliates was performed for the affiliates themselves, and 5 percent was performed for the affiliates' foreign parent companies or other member companies of their foreign parent groups (see the box "Key Terms"). The remaining 11 percent was performed for the affiliates' foreign affiliates, for other private companies, or for the federal government. (9) The 84 percent share of affiliate R&D performed for the affiliates themselves was smaller than the share in 2002 (90 percent), partly because of an expansion in affiliate R&D performed for the federal government.

For affiliates in the information sector and in most manufacturing industries, more than 90 percent of the R&D was performed for internal use by the affiliates. In contrast, R&D for internal use accounted for less than 50 percent of the R&D performed by affiliates in transportation equipment, an industry that includes defense-related firms that performed R&D for the federal government.

R&D undertaken for the foreign parent group accounted for a substantial share of the R&D performed by affiliates classified in wholesale trade (17 percent), and also substantial for a number of affiliates in the pharmaceutical manufacturing industry.

Union-represented employment

In 2007, 12 percent of the employees of majority-owned U.S. affiliates were covered by collective bargaining agreements (table 11). In comparison, the union-represented share of employment by all U.S. businesses was 8 percent. For both U.S. affiliates and all U.S. businesses, the union-represented share of employment in 2007 was lower than it had been in the benchmark survey years 1997 or 2002, with the share for all U.S. businesses continuing a sustained downtrend.

U.S. affiliates accounted for 7.7 percent of the union-represented employment of all U.S. businesses in 2007, a share slightly smaller than the 8.2 percent share in 2002 but higher than the share in 1997 and well above the 4.6 percent affiliate share of total U.S. employment in total industries. The affiliate share of union-represented employment declined in 2002-2007 despite a 7 percent drop in the total number of union-represented employees in the United States, from 9.5 million employees in 2002 to 8.9 million employees in 2007. The union-represented employment of affiliates decreased at a faster pace of 12 percent, from 778,000 in 2002 to 685,000 in 2007, largely as a result of selloffs by affiliates of business units with large numbers of union-represented employees.

By industrial sector, affiliates in manufacturing accounted for about half of the union-represented employment of all U.S. affiliates in 2007 (table 12). The union-represented share of employment for affiliates in manufacturing was 17 percent, substantially higher than the union-represented share for all U.S. manufacturing businesses (12 percent). Among other sectors, the union-represented share of employment for affiliates was much higher than that for all U.S. businesses in retail trade (18 percent versus 6 percent) and in accommodation and food services (14 percent versus 2 percent), partly reflecting a tendency for foreign direct investment to be concentrated in large-scale enterprises (such as grocery store chains or large food catering companies) that generally have higher rates of unionization than small businesses.

Between 2002 and 2007, the union-represented share of affiliate employment declined substantially in retail trade (from 27 percent to 18 percent) and in transportation and warehousing (from 29 percent to 19 percent), mainly as a result of selloffs of foreign ownership interests in companies with large numbers of union-represented employees. Within manufacturing, the union-represented share of affiliate employment in transportation equipment dropped from 30 percent to 20 percent, also as a result of selloffs.

Trade in goods

In 2007, U.S. affiliates, accounted for 19 percent of U.S. exports of goods and for 27 percent of imports of goods (table 13). These shares are much larger than the affiliate shares of either value added or employment, reflecting both the general international orientation of foreign-owned companies and their production and distribution ties to their foreign parents. Much of the trade in goods by affiliates--nearly 50 percent of exports and about 80 percent of imports--is accounted for by intrafirm transactions between the affiliates and their foreign parents or other member companies of their foreign parent groups (see the box "Key Terms"). The intrafirm trade of U.S. affiliates has generally accounted for 8-10 percent of U.S. exports and for 20-25 percent of U.S. imports. (10)

Since the early 1990s, imports by U.S. affiliates have usually been at least twice as high as their exports, and the gap in earlier years was even larger. This trade gap for affiliates is substantially more pronounced than the gap between total U.S. imports and exports. The gap for affiliates is largely accounted for by wholesale trade affiliates, many of which were established to facilitate the import of goods manufactured abroad by their foreign parents. Since the late 1980s, the imports of wholesale trade affiliates have been 2 to 4 times as large as their exports, and these affiliates have consistently accounted for more than two-thirds of the total import-export gap for U.S. affiliates. (11) Most of the remaining gap is accounted for by manufacturing affiliates, some of which have secondary activities in wholesale trade and some of which import parts and components produced by their foreign parents.

Trade by country of destination and origin

Among the 28 largest U.S. trading-partner countries in 2007, the shares of U.S. exports and imports of goods accounted for by U.S. affiliates varied widely. For exports, the affiliate shares ranged from just under 40 percent for U.S. exports to Switzerland and Japan to less than 4 percent for U.S. exports to Israel and Saudi Arabia (table 14). In addition to Switzerland and Japan, affiliates accounted for relatively large shares of U.S. exports to Germany (28 percent), Italy (26 percent), and the United Kingdom (25 percent).

For imports, the affiliate shares ranged from more than 90 percent for U.S. imports from Japan to less than less than 3 percent for U.S. imports from Ireland. (12) Affiliates accounted for nearly 70 percent of U.S. imports from Korea and also accounted for majority shares of U.S. imports from Switzerland (66 percent) and Germany (56 percent). The variation in the affiliate shares of U.S. exports and imports among major trading partners was similarly large in the benchmark survey years 1997 and 2002.

Affiliate exports. In terms of dollar levels, the largest destination country for U.S. affiliate exports in 2007 was Canada ($29.7 billion), followed by Japan ($24.3 billion), Mexico ($17.0 billion), and Germany ($14.1 billion) (chart 3).

For Canada and Mexico, the affiliate exports were predominantly shipments by affiliates with UBOs in other countries: only 13 percent of U.S. affiliate exports to Canada were shipped by Canadian-owned affiliates, and only 4 percent of U.S. affiliate exports to Mexico were shipped by Mexican-owned affiliates (table 15). About half of the affiliate exports to Canada were by Japanese- and German-owned affiliates, most notably affiliates in motor vehicle manufacturing or wholesale trade. Affiliates with UBOs in Germany, Japan, and the Netherlands collectively accounted for about two-thirds of the affiliate exports shipped to Mexico. The exports to Mexico by German-owned affiliates were predominantly by manufacturing affiliates in the motor vehicles and chemicals industries. The exports by Japanese-owned affiliates were mainly by affiliates in motor vehicle manufacturing or wholesale trade, and the exports by Netherlands-owned affiliates were mainly by affiliates in petroleum-related industries.

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Most of the affiliate exports to Japan and Germany were by affiliates with UBOs in Japan and Germany: Japanese-owned affiliates accounted for 86 percent of U.S. affiliate exports to Japan, and German-owned affiliates accounted for 79 percent of U.S. affiliate exports to Germany. As in 1997 and 2002, the exports to Japan by Japanese-owned affiliates mainly consisted of intrafirm shipments by wholesale trade affiliates of Japanese trading companies, which historically have mediated much of the trade in raw materials and other bulk commodities between the United States and Japan. The exports to Germany by German-owned affiliates were largely intrafirm shipments by affiliates in motor vehicle manufacturing or wholesale trade.

Although German-owned affiliates accounted for more than three-fourths of U.S. affiliate exports to Germany, exports to Germany made up only 28 percent of the total exports by German-owned affiliates (table 16). Slightly more than a quarter of the exports by German-owned affiliates were shipped to Canada and Mexico, and another fifth were shipped to other European countries. Exports to Japan accounted for 40 percent of the total exports by Japanese-owned affiliates, and exports to Canada and Mexico accounted for another 23 percent. Among affiliates of the other major UBO countries in terms of affiliate trade, the share of affiliate exports accounted for by exports shipped to the country of UBO ranged from 54 percent for Korean-owned affiliates to only 13 percent for Netherlands-owned affiliates.

Affiliate imports. The largest source country for U.S. affiliate imports in 2007 was Japan ($139.5 billion), followed by Canada ($71.1 billion), Germany ($53.2 billion), and Korea ($32.9 billion) (chart 4).

Almost all of the affiliate imports from Japan, Germany, and Korea were imports by affiliates with UBOS in the respective source country: Japanese-owned affiliates accounted for 99 percent of U.S. affiliate imports from Japan, German-owned affiliates accounted for 93 percent of U.S. affiliate imports from Germany, and Korean-owned affiliates accounted for 93 percent of U.S. affiliate imports from Korea (table 15). For Japan and Korea, the affiliate imports were predominantly intrafirm imports by wholesale trade affiliates of Japanese- or Korean-owned manufacturing companies producing motor vehicles or electronic products. The affiliate imports from Germany mainly consisted of intrafirm shipments by German motor vehicle manufacturers to their U.S. affiliates in motor vehicle manufacturing or wholesale trade.

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The distribution of U.S. affiliate imports from Canada by country of ownership was less concentrated, with no single investing country accounting for a majority share. Canadian-owned affiliates accounting for the largest share of affiliate imports from Canada (44 percent), followed by Japanese-owned affiliates (23 percent). The imports by Canadian-owned affiliates were mainly intrafirm shipments to affiliates in petroleum-related industries, whereas most of the imports by Japanese-owned affiliates were intrafirm imports by affiliates in motor vehicle manufacturing or wholesale trade.

Shifting to an examination by country of ownership, the geographic pattern of affiliate imports among most of the major investing countries was highly concentrated, with shipments from the country of UBO accounting for a majority of imports by the investing country's U.S. affiliates (table 16). The home-country share of affiliate imports was particularly high for Canadian-owned affiliates (90 percent) and for Korean-owned affiliates (81 percent). For Netherlands-owned affiliates, however, the distribution of affiliate imports by source country was much more diversified, with imports from the Netherlands accounting for the largest share (18 percent), followed by imports from Canada (17 percent).

Imports by intended use

In 2007, imports of goods for resale without further manufacture accounted for close to 70 percent of the total imports shipped to U.S. affiliates, approximately the same share as in 2002 (table 17). Imports of goods for further manufacture by the affiliates accounted for almost all of the remaining imports, with imports of capital equipment accounting for a negligible share.

The overall pattern in the intended use of imports for U.S. affiliates reflects the dominance of affiliate import activity by wholesale trade affiliates, which accounted for nearly 60 percent of affiliate imports in 2007. In both 2002 and 2007, 90 percent of the imports by wholesale trade affiliates were goods for resale without further manufacture.

For affiliates in manufacturing, goods intended for further manufacture by the affiliates accounted for 65 percent of affiliate imports in 2007. Within manufacturing, goods for further manufacture accounted for more than 70 percent of the imports by affiliates in the paper, chemicals, and computer and electronic products industries. Measured by their share of affiliate sales, imports for further manufacture were utilized most extensively by affiliates in computers and electronic products (21 percent) (table 18).

Revisions

The statistics of U.S. affiliate operations in 2007 presented in this article are preliminary. The estimates for employment, sales, and expenditures for property, plant, and equipment supersede the advance summary estimates for majority-owned nonbank affiliates that were released on April 17, 2009 (BEA news release 09-14). From the advance estimates to the preliminary estimates, the estimate of employment was revised up 1.8 percent, the estimate of sales was revised up 4.5 percent, and the estimate of capital expenditures was revised up 2.4 percent.

The final estimates of U.S. affiliate operations in 2006 are also presented. The final estimates for employment, sales, and expenditures for property, plant, and equipment supersede the advance summary estimates for majority-owned affiliates from the April release and the preliminary estimates that were released in August 2008. (13) From the estimates released in April to these final estimates, the estimate of employment was revised up 0.4 percent, the estimate of sales was revised up 0.6 percent, and the estimate of capital expenditures was revised down 0.3 percent. From the preliminary estimates to the final estimates, the estimate of employment was revised up 0.1 percent, the estimate of sales was revised up 1.0 percent, and the estimate of capital expenditures was revised up 0.8 percent.

Acknowledgments

The 2007 Benchmark Survey of Foreign Direct Investment in the United States was conducted under the direction of Patricia E. Abaroa. Charles R. Gravitz supervised the processing of the survey. The following staff contributed to the processing and editing of the survey reports: George M. Bogachevsky, Chester Braham, Carmene T. Brown, Polly Y. Cheung, Karen M. Dennison, Constance T. Deve, Jessica M. Hanson, Lonnie Hunter, Nazre Jamil, Julie A. Lampe, Marites R. Lucero, Emelia A. Marfo-Sarbeng, Demetria A. McCormick, Gregory L. McCormick, Sreedhar Pidathala, Makia M. Riley, Ronald L. Ross, Clarence D. Smith, John R. Starnes, Christopher J. Stein, and Daniel K. Wakjira.

Computer programming for data estimation and for the generation of tables was provided by Ian Dusenberry, Karen E. Poffel, Neeta B. Kapoor, and Gary Sowers.

Key Terms

The following key terms are used to describe U.S. affiliates of foreign companies and their operations.

U.S. affiliate. A U.S. business enterprise in which there is foreign direct investment--that is, in which a single foreign person owns or controls, directly or indirectly, 10 percent or more of the voting securities of an incorporated U.S. business enterprise or an equivalent interest in an unincorporated U.S. business enterprise. Person is broadly defined to include any individual, corporation, branch, partnership, associated group, association, estate, trust, or other organization and any government (including any corporation, institution, or other entity or instrumentality of a government). A "foreign person" is any person that resides outside the United States--that is, outside the 50 states, the District of Columbia, the Commonwealth of Puerto Rico, and all U.S. territories and possessions.

Majority-owned U.S. affiliate. A U.S. affiliate that is owned more than 50 percent by foreign direct investors.

Foreign parent. The first person outside the United States in a U.S. affiliate's ownership chain that has a direct investment interest in the affiliate.

Ultimate beneficial owner (UBO). That person, proceeding up a U.S. affiliate's ownership chain, beginning with and including the foreign parent, that is not owned more than 50 percent by another person. Unlike the foreign parent, the UBO of an affiliate may be located in the United States. The UBO of each U.S. affiliate is identified to ascertain the person that ultimately owns or controls the U.S. affiliate and that therefore ultimately derives the benefits from ownership or control.

Foreign parent group. Consists of (1) the foreign parent, (2) any foreign person, proceeding up the foreign parent's ownership chain, that owns more than 50 percent of the person below it, up to and including the UBO, and (3) any foreign person, proceeding down the ownership chain(s) of each of these members, that is owned more than 50 percent by the person above it.

Value added. The contribution to U.S. gross domestic product, which is the market value of the goods and services produced by labor and property located in the United States. Value added can be measured as gross output (sales or receipts and other operating income plus inventory change) minus intermediate inputs (purchased goods and services). Alternatively, it can be measured as the sum of the costs incurred (except for intermediate inputs) and the profits earned in production. The value-added estimates for U.S. affiliates were prepared by summing cost and profit data collected in the annual and benchmark surveys of foreign direct investment in the United States. The estimates are measures of gross value added rather than measures of net value added because they are calculated without the deduction for the consumption of fixed capital used in production.

The estimates of value added of U.S. affiliates are conceptually consistent with BEA's estimates of U.S. value added by industry.

Data Availability

This article summarizes the preliminary statistics from the 2007 Benchmark Survey of Foreign Direct Investment in the United States. More detailed statistics will be posted this fall in files that can be downloaded at no charge from BEA's Web site. Detailed statistics of U.S. affiliate operations for 1977-2007 are also available on BEA's Web site, For more information on these statistics and how to access them, see www.bea.gov/international/index.htm.

The 2007 Benchmark Survey

Benchmark surveys are BEA's most comprehensive surveys of foreign direct investment, in terms of both coverage of companies and the amount of information collected. The 2007 Benchmark Survey of Foreign Direct Investment in the United States covered all U.S. affiliates of foreign direct investors. It collected detailed information on the financial structure and operations of U.S. affiliates and on the transactions and positions between the U.S. affiliates and their foreign parents.

The concepts and definitions underlying the 2007 survey are essentially the same as those underlying the previous benchmark survey, which covered 2002. The methodology of the 2007 survey will be published with the final survey results.

The financial and operating data from the benchmark survey extend the universe statistics that begin with the statistics for 1977 and that are derived from both annual and benchmark surveys. In addition, the benchmark survey data will be used in preparing annual statistics in subsequent nonbenchmark years; these annual statistics are derived by extrapolating forward the benchmark survey data by the sample data reported in BEA's annual surveys of foreign direct investment in the United States.

The 2007 benchmark survey initiates several improvements in BEA's presentation of statistics on the operations of U.S. affiliates. Beginning with the 2007 statistics in this article, the statistics on value added by majority-owned U.S. affiliates cover bank as well as nonbank affiliates. This change is a result of a major expansion in the amount of information collected on a separate form for bank affiliates (which now includes all of the data items needed to compute value added). In the past, bank affiliates reported only a very limited amount of information on their operations, and only in benchmark surveys. Beginning with 2008, financial and operating data for bank affiliates are being collected annually at the same level of detail as the data for nonbank affiliates.

In addition to the expanded information on the operations of bank affiliates, the benchmark survey collected new detail on affiliates' R&D expenditures, trade in goods, and employment and compensation of employees. For affiliate R&D broken down by source of funding, the benchmark survey collected new information on R&D performed for the affiliates' foreign parent groups and for their foreign affiliates. For affiliate trade in goods by country of destination and origin, country-level information on trade with the affiliates' foreign parent groups was supplemented with new information on trade with foreign affiliates of the U.S. affiliate. Finally, for employment and for compensation of employees, new detail was collected for two occupational groupings: managerial, professional, and technical employees and all other employees.

Many of the data items for affiliates that are collected in the benchmark surveys are also collected in annual surveys, but some items are collected only in benchmark surveys. These items include detailed data on R&D by source of funding, the number of employees covered by collective bargaining agreements, U.S. exports and imports of goods by country of destination or origin, U.S. imports of goods by intended use, and employment and compensation of employees by occupational group.

As in previous benchmark surveys, large majority-owned affiliates were required to report more detailed data. However, to align the information requested on the survey with the resources available to process it and to reduce the burden on respondents, a new survey form, the miniform, was introduced in the 2007 benchmark survey, and the thresholds for reporting on the longer survey forms were raised.

Every U.S. affiliate was required to report in the benchmark survey for 2007. In order to minimize the reporting burden of small enterprises, nonbank affiliates that did not have assets, sales, or net income of more than $15 million were only required to report some basic identification information and a few items indicating affiliate size--including assets, sales, net income, and employment--on the abbreviated miniform. Nonbank affiliates with assets, sales, or net income greater than $15 million but not greater than $40 million were required to file a complete miniform, which requested additional information on a few other measures of affiliate operations, including employee compensation, R&D expenditures, and expenditures for property, plant, and equipment. Together, affiliates that filed the miniform accounted for a very small share of the data for all affiliates in terms of value: they accounted for 0.2 percent of the total assets, 0.7 percent of the sales, and 1.4 percent of the employment of all affiliates.

A long form that requested detailed information for nonbank affiliates was filed only by majority-owned affiliates with assets, sales, or net income of more than $175 million. The size threshold for reporting on the long form had been $125 million in the 2002 benchmark survey; it was raised in order to reduce the burden on respondents. Smaller majority-owned affiliates with assets, sales, or net income between $40 million and $175 million filed the short form; in the 2002 benchmark survey, majorityowned affiliates filed on the short form if they had assets, sales, or net income between $30 million and $125 million. For those majority-owned affiliates not required to file a long form, BEA estimated the items that are only on the long form, so that the published results could be presented in the same detail for all majority-owned affiliates. The short form was also filed by all minority-owned nonbank affiliates (that is, by affiliates that were owned 50 percent or less by foreign direct investors) with assets, sales, or net income of more than $40 million; because the estimates of items that are only on the long form are not prepared for these affiliates, the published results for all affiliates cover only the items that are on the short form.

The preliminary results from the benchmark survey include estimates of data for reports that could not be fully processed in time for publication (these data account for less than 10 percent of total assets for all reports received). The final results will incorporate data from the reports that are received and processed after the publication of the preliminary results. Revisions are generally expected to be modest, but they could be sizable for some countries, industries, states, or items.

Using Employment Data to Estimate Affiliate Shares of the U.S. Economy by Industry

The data on employment are used to estimate affiliate shares of the U.S. economy by industry on the basis of the North American Industry Classification System (NAICS) because these data can be disaggregated by industry of sales, a basis that approximates the disaggregation of the data for all U.S. businesses by industry of establishment. (1) Thus, using the data on affiliate employment, the affiliate shares of the U.S. economy can be calculated at a greater level of industry detail than is possible using the value-added estimates or other data, which can only be disaggregated on the basis of industry of affiliate. (2)

In the classification by industry of sales, the data on affiliate employment and sales are distributed among all of the industries in which the affiliate reports sales. As a result, employment classified by industry of sales should approximate that classified by industry of establishment (or plant), because an affiliate that has an establishment in an industry usually also has sales in that industry. (3)

In contrast, in the classification by industry of affiliate, all of the operations data (including the employment data) for an affiliate are assigned to that affiliate's "primary" industry--that is, the industry in which it has the most sales. (4) As a result, any affiliate operations that take place in secondary industries will be classified as operations in the primary industry.

(1.) The data for all U.S. businesses used to compute the affiliate shares of employment by NAICS industry are from the national income and product accounts (see table 6, footnote 1).

(2.) Establishment-level data from a joint project of BEA and the Census Bureau can be used to calculate affiliate shares at an even greater level of detail. For affiliate shares based on establishment data for six-digit manufacturing and five-digit nonmanufacturing NAICS industries for 2002, see Foreign Direct Investment in the United States: Establishment Data for 2002 at www.bea.gov/scb/account_articles/ international/iidguide.htm#page15. Similar data oil a NAICS basis are available for 1997 and data on a Standard Industrial Classification basis are available for 1987 and 1992. Data only for manufacturing industries are available for 1988-91. The data for foreign-owned establishments are analyzed in SURVEY articles at www.bea.gov/scb/account_artictes/ international/iidguide.htm#page15.

(3.) However, this is not the case if one establishment of an affiliate provides all of its output to another establishment of that affiliate. For example, if an affiliate operates both a metal mine and a metal-manufacturing plant and if the entire output of the mine is used by the manufacturing plant, all of the affiliate's sales would be in metal manufacturing, and none, in metal mining. Thus, when the affiliate's employment is distributed by industry of sales, all of it would be classified in manufacturing, even though some of the employees work in an establishment in mining.

(4.) An affiliate's primary industry is based on a breakdown of the affiliate's sales by BEA's NAICS-based International Surveys Industry classification.

Data on Foreign Direct Investment in the United States

BEA collects three broad sets of data on foreign direct investment in the United States: (1) financial and operating data of U.S. affiliates, (2) data on U.S. businesses newly acquired or established by foreign direct investors (new investment data), and (3) international transactions (balance of payments) and direct investment position data. This article presents the financial and operating data. The new investment data were published in "Foreign Direct Investment in the United States: New Investment in 2008" in the June 2009 issue of the SURVEY OF CURRENT BUSINESS. The international transactions and direct investment position data were published in the articles "The International Investment Position of the United States at Yearend 2008" and "Direct Investment Positions for 2008: Country and Industry Detail" in the July 2009 SURVEY, and "U.S. International Transactions: Second Quarter of 2009" in the October 2009 SURVEY.

Each of the three data sets focuses on a distinct aspect of foreign direct investment. The financial and operating data provide a picture of the overall activities of the U.S. affiliates; the new investment data provide information about U.S. businesses that are newly acquired or established by foreign direct investors, regardless of whether the invested funds were raised in the United States or abroad; and the international transactions and direct investment position data cover foreign investors' transactions with, and positions in, both new and existing U.S. affiliates. (1)

Financial and operating data of U.S. affiliates. The data on the overall operations of U.S. affiliates are collected in BEA's annual and benchmark surveys of foreign direct investment. Benchmark surveys are BEA's most comprehensive surveys of foreign direct investment in terms of both coverage of companies and subject matter and are conducted every 5 years. The data cover U.S. affiliates' balance sheets and income statements, employment and compensation of employees, trade in goods, research and development expenditures, sources of finance, and selected data by state. In addition, the value added of affiliates is estimated from data reported in these surveys.

Except in benchmark survey years, these data, unlike the new investment data, covered only nonbank affiliates. However, beginning with the annual survey for 2008, bank affiliates will also be covered in these data. The financial and operating data for affiliates are on a fiscal year basis. The data cover the entire operations of the U.S. affiliate regardless of the percentage of foreign ownership.

New investment data. The data on outlays by foreign direct investors to acquire or establish affiliates in the United States were collected on a calendar year basis in BEA's annual survey of new foreign direct investment. In addition, the surveys of new investment collected selected data on the operations of the newly acquired or established affiliates. For newly acquired affiliates, these data were for (or as of the end of) the most recent fiscal year preceding the acquisition, and for newly established businesses, they were projected for (or as of the end of) the first year of operation. The data covered the entire operations of the business irrespective of the percentage of foreign ownership. BEA eliminated the survey of new foreign direct investment in the United States after 2008, so this data set ends with that year. BEA currently is redesigning the survey of new foreign investments to better capture greenfield investment; the launch of this new survey is contingent on funding.

International transactions and direct investment position data. These data are collected in the quarterly surveys of foreign direct investment. The data cover the U.S. affiliate's transactions and positions with its foreign parent and with other members of its foreign parent group, so these data focus on the foreign parent's share, or interest, in the affiliate rather than on the affiliate's overall size or level of operations. The major items included in the U.S. international transactions (balance of payments) accounts are direct investment financial flows, and direct investment income.

(1.) For a more detailed discussion of the differences between these three sets of data, see Alicia M. Quijano, "A Guide to BEA Statistics on Foreign Direct Investment in the United States," SURVEY 70 (February 1990): 29-37.

For a comparison of the data on affiliate operations with the data on new investment, see the appendix "Sources of Data" in Mahnaz FahimNader and William J. Zeile, "Foreign Direct Investment in the United States: New Investment in 1994 and Affiliate Operations in 1993," SURVEY 75 (May 1995): 68-70.

Reduction in Data Available for U.S. Affiliates

In order to align its programs with the available resources, BEA has reduced the detail and modified the reporting criteria on the annual survey of the operations of U.S. affiliates of foreign multinational companies. Effective with the data year 2008, some data items have been dropped from the survey, reporting thresholds have been raised, and statistical sampling has been expanded.

In conjunction with these changes, the level of detail in BEA's standard presentations of data by industry of affiliate and by country of UBO is being reduced to ensure that the published statistics continue to meet standards for statistical quality. The new presentations by industry and country take effect with the published tables for the benchmark survey year 2007 (see tables 19.2 and 20.2).

Although future statistics on U.S. affiliates will be less detailed than before, key data series will be maintained, including those on employment, value added, trade in goods, R&D expenditures, and services supplied by affiliates.

(1.) In previous presentations, the focus was on nonbank affiliates, as information on bank affiliate operations was limited to employment and a few other data items collected only in benchmark survey years. In the 2007 benchmark survey, the data collection for bank affiliates was expanded to cover several core data items, including all of the items needed to compute affiliate value added.

(2.) This article focuses on the operations of U.S. affiliates that are majority owned by foreign direct investors. BEA also collects data on the operations of U.S. affiliates that are owned 50 percent or less by foreign direct investors; however, the data for these affiliates are less extensive than those for majority-owned affiliates. Selected data on the operations of all (majority-owned and minority-owned) U.S. affiliates are presented in tables that can be accessed on BEA's Web site at www.bea.gov/international/dilfdiop.htm. Majority-owned companies account for most of the foreign direct investment activity in the United States. In 2007, majority-owned U.S. affiliates accounted for 92 percent of the employment of all U.S. affiliates.

(3.) In the annual surveys for 2008 forward, the data for bank and nonbank affiliates will be collected at the same level of detail for all data items.

(4.) Because U.S. affiliates tend to be concentrated in industrial sectors with relatively high value added per employee (such as manufacturing and wholesale trade), their share of U.S. employment is lower than their share of U.S. value added.

(5.) According to data from BEA's survey of new foreign investments, outlays by foreign direct investors to acquire or establish businesses in the United States between 1998 and 2002 totaled $1,027 billion. Between 2003 and 2007, these outlays were $493 billion. The highest outlays--S275 billion and $336 billion--were recorded in 1999 and 2000, respectively. See Thomas Anderson, "Foreign Direct Investment in the United States: New Investment in 2008," SURVEY OF CURRENT BUSINESS 89 (June 2009): 54-61.

(6.) During previous benchmark surveys (1980, 1987, 1992, 1997, and 2002) a limited number of data items were collected from bank affiliates. The 2007 benchmark survey is the first in which sufficient data have been collected to allow the calculation of value added by bank affiliates.

(7.) The inclusion of bank affiliates in these data is responsible for German-owned affiliates constituting the second-largest share of affiliate value added. Among nonbank affiliates, the rankings of Japanese-owned affiliates and German-owned affiliates were reversed.

(8.) In these situations, sometimes referred to as "corporate inversions," the U.S. corporation formed a corporation in a foreign country and simultaneously inverted its ownership structure, so that the U.S. corporation is now a U.S. affiliate of a foreign UBO.

(9.) The benchmark survey collected separate breakdowns of U.S. affiliate R&D performed for the federal government, for foreign affiliates owned by the U.S. affiliate, and for others under contract. Because the data totals for affiliate R&D performed for the federal government and for foreign affiliates are each dominated by a very small number of affiliates, they cannot be shown separately without disclosing information on individual companies.

(10.) A portion of the remaining trade is intrafirm trade of U.S. multinational companies (MNCs), that is, trade between U.S. parent companies and their majority-owned foreign affiliates. Together, the intrafirm trade of foreign-owned U.S. affiliates and the intrafirm trade of U.S. MNCs accounted for 27 percent of U.S. exports and for 35 percent of U.S. imports in 2007.

For further information and analysis on intrafirm trade see William J. Zeile, "Trade in Goods Within Multinational Companies: Survey-Based Data and Findings for the United States of America" (paper prepared for the Organisation for Economic Co-operation and Development Committee on Industry and Business Environment Working Party on Statistics, Session on Globalisation, Paris, November 3-4, 2003); www.bea.gov/papers/ index.htm.

(11.) Although wholesale trade affiliates have consistently accounted for a dominant share of the affiliate import-export gap, their shares of both affiliate exports and imports have declined since the late 1980's. Their share of affiliate exports declined to 37 percent in 2007 from 66 percent in 1987, and their share of affiliate imports declined to 59 percent in 2007 from 78 percent in 1987. One reason for this change is the reorientation of some wholesale trade affiliates from the import of manufactured goods for sale in the United States to the manufacture of goods at U.S. facilities.

(12.) The figure shown in table 14 for the affiliate share of U.S. imports from Japan (96 percent) may be slightly overstated because of a mismatch in timing between the import data for U.S. affiliates (which are reported on a fiscal year basis) and the data for total U.S. imports from Japan (which are for the calendar year 2007). About three-fourths of the total for U.S. affiliate imports from Japan is accounted for by Japanese-owned affiliates with a fiscal year ending in March 2007, so most of these imports probably were shipped some time in the calendar year 2006. Because total U.S. imports from Japan were 2 percent higher in 2006 than in 2007, the share of U.S. imports from Japan accounted for by imports shipped to affiliates in the calendar year 2007 is probably lower than the figure calculated.

(13.) See Thomas W. Anderson, "U.S. Affiliates of Foreign Companies: Operations in 2006," SURVEY 88 (August 2008): 186-203.

Table 1. Value Added and Employment of Majority-Owned U.S.
Affiliates of Foreign Companies, 1997, 2002, and 2007

             Value added                   Employment

                         As a                         As a
                     Percentage of                Percentage of
                     U.S. Private                 U.S- Private
        Millions       industry      Thousands      industry
       of dollars     value added    of workers    employment

1997           n.a.            n.a.     4,372.4             4.1
2002           n.a.            n.a.     5,570.4             4.9
2007       657,558             6.0      5,519.5             4.6

n.a. Not available

NOTES. For improved comparability with U.S.-affiliate value added,
U.S. private industry value added was adjusted to exclude value added
in private households, imputed rental income from owner-occupied
housing, and business transfer payments.

For the latest estimates of U.S. private industry value added, see
Donald D. Kim, Brian M. Lindberg, and Justin M. Monaldo, "Annual
Industry Accounts: Advance Statistics on GDP by Industry for 2008"
SURVEY OF CURRENT BUSINESS 89 (May 2009): 22-37.

For improved comparability with U.S.-affiliate employment, U.S.
private industry employment was adjusted to exclude employment in
private households.

For consistency with the coverage of the data on U.S. private industry
employment, U.S.-affiliate employment in Puerto Rico, in "other U.S.
areas," and in foreign" was excluded from the U.S.-affiliate totals
when the employment shares were computed.

Table 2. Value Added and Employment of Majority-Owned Nonbank U.S.
Affiliates of Foreign Companies, 1988-2007

                  Value added                     Employment

                         As a percentage                As a percentage
                        of U.S. private                of U.S. private
            Millions       industry       Thousands       industry
           of dollars     value added     of workers     employment

1988          146,424               3.8        3,119               3.5
1989          168,547               4.0        3,573               3.9
1990          190,477               4.3        3,842               4.2
1991          207,126               4.6        3,991               4.4
1992          214,781               4.5        3,904               4.3
1993          223,008               4.4        3,852               4.1
1994          244,690               4.5        3,954               4.1
1995          254,938               4.5        4,023               4.0
1996          283,422               4.7        4,156               4.1
1997          313,655               4.9        4,269               4.1
1998          353,860               5.2        4,670               4.3
1999          397,295               5.6        5,064               4.6
2000          447,287               5.9        5,657               5.0
2001          417,122               5.4        5,594               4.9
2002          460,609               5.8        5,425               4.9
2003          475,062               5.7        5,244               4.7
2004          511,474               5.7        5,132               4.5
2005          549,569               5.8        5,202               4.5
2006 (r)      616,317               6.1        5,334               4.6
2007 (p)      627,981               6.0        5,347               4.5

Percent change from preceding year:

1989             15.1               ...         14.6               ...
1990             13.0               ...          7.5               ...
1991              8.7               ...          3.9               ...
1992              3.7               ...         -2.2               ...
1993              3.8               ...         -1.3               ...
1994              9.7               ...          2.7               ...
1995              4.2               ...          1.7               ...
1996             11.2               ...          3.3               ...
1997             10.7               ...          2.7               ...
1998             12.8               ...          9.4               ...
1999             12.3               ...          8.5               ...
2000             12.6               ...         11.7               ...
2001             -6.7               ...         -1.1               ...
2002             10.4               ...         -3.0               ...
2003              3.1               ...         -3.3               ...
2004              7.7               ...         -2.2               ...
2005              7.4               ...          1.4               ...
2006 (r)         12.1               ...          2.5               ...
2007 (p)          1.9               ...          0.2               ...

(p) Preliminary

(r) Revised

NOTES. For improved comparability with U.S.-affiliate value added,
U.S. private industry value added was adjusted to exclude value added
in depository institutions and private households, imputed rental
income from owner-occupied housing, and business transfer payments.

For the latest estimates of U.S. private industry value added, see
Donald D. Kim, Brian M. Lindberg, and Justin M. Monaldo, "Annual
Industry Accounts: Advance Statistics on GDP by Industry for 2008"
SURVEY OF CURRENT BUSINESS B9 (May 2009): 22-37.

For improved comparability with U.S.-affiliate employment, U.S.
private industry employment was adjusted to exclude employment in
depository institutions and private households.

For consistency with the coverage of the data on U.S. private industry
employment, U.S.-affiliate employment in Puerto Rico, in "other U.S.
areas," and in "foreign" was excluded from the U.S.-affiliate totals
when the employment shares were computed.

Table 3. Value Added of Majority-Owned U.S. Affiliates by Country of
Ultimate Beneficial Owner, 2007

                                    Millions       Percentage of
                                   of dollars   all-countries total

    All countries                     657,558                  100.0

Canada                                 64,861                    9.9

Europe                                412,330                   62.7
  Belgium                              10,193                    1.6
  Denmark                               3,791                    0.6
  Finland                               3,412                    0.5
  France                               60,733                    9.2
  Germany                              85,921                   13.1
  Ireland                               6,860                    1.0
  Italy                                 9,078                    1.4
  Netherlands                          43,639                    6.6
  Spain                                 3,656                    0.6
  Sweden                               12,253                    1.9
  Switzerland                          48,914                    7.4
  United Kingdom                      117,686                   17.9
  Other                                 6,193                    0.9

Latin America and Other Western
    Hemisphere                         49,637                    7.5
  Bermuda                              22,959                    3.5
  Mexico                                4,800                    0.7
  United Kingdom Islands,
    Caribbean                           5,683                    0.9
  Venezuela                             6,485                    1.0
  Other                                 9,712                    1.5

Africa                                  1,124                    0.2

Middle East                            15,663                    2.4
  Saudi Arabia                          8,854                    1.3
  Other                                 6,809                    1.0

Asia and Pacific                      104,925                   16.0
  Australia                            11,505                    1.7
  Japan                                81,475                   12.4
  Korea, Republic of                    3,006                    0.5
  Other                                 8,939                    1.4

United States                           9,018                    1.4

Table 4. Value Added of Majority-Owned U.S. Affiliates by Industry of
Ultimate Beneficial Owner, 2007

                                      Million           Percentage of
                                    of dollars   all-industries total

    All industries                     657,558                   100.0

Government and
  government-related entities           17,894                     2.7
Individuals, estates, and trusts        72,785                    11.1
Mining                                  26,158                     4.0
Manufacturing                          281,638                    42.8

Wholesale and retail trade              42,625                     6.5
Information                             24,514                     3.7
Finance and insurance                   75,364                    11.5
Professional, scientific, and
  technical services                    26,278                     4.0
Other                                   90,300                    13.7

Table 5. Value Added of Majority-Owned U.S. Affiliates by Industry of
Affiliate, 2007

                                     Millions           Percentage of
                                    of dollars   all-industries total

    All industries                     657,558                   100.0

Manufacturing                          272,898                    41.5
  Food                                  15,133                     2.3
  Beverages and tobacco products         9,091                     1.4
  coal products                         29,574                     4.5
  Chemicals                             65,994                    10.0
  Plastics and rubber products          10,973                     1.7
  Nonmetallic mineral products          21,117                     3.2
  Primary metals                        10,671                     1.6
  Fabricated metal products              7,235                     1.1
  Machinery                             23,461                     3.6
  Computers and electronic
    products                            13,792                     2.1
  Electrical equipment,
    appliances, and components           8,283                     1.3
  Transportation equipment              42,731                     6.5
  Other                                 14,844                     2.3

Wholesale                              962,241                    14.6
  Petroleum and petroleum
    products                            20,956                     3.2
  Other                                 75,268                    11.4

Retail trade                            32,800                     5.0
Information                             35,341                     5.4

Finance and insurance                   74,769                    11.4
  Depository institutions and
    bank holding companies              24,226                     3.7
  Finance (except depository
    institutions)                       27,612                     4.2
  Insurance                             22,931                     3.5

Real estate and rental and
  leasing                               15,488                     2.4
Professional, scientific, and
  technical services                    26,117                     4.0
Other industries                       103,920                    15.8

Table 6. Employment by Majority-Owned
U.S. Affiliates by Industry of Sales, 2002 and 2007

                                                       Thousands
                                                      of employees

                                                     2002      2007

      All industries (2)                            5,570.4   5,519.5

Agriculture, forestry, fishing, and hunting            10.3       8.7
Mining, excluding oil and gas extraction               79.8      78.7
Utilities                                              31.6      32.2
Construction                                           81.5      86.2

Manufacturing (3)                                   1,844.1   1,718.9

  Food and beverage and tobacco products              135.9     163.9
  Textile mills and textile product mills              18.3      12.7
  Apparel and leather and allied products               7.0       6.2
  Wood products                                        17.9      14.4
  Paper                                                41.7      32.1
  Printing and related support activities              50.6      33.3
  Petroleum and coal products (4)                      21.7      36.6
  Chemicals                                           264.9     236.5
  Plastics and rubber products                        121.6     101.4
  Nonmetallic mineral products                        117.2     129.8
  Primary metals                                       61.8      78.5
  Fabricated metal products                           103.4      89.6
  Machinery                                           172.0     144.5
  Computers and electronic products                   198.1     138.3
  Electrical equipment, appliances, and
    components                                        101.0      95.5
  Motor vehicles, bodies and trailers, and parts      268.5     236.3
  Other transportation equipment                       47.2      76.6
  Furniture and related products                       11.5      12.7
  Miscellaneous manufacturing                          83.9      80.1

Wholesale trade                                       438.6     422.2
Retail trade                                          605.4     555.0
Transportation and warehousing                        247.3     248.6
Information                                           206.4     203.2

Finance and insurance                                 375.7     361.2
  Depository credit intermediation (banking)          145.0     123.6
  Finance, except depository institutions             100.9     135.5
  Insurance carriers and related activities           129.8     102.1

Real estate and rental and leasing                     38.8      28.3
Professional, scientific, and technical services      215.7     332.7
Management of nonbank companies and enterprises         3.1       1.5
Administration, support, and waste management         547.9     473.4
Educational services                                    5.0       8.3
Health care and social assistance                     103.5      93.6
Arts, entertainment, and recreation                    33.6      18.0
Accommodation and food services                       326.1     335.7
Other services, except government                      27.8      97.1

Auxiliaries                                           313.6     382.7

Unspecified (5)                                        34.6      33.7

                                                    Percentage of
                                                      total U.S.
                                                      employment
                                                      in private
                                                    industries (1)

                                                     2002    2007

      All industries (2)                               4.9     4.6

Agriculture, forestry, fishing, and hunting            0.7     0.7
Mining, excluding oil and gas extraction              20.6    15.4
Utilities                                              5.3     5.8
Construction                                           1.2     1.1

Manufacturing (3)                                     11.9    12.2

  Food and beverage and tobacco products               7.7     9.7
  Textile mills and textile product mills              3.7     3.9
  Apparel and leather and allied products              1.7     2.5
  Wood products                                        3.1     2.8
  Paper                                                7.7     7.0
  Printing and related support activities              7.0     5.3
  Petroleum and coal products (4)                      9.0    14.0
  Chemicals                                           28.6    27.5
  Plastics and rubber products                        14.3    13.4
  Nonmetallic mineral products                        22.5    25.9
  Primary metals                                      12.2    17.3
  Fabricated metal products                            6.7     5.7
  Machinery                                           14.0    12.2
  Computers and electronic products                   13.2    10.8
  Electrical equipment, appliances, and
    components                                        20.3    22.3
  Motor vehicles, bodies and trailers, and parts      23.3    23.7
  Other transportation equipment                       7.0    10.7
  Furniture and related products                       1.9     2.4
  Miscellaneous manufacturing                         11.8    12.4

Wholesale trade                                        7.7     7.0
Retail trade                                           3.9     3.5
Transportation and warehousing                         5.8     5.4
Information                                            6.1     6.7

Finance and insurance                                  6.4     5.9
  Depository credit intermediation (banking)           7.5     6.0
  Finance, except depository institutions              5.4     7.7
  Insurance carriers and related activities            5.7     4.4

Real estate and rental and leasing                     1.8     1.3
Professional, scientific, and technical services       3.0     4.3
Management of nonbank companies and enterprises        0.2     0.1
Administration, support, and waste management          7.2     5.6
Educational services                                   0.2     0.3
Health care and social assistance                      0.7     0.6
Arts, entertainment, and recreation                    1.8     0.9
Accommodation and food services                        3.2     2.9
Other services, except government                      0.4     1.4

Auxiliaries                                            ...     ...

Unspecified (5)                                        ...     ...

(1.) The data on U.S. employment in private industries that were used
in calculating these percentages are classified by industry of
establishment. They are from table 6.4D of the "National Income and
Product Account (NIPA) Tables:' The total for U.S. employment in
private industries is equal to employment in private industries less
the employment of private households. The U.S. private-industry
employment totals used to calculate the affiliate shares in "all
industries" in this table differ from the U.S. employment totals used
to calculate affiliate shares in table 7; the latter are from BEA's
Regional Economic Information System. The estimates for table 6,
unlike those used for this table, exclude U.S. residents temporarily
employed abroad by U.S. businesses. They may also differ from NIPA
estimates used for "all industries" in this table because of different
definitions and revision schedules.

(2.) For consistency with the coverage of the data on U.S. employment
in private industries, U.S: affiliate employment in Puerto Rico, in
"other U.S. areas," and in "foreign" was excluded from the
U.S.-affiliate employment total when the percentage shares on this
line were computed. Data needed to make this adjustment are not
available for individual industries.

(3.) Total affiliate manufacturing employment and the shares of
all-U.S.-business manufacturing employment accounted for by affiliates
shown in this table differ from those shown in table 8. In this table,
employment is classified by industry of sales, and the total for
manufacturing includes some nonmanufacturing employees (see the box
"Using Employment Data to Estimate Affiliate Shares of the U.S.
Economy by Industry"), whereas in table 8, affiliate manufacturing
employment consists only of employees on the payrolls of manufacturing
plants. Data on the latter basis are not available for the industries
within manufacturing shown in this table. In addition, the total for
manufacturing in this table includes oil and gas extraction, which is
excluded from the fatal in table 8.

(4.) For both U.S. affiliates and all U.S. businesses, includes oil
and gas extraction. (See note below.)

(5.) This line includes employment for which U.S. affiliates did not
specify an industry of sales when they filled out their survey forms.
Affiliates that filed the long form (that is, affiliates with assets,
sales, or net income or loss greater than $175 million) had to specify
only their 10 largest sales categories, and affiliates that filed the
short form had to specify only their 4 largest sales categories.

NOTES. A significant portion of U.S.-affiliate employment in petroleum
and coal products is accounted for by integrated petroleum companies
that have, in addition to their manufacturing employees, substantial
numbers of employees in petroleum extraction; because these employees
cannot be identified separately, they are included in petroleum and
coal products manufacturing. For consistency, employees of affiliates
classified in the "ail and gas extraction without refining" industry
and employees of all U.S. businesses in oil and gas extraction are
also included in petroleum and coal products manufacturing rasher than
in mining.

Table 7. Employment by Majority-Owned
U.S. Affiliates by State, 2002 and 2007

                                                    Percentage of total
                                 Thousands           employment in the
                               of employees          state or area (1)

                            2002        2007        2002        2007

    Total (2)              5,570.4     5,519.5        5.0         4.7

New England                      M       377.9        (D)         6.1
  Connecticut                    M        99.0        (D)         6.6
  Maine                       31.7        27.7        6.2         5.3
  Massachusetts                  M       178.4        (D)         6.0
  New Hampshire                  K        37.5        (D)         6.6
  Rhode Island                   K        25.5        (D)         5.9
  Vermont                     11.1         9.8        (D)         3.7

Mideast                          M     1,070.4        (D)         5.6
  Delaware                    23.6        27.8        6.5         7.3
  District of Columbia        17.5        16.0        (D)         3.3
  Maryland                       M       106.1        (D)         4.9
  New Jersey                 230.1       225.3        6.7         6.5
  New York                   440.8       433.6        6.2         5.8
  Pennsylvania                   M       261.5        (D)         5.0

Great Lakes                      M       873.9        (D)         4.6
  Illinois                   281.5       268.1        5.4         5.1
  Indiana                    133.3       144.1        5.2         5.5
  Michigan                       M       150.4        (D)         4.1
  Ohio                       214.2       229.5        4.5         4.8
  Wisconsin                  107.1        81.8        4.4         3.3

Plains                       284.8       309.8        (D)         3.5
  Iowa                        36.6        43.5        3.0         3.3
  Kansas                      34.9        52.8        3.1         4.6
  Minnesota                   88.1        94.3        3.8         3.9
  Missouri                    91.5        81.2        3.9         3.4
  Nebraska                    18.7        23.7        2.4         2.9
  North Dakota                 7.4         7.8        (D)         2.7
  South Dakota                 7.6         6.4        2.4         1.9

Southeast                        M     1,348.3        (D)         4.7
  Alabama                     75.1        80.5        4.8         4.8
  Arkansas                    35.7        34.5        3.6         3.4
  Florida                    258.3       245.8        4.0         3.4
  Georgia                    191.4       177.0        5.7         5.0
  Kentucky                    88.5        90.0        5.9         5.7
  Louisiana                   50.5        52.4        3.2         3.3
  Mississippi                 25.8        24.5        2.8         2.6
  North Carolina                 M       211.7        (D)         6.0
  South Carolina             133.1       112.8        8.7         6.9
  Tennessee                  130.7       139.0        5.6         5.7
  Virginia                   142.2       157.0        4.9         5.0
  West Virginia               22.7        21.1        4.0         3.5

Southwest                    457.5       539.5        3.9         4.1
  Arizona                     57.6        72.3        3.0         3.1
  New Mexico                  13.0        16.1        2.2         2.4
  Oklahoma                    33.9        32.6        2.8         2.6
  Texas                      353.0       418.5        4.4         4.7

Rocky Mountain               136.9       149.7        (D)         3.5
  Colorado                    77.7        81.2        4.1         4.0
  Idaho                       12.5        13.7        2.6         2.4
  Montana                      5.9         7.7        1.8         2.1
  Utah                        32.3        36.6        3.5         3.4
  Wyoming                      8.5        10.5        (D)         4.6

Far West                         M       816.8        (D)         4.2
  Alaska                      12.6        11.7        5.7         4.8
  California                 635.3       605.6        5.0         4.6
  Hawaii                         K        30.8        (D)         5.9
  Nevada                      25.9        34.3        2.7         2.9
  Oregon                      51.3        44.3        3.8         2.9
  Washington                  84.7        90.1        3.8         3.6

Puerto Rico                   19.8        21.9       n.a.        n.a.
Other U.S. areas (3)          10.2        13.1       n.a.        n.a.
Foreign (4)                    0.3         0.2       n.a.        n.a.

D Suppressed to avoid disclosure of data of individual companies.

n.a. Not available

(1.) The data on employment in private industries used to calculate
the shares shown in this table are from BEA's Regional Economic
Information System. The totals are equal to employment in private
industries less employment of private households. The U.S. employment
totals used to calculate affiliate shares in this table differ from
those used for tables 1, 2 and 6, which are from tables 6.4D of the
"National Income and Product Accounts (NIPA) Tables." They differ from
the NIPA estimates of employment because by definition, they exclude
U.S. residents temporarily employed abroad by U.S. businesses. They
also may differ from the NIPA estimates because of different
definitions and revision schedules.

(2.) For consistency with the coverage of the private-industry
employment data, U.S.-affiliate employment in Puerto Rico, in "other
U.S. areas," and in foreign" was excluded from the U.S.-affiliate
employment total when the percentage shares on this line were
computed.

(3.) Consists of the U.S. Virgin Islands, Guam, American Samoa, and
all other outlying U.S. areas.

(4.) Consists of employees of U.S. affiliates working abroad.

NOTE. The following ranges are given in employment cells that are
suppressed. The size ranges are: A-1 to 499; F-500 to 999; G-1,000
to 2,499; H-2,500 to 4,999; I-5,000 to 9,999; J-10,000 to 24,999;
K-25,000 to 49,999; L-50,000 to 99,999; M-100,000 or more.

Table 8. Manufacturing Employment by Majority-Owned
U.S. Affiliates by State, 2002 and 2007

                                                    Percentage of total
                                                       manufacturing
                                 Thousands           employment in the
                               of employees          state or area (1)

                            2002        2007        2002        2007

    Total (2)              1,811.9     1,545.7       11.8        11.0

New England                  105.7        79.7       12.8        11.1
  Connecticut                 29.4        24.3       13.8        12.6
  Maine                        9.6         5.7       13.9         9.5
  Massachusetts               42.5        30.4       12.1        10.2
  New Hampshire               17.6        14.8       20.6        18.9
  Rhode Island                 4.1         2.2        6.5         4.2
  Vermont                      2.5         2.3        6.2         6.5

Mideast                      248.6       200.4        (D)        11.8
  Delaware                     8.1         6.5       21.9        19.6
  District of Columbia         0.7         0.4        (D)        24.7
  Maryland                    16.2        18.4       10.2        13.9
  New Jersey                  67.2        46.9       18.2        14.9
  New York                    67.2        54.1       10.2         9.7
  Pennsylvania                89.3        74.1       11.7        11.2

Great Lakes                  433.7       331.9       12.3        10.6
  Illinois                    88.8        67.1       11.7         9.9
  Indiana                     87.1        82.4       14.7        14.9
  Michigan                    93.6        55.9       12.3         8.9
  Ohio                       109.2        94.4       12.3        12.2
  Wisconsin                   55.0        32.0       10.4         6.3

Plains                       120.4       119.2        9.5         9.6
  Iowa                        20.2        22.1        8.8         9.5
  Kansas                      15.1        25.4        8.3        13.6
  Minnesota                   26.2        26.5        7.3         7.7
  Missouri                    42.4        29.4       13.0         9.7
  Nebraska                     7.8        11.3        7.3        11.0
  North Dakota                 4.0         2.3       16.5         8.7
  South Dakota                 4.7         2.2       12.1         5.3

Southeast                    533.7       461.9       14.0        13.5
  Alabama                     37.0        40.6       11.9        13.6
  Arkansas                    20.3        19.4        9.4        10.2
  Florida                     41.5        34.6       10.1         8.7
  Georgia                     68.8        51.3       14.4        11.8
  Kentucky                    53.9        48.1       19.4        18.7
  Louisiana                   16.9        14.7       10.4         9.3
  Mississippi                 12.7        10.1        6.7         5.9
  North Carolina              93.4        74.6       14.4        13.7
  South Carolina              70.8        54.4       24.2        21.6
  Tennessee                   67.6        68.0       15.7        17.8
  Virginia                    37.9        35.7       11.7        12.7
  West Virginia               12.9        10.5       18.6        17.6

Southwest                    136.9           M       10.3         (D)
  Arizona                     13.0        11.2        7.0         6.1
  New Mexico                   1.8         2.1        4.7         5.6
  Oklahoma                    14.5           J        9.5         (D)
  Texas                      107.6       104.4       11.3        11.1

Rocky Mountain                36.7        36.1        (D)         9.7
  Colorado                    19.9        17.8       11.9        12.0
  Idaho                        3.7         3.7        5.7         5.6
  Montana                      2.0         1.3        9.7         6.4
  Utah                         9.7        11.3        8.5         8.8
  Wyoming                      1.4         1.9        (D)        18.4

Far West                     187.2       177.1        8.5         8.6
  Alaska                       2.1         2.2       18.6        16.4
  California                 146.2       132.9        8.9         9.0
  Hawaii                       1.0         1.6        6.4        10.3
  Nevada                       4.7         5.9       10.9        11.6
  Oregon                      12.7        11.7        6.2         5.7
  Washington                  20.5        22.9        7.1         7.7

Puerto Rico                    8.5         8.4       n.a.        n.a.
Other U.S. areas (3)           0.5           G       n.a.        n.a.
Foreign (4)                    (*)         (*)       n.a.        n.a.

(*) More than zero and fewer than 50 employees.

(D) Suppressed to avoid disclosure of data of individual companies.

n.a. Not available

(1.) The data on employment in manufacturing used to calculate the
shares shown in this table are from BEA's Regional Economic
Information System. The U.S. manufacturing employment totals used to
calculate shares in this table differ from the NIPA data for
manufacturing used for table 6 (see footnote 1 to table 6).

(2.) Total affiliate manufacturing employment and the shares of
all-U.S.-business manufacturing employment accounted for by affiliates
in this table differ from those shown in table 6 (see footnote 3 to
table 6). For consistency with the coverage of the employment data for
all U.S. manufacturing plants, U.S. affiliate employment in Puerto
Rico, in "other U.S. areas," and in "foreign" was excluded from the
U.S.-affiliate total when the percentage shares on this line were
computed.

(3.) Consists of the U.S. Virgin Islands, Guam, American Samoa, and
all other outlying U.S. areas.

(4.) Consists of employees of U.S. affiliates working abroad.

NOTE. The following ranges are given in employment cells that are
suppressed. The size ranges are: A-1 to 499; F-500 to 999; G-1,000
to 2,499; H-2,500 to 4,999; I-5,000 to 9,999; J-10,000 to 24,999;
K-25,000 to 49,999; L-50,000 to 99,999; M-100,000 or more.

Table 9. Research and Development Performed by Majority-Owned
U.S. Affiliates and by All U.S. Businesses, 1997-2007

                   Millions of dollars
                                                    R&D by affiliates
                              R&D performed by      as a of percentage
          R&D performed           all U.S.           R&D by all U.S.
        by affiliates (1)      businesses (2)          businesses

1997         17,216                157,739                10.9
1998         22,375                169,180                13.2
1999         24,027                182,711                13.2
2000         26,180                199,539                13.1
2001         26,463                198,505                13.3
2002         27,507                193,868                14.2
2003         29,803                200,724                14.8
2004         30,083                208,301                14.4
2005         31,099                226,159                13.8
2006         34,625                247,669                14.0
2007         39,806                269,267                14.8

R&D Research and Development

(1.) For the years 1997-2006, data on U.S. affiliate R&D were
collected for nonbank affiliates only. Because bank affiliates do not
perform R&D, the data on R&D performed by affiliates in 1997-2006 are
comparable with the data on R&D performed by affiliates in 2007.

(2.) Data are from the National Science Foundation.

Table 10. Research and Development Performed by Majority-Owned
U.S. Affiliates, Industry of Affiliate by Source of Funding, 2007

                                  Millions of dollars

                                                For
                                Total        themelves

      All industries            39,806         33,505

Manufacturing                   30,640         26,252
  Chemicals                     16,260            (D)
    Of which:
    Pharmaceuticals and
      medicines                 14,859            (D)
  Machinery                      1,929            (D)
  Computers and
    electronic products          3,857            (D)
  Transportation
    equipment                    5,497          2,606
  Other                          3,097            (D)

Wholesale trade                  5,623            (D)

Information                      1,186          1,186

Professional, scientific,
  and technical services         1,780            (D)

Other industries                   577            (D)

                                  Millions of dollars

                               For the
                               foreign
                                Parent          For
                                group        others (1)

      All industries             2,109          4,192

Manufacturing                      (D)            (D)
  Chemicals                        (D)            (D)
    Of which:
    Pharmaceuticals and
      medicines                    (D)            (D)
  Machinery                          1            (D)
  Computers and
    electronic products              1            (D)
  Transportation
    equipment                       78          2,814
  Other                             11            (D)

Wholesale trade                    947            (D)

Information                          0              0

Professional, scientific,
  and technical services           (D)            (*)

Other industries                   (D)              4

                                              Percentage
                                          of industry total

                                              For the
                                              foreign
                                 For           Parent          For
                              themselves       group        others (1)

      All industries             84.2            5.3           10.5

Manufacturing                    85.7            (D)            (D)
  Chemicals                       (D)            (D)            (D)
    Of which:
    Pharmaceuticals and
      medicines                   (D)            (D)            (D)
  Machinery                       (D)            (*)            (D)
  Computers and
    electronic products           (D)            (*)            (D)
  Transportation
    equipment                    47.4            1.4           51.2
  Other                           (D)            0.3            (D)

Wholesale trade                   (D)           16.8            (D)

Information                     100.0            0.0            0.0

Professional, scientific,
  and technical services          (D)            (D)            (*)

Other industries                  (D)            (D)            0.8

                              Addendum:
                                 R&D
                              funded by
                              affiliates
                                 but
                              performed
                              by others

      All industries             1,068

Manufacturing                      874
  Chemicals                        (D)
    Of which:
    Pharmaceuticals and
      medicines                    (D)
  Machinery                          4
  Computers and
    electronic products            (D)
  Transportation
    equipment                      231
  Other                              6

Wholesale trade                    (D)

Information                          1

Professional, scientific,
  and technical services           (D)

Other industries                     3

(*) Less than $500,000 or less than 0.05 percent.

D Suppressed to avoid disclosure of data of individual companies.
R&D Research and Development

(1.) Includes R&D performed for the Federal Government, for foreign
affiliates of the U.S. affiliate, and for other private companies
under contract.

Table 11. Union-Represented Employment of Majority-Owned U.S.
Affiliates and of All U.S. Businesses, 1997, 2002, and 2007

                                            Employees represented
                                            by unions (thousands)

                                       1997        2002        2007

Majority-owned affiliates                600         778         685
All U.S. businesses (1)               10,255       9,535       8,870

Addendum:
  Union-represented employment of
    affiliates as a percentage of
    that of all U.S. businesses          5.8         8.2         7.7

                                              Union-represented
                                         employment as a percentage
                                             of total employment

                                       1997        2002        2007

Majority-owned affiliates              13.7        14.0        12.4
All U.S. businesses (1)                10.6         9.3         8.2

Addendum:
  Union-represented employment of
    affiliates as a percentage of
    that of all U.S. businesses         ...         ...         ...

(1.) Estimates by the Bureau of Labor Statistics based on household
survey data.

Table 12. Union-Represented Employment of Majority-Owned U.S.
Affiliates by Industry of Affiliate, 2002 and 2007

                                                        Thousands

                                                    Union-represented
                                                       employment

                                                   2002        2007

      All industries                               777.9       685.2

Manufacturing                                      398.8       341.2
  Of which:
    Transportation equipment                       114.5        80.3
Wholesale trade                                     24.9        31.9
Retail trade                                       158.3        96.5
Transportation and warehousing                      74.4        47.2
Administration, support, and waste management       13.0        50.4
Accommodation and food services                     48.0        51.3
Other industries                                    60.5        66.7

                                                        Thousands

                                                    Total employment

                                                   2002        2007

      All industries                              5,570.4     5,519.5

Manufacturing                                     2,236.4     1,998.2
  Of which:
    Transportation equipment                        386.8       408.3
Wholesale trade                                     517.9       620.3
Retail trade                                        581.8       534.5
Transportation and warehousing                      260.8       243.4
Administration, support, and waste management       517.1       536.5
Accommodation and food services                     329.0       361.8
Other industries                                  1,127.4     1,224.7

                                                    Union-represented
                                                     employment as a
                                                      percentage of
                                                    total employment

                                                   2002        2007

      All industries                                14.0        12.4

Manufacturing                                       17.8        17.1
  Of which:
    Transportation equipment                        29.6        19.7
Wholesale trade                                      4.8         5.1
Retail trade                                        27.2        18.1
Transportation and warehousing                      28.5        19.4
Administration, support, and waste management        2.5         9.4
Accommodation and food services                     14.6        14.2
Other industries                                     5.4         5.4

                                                        Addendum:
                                                    Union-represented
                                                    employment of all
                                                     U.S. businesses
                                                     as a percentage
                                                     of their total
                                                       employment

                                                   2002        2007

      All industries                                 9.3         8.2

Manufacturing                                       15.4        12.0
  Of which:
    Transportation equipment                        n.a.        n.a.
Wholesale trade                                      5.3         5.7
Retail trade                                         6.5         5.7
Transportation and warehousing                      25.8        22.3
Administration, support, and waste management        5.1         4.2
Accommodation and food services                      2.8         2.4
Other industries                                     8.5         8.0

n.a. Nat available

NOTE. The industries listed in this table include all of the
industrial sectors far which the number of affiliate employees
covered by collective bargaining agreements exceeded 30,000 in 2007.

Table 13. U.S. Trade in Goods by Majority-Owned U.S. Affiliates,
1987-2007

                               Millions of dollars

               U.S. exports of goods         U.S. imports of goods
               shipped by affiliates         shipped to affiliates

                           Of which:                     Of which:
                             To the                       From the
                            foreign         Total         foreign
              Total       parent group                  parent group

1987          39,497         18,677        133,620        102,167
1988          57,209         26,001        144,896        112,012
1989          72,413         33,778        158,792        122,899
1990          79,368         37,177        170,677        131,665
1991          85,254         41,373        169,362        128,143
1992          91,686         47,567        172,260        132,217
1993          94,329         46,241        186,369        144,698
1994         107,057         49,864        214,485        166,085
1995         121,277         55,842        232,250        182,148
1996         125,897         59,544        248,562        187,889
1997         128,394         61,288        249,310        193,969
1998         136,949         56,115        277,909        199,524
1999         140,808         58,385        312,895        225,132
2000         150,911         64,785        354,613        267,187
2001         145,525         64,442        333,855        260,633
2002         140,510         64,572        335,021        267,291
2003         147,643         71,188        356,756        290,492
2004         155,507         74,784        394,463        320,268
2005         174,318         80,815        448,911        359,059
2006 (r)     198,003         89,232        502,589        399,954
2007 (P)     215,554        106,088        533,430        426,813

               U.S. exports of goods         U.S. imports of goods
             shipped by affiliates as      shipped to affiliates as
               a percentage of total         a percentage of total
               U.S. exports of goods         U.S. imports of goods

                           Of which:                     Of which:
                             To the                       From the
                            foreign                       foreign
              Total       parent group      Total       parent group

1987           15.5           7.3            32.9           25.1
1988           17.7           8.1            32.9           25.4
1989           19.9           9.3            33.6           26.0
1990           20.2           9.4            34.5           26.6
1991           20.2           9.8            34.7           26.2
1992           20.5          10.6            32.3           24.8
1993           20.3           9.9            32.1           24.9
1994           20.9           9.7            32.3           25.0
1995           20.7           9.5            31.2           24.5
1996           20.1           9.5            31.3           23.6
1997           18.6           8.9            28.6           22.3
1998           20.1           8.2            30.5           21.9
1999           20.2           8.4            30.5           22.0
2000           19.3           8.3            29.1           21.9
2001           20.0           8.8            29.3           22.8
2002           20.3           9.3            28.8           23.0
2003           20.4           9.8            28.4           23.1
2004           19.0           9.1            26.8           21.8
2005           19.2           8.9            26.8           21.5
2006 (r)       19.1           8.6            27.1           21.6
2007 (P)       18.5           9.1            27.3           21.8

(p) Preliminary

(r) Revised

NOTE. The data on U.S. exports and imparts of goods used to compute
the affiliate shares in this table are from the U.S. Census Bureau,
and are on a Census basis.

Table 14. Total U.S. Trade in Goods and Trade in Goods by
Majority-Owned U.S. Affiliates by Country of Destination
and Origin, 1997, 2002, and 2007

                                     Exports by country of
                                          destination

                                      Millions of dollars

                                          Total (1)

                              1997          2002          2007

                               (1)           (2)           (3)

    All countries            689,182       693,103      1,162,479

Canada                       151,767       160,923        248,888

Europe                       163,273       163,625        286,401
  Belgium                     13,420        13,326         25,290
  France                      15,965        19,016         27,413
  Germany                     24,458        26,630         49,651
  Ireland                      4,642         6,745          9,009
  Italy                        8,995        10,057         14,150
  Netherlands                 19,827        18,311         32,963
  Russia                       3,365         2,397         73,651
  Spain                        5,539         5,298          9,862
  Switzerland                  8,307         7,783         17,039
  United Kingdom              36,425        33,204         50,229
  Other                       22,330        20,858         43,431

Latin America and Other
  Western Hemisphere         134,416       149,053        243,564
  Brazil                      15,915        12,376         24,626
  Mexico                      71,388        97,470        136,092
  Venezuela                    6,602         4,430         10,201
  Other                       40,511        34,777         72,645

Africa                        11,390        10,663         23,655
  Nigeria                        813         1,058          2,778
  Other                       10,577         9,605         20,877

Middle East                   20,928        18,020         46,319
  Israel                       5,995         7,027         13,019
  Saudi Arabia                 8,438         4,781         10,396
  Other                        6,495         7,122         22,904

Asia and Pacific             207,069       189,748        313,209
  Australia                   12,063        13,085         19,212
  China                       12,862        22,128         65,236
  Hong Kong                   15,117        12,594         20,118
  India                        3,608         4,101         17,589
  Japan                       65,549        51,449         62,704
  Korea, Republic of          25,046        22,576         34,645
  Malaysia                    10,780        10,344         11,680
  Singapore                  176,961        16,218         26,284
  Taiwan                      20,366        18,382         26,309
  Thailand                     7,349         4,860          8,455
  Other                       16,633        14,011         20,978

Unallocated                      ...           ...           ...

                                     Exports by country of
                                          destination

                                      Millions of dollars

                                   Exports by majority-owned
                                        U.S. affiliates

                                            Total

                              1997          2002          2007

                               (4)           (5)           (6)

    All countries            128,394       140,510       215,554

Canada                        21,047        26,818        29,689

Europe                        28,018        34,461        56,157
  Belgium                        (D)         1,445         2,160
  France                       2,851         3,241         5,247
  Germany                      5,881         9,219        14,090
  Ireland                        (D)           532           593
  Italy                        2,058         1,755         3,704
  Netherlands                  3,025         4,714         3,083
  Russia                         128           122         6,941
  Spain                          694           803         1,316
  Switzerland                  2,012         3,559         6,589
  United Kingdom               5,881         5,653        12,666
  Other                          (D)         3,418         6,016

Latin America and Other
  Western Hemisphere          15,323        20,262        28,617
  Brazil                       3,838         3,188         2,873
  Mexico                       6,520        14,004        16,961
  Venezuela                      603           276           790
  Other                        4,362         2,794         7,993

Africa                         1,257           613         1,329
  Nigeria                        (D)            12           126
  Other                          (D)           601         1,203

Middle East                    1,281         1,148         2,331
  Israel                         364           228           383
  Saudi Arabia                   649           485           360
  Other                          268           435         1,589

Asia and Pacific              53,240        44,048        49,990
  Australia                    1,462         1,584         1,833
  China                        3,043         3,096         5,766
  Hong Kong                    1,746         1,327         1,954
  India                          753           343           798
  Japan                       31,932        24,036        24,290
  Korea, Republic of           6,868         5,942         7,551
  Malaysia                       445         1,012           663
  Singapore                    1,885         2,576         3,952
  Taiwan                       2,931         2,396         1,463
  Thailand                       746           640           687
  Other                        1,429         1,096        10,321

Unallocated                    8,228        13,159       474,411

                                     Exports by country of
                                          destination

                                      Millions of dollars

                                   Exports by majority-owned
                                        U.S. affiliates

                                      Of which: Intrafirm
                                          exports (2)

                              1997          2002          2007

                               (7)           (8)           (9)

    All countries             61,288        64,572       106,088

Canada                         8,696         8,921        13,470

Europe                        13,451        20,771        40,494
  Belgium                        (D)           875         1,318
  France                       1,589         2,293         4,702
  Germany                      3,446         6,976        12,731
  Ireland                        (D)           231           172
  Italy                          786         1,342         3,292
  Netherlands                    855         2,089         2,312
  Russia                          38            63           441
  Spain                          149           267           951
  Switzerland                  1,238         1,756         4,357
  United Kingdom               2,821         3,257         6,018
  Other                          (D)         1,622         4,200

Latin America and Other
  Western Hemisphere           4,922         5,992        10,037
  Brazil                       1,677         1,725         1,267
  Mexico                       1,759         3,500         4,815
  Venezuela                      148            76           314
  Other                        1,338           691         3,642

Africa                           285           273           922
  Nigeria                        (D)             1            22
  Other                          (D)           272           901

Middle East                      369           379         1,510
  Israel                         103            65           198
  Saudi Arabia                   172           187           210
  Other                           94           127         1,102

Asia and Pacific              32,946        27,329        33,092
  Australia                      735           944         1,075
  China                        1,348           929         2,004
  Hong Kong                      727           618         1,268
  India                          146            56           170
  Japan                       24,062        19,210        20,670
  Korea, Republic of           3,213         2,902         3,399
  Malaysia                       146           373           337
  Singapore                      957         1,169         2,896
  Taiwan                         807           581           469
  Thailand                       413           211           368
  Other                          392           336           435

Unallocated                      619           907         6,563

                                     Exports by country of
                                          destination

                                   Percentage of total U.S.
                                   exports accounted for by:

                                       Total exports by
                                          affiliates

                              1997          2002          2007

                              (10)          (11)          (12)

    All countries              18.6          20.3          18.5

Canada                         13.9          16.7          11.9

Europe                         17.2          21.1          19.6
  Belgium                         A          10.8           8.5
  France                       17.9          17.0          19.1
  Germany                      24.0          34.6          28.4
  Ireland                         A           7.9           6.6
  Italy                        22.9          17.5          26.2
  Netherlands                  15.3          25.7           9.4
  Russia                        3.8           5.1           9.4
  Spain                        12.5          15.2          13.3
  Switzerland                  24.2          45.7          38.7
  United Kingdom               16.1          17.0          25.2
  Other                           A          16.4          13.9

Latin America and Other
  Western Hemisphere           11.4          13.6          11.7
  Brazil                       24.1          25.8          11.7
  Mexico                        9.1          14.4          12.5
  Venezuela                     9.1           6.2           7.7
  Other                        10.8           8.0          11.0

Africa                         11.0           5.7           5.6
  Nigeria                         B           1.1           4.5
  Other                           A           6.3           5.8

Middle East                     6.1           6.1           5.0
  Israel                        6.1           3.2           2.9
  Saudi Arabia                  7.7          10.1           3.5
  Other                         4.1           6.1           6.9

Asia and Pacific               25.7          23.2          16.0
  Australia                    12.1          12.1           9.5
  China                        23.7          14.0           8.8
  Hong Kong                    11.5          10.5           9.7
  India                        20.9           8.4           4.5
  Japan                        48.7          46.7          38.7
  Korea, Republic of           27.4          26.3          21.8
  Malaysia                      4.1           9.8           5.7
  Singapore                    10.7          15.9          15.0
  Taiwan                       14.4          13.0           5.6
  Thailand                     10.2          13.2           8.1
  Other                         8.6           7.8           4.9

Unallocated                     ...           ...           ...

                                     Exports by country of
                                          destination

                                   Percentage of total U.S.
                                   exports accounted for by:

                                       Intrafirm exports
                                         by affiliates

                              1997          2002          2007

                              (13)          (14)          (15)

    All countries               8.9           9.3           9.1

Canada                          5.7           5.5           5.4

Europe                          8.2          12.7          14.1
  Belgium                         A           6.6           5.2
  France                       10.0          12.1          17.2
  Germany                      14.1          26.2          25.6
  Ireland                         A           3.4           1.9
  Italy                         8.7          13.3          23.3
  Netherlands                   4.3          11.4           7.0
  Russia                        1.1           2.6           6.0
  Spain                         2.7           5.0           9.6
  Switzerland                  14.9          22.6          25.6
  United Kingdom                7.7           9.8          12.0
  Other                           A           7.8           9.7

Latin America and Other
  Western Hemisphere            3.7           4.0           4.1
  Brazil                       10.5          13.9           5.1
  Mexico                        2.5           3.6           3.5
  Venezuela                     2.2           1.7           3.1
  Other                         3.3           2.0           5.0

Africa                          2.5           2.6           3.9
  Nigeria                         A           0.1           0.8
  Other                           A           2.8           4.3

Middle East                     1.8           2.0           3.3
  Israel                        1.7           0.9           1.5
  Saudi Arabia                  2.0           3.9           2.0
  Other                         1.4           1.8           4.8

Asia and Pacific               15.9          14.4          10.6
  Australia                     6.1           7.2           5.6
  China                        10.5           4.2           3.1
  Hong Kong                     4.8           4.9           6.3
  India                         4.0           1.4           1.0
  Japan                        36.7          37.3          33.0
  Korea, Republic of           12.8          12.9           9.8
  Malaysia                      1.4           3.6           2.9
  Singapore                     5.4           7.2          11.0
  Taiwan                        4.0           3.2           1.8
  Thailand                      5.6           4.3           4.4
  Other                         1.0           2.4           2.1

Unallocated                     ...           ...           ...

                                     Imports by country of
                                          destination

                                      Millions of dollars

                                          Total (1)

                              1997          2002          2007

                              (16)          (17)          (18)

    All countries            870,671      1,161,366     1,956,962

Canada                       167,234        209,088       317,057

Europe                       181,441        260,813       407,483
  Belgium                      7,912          9,807        15,281
  France                      20,636         28,240        41,553
  Germany                     43,122         62,506        94,164
  Ireland                      5,867         22,388        30,445
  Italy                       19,408         24,220        35,028
  Netherlands                  7,293          9,849        18,403
  Russia                       4,319          6,870        19,314
  Spain                        4,606          5,733        10,498
  Switzerland                  8,405          9,382        14,760
  United Kingdom              32,659         40,745        56,858
  Other                       27,214         41,073        71,179

Latin America and Other
  Western Hemisphere         139,644        204,145       345,531
  Brazil                       9,626         15,781        25,644
  Mexico                      85,938        134,616       210,714
  Venezuela                   13,477         15,094        39,910
  Other                       30,603         38,655        69,263

Africa                        19,925         22,100        92,011
  Nigeria                      6,349          5,945        32,770
  Other                       13,575         16,155        59,241

Middle East                   20,403         34,302        77,427
  Israel                       7,326         12,416        20,794
  Saudi Arabia                 9,365         13,150        35,626
  Other                        3,712          8,736        21,006

Asia and Pacific             341,059        430,918       717,450
  Australia                    4,602          6,479         8,615
  China                       62,558        125,193       321,443
  Hong Kong                   10,288          9,328         7,026
  India                        7,322         11,818        24,073
  Japan                      121,663        121,429       145,463
  Korea, Republic of          23,173         35,572        47,562
  Malaysia                    18,027         24,009        32,629
  Singapore                   20,075         14,802        18,394
  Taiwan                      32,629         32,199        38,278
  Thailand                    12,602         14,793        22,755
  Other                       28,120         35,296        51,212

Unallocated                      ...           ...           ...

                                     Imports by country of
                                          destination

                                      Millions of dollars

                                      Imports by nonbank
                                       U.S. affiliates

                                            Total

                              1997          2002          2007

                              (19)          (20)          (21)

    All countries            249,310       335,021       533,430

Canada                        24,723        40,285        71,089

Europe                        65,405        93,510       140,867
  Belgium                      3,658         2,960         2,143
  France                       6,687         9,645        12,401
  Germany                     23,341        36,167        53,222
  Ireland                        601           715           662
  Italy                        3,122         3,783         6,284
  Netherlands                  2,664         6,064         7,577
  Russia                         (D)           730         1,149
  Spain                          787           794         1,884
  Switzerland                  4,904         8,986         9,819
  United Kingdom              10,581        10,937        26,237
  Other                          (D)        12,729        19,490

Latin America and Other
  Western Hemisphere          19,821        33,564        51,798
  Brazil                       2,019         4,985         7,177
  Mexico                      10,984        17,962        18,936
  Venezuela                    2,526         4,269           (D)
  Other                        4,292         6,348           (D)

Africa                           (D)         1,775         8,379
  Nigeria                        658         1,072           (D)
  Other                          (D)           703           (D)

Middle East                      (D)         8,082        13,691
  Israel                         545           610           (D)
  Saudi Arabia                   (D)           (D)           (D)
  Other                          (D)           (D)         1,240

Asia and Pacific             130,485       147,997       206,902
  Australia                      635           882         2,027
  China                        2,536         5,152         9,697
  Hong Kong                    4,780         2,956         4,160
  India                          228           329           879
  Japan                       97,076       107,937       139,486
  Korea, Republic of          10,470        19,796        32,881
  Malaysia                     2,175           900         1,722
  Singapore                      (D)         3,275         5,691
  Taiwan                       4,318         3,235         5,572
  Thailand                     1,863           803         1,428
  Other                          (D)         2,732         3,359

Unallocated                    4,909         9,808        40,704

                                     Imports by country of
                                          destination

                                      Millions of dollars

                                      Imports by nonbank
                                       U.S. affiliates

                                      Of which: Intrafirm
                                          imports (2)

                              1997          2002          2007

                              (22)          (23)          (24)

    All countries            193,969       267,291       426,813

Canada                        18,581        27,016        59,370

Europe                        57,476        82,127       123,187
  Belgium                      3,519         1,666         1,861
  France                       5,863         9,127        11,860
  Germany                     21,579        34,230        51,209
  Ireland                        478           548           323
  Italy                        2,367         3,191         5,519
  Netherlands                  2,399         5,548         6,850
  Russia                         (D)           358           596
  Spain                          622           515           528
  Switzerland                  4,331         8,120         8,318
  United Kingdom               8,884         7,775        18,872
  Other                          (D)        11,049        17,252

Latin America and Other
  Western Hemisphere           9,498        16,104        35,317
  Brazil                       1,205         3,914         4,383
  Mexico                       5,093         7,183         9,638
  Venezuela                    1,643           (D)           (D)
  Other                        1,557           (D)           (D)

Africa                           (D)           167         1,732
  Nigeria                        135             0           (D)
  Other                          (D)           167           (D)

Middle East                      (D)         5,479         5,418
  Israel                         502           (D)           (D)
  Saudi Arabia                   (D)           (D)           (D)
  Other                          (D)           231           (D)

Asia and Pacific             106,094       134,818       190,219
  Australia                      423           683         1,526
  China                          954         2,656         4,969
  Hong Kong                    2,706         1,727         3,233
  India                           27            60           282
  Japan                       85,337       104,355       135,831
  Korea, Republic of           7,598        19,281        30,484
  Malaysia                     1,056           632           991
  Singapore                    2,152         1,261         4,688
  Taiwan                       3,207         2,280         4,657
  Thailand                     1,006           336         1,042
  Other                        1,628         1,547         2,516

Unallocated                      684         1,580        11,570

                                     Imports by country of
                                          destination

                                   Percentage of total U.S.
                                   imports accounted for by:

                                       Total imports by
                                          affiliates

                              1997          2002          2007

                              (25)          (26)          (27)

    All countries              28.6          28.8          27.3

Canada                         14.8          19.3          22.4

Europe                         36.0          35.9          34.6
  Belgium                      46.2          30.2          14.0
  France                       32.4          34.2          29.8
  Germany                      54.1          57.9          56.5
  Ireland                      10.2           3.2           2.2
  Italy                        16.1          15.6          17.9
  Netherlands                  36.5          61.6          41.2
  Russia                          A          10.6           5.9
  Spain                        17.1          13.8          17.9
  Switzerland                  58.3          95.8          66.5
  United Kingdom               32.4          26.8          46.1
  Other                           B          31.0          27.4

Latin America and Other
  Western Hemisphere           14.2          16.4          15.0
  Brazil                       21.0          31.6          28.0
  Mexico                       12.8          13.3           9.0
  Venezuela                    18.7          28.3             B
  Other                        14.0          16.4             A

Africa                            A           8.0           9.1
  Nigeria                      10.4          18.0             A
  Other                           A           4.4             A

Middle East                       A          23.6          17.7
  Israel                        7.4           4.9             A
  Saudi Arabia                    A             C             B
  Other                           A             A             A

Asia and Pacific               38.3          34.3          28.8
  Australia                    13.8          13.6          23.5
  China                         4.1           4.1           3.0
  Hong Kong                    46.5          31.7          59.2
  India                         3.1           2.8           3.7
  Japan                        79.8          88.9          95.9
  Korea, Republic of           45.2          55.7          69.1
  Malaysia                     12.1           3.7           5.3
  Singapore                       A          22.1          30.9
  Taiwan                       13.2          10.0          14.6
  Thailand                     14.8           5.4           6.3
  Other                           A           7.7           6.6

Unallocated                     ...           ...           ...

                                     Imports by country of
                                          destination

                                   Percentage of total U.S.
                                   imports accounted for by:

                                       Intrafirm imports
                                         by affiliates

                              1997          2002          2007

                              (28)          (29)          (30)

    All countries              22.3          23.0          21.8

Canada                         11.1          12.9          18.7

Europe                         31.7          31.5          30.2
  Belgium                      44.5          17.0          12.2
  France                       28.4          32.3          28.5
  Germany                      50.0          54.8          54.4
  Ireland                       8.1           2.4           1.1
  Italy                        12.2          13.2          15.8
  Netherlands                  32.9          56.3          37.2
  Russia                          A           5.2           3.1
  Spain                        13.5           9.0           5.0
  Switzerland                  51.5          86.5          56.4
  United Kingdom               27.2          19.1          33.2
  Other                           B          26.9          24.2

Latin America and Other
  Western Hemisphere            6.8           7.9          10.2
  Brazil                       12.5          24.8          17.1
  Mexico                        5.9           5.3           4.6
  Venezuela                    12.2             B             B
  Other                         5.1             A             A

Africa                            A           0.8           1.9
  Nigeria                       2.1           0.0             A
  Other                           A           1.0             A

Middle East                       A          16.0           7.0
  Israel                        6.9             A             A
  Saudi Arabia                    A             B             A
  Other                           A           2.6             A

Asia and Pacific               31.1          31.3          26.5
  Australia                     9.2          10.5          17.7
  China                         1.5           2.1           1.5
  Hong Kong                    26.3          18.5          46.0
  India                         0.4           0.5           1.2
  Japan                        70.1          85.9          93.4
  Korea, Republic of           32.8          54.2          64.1
  Malaysia                      5.9           2.6           3.0
  Singapore                    10.7           8.5          25.5
  Taiwan                        9.8           7.1          12.2
  Thailand                      8.0           2.3           4.6
  Other                         5.8           4.4           4.9

Unallocated                     ...           ...           ...

(D) Suppressed to avoid the disclosure of data of individual
companies

(1.) Data on total U.S. exports and imports of goods are from the
U.S. Census Bureau.

(2.) Trade between U.S. affiliates and their foreign parent groups.

NOTES. The countries shown in this table are the 28 U.S. trading
partners for which the sum of total U.S. exports and total U.S.
imports was at least $20 billion in 2007.

Size ranges are given in the percentage cells that are suppressed.
The size ranges are: A-0.01 to 19.9; B-20.0 to 39.9; C-40.0 to 59.9;
E-60.0 to 79.9; F-80.0 to 100.

Table 15. U.S. Trade in Goods by Majority-Owned U.S. Affiliates
by Selected Trading-Partner Country and Transacting Party, 2007

                                 Millions of dollars

                         U.S. affiliate exports to or imports
                           from the trading-partner country

                                     Trade with
                                    the foreign       Trade
                        Total       parent group   with others

     Exports:

Canada                  29,689         13,470         16,219
France                   5,247          4,702            545
Germany                 14,090         12,731          1,360
Italy                    3,704          3,292            411
Netherlands              3,083          2,312            771
Switzerland              6,589          4,357          2,232
United Kingdom          12,666          6,018          6,648
Brazil                   2,873          1,267          1,606
Mexico                  16,961          4,815         12,146
Venezuela                  790            314            477
Saudi Arabia               360            210            150
China                    5,766          2,004          3,762
Japan                   24,290         20,670          3,620
Korea, Republic of       7,551          3,399          4,152

     Imports:

Canada                  71,089         59,370         11,719
France                  12,401         11,860            542
Germany                 53,222         51,209          2,012
Italy                    6,284          5,519            766
Netherlands              7,577          6,850            728
Switzerland              9,819          8,318          1,501
United Kingdom          26,237         18,872          7,365
Brazil                   7,177          4,383          2,794
Mexico                  18,936          9,638          9,298
Venezuela                  (D)            (D)            (D)
Saudi Arabia               (D)            (D)            (D)
China                    9,697          4,969          4,727
Japan                  139,486        135,831          3,655
Korea, Republic of      32,881         30,484          2,397

                                 Millions of dollars

                         U.S. affiliate exports to or imports
                           from the trading-partner country

                          Of which: Trade by affiliates with
                         UBOs in the trading-partner country

                                     Trade with
                                    the foreign       Trade
                        Total       parent group   with others

     Exports:

Canada                   3,723          2,930            793
France                   3,526          3,486             41
Germany                 11,186         10,697            489
Italy                    1,596          1,550             46
Netherlands              1,710          1,662             48
Switzerland              2,748          2,706             42
United Kingdom           8,487          2,956          5,531
Brazil                     267            (D)            (D)
Mexico                     693            (D)            (D)
Venezuela                  (D)            (D)            (D)
Saudi Arabia               (D)            (D)              0
China                       14            (D)            (D)
Japan                   20,795         19,012          1,784
Korea, Republic of       5,517            (D)            (D)

     Imports:

Canada                  31,608         31,430            177
France                   9,874          9,800             73
Germany                 49,382         47,932          1,450
Italy                    4,237          4,228              9
Netherlands              5,976          5,794            183
Switzerland              7,993            (D)            (D)
United Kingdom          19,995         13,899          6,096
Brazil                   2,564          2,564              0
Mexico                   3,528          3,528              0
Venezuela                  (D)            (D)            (D)
Saudi Arabia               (D)            (D)            (D)
China                       29            (D)            (D)
Japan                  138,029        135,066          2,963
Korea, Republic of      30,573         29,243          1,330

                       Percentage of U.S. affiliate exports to
                         or imports from the country that are
                        accounted for by affiliates with UBOs
                                    in the country

                                     Trade with
                                    the foreign
                                       parent       Trade with
                        Total          group          others

     Exports:

Canada                   12.5           21.8            4.9
France                   67.2           74.1            7.5
Germany                  79.4           84.0           36.0
Italy                    43.1           47.1           11.2
Netherlands              55.5           71.9            6.2
Switzerland              41.7           62.1            1.9
United Kingdom           67.0           49.1           83.2
Brazil                    9.3              A              A
Mexico                    4.1              A              A
Venezuela                   A              A              A
Saudi Arabia                C              E            0.0
China                     0.2              A              A
Japan                    85.6           92.0           49.3
Korea, Republic of       73.1              E              E

     Imports:

Canada                   44.5           52.9            1.5
France                   79.6           82.6           13.6
Germany                  92.8           93.6           72.1
Italy                    67.4           76.6            1.2
Netherlands              78.9           84.6           25.1
Switzerland              81.4              F              B
United Kingdom           76.2           73.7           82.8
Brazil                   35.7           58.5            0.0
Mexico                   18.6           36.6            0.0
Venezuela                   F              F              A
Saudi Arabia                F              F              F
China                     0.3              A              A
Japan                    99.0           99.4           81.1
Korea, Republic of       93.0           95.9           55.5

(D) Suppressed to avoid disclosure of data of individual companies.

NOTES. The countries shown in this table are the 14 trading-partner
countries far which the sum of U.S. exports and imparts by
majority-owned U.S. affiliates exceeded $10 billion in 2007.

Size ranges are given in the percentage cells that are suppressed.
The size ranges are: A-0.01 to 19.9; B-20.0 to 39.9; 0-40.0 to 59.9;
E-0.0 to 79.9; F-80.0 to 100.

UBO Ultimate beneficial owner

Table 16. U.S. Trade in Goods by Majority-Owned U.S. Affiliates
by Selected Country of Ultimate Beneficial Owner and Transacting
Party, 2007

                                 Millions of dollars

                         Exports or imports by affiliates of
                                   the UBO country

                                     Trade with
                                    the foreign     Trade with
                        Total       parent group      others

     Exports:

Canada                  11,159          3,137          8,023
France                  14,364          5,295          9,069
Germany                 40,454         23,969         16,485
Netherlands             13,406          6,854          6,552
Switzerland              7,871          5,076          2,795
United Kingdom          20,774          7,119         13,654
Japan                   52,339         29,698         22,641
Korea, Republic of      10,143          5,333          4,810

     Imports:

Canada                  35,158         31,677          3,481
France                  20,085         14,443          5,643
Germany                 69,539         56,124         13,415
Netherlands             33,704         21,356         12,348
Switzerland             14,757         11,910          2,847
United Kingdom          33,085         23,133          9,952
Japan                  179,390        159,667         19,723
Korea, Republic of      37,759         36,128          1,631

                                 Millions of dollars

                         Exports or imports by affiliates of
                                   the UBO country

                       Of which: Trade with the country of UBO

                                     Trade with
                                    the foreign     Trade with
                        Total       parent group      others

     Exports:

Canada                   3,723          2,930            793
France                   3,526          3,486             41
Germany                 11,186         10,697            489
Netherlands              1,710          1,662             48
Switzerland              2,748          2,706             42
United Kingdom           8,487          2,956          5,531
Japan                   20,795         19,012          1,784
Korea, Republic of       5,517            (D)            (D)

     Imports:

Canada                  31,608         31,430            177
France                   9,874          9,800             73
Germany                 49,382         47,932          1,450
Netherlands              5,976          5,794            183
Switzerland              7,993            (D)            (D)
United Kingdom          19,995         13,899          6,096
Japan                  138,029        135,066          2,963
Korea, Republic of      30,573         29,243          1,330

                          Trade with the country of UBO as a
                        percentage of total exports or imports
                           by affiliates of the UBO country

                                     Trade with
                                    the foreign     Trade with
                        Total       parent group      others

     Exports:

Canada                   33.4           93.4            9.9
France                   24.6           65.8            0.4
Germany                  27.7           44.6            3.0
Netherlands              12.8           24.2            0.7
Switzerland              34.9           53.3            1.5
United Kingdom           40.9           41.5           40.5
Japan                    39.7           64.0            7.9
Korea, Republic of       54.4              C              E

     Imports:

Canada                   89.9           99.2            5.1
France                   49.2           67.9            1.3
Germany                  71.0           85.4           10.8
Netherlands              17.7           27.1            1.5
Switzerland              54.2              E              A
United Kingdom           60.4           60.1           61.3
Japan                    76.9           84.6           15.0
Korea, Republic of       81.0           80.9           81.6

(D) Suppressed to avoid disclosure of data of individual companies.

NOTES. The countries shown in this table are the eight UBO countries
for which the sum of exports and imports by majority-owned U.S.
affiliates exceeded $22 billion in 2007.

Size ranges are given in the percentage cells that are suppressed.
The size ranges are: A-0.01 to 19.9; B-20.0 to 39.9; C-40.0 to 59.9;
E-60.0 to 79.9; F-80.0 to 100.

UBO Ultimate beneficial owner

Table 17. U.S. Imports of Goods Shipped to Majority-Owned U.S.
Affiliates by Intended Use, by Industry of Affiliate, 2002
and 2007

                                 Millions of dollars

                                         2002

                                              Capital
                                 Total       equipment

                                  (1)           (2)

All industries                  335,021         1,183

Manufacturing                   137,726           586

  Food                            2,303            10
  Beverages and tobacco
    products                      2,012           (D)
  Paper                           2,719            13
  Petroleum and coal
    products                        (D)           (D)

  Chemicals                      18,707            70
  Plastics and rubber
    products                      4,448            41
  Nonmetallic mineral
    products                      1,458             4
  Primary metals                  5,649            34
  Fabricated metal products       2,056            11

  Machinery                       7,230           138
  Computers and electronic
    products                     25,185           (D)
  Electrical equipment,
    appliances, and
    components                    1,675           (*)
  Transportation equipment       51,815           168
  Other                             (D)           (D)

Wholesale trade                 188,761            57

Other industries                  8,534           540

                                 Millions of dollars

                                         2002

                                             Goods for
                                              resale
                               Goods for      without
                                further       further
                              manufacture   manufacture

                                  (3)           (4)

All industries                   95,083       238,756

Manufacturing                    75,519        61,621

  Food                            1,888           404
  Beverages and tobacco
    products                        (D)           (D)
  Paper                           2,619            87
  Petroleum and coal
    products                        (D)             0

  Chemicals                      14,934         3,704
  Plastics and rubber
    products                      1,772         2,635
  Nonmetallic mineral
    products                      1,068           386
  Primary metals                  3,521         2,094
  Fabricated metal products       1,406           639

  Machinery                       5,821         1,271
  Computers and electronic
    products                        (D)           (D)
  Electrical equipment,
    appliances, and
    components                    1,175           500
  Transportation equipment          (D)           (D)
  Other                             (D)           (D)

Wholesale trade                  18,723       169,981

Other industries                    841         7,154

                                 Millions of dollars

                                         2007

                                              Capital
                                 Total       equipment

                                  (5)           (6)

All industries                  533,430         1,265

Manufacturing                   200,759           544

  Food                            4,471             3
  Beverages and tobacco
    products                        758           (*)
  Paper                             981             3
  Petroleum and coal
    products                     49,991             7

  Chemicals                      32,605             8
  Plastics and rubber
    products                      7,498           183
  Nonmetallic mineral
    products                      2,653             5
  Primary metals                  4,801            18
  Fabricated metal products       2,039            35

  Machinery                      12,841            20
  Computers and electronic
    products                     14,310            11
  Electrical equipment,
    appliances, and
    components                    4,839             1
  Transportation equipment       59,134           243
  Other                           3,838             7

Wholesale trade                 316,993           686

Other industries                 15,678            34

                                 Millions of dollars

                                         2007

                                             Goods for
                                              resale
                               Goods for      without
                                further       further
                              manufacture   manufacture

                                  (7)           (8)

All industries                  163,710       368,455

Manufacturing                   130,070        70,144

  Food                            2,261         2,207
  Beverages and tobacco
    products                         54           704
  Paper                             827           151
  Petroleum and coal
    products                        (D)           (D)

  Chemicals                      23,844         8,753
  Plastics and rubber
    products                      3,314         4,002
  Nonmetallic mineral
    products                      1,497         1,150
  Primary metals                  3,232         1,551
  Fabricated metal products       1,431           573

  Machinery                       8,416         4,405
  Computers and electronic
    products                     11,735         2,564
  Electrical equipment,
    appliances, and
    components                    3,347         1,492
  Transportation equipment       28,705        30,186
  Other                             (D)           (D)

Wholesale trade                  31,805       284,502

Other industries                  1,835        13,809

                                 Percentage of total U.S. imports
                                   by affiliates in the industry

                                               2002

                                                           Goods for
                                                            resale
                                             Goods for      without
                                Capital       further       further
                               equipment    manufacture   manufacture

                                  (9)          (10)          (11)

All industries                     0.4          28.4          71.3

Manufacturing                      0.4          54.8          44.7

  Food                             0.4          82.0          17.5
  Beverages and tobacco
    products                       (D)           (D)           (D)
  Paper                            0.5          96.3           3.2
  Petroleum and coal
    products                       (D)           (D)           0.0

  Chemicals                        0.4          79.8          19.8
  Plastics and rubber
    products                       0.9          39.8          59.2
  Nonmetallic mineral
    products                       0.3          73.3          26.5
  Primary metals                   0.6          62.3          37.1
  Fabricated metal products        0.5          68.4          31.1

  Machinery                        1.9          80.5          17.6
  Computers and electronic
    products                       (D)           (D)           (D)
  Electrical equipment,
    appliances, and
    components                     (*)          70.1          29.9
  Transportation equipment         0.3           (D)           (D)
  Other                            (D)           (D)           (D)

Wholesale trade                    (*)           9.9          90.1

Other industries                   6.3           9.9          83.8

                                 Percentage of total U.S. imports
                                   by affiliates in the industry

                                               2007

                                                           Goods for
                                                            resale
                                             Goods for      without
                                Capital       further       further
                               equipment    manufacture   manufacture

                                 (12)          (13)          (14)

All industries                     0.2          30.7          69.1

Manufacturing                      0.3          64.8          34.9

  Food                             0.1          50.6          49.4
  Beverages and tobacco
    products                       (*)           7.1          92.9
  Paper                            0.3          84.3          15.4
  Petroleum and coal
    products                       (*)           (D)           (D)

  Chemicals                        (*)          73.1          26.8
  Plastics and rubber
    products                       2.4          44.2          53.4
  Nonmetallic mineral
    products                       0.2          56.4          43.4
  Primary metals                   0.4          67.3          32.3
  Fabricated metal products        1.7          70.2          28.1

  Machinery                        0.2          65.5          34.3
  Computers and electronic
    products                       0.1          82.0          17.9
  Electrical equipment,
    appliances, and
    components                     (*)          69.2          30.8
  Transportation equipment         0.4          48.5          51.0
  Other                            0.2           (D)           (D)

Wholesale trade                    0.2          10.0          89.8

Other industries                   0.2          11.7          88.1

(*) Less than $500,000 or less than 0.05 percent.

(D) Suppressed to avoid disclosure of data of individual companies.

Table 18. U.S. Affiliate Imports of Goods for Further Manufacture
and for Resale Without Further Manufacture as a Percentage
of Affiliate Sales, by Industry of Affiliate, 2002 and 2007

                                                   2002

                                                         Goods for
                                        Goods for      resale without
                                         further          further
                                       manufacture      manufacture

                                           (1)              (2)

All industries                              4.7             11.8

Manufacturing                               8.8              7.2
  Food                                      3.5              0.7
  Beverages and tobacco products            (D)              (D)
  Paper                                    17.9              0.6
  Petroleum and coal products               (D)              0.0

  Chemicals                                10.5              2.6
  Plastics and rubber products              6.4              9.5
  Nonmetallic mineral products              2.6              0.9
  Primary metals                           13.7              8.2
  Fabricated metal products                 6.1              2.8

  Machinery                                 8.5              1.9
  Computers and electronic products         (D)              (D)
  Electrical equipment, appliances,
    and components                          6.0              2.6
  Transportation equipment                  (D)              (D)
  Other                                     (D)              (D)

Wholesale trade                             3.2             29.1

Other industries                            0.1              1.2

                                                   2007

                                                         Goods for
                                        Goods for      resale without
                                         further          further
                                       manufacture      manufacture

                                           (3)              (4)

All industries                              5.0             11.2

Manufacturing                              10.9              5.9
  Food                                      3.0              2.9
  Beverages and tobacco products            2.0              2.7
  Paper                                     5.7              1.0
  Petroleum and coal products               (D)              (D)

  Chemicals                                 8.9              3.3
  Plastics and rubber products              8.4             10.1
  Nonmetallic mineral products              2.4              1.9
  Primary metals                            6.1              2.9
  Fabricated metal products                 5.6              2.2

  Machinery                                10.0              5.2
  Computers and electronic products        20.8              4.5
  Electrical equipment, appliances,
    and components                         12.1              5.4
  Transportation equipment                 11.6             12.2
  Other                                     (D)              (D)

Wholesale trade                             3.5             31.8

Other industries                            0.2              1.2

(D) Suppressed to avoid disclosure of data of individual companies.

Table 19.1. Selected Data of Majority-Owned Nonbank U.S.
Affiliates by Industry of Affiliate, 2006

                                          Millions of dollars

                                                           Expenditures
                                                Gross          for
                                              property,     property,
                                  Total       plant, and    plant, and
                                  assets      equipment     equipment

                                   (1)           (2)           (3)

      All industries            6,820,142     1,183,022       161,570

Manufacturing                   1,231,406       520,206        59,324
  Food                             87,087        25,260         2,109
  Beverages and tobacco
    products                       30,866         9,656         1,122
  Textiles, apparel, and
    leather products                3,140         2,804           293
  Paper                            16,733        15,972           613
  Printing and related
    support activities              5,867         4,212           308
  Petroleum and coal products         (D)           (D)         4,508

  Chemicals                       278,686        99,952         9,143
    Basic chemicals                59,707        39,881         2,577
    Resins and synthetic
      rubber, fibers, and
      filaments                     9,365         7,598           814
    Pharmaceuticals and
      medicines                   157,058        36,958         4,485
    Soap, cleaning compounds,
      and toilet preparations      19,642         3,104           325
    Other                          32,914        12,411           943

  Plastics and rubber
    products                       31,955        20,143         1,675
  Nonmetallic mineral
    products                       77,663        55,300         4,523
  Primary and fabricated
    metals                         67,288        35,345         2,977
    Primary metals                 46,675        23,881         2,228
    Fabricated metal products      20,613        11,464           749

  Machinery                       104,374        21,532         2,226
    Agriculture,
      construction, and
      mining machinery             48,279         4,126           425
    Industrial machinery            6,160         2,045           203
    Other                          49,936        15,361         1,598

  Computers and electronic
    products                          (D)        22,433         1,854
    Computers and peripheral
      equipment                     4,534         2,060           312
    Communications equipment          (D)         2,935           149
    Semiconductors and other
      electronic components        17,062         9,550           707
    Navigational, measuring,
      and other instruments        22,328         4,702           422
    Other                          12,859         3,186           264

  Electrical equipment,
    appliances, and
    components                     27,630         7,993           474
  Transportation equipment        268,503       132,239        26,221
    Motor vehicles, bodies
      and trailers, and parts     240,971       126,351        25,508
    Other                          27,532         5,888           714
  Other                            65,392           (D)         1,278

Wholesale trade                   557,854       235,918        34,024
  Motor vehicles and motor
    vehicle parts and
    supplies                      141,504        80,096        16,687
  Electrical goods                 76,702        18,655         2,266
  Petroleum and petroleum
    products                      153,634           (D)        10,760
  Other                           186,013           (D)         4,312

Retail trade                       68,864        41,909         4,485
  Food and beverage stores         38,050        29,043         2,728
  Other                            30,813        12,866         1,757

Information                       219,646        44,891         4,949
  Publishing industries            72,276         6,333           618
  Motion picture and sound
    recording industries           19,127           947            95
  Telecommunications               83,948        30,857         3,466
  Other                            44,295         6,754           770

Finance (except depository
  institutions) and insurance   3,962,935        36,437        10,469
  Finance, except depository
    institutions                2,489,873        23,148         9,009
  Insurance carriers and
    related activities          1,473,062        13,289         1,460

Real estate and rental and
  leasing                         116,098        89,297        18,241
  Real estate                      94,007        76,835         9,627
  Rental and leasing
    (except real estate)           22,091        12,462         8,613

Professional, scientific,
  and technical services           92,794        12,595         1,306
  Architectural, engineering,
    and related services           14,343         2,785           273
  Computer systems design and
    related services               19,805         3,600           430
  Management, scientific, and
    technical consulting            3,499           266            32
  Other                            55,147         5,945           571

Other industries                  570,546       201,769        28,772
  Agriculture, forestry,
    fishing, and hunting            3,972         2,288           216
  Mining                           85,544        59,511           (D)
  Utilities                        82,909        52,968         4,305
  Construction                     28,577        11,849         3,830
  Transportation and
    warehousing                    63,283        36,200         5,384
  Management of nonbank
    companies and enterprises     207,082           (D)           (D)
  Administration, support,
    and waste management           36,779         7,165           764
  Health care and social
    assistance                     17,430           (D)           558
  Accommodation and food
    services                       37,818        19,553         1,320
  Miscellaneous services            7,151         3,198           395

                                    Millions of dollars

                                                 Net
                                  Sales         income

                                   (4)           (5)

      All industries            2,824,088       136,503

Manufacturing                   1,112,425        44,979
  Food                             64,166         4,516
  Beverages and tobacco
    products                       24,779         1,858
  Textiles, apparel, and
    leather products                4,253           138
  Paper                            17,354            18
  Printing and related
    support activities              5,828            10
  Petroleum and coal products     137,342         8,247

  Chemicals                       224,280        11,147
    Basic chemicals                59,652         3,078
    Resins and synthetic
      rubber, fibers, and
      filaments                    13,029           -33
    Pharmaceuticals and
      medicines                   115,679         6,952
    Soap, cleaning compounds,
      and toilet preparations      11,324           812
    Other                          24,596           339

  Plastics and rubber
    products                       38,128           316
  Nonmetallic mineral
    products                       60,626         3,050
  Primary and fabricated
    metals                         78,767         5,295
    Primary metals                 55,644         3,970
    Fabricated metal products      23,123         1,325

  Machinery                        78,572         2,810
    Agriculture,
      construction, and
      mining machinery             19,281         1,084
    Industrial machinery            7,945           284
    Other                          51,346         1,442

  Computers and electronic
    products                       64,517         1,413
    Computers and peripheral
      equipment                     6,118          -180
    Communications equipment       12,964          -100
    Semiconductors and other
      electronic components        17,759           966
    Navigational, measuring,
      and other instruments        17,455           612
    Other                          10,222           115

  Electrical equipment,
    appliances, and
    components                     27,578           870
  Transportation equipment        242,251         2,743
    Motor vehicles, bodies
      and trailers, and parts     219,060         1,818
    Other                          23,191           925
  Other                            43,984         2,548

Wholesale trade                   872,828        27,597
  Motor vehicles and motor
    vehicle parts and
    supplies                      170,706         4,539
  Electrical goods                116,940           701
  Petroleum and petroleum
    products                      276,706        14,729
  Other                           308,476         7,628

Retail trade                      146,734         1,020
  Food and beverage stores         88,187         1,202
  Other                            58,548          -182

Information                        81,445         3,637
  Publishing industries            31,280         1,924
  Motion picture and sound
    recording industries            7,948            98
  Telecommunications               26,677         1,437
  Other                            15,540           178

Finance (except depository
  institutions) and insurance     255,599        17,413
  Finance, except depository
    institutions                  122,742         8,320
  Insurance carriers and
    related activities            132,857         9,093

Real estate and rental and
  leasing                          35,222         6,216
  Real estate                      25,284         5,650
  Rental and leasing
    (except real estate)            9,939           566

Professional, scientific,
  and technical services           62,376         2,655
  Architectural, engineering,
    and related services           11,680           573
  Computer systems design and
    related services               16,989           726
  Management, scientific, and
    technical consulting            2,740           168
  Other                            30,967         1,188

Other industries                  257,458        32,986
  Agriculture, forestry,
    fishing, and hunting            1,827           154
  Mining                          390,941         7,841
  Utilities                        48,619         1,601
  Construction                     41,918           971
  Transportation and
    warehousing                    57,002           (*)
  Management of nonbank
    companies and enterprises       1,194        19,559
  Administration, support,
    and waste management           27,905         1,573
  Health care and social
    assistance                      9,859           589
  Accommodation and food
    services                       24,803           692
  Miscellaneous services            5,237             6

                                         Millions of dollars

                                  Value      Compensation  Thousands of
                                  added      of employees   employees

                                   (6)           (7)           (8)

      All industries              616,317       364,098       5,334.2

Manufacturing                     269,109       156,165       2,063.9
  Food                             14,702         8,248         128.1
  Beverages and tobacco
    products                        8,630         3,286          38.6
  Textiles, apparel, and
    leather products                1,458           901          18.2
  Paper                             4,067         2,912          37.8
  Printing and related
    support activities              2,317         1,673          27.8
  Petroleum and coal products      22,646         4,522          33.4

  Chemicals                        60,643        33,004         296.5
    Basic chemicals                10,211         5,204          56.0
    Resins and synthetic
      rubber, fibers, and
      filaments                     1,488           872           9.4
    Pharmaceuticals and
      medicines                    40,058        21,167         163.4
    Soap, cleaning compounds,
      and toilet preparations       3,060         1,591          19.0
    Other                           5,827         4,170          48.7

  Plastics and rubber
    products                       10,695         7,587         116.1
  Nonmetallic mineral
    products                       21,185        11,108         173.3
  Primary and fabricated
    metals                         19,814        10,803         160.1
    Primary metals                 12,888         6,127          84.3
    Fabricated metal products       6,927         4,676          75.8

  Machinery                        20,035        15,882         213.3
    Agriculture,
      construction, and
      mining machinery              3,756         2,893          37.2
    Industrial machinery            2,191         1,746          22.6
    Other                          14,087        11,243         153.5

  Computers and electronic
    products                       20,249        14,500         169.2
    Computers and peripheral
      equipment                       867           879          10.0
    Communications equipment        4,012         3,713          31.9
    Semiconductors and other
      electronic components         4,343         2,554          32.9
    Navigational, measuring,
      and other instruments         8,432         5,702          62.0
    Other                           2,595         1,651          32.4

  Electrical equipment,
    appliances, and
    components                      8,365         6,227          83.5
  Transportation equipment         37,662        24,903         407.4
    Motor vehicles, bodies
      and trailers, and parts      29,760        18,349         316.2
    Other                           7,902         6,554          91.2
  Other                            16,641        10,608         160.7

Wholesale trade                   105,304        49,438         614.7
  Motor vehicles and motor
    vehicle parts and
    supplies                       16,785         6,939          77.9
  Electrical goods                 12,775        10,406         107.7
  Petroleum and petroleum
    products                       33,440         5,429          47.3
  Other                            42,304        26,664         381.9

Retail trade                       31,989        10,458         563.8
  Food and beverage stores         19,502        11,372         345.5
  Other                            12,487         7,086         218.3

Information                        32,813        19,910         225.7
  Publishing industries            13,595         9,376         109.5
  Motion picture and sound
    recording industries            1,464         1,234           8.4
  Telecommunications                8,945         3,162          46.8
  Other                             8,810         6,139          61.0

Finance (except depository
  institutions) and insurance      36,862        38,850         215.3
  Finance, except depository
    institutions                   19,698        24,041          92.6
  Insurance carriers and
    related activities             17,163        14,809         122.7

Real estate and rental and
  leasing                          16,891         3,252          44.0
  Real estate                      12,778         1,718          24.4
  Rental and leasing
    (except real estate)            4,113         1,534          19.7

Professional, scientific,
  and technical services           23,350        18,379         202.1
  Architectural, engineering,
    and related services            5,081         4,002          50.4
  Computer systems design and
    related services                8,075         6,625          66.8
  Management, scientific, and
    technical consulting            1,554         1,205           9.7
  Other                             8,640         6,548          75.3

Other industries                   99,999        59,646       1,404.6
  Agriculture, forestry,
    fishing, and hunting              556           297           5.9
  Mining                           24,104         7,679          77.0
  Utilities                         9,166         2,830          28.0
  Construction                      8,031         5,917          74.5
  Transportation and
    warehousing                    15,424        11,937         233.1
  Management of nonbank
    companies and enterprises       3,945           407           3.4
  Administration, support,
    and waste management           18,290        15,613         489.3
  Health care and social
    assistance                      5,200         3,787          80.8
  Accommodation and food
    services                       12,961         9,601         358.1
  Miscellaneous services            2,323         1,578          54.5

                                          Millions of dollars

                               U.S. exports  U.S. imports  Research and
                                 of goods      of goods    development
                                shipped by    shipped to   performed by
                                affiliates    affiliates    affiliates

                                   (9)           (10)          (11)

      All industries              198,003       502,589        34,625

Manufacturing                     111,711       178,083        25,114
  Food                              6,734         2,877           462
  Beverages and tobacco
    products                          869           569            53
  Textiles, apparel, and
    leather products                  394           521            39
  Paper                             1,401         2,758            57
  Printing and related
    support activities                111           155             3
  Petroleum and coal products         (D)        27,117           (D)

  Chemicals                        21,692        34,292        12,866
    Basic chemicals                 8,394         6,182           604
    Resins and synthetic
      rubber, fibers, and
      filaments                     1,501         1,481            65
    Pharmaceuticals and
      medicines                     8,269        22,719        11,638
    Soap, cleaning compounds,
      and toilet preparations         626           734           108
    Other                           2,902         3,175           451

  Plastics and rubber
    products                        3,187         7,428           490
  Nonmetallic mineral
    products                        1,456         3,084           219
  Primary and fabricated
    metals                          5,371         7,130           258
    Primary metals                  3,558         4,986            60
    Fabricated metal products       1,814         2,144           198

  Machinery                        10,975        11,278         1,752
    Agriculture,
      construction, and
      mining machinery              3,945         2,320           348
    Industrial machinery            1,143         1,603           124
    Other                           5,887         7,355         1,279

  Computers and electronic
    products                          (D)        13,959         3,055
    Computers and peripheral
      equipment                       781         2,530           (D)
    Communications equipment        1,556         1,086           600
    Semiconductors and other
      electronic components         4,664         5,954           409
    Navigational, measuring,
      and other instruments           (D)         1,376         1,760
    Other                           1,082         3,013           (D)

  Electrical equipment,
    appliances, and
    components                      3,835         4,079           385
  Transportation equipment         35,274        58,143         4,052
    Motor vehicles, bodies
      and trailers, and parts      32,901        54,517         3,416
    Other                           2,373         3,626           636
  Other                             5,516         4,692           (D)

Wholesale trade                    77,360       310,676         5,955
  Motor vehicles and motor
    vehicle parts and
    supplies                        8,695        85,821           383
  Electrical goods                 14,370        55,343         2,210
  Petroleum and petroleum
    products                       15,967        68,160           (D)
  Other                            38,328       101,351           (D)

Retail trade                          781         5,865            16
  Food and beverage stores              0           (D)             0
  Other                               781           (D)            16

Information                           804           236           996
  Publishing industries               508           190           640
  Motion picture and sound
    recording industries              (D)           (D)           (*)
  Telecommunications                    4             5           (D)
  Other                               (D)           (D)           (D)

Finance (except depository
  institutions) and insurance         (D)           (D)             5
  Finance, except depository
    institutions                      (D)           (D)             5
  Insurance carriers and
    related activities                  0             0           (*)

Real estate and rental and
  leasing                             (D)           619           (D)
  Real estate                           0             0           (*)
  Rental and leasing
    (except real estate)              (D)           619           (D)

Professional, scientific,
  and technical services              (D)           (D)         1,954
  Architectural, engineering,
    and related services              335           (D)           254
  Computer systems design and
    related services                   11             3           252
  Management, scientific, and
    technical consulting                0             4             0
  Other                               (D)           (D)         1,447

Other industries                    6,541         6,709           (D)
  Agriculture, forestry,
    fishing, and hunting              362            71            41
  Mining                            5,604         1,886           414
  Utilities                             1           (D)           (*)
  Construction                        204            47            11
  Transportation and
    warehousing                       238           255           (D)
  Management of nonbank
    companies and enterprises           0             0             1
  Administration, support,
    and waste management              (D)             6           (*)
  Health care and social
    assistance                        (D)           (D)            21
  Accommodation and food
    services                          (*)             1             0
  Miscellaneous services               40           (D)           (D)

(*) Less than $500,000.

(D) Suppressed to avoid disclosure of data of individual companies.

Table 19.2. Selected Data of Majority-Owned U.S. Affiliates by
Industry of Affiliate, 2007

                                       Millions of dollars

                                                           Expenditures
                                               Gross           for
                                             property,      property,
                                Total        plant, and     plant, and
                                assets       equipment      equipment

                                 (1)            (2)            (3)

      All industries           12,012,130      1,283,009        183,039

Manufacturing                   1,343,458        508,523         63,732
  Food                             99,744         27,951          2,316
  Beverages and tobacco
    products                       37,853         10,798          1,331
  Paper                            15,759         13,892            796
  Petroleum and coal
    products                      100,636         57,613          7,059

  Chemicals                       354,097        121,805         11,055
    Basic chemicals                82,511         52,708          3,348
    Pharmaceuticals and
      medicines                   201,401         43,347          5,046
    Other                          70,184         25,750          2,661

  Plastics and rubber
      products                     34,124         22,013          1,764
  Nonmetallic mineral
      products                     91,896         60,360          5,504
  Primary and fabricated
      metals                       74,258         36,172          3,237
    Primary metals                 50,265         23,440          2,303
    Fabricated metal
      products                     23,994         12,732            934

  Machinery                       123,584         22,347          2,133

  Computers and
      electronic
      products                     82,071         22,502          1,735
    Semiconductors and
      other electronic
      components                   30,262         12,144            928
    Navigational,
      measuring, and
      other instruments            10,853          2,604            238
    Other                          40,956          7,755            568

  Electrical equipment,
      appliances, and
      components                   31,427          8,312            612
  Transportation
      equipment                   245,112         84,720         23,883
    Motor vehicles,
      bodies and
      trailers, and parts         192,991         75,734         22,437
    Other                          52,120          8,987          1,447
  Other                            52,897         20,037          2,308

Wholesale trade                   613,345        258,978         40,254
  Motor vehicles and
    motor vehicle parts
    and supplies                  156,137         88,964         19,743
  Electrical goods                 86,449         21,274          3,324
  Petroleum and petroleum
    products                      163,160            (D)         12,395
  Other                           207,599            (D)          4,792

Retail trade                       69,024         43,620          5,338
  Food and beverage
    stores                         32,123         27,951          2,806
  Other                            36,902         15,670          2,532

Information                       234,301         50,268          5,671
  Publishing industries            78,582          6,956            693
  Telecommunications               83,174         34,859          3,998
  Other                            72,545          8,452            980

Finance, and insurance          8,834,038         64,332         13,684
  Depository credit
    intermediation
    (banking)                   3,277,197         14,378          1,213
  Finance, except
    depository
    institutions                3,971,220         35,736         11,180
  Insurance carriers and
    related activities          1,585,620         14,218          1,290

Real estate and rental
    and leasing                   128,015         99,126         11,702
  Real estate                     108,863         89,859         10,425
  Rental and leasing
    (except real estate)           19,151          9,267          1,277

Professional, scientific,
    and technical
    services                      111,933         14,121          1,629
  Architectural,
    engineering, and
    related services               17,958          3,223            304
  Computer systems design
    and related services           21,973          4,343            563
  Management, scientific,
    and technical
    consulting                     12,376            594            172
  Other                            59,626          5,961            590

Other industries                  678,015        244,041         41,029
  Mining                          111,868         78,856         20,765
  Utilities                        94,812         64,974          6,803
  Construction                     33,003         11,331          3,111
  Transportation and
    warehousing                    77,741         40,431          5,746
  Administration,
    support, and waste
    management                     56,587         12,762          1,292
  Health care and social
    assistance                        (D)          3,248            438
  Accommodation and food
    services                       42,888         20,658          1,665
  Other                               (D)         11,780          1,210

                                        Millions of dollars

                                                Net           Value
                                Sales          income         added

                                 (4)            (5)            (6)

      All industries            3,277,167        103,301        657,558

Manufacturing                   1,195,807         32,946        272,898
  Food                             75,564          4,197         15,133
  Beverages and tobacco
    products                       25,754          2,176          9,091
  Paper                            14,423           -205          3,526
  Petroleum and coal
    products                      182,720         11,454         29,574

  Chemicals                       266,946         10,680         65,994
    Basic chemicals                84,363          1,475         11,505
    Pharmaceuticals and
      medicines                   128,237          7,731         42,753
    Other                          54,347          1,474         11,735

  Plastics and rubber
      products                     39,613            288         10,973
  Nonmetallic mineral
      products                     61,285          2,379         21,117
  Primary and fabricated
      metals                       78,652          3,384         17,906
    Primary metals                 53,040          2,113         10,671
    Fabricated metal
      products                     25,611          1,271          7,235

  Machinery                        84,494          3,206         23,461

  Computers and
      electronic
      products                     56,362         -3,686         13,792
    Semiconductors and
      other electronic
      components                   23,631            996          5,298
    Navigational,
      measuring, and
      other instruments             7,608            129          3,245
    Other                          25,123         -4,811          5,249

  Electrical equipment,
      appliances, and
      components                   27,630          2,021          8,283
  Transportation
      equipment                   247,001         -1,410         42,731
    Motor vehicles,
      bodies and
      trailers, and parts         208,137         -2,419         28,412
    Other                          38,865          1,008         14,319
  Other                            35,363         -1,538         11,317

Wholesale trade                   895,917         23,659         96,224
  Motor vehicles and
    motor vehicle parts
    and supplies                  188,007          4,422         16,286
  Electrical goods                127,173          1,233         14,626
  Petroleum and petroleum
    products                      253,402          8,319         20,956
  Other                           327,335          9,685         44,356

Retail trade                      144,431          4,357         32,800
  Food and beverage
    stores                         81,856          3,302         18,820
  Other                            62,574          1,055         13,980

Information                        90,292          5,007         35,341
  Publishing industries            34,740          1,909         14,488
  Telecommunications                  (D)            (D)         10,568
  Other                               (D)            (D)         10,285

Finance, and insurance            561,864         -3,560         74,769
  Depository credit
    intermediation
    (banking)                     182,856         -3,880         24,226
  Finance, except
    depository
    institutions                  233,112        -10,891         27,612
  Insurance carriers and
    related activities            145,896         11,211         22,931

Real estate and rental
    and leasing                    30,459          6,076         15,488
  Real estate                      24,680          5,205         12,725
  Rental and leasing
    (except real estate)            5,779            871          2,763

Professional, scientific,
    and technical
    services                       71,646          1,863         26,117
  Architectural,
    engineering, and
    related services               13,009            254          5,470
  Computer systems design
    and related services           20,000            355          9,119
  Management, scientific,
    and technical
    consulting                        (D)            (D)          2,264
  Other                               (D)            (D)          9,264

Other industries                  286,751         32,952        103,920
  Mining                           45,514          7,686         24,947
  Utilities                        47,775          1,230          9,219
  Construction                     48,417            133          8,770
  Transportation and
    warehousing                    59,279            500         15,532
  Administration,
    support, and waste
    management                        (D)            (D)         23,447
  Health care and social
    assistance                        (D)            (D)          4,959
  Accommodation and food
    services                       26,842            554         13,710
  Other                            10,198         20,605          3,336

                              Millions of
                                dollars

                             Compensation   Thousands of
                             of employees    employees

                                 (7)            (8)

      All industries              403,606        5,519.5

Manufacturing                     159,595         1998.2
  Food                              9,194          145.3
  Beverages and tobacco
    products                        3,638           52.1
  Paper                             2,713           36.4
  Petroleum and coal
    products                        5,486           38.6

  Chemicals                        36,007          304.6
    Basic chemicals                 5,564           57.1
    Pharmaceuticals and
      medicines                    23,213          166.7
    Other                           7,230           80.8

  Plastics and rubber
      products                      7,723          119.7
  Nonmetallic mineral
      products                     11,649          168.9
  Primary and fabricated
      metals                       11,315          160.1
    Primary metals                  6,158           80.1
    Fabricated metal
      products                      5,156           80.0

  Machinery                        18,358          219.5

  Computers and
      electronic
      products                     10,227          134.6
    Semiconductors and
      other electronic
      components                    3,331           48.2
    Navigational,
      measuring, and
      other instruments             1,819           23.6
    Other                           5,076           62.8

  Electrical equipment,
      appliances, and
      components                    5,813           74.9
  Transportation
      equipment                    29,112          408.3
    Motor vehicles,
      bodies and
      trailers, and parts          18,013          262.1
    Other                          11,099          146.3
  Other                             8,361          135.1

Wholesale trade                    51,019          620.3
  Motor vehicles and
    motor vehicle parts
    and supplies                    7,240           82.7
  Electrical goods                 11,261          112.6
  Petroleum and petroleum
    products                        4,691           39.9
  Other                            27,827          385.0

Retail trade                       18,255          534.5
  Food and beverage
    stores                         10,587          304.1
  Other                             7,669          230.5

Information                        22,138          238.1
  Publishing industries            10,548          115.3
  Telecommunications                3,745           53.2
  Other                             7,845           69.7

Finance, and insurance             63,154          378.5
  Depository credit
    intermediation
    (banking)                      11,194          113.2
  Finance, except
    depository
    institutions                   35,736          145.8
  Insurance carriers and
    related activities             16,223          119.6

Real estate and rental
    and leasing                     1,875           31.0
  Real estate                         982           21.0
  Rental and leasing
    (except real estate)              893           10.0

Professional, scientific,
    and technical
    services                       21,672          234.1
  Architectural,
    engineering, and
    related services                4,568           55.7
  Computer systems design
    and related services            7,927           79.1
  Management, scientific,
    and technical
    consulting                      1,845           14.6
  Other                             7,334           84.7

Other industries                   65,898         1484.8
  Mining                            9,025           90.1
  Utilities                         2,438           30.6
  Construction                      6,881           80.1
  Transportation and
    warehousing                    12,767          243.4
  Administration,
    support, and waste
    management                     18,120          536.5
  Health care and social
    assistance                      3,418           64.9
  Accommodation and food
    services                       10,267          361.8
  Other                             2,982           77.4

                                      Millions of dollars

                             U.S. exports   U.S. imports   Research and
                               of goods       of goods     development
                              shipped by     shipped to    performed by
                              affiliates     affiliates     affiliates

                                 (9)            (10)           (11)

      All industries              215,554        533,430         39,806

Manufacturing                     125,703        200,759         30,640
  Food                             10,668          4,471            475
  Beverages and tobacco
    products                        1,107            758             63
  Paper                             1,300            981             57
  Petroleum and coal
    products                          (D)         49,991            (D)

  Chemicals                        30,209         32,605         16,260
    Basic chemicals                12,493          9,062            562
    Pharmaceuticals and
      medicines                    10,135         17,829         14,859
    Other                           7,581          5,713            839

  Plastics and rubber
      products                      3,581          7,498            492
  Nonmetallic mineral
      products                      1,309          2,653            267
  Primary and fabricated
      metals                        6,386          6,840            266
    Primary metals                  4,034          4,801             67
    Fabricated metal
      products                      2,353          2,039            199

  Machinery                        10,872         12,841          1,929

  Computers and
      electronic
      products                     13,476         14,310          3,857
    Semiconductors and
      other electronic
      components                    6,790          6,998            678
    Navigational,
      measuring, and
      other instruments             2,174          1,110            361
    Other                           4,513          6,202          2,818

  Electrical equipment,
      appliances, and
      components                    3,223          4,839            379
  Transportation
      equipment                    34,228         59,134          5,497
    Motor vehicles,
      bodies and
      trailers, and parts          29,346         55,309            (D)
    Other                           4,882          3,824            (D)
  Other                               (D)          3,838            (D)

Wholesale trade                    80,214        316,993          5,623
  Motor vehicles and
    motor vehicle parts
    and supplies                   10,699         94,822            423
  Electrical goods                 14,732         63,262          1,922
  Petroleum and petroleum
    products                       14,213         49,357            (D)
  Other                            40,570        109,552            (D)

Retail trade                          673          6,300             14
  Food and beverage
    stores                              0             72              0
  Other                               673          6,228             14

Information                           893            415          1,186
  Publishing industries               (D)            (D)            829
  Telecommunications                    3              5            (D)
  Other                               (D)            (D)            (D)

Finance, and insurance                (D)            (D)              9
  Depository credit
    intermediation
    (banking)                           0              0              0
  Finance, except
    depository
    institutions                      (D)            (D)              8
  Insurance carriers and
    related activities                  0            (*)            (*)

Real estate and rental
    and leasing                        17            (D)            (D)
  Real estate                           0              0              1
  Rental and leasing
    (except real estate)               17            (D)            (D)

Professional, scientific,
    and technical
    services                          532            491          1,780
  Architectural,
    engineering, and
    related services                  (D)            (D)            328
  Computer systems design
    and related services               14              6            258
  Management, scientific,
    and technical
    consulting                          3            (D)              5
  Other                               (D)            (D)          1,189

Other industries                      (D)          8,246            (D)
  Mining                            5,753          2,816            (D)
  Utilities                             1            (D)            (*)
  Construction                        151            (D)            (D)
  Transportation and
    warehousing                       410            (D)            (D)
  Administration,
    support, and waste
    management                        (D)            (D)            (D)
  Health care and social
    assistance                        (D)            (D)            (D)
  Accommodation and food
    services                          (*)              1              0
  Other                               446            178             76

(*) Less than $500,000.

(D) Suppressed to avoid disclosure of data of individual companies.

Table 20.1. Selected Data of Majority-Owned Nonbank U.S. Affiliates by
Country of Ultimate Beneficial Owner, 2006

                                       Millions of dollars

                                                           Expenditures
                                               Gross           for
                                             property,      property,
                                Total        plant, and     plant, and
                                assets       equipment      equipment

                                 (1)            (2)            (3)

    All countries              6,820,142      1,183,022        161,570

Canada                           610,799        113,572         13,036

Europe                        50,485,381        715,675         90,318
  Austria                         32,021          1,704            237
  Belgium                        589,121         12,648          1,151
  Denmark                        242,241          4,622            916
  Finland                         14,848          7,963            (D)
  France                         774,081         66,404          5,764
  German y                       682,101        242,049         39,060
  Ireland                         31,992         96,211            698
  Italy                           55,651         16,497          1,257
  Luxembourg                       8,067         39,311            170
  Netherlands                    706,125         75,387          6,800
  Nonway                          13,192          8,131          1,741
  Spain                           56,385          5,302          1,224
  Sweden                          36,000         12,535          1,278
  Switzerland                 14,039,071         48,123         53,871
  United Kingdom               1,168,827        195,869         22,877
  Other                           11,024          4,889            (D)

Latin America and Other
      Western Hemisphere       3,201,137         66,651            (D)
  South and Central
      America                     41,536         21,810          2,805
    Brazil                         8,637          2,934            (D)
    Mexico                        18,640          9,186          1,173
    Panama                         1,409            (D)             87
    Venezuela                        (D)            (D)            (D)
    Other                            (D)          1,248            287
  Other Western
      Hemisphere                 279,301         44,841            (D)
    Bahamas                          979            219             16
    Bermuda                      196,246         32,725          3,069
    Netherlands Antiles            7,361          3,795            (D)
    United Kingdom
      Islands, Caribbean          74,605          8,072            925
    Other                            110             30              6

Africa                             4,405          4,062            265
  South Africa                     3,835          3,535            155
  Other                              570            528            110

Middle East                       64,152         28,127          3,021
  Israel                          22,997          2,949            269
  Kuwait                           3,749            (D)            225
  Lebanon                          1,277          1,052            145
  Saudi Arabia                    15,607         11,642          1,581
  United Arab Emirates            13,167          8,417            571
  Other                            7,355            (D)            229

Asia and Pacific                 730,928        240,702         39,863
  Australia                       95,315         37,764          5,516
  China                              863            316             11
  Hong Kong                        7,693          4,632            505
  India                            2,961            585            203
  Japan                          583,824        177,295         30,895
  Korea, Republic of              22,047         10,146          2,009
  Malaysia                         1,553            988             67
  New Zealand                        706             70             11
  Singapore                        7,700          2,840            200
  Taiwan                           6,804          5,113            394
  Other                            1,461            953             52

United States                     40,483         14,232            (D)

Addenda:
  European Union (25) (1)      3,624,804        656,569         82,315
  OPEC (2)                        43,044            (D)            (D)

                                      Millions of dollars

                                                Net           Value
                                Sales          income         added

                                 (4)            (5)            (6)

    All countries             28,240,881        136,503        616,317

Canada                           211,017         12,050         56,900

Europe                         1,704,012         90,308        392,127
  Austria                          4,125            130          1,033
  Belgium                         36,213          1,464          7,198
  Denmark                        125,201            328          3,288
  Finland                         21,959          1,199          4,145
  France                         206,747         18,498         58,065
  German y                       380,836          9,913         72,544
  Ireland                         19,508            698          5,991
  Italy                           30,864          1,694          7,960
  Luxembourg                       2,987            253          1,167
  Netherlands                    301,039         13,489         43,871
  Nonway                          11,862           -566            249
  Spain                            9,169            358          2,092
  Sweden                          52,146          1,374         12,547
  Switzerland                    179,155          7,602         46,134
  United Kingdom                 420,562         33,727        122,758
  Other                           14,318            149          3,085

Latin America and Other
      Western Hemisphere         186,705          9,566         50,547
  South and Central
      America                     93,620          2,918         16,106
    Brazil                        12,739            278          1,156
    Mexico                        25,271            414          6,034
    Panama                         1,156            154            (D)
    Venezuela                        (D)            (D)            (D)
    Other                            (D)            (D)          1,267
  Other Western
      Hemisphere                  93,085          6,648         34,441
    Bahamas                          181             57             85
    Bermuda                       71,183          4,340         25,558
    Netherlands Antiles            7,272          1,058          4,274
    United Kingdom
      Islands, Caribbean          14,297          1,236          4,506
    Other                            152            -42             19

Africa                             7,403            115          1,082
  South Africa                     6,882             13            972
  Other                              520            101            110

Middle East                       66,327          3,442         12,735
  Israel                          11,691           -829          1,910
  Kuwait                          18,631            290            (D)
  Lebanon                            789             18            277
  Saudi Arabia                       (D)            (D)          7,007
  United Arab Emirates             3,714          1,269          1,210
  Other                              (D)            (D)            (D)

Asia and Pacific                 622,216         19,634         94,624
  Australia                       29,501          5,293          8,968
  China                            1,343            -12            103
  Hong Kong                       10,114            196          2,095
  India                            4,637            -38          1,244
  Japan                          504,395         13,068         75,679
  Korea, Republic of              51,070            471          2,909
  Malaysia                         1,009             60            372
  New Zealand                      1,760             19            162
  Singapore                        8,632            253          1,666
  Taiwan                           8,534            300          1,194
  Other                            1,221             23            233

United States                     26,409          1,387          8,301

Addenda:
  European Union (25) (1)      1,502,814         83,020        343,437
  OPEC (2)                       976,171          6,515         16,226

                             Millions of
                               dollars

                             Compensation   Thousands of
                             of employees    employees

                                 (7)            (8)

    All countries                364,098        5,334.2

Canada                            31,962          463.9

Europe                           241,162        3,576.0
  Austria                            650           10.8
  Belgium                          4,461          132.2
  Denmark                          2,511           23.3
  Finland                          2,892           33.8
  France                          36,811          498.3
  German y                        45,996          703.6
  Ireland                          3,784           62.3
  Italy                            4,736          107.1
  Luxembourg                         501           26.1
  Netherlands                     27,765          427.1
  Nonway                             559            7.5
  Spain                            1,487           35.5
  Sweden                           9,339          193.4
  Switzerland                     36,089          414.1
  United Kingdom                  62,246          883.7
  Other                           13,361           17.1

Latin America and Other
      Western Hemisphere          27,603          360.4
  South and Central
      America                      6,108          116.9
    Brazil                           778           10.8
    Mexico                         3,103           59.1
    Panama                           (D)              I
    Venezuela                        (D)              H
    Other                          1,057           37.3
  Other Western
      Hemisphere                  21,495          243.5
    Bahamas                           98            1.7
    Bermuda                       16,949          195.0
    Netherlands Antiles            2,236           20.7
    United Kingdom
      Islands, Caribbean           2,199           26.0
    Other                             14            0.1

Africa                               707            8.4
  South Africa                       672            7.9
  Other                               36            0.4

Middle East                        3,635           74.9
  Israel                           1,068           17.2
  Kuwait                             (D)              H
  Lebanon                            175            3.3
  Saudi Arabia                       566            4.9
  United Arab Emirates               488           14.3
  Other                              (D)              K

Asia and Pacific                  54,440          792.8
  Australia                        4,714           61.7
  China                               97            1.1
  Hong Kong                        1,223           21.7
  India                            1,094           16.7
  Japan                           43,612          631.6
  Korea, Republic of               1,404           18.7
  Malaysia                           262            4.8
  New Zealand                         89            1.5
  Singapore                        1,058           18.8
  Taiwan                             769           12.6
  Other                              119            3.6

United States                      4,588           57.7

Addenda:
  European Union (25) (1)        203,621        3,142.8
  OPEC (2)                         1,861           27.0

                                       Millions of dollars

                             U.S. exports   U.S. imports   Research and
                               of goods       of goads     development
                              shipped by     shipped to    performed by
                              affiliates     affiliates     affiliates

                                 (9)            (10)           (11)

    All countries                198,003        502,589         34,625

Canada                             9,196         33,759          1,581

Europe                           110,777        203,079         26,100
  Austria                            293          1,056              9
  Belgium                          1,080          1,122            288
  Denmark                            922          3,245            371
  Finland                          2,720          6,319            (D)
  France                          12,458         19,359          3,289
  German y                        42,858         68,810          6,857
  Ireland                            225            374            207
  Italy                            2,367          5,052            344
  Luxembourg                          69            233              8
  Netherlands                     14,605         34,028          1,678
  Nonway                             412          2,024             13
  Spain                              651            494            (D)
  Sweden                           5,973          8,496            344
  Switzerland                      7,027         17,517          5,014
  United Kingdom                  18,849         33,852          6,924
  Other                              267          1,098             32

Latin America and Other
      Western Hemisphere          13,226            (D)            (D)
  South and Central
      America                      2,871            (D)            (D)
    Brazil                           678          6,361            (*)
    Mexico                           985          4,567             16
    Panama                           (D)             31            (D)
    Venezuela                        (D)            (D)              0
    Other                            213          2,110              3
  Other Western
      Hemisphere                  10,355          6,355          1,249
    Bahamas                            1              2            (*)
    Bermuda                          (D)          4,317            950
    Netherlands Antiles              (D)            (D)            (D)
    United Kingdom
      Islands, Caribbean             143            (D)            (D)
    Other                              6             15            (D)

Africa                               500            727             35
  South Africa                       500            726             35
  Other                              (*)            (*)              0

Middle East                          642            (D)            (D)
  Israel                             262          1,371            147
  Kuwait                               2            (*)              0
  Lebanon                              9              2            (*)
  Saudi Arabia                       (D)            (D)            (D)
  United Arab Emirates               (D)             80              0
  Other                              114            497             28

Asia and Pacific                  60,860        206,428          4,698
  Australia                        1,356          1,721            174
  China                              (D)             84            (D)
  Hong Kong                          159          1,803             75
  India                               68            285              0
  Japan                           48,980        161,618          4,056
  Korea, Republic of               8,790         34,974            (D)
  Malaysia                           (D)             18            (D)
  New Zealand                        (D)          1,193              0
  Singapore                          311            900             42
  Taiwan                             890          3,240            113
  Other                               16            594            (D)

United States                      2,803          5,982            721

Addenda:
  European Union (25) (1)        103,163        182,625         21,041
  OPEC (2)                         1,168            (D)            (D)

(*) Less Than $500,000.

(D) Suppressed to avoid disclosure of data of individual companies.

(1.) The European Union (25) comprises Austria, Belgium, Cyprus, Czech
Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary,
Ireland, Italy Latvia, Lithuania, Luxembourg, Malta, the Netherlands,
Poland, Portugal, Slovakia, Slovenia, Spain, Sweden, and the United
Kingdom.

(2.) OPEC is the Organization of Petroleum Exporting Countries. Its
members are Algeria, Indonesia, Iran, Iraq, Kuwait, Libya, Nigeria,
Qatar, Saudi Arabia, the United Arab Emirates, and Venezuela.

NOTE. The following ranges are given in employment cells that are
suppressed. The size ranges are: A-1 to 499; F-500 to 999; G-1,000 to
2,499; H-2,500 to 4,999; I-5,000 to 9,999; J-10,000 to 24,999;
K-25,000 to 49,999; L-50,000 to 99,999; M-100,000 or more.

Table 20.2. Selected Data of Majority-Owned U.S. Affiliates by
Country of Ultimate Beneficial Owner, 2007

                                           Millions of dollars

                                                       Gross
                                                     property,
                                          Total      plant, and
                                          assets     equipment

                                           (1)          (2)

    All countries                       12,012,130    1,283,009

Canada                                  10,475,831      135,763

Europe                                   9,094,374      734,724
  Belgium                                  112,604       14,034
  Denmark                                   28,518        4,702
  Finland                                   68,955        4,400
  France                                 1,262,812       74,542
  Germany                                1,825,362      199,493
  Ireland                                   60,622       11,066
  Italy                                    139,378       25,691
  Netherlands                            1,000,675       75,295
  Spain                                    233,165       10,831
  Sweden                                    67,125       13,839
  Switzerland                            2,005,325       52,834
  United Kingdom                         2,216,961      221,265
  Other                                     72,871       26,732

Latin America and Other Western
    Hemisphere                             401,811       71,497
  South and Central America                 84,768       24,459
    Brazil                                  29,054        4,909
    Mexico                                  19,569        9,303
    Venezuela                               23,053          (D)
    Other                                   13,091          (D)
  Other Western Hemisphere                 317,042       47,038
    Bermuda                                201,106       34,426
    United Kingdom Islands, Caribbean      105,447        8,084
    Other                                   10,489        4,528

Africa                                       6,016        4,453
  South Africa                               4,127        3,915
  Other                                      1,890          538

Middle East                                119,196       36,407
  Israel                                    53,730        3,990
  Saudi Arabia                              29,417       15,843
  United Arab Emirates                      19,995        9,109
  Other                                     16,054        7,464

Asia and Pacific                         1,270,935      277,393
  Australia                                153,560       47,383
  China                                      5,762          422
  Hong Kong                                 10,813        4,801
  India                                     10,148        1,449
  Japan                                    995,480      199,183
  Korea, Republic of                        37,137       12,468
  Singapore                                 17,565        3,101
  Taiwan                                    33,134        5,796
  Other                                      7,335        2,790

United States                               72,215       22,772

Addenda:
  European Union (27) (1)                7,060,458      667,140
  OPEC (2)                                  80,759       37,784

                                           Millions of dollars

                                        Expenditures
                                        for property,
                                         plant, and
                                          equipment       Sales

                                             (3)           (4)

    All countries                             183,039   3,277,167

Canada                                        200,291     248,669

Europe                                        103,338   1,998,241
  Belgium                                       1,592      47,014
  Denmark                                         932      14,668
  Finland                                         322      17,929
  France                                        6,794     253,627
  Germany                                      39,487     442,648
  Ireland                                         798      23,942
  Italy                                         7,071      37,717
  Netherlands                                   8,767     323,524
  Spain                                         1,886      24,916
  Sweden                                        1,560      48,849
  Switzerland                                   5,820     223,055
  United Kingdom                               22,156     499,412
  Other                                         6,152      40,940

Latin America and Other Western
    Hemisphere                                  9,866     189,286
  South and Central America                     3,180      92,055
    Brazil                                      1,179      24,534
    Mexico                                      1,190      20,158
    Venezuela                                     (D)         (D)
    Other                                         (D)         (D)
  Other Western Hemisphere                      6,686      97,231
    Bermuda                                     4,912      70,514
    United Kingdom Islands, Caribbean           1,122      18,242
    Other                                         652       8,475

Africa                                            272       7,832
  South Africa                                    155         (D)
  Other                                           117         (D)

Middle East                                     4,280      76,606
  Israel                                          354      14,751
  Saudi Arabia                                  1,996      47,974
  United Arab Emirates                            809       4,919
  Other                                         1,121       8,961

Asia and Pacific                               44,085     706,088
  Australia                                     5,146      38,175
  China                                            30       1,923
  Hong Kong                                       511      10,528
  India                                           448       7,218
  Japan                                        34,309     563,739
  Korea, Republic of                            2,710      56,713
  Singapore                                       343      10,284
  Taiwan                                          408      11,940
  Other                                           180       5,568

United States                                   1,170      50,445

Addenda:
  European Union (27) (1)                      93,982   1,748,794
  OPEC (2)                                      3,878      95,340

                                        Millions of dollars

                                          Net       Value
                                         income     added

                                          (5)        (6)

    All countries                        103,301    657,558

Canada                                     8,572     64,861

Europe                                    58,710    412,330
  Belgium                                  1,194     10,193
  Denmark                                    483      3,791
  Finland                                    626      3,412
  France                                  10,288     60,733
  Germany                                  1,844     85,921
  Ireland                                    140      6,860
  Italy                                      790      9,078
  Netherlands                             16,040     43,639
  Spain                                      557      3,656
  Sweden                                     848     12,253
  Switzerland                             -1,044     48,914
  United Kingdom                          27,638    117,686
  Other                                     -696      6,193

Latin America and Other Western
    Hemisphere                             9,953     49,637
  South and Central America                2,564     15,705
    Brazil                                    60      2,253
    Mexico                                   475      4,800
    Venezuela                                (D)      6,485
    Other                                    (D)      2,168
  Other Western Hemisphere                 7,389     33,932
    Bermuda                                3,755     22,959
    United Kingdom Islands, Caribbean      2,307      5,683
    Other                                  1,328      5,291

Africa                                       441      1,124
  South Africa                               (D)      1,005
  Other                                      (D)        120

Middle East                                3,749     15,663
  Israel                                     206      2,910
  Saudi Arabia                             3,206      8,854
  United Arab Emirates                       328      1,265
  Other                                        8      2,633

Asia and Pacific                          20,997    104,925
  Australia                                6,038     11,505
  China                                      126        214
  Hong Kong                                  231      2,204
  India                                     -108      1,650
  Japan                                   13,356     81,475
  Korea, Republic of                         541      3,006
  Singapore                                  221      1,946
  Taiwan                                     394      1,614
  Other                                      199      1,311

United States                              1,275      9,018

Addenda:
  European Union (27) (1)                 60,721    360,813
  OPEC (2)                                 5,864     17,599

                                        Millions of
                                          dollars

                                        Compensation   Thousands of
                                        of employees    employees

                                            (7)            (8)

    All countries                            403,606        5,519.5

Canada                                        37,265          542.5

Europe                                       267,187        3,595.4
  Belgium                                      5,124          140.9
  Denmark                                      2,724           24.4
  Finland                                      2,500           26.6
  France                                      39,723          516.0
  Germany                                     55,375          653.9
  Ireland                                      4,786           67.7
  Italy                                        5,234          115.2
  Netherlands                                 28,113          391.2
  Spain                                        2,599           57.5
  Sweden                                       8,742          184.1
  Switzerland                                 38,267          396.9
  United Kingdom                              70,299          949.3
  Other                                        3,702           71.9

Latin America and Other Western
    Hemisphere                                28,533          375.5
  South and Central America                    6,851          125.1
    Brazil                                     1,581           29.9
    Mexico                                     2,657           43.0
    Venezuela                                    798            6.6
    Other                                      1,815           45.6
  Other Western Hemisphere                    21,682          250.4
    Bermuda                                   15,763          193.2
    United Kingdom Islands, Caribbean          3,006           32.7
    Other                                      2,914           24.5

Africa                                           740            8.4
  South Africa                                   693            8.0
  Other                                           48            0.5

Middle East                                    4,899           77.3
  Israel                                       1,348           19.6
  Saudi Arabia                                 1,390           10.3
  United Arab Emirates                           603           18.8
  Other                                        1,558           28.7

Asia and Pacific                              59,801          857.9
  Australia                                    5,684           71.5
  China                                          142            1.5
  Hong Kong                                    1,321           21.1
  India                                        1,528           25.3
  Japan                                       46,642          665.2
  Korea, Republic of                           1,537           23.9
  Singapore                                    1,141           18.7
  Taiwan                                         985           15.6
  Other                                          820           15.1

United States                                  5,181           62.4

Addenda:
  European Union (27) (1)                    227,230        3,176.5
  OPEC (2)                                     3,048           38.7

                                            Millions of dollars

                                        U.S. exports   U.S. imports
                                          of goods       of goods
                                         shipped by     shipped to
                                         affiliates     affiliates

                                            (9)            (10)

    All countries                            215,554        533,430

Canada                                        11,159        351,581

Europe                                       111,537        201,929
  Belgium                                      1,497          1,918
  Denmark                                      1,153          3,995
  Finland                                      1,236          6,644
  France                                      14,364         20,085
  Germany                                     40,454         69,539
  Ireland                                        290            442
  Italy                                        3,156          5,861
  Netherlands                                 13,406         33,704
  Spain                                          790            457
  Sweden                                       5,256          6,811
  Switzerland                                  7,871         14,757
  United Kingdom                              20,774         33,085
  Other                                        1,290          4,632

Latin America and Other Western
    Hemisphere                                16,958         38,757
  South and Central America                    3,893         31,322
    Brazil                                     1,803          5,617
    Mexico                                     1,048          3,878
    Venezuela                                    (D)            (D)
    Other                                        (D)            (D)
  Other Western Hemisphere                    13,065          7,435
    Bermuda                                      (D)          5,267
    United Kingdom Islands, Caribbean            164          1,902
    Other                                        (D)            266

Africa                                           537            754
  South Africa                                   537            754
  Other                                          (*)            (*)

Middle East                                    2,188            (D)
  Israel                                         249          1,649
  Saudi Arabia                                 1,645            (D)
  United Arab Emirates                            54             92
  Other                                          240            459

Asia and Pacific                              66,909        227,984
  Australia                                    1,803          1,626
  China                                           20             36
  Hong Kong                                      481          1,689
  India                                          366            505
  Japan                                       52,339        179,390
  Korea, Republic of                          10,143         37,759
  Singapore                                      351            997
  Taiwan                                       1,007          4,099
  Other                                          398          1,884

United States                                  6,266            (D)

Addenda:
  European Union (27) (1)                    102,930        184,282
  OPEC (2)                                       (D)            (D)

                                        Millions of
                                          dollars

                                        Research and
                                        development
                                        performed by
                                         affiliates

                                            (11)

    All countries                             39,806

Canada                                         1,513

Europe                                        31,023
  Belgium                                        291
  Denmark                                        349
  Finland                                        333
  France                                       5,377
  Germany                                      5,638
  Ireland                                        213
  Italy                                          359
  Netherlands                                  1,682
  Spain                                           34
  Sweden                                         314
  Switzerland                                  5,871
  United Kingdom                              10,469
  Other                                           93

Latin America and Other Western
    Hemisphere                                 1,289
  South and Central America                       55
    Brazil                                       (*)
    Mexico                                         6
    Venezuela                                      0
    Other                                         49
  Other Western Hemisphere                     1,234
    Bermuda                                      907
    United Kingdom Islands, Caribbean            (D)
    Other                                        (D)

Africa                                            35
  South Africa                                    35
  Other                                            0

Middle East                                      308
  Israel                                         156
  Saudi Arabia                                   106
  United Arab Emirates                             0
  Other                                           45

Asia and Pacific                               4,913
  Australia                                      180
  China                                          (D)
  Hong Kong                                       59
  India                                            5
  Japan                                        4,252
  Korea, Republic of                             218
  Singapore                                       55
  Taiwan                                         124
  Other                                          (D)

United States                                    726

Addenda:
  European Union (27) (1)                     25,098
  OPEC (2)                                       106

* Less than $500,000.

D Suppressed to avoid disclosure of data of individual companies.

(1.) The European Union (27) comprises Austria, Belgium, Cyprus, Czech
Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary,
Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands,
Poland, Portugal, Slovakia, Slovenia, Spain, Sweden, the United
Kingdom and the two countries--Bulgaria and Romania--that joined in
2007.

(2.) OPEC is the Organization of Petroleum Exporting Countries. In
2007, its members were Angola (which joined at the beginning of the
year), Algeria, Indonesia, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar,
Saudi Arabia, the United Arab Emirates, and Venezuela. Ecuador
rejoined OPEC in November 2007, but is not included as a member in
this annual tabulation.

Chart 2. Investing-Country Shares of Value
Added of U.S. Affiliates, 2007

Other, 23.5%

Japan, 12.4%

United Kingdom, 17.9%

Switzerland, 7.4%

The Netherlands, 6.6%

Germany, 13.1%

France, 9.2%

Canada, 9.9%

U.S. Bureau of Economic Analysis