U.S. Affiliates of Foreign Companies.

Zeile, William J.

Operations in 1999

PRELIMINARY results from BEA's 1999 annual survey of foreign direct investment in the United States (FDIUS) indicate that U.S. affiliates of foreign companies accounted for a slightly larger share of U.S. gross domestic product (GDP) in private industries in 1999 than in 1998.(1) This increased share continued a 4-year uptrend in the context of strong overall growth in the U.S. economy and a worldwide surge in mergers and acquisitions. The affiliate share of private-industry GDP increased from 6.3 percent in 1998 to a record 6.4 percent in 1999 (table 1 and chart 1). (For affiliates that were majority-owned by foreign direct investors, the share increased from 5.3 percent to 5.5 percent.)

[GRAPH OMITTED]

Table 1.--Gross Product of Nonbank U.S. Affiliates of Foreign
Companies, 1977-99

 Millions of dollars

 Majority-
 owned
 All nonbank nonbank
 affiliates affiliates

1977 35,222 n.a.
1978 42,920 n.a.
1979 55,424 n.a.
1980 70,906 n.a.
1981 98,828 n.a.
1982 103,489 n.a.
1983 111,490 n.a.
1984 128,761 n.a.
1985 134,852 n.a.
1986 142,120 n.a.
1987 157,869 n.a.
1988 190,384 146,424
1989 223,420 168,547
1990 239,279 190,477
1991 257,634 207,126
1992 266,333 214,781
1993 285,738 223,008
1994 312,981 244,690
1995 322,631 254,938
1996 358,085 283,422
1997 389,432 313,655
1998(r) 419,828 353,860
1999(p) 451,656 390,957

Percent change from
 preceding year:

1989 17.4 15.1
1990 7.1 13.0
1991 7.7 8.7
1992 3.4 3.7
1993 7.3 3.8
1994 9.5 9.7
1995 3.1 4.2
1996 11.0 11.2
1997 8.8 10.7
1998(r) 7.8 12.8
1999(p) 7.6 10.5

 Percentage of
 U.S. private-industry Addendum:
 gross domestic product Gross product of
 majority-owned
 Majority- nonbank affiliates
 owned as a percentage
 All nonbank nonbank of that of all
 affiliates affiliates nonbank affiliate

1977 2.3 n.a. n.a.
1978 2.4 n.a. n.a.
1979 2.8 n.a. n.a.
1980 3.3 n.a. n.a.
1981 4.2 n.a. n.a.
1982 4.3 n.a. n.a.
1983 4.2 n.a. n.a.
1984 4.4 n.a. n.a.
1985 4.3 n.a. n.a.
1986 4.3 n.a. n.a.
1987 4.4 n.a. n.a.
1988 4.9 3.8 76.9
1989 5.4 4.1 75.4
1990 5.5 4.4 79.6
1991 5.8 4.7 80.4
1992 5.7 4.6 80.6
1993 5.8 4.5 78.0
1994 5.9 4.6 78.2
1995 5.8 4.6 79.0
1996 6.1 4.8 79.1
1997 6.2 5.0 80.5
1998(r) 6.3 5.3 84.3
1999(p) 6.4 5.5 86.6

Percent change from
 preceding year:

1989 ... ... ...
1990 ... ... ...
1991 ... ... ...
1992 ... ... ...
1993 ... ... ...
1994 ... ... ...
1995 ... ... ...
1996 ... ... ...
1997 ... ... ...
1998(r) ... ... ...
1999(p) ... ... ...

(p) Preliminary.

(r) Revised.

n.a. Not available.

NOTE.--For improved comparability with U.S.-affiliate gross product,
U.S. private-industry gross domestic product was adjusted to exclude
gross product originating 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 gross product, see
Sherlene K.S. Lum and Brian C. Moyer, "Gross Domestic Product by
Industry for 1997-99," SURVEY OF CURRENT BUSINESS 80 (December 2000):
24-35.

The gross product of U.S. affiliates in current dollars increased 8 percent in 1999, to $451.7 billion, following an 8-percent increase in 1998. Despite record new foreign direct investments, affiliate gross product in both years increased at a slightly slower pace than in 1996 and 1997.(2) To some extent, the slower growth reflected the offsetting effect of selloffs of affiliates, particularly minority-owned affiliates. In addition, growth in 1998 was slowed by the large reduction in the gross product of petroleum affiliates that resulted from depressed markets for petroleum and petroleum products.

The contribution of new foreign investments to affiliate gross product in 1999 was smaller than that in 1998, reflecting differences in the types of U.S. businesses in which investments were made. In 1998, the largest new investments were predominantly in old-line manufacturing businesses with established value added, whereas in 1999, they were concentrated in information-related businesses that had relatively low value added but appeared to offer favorable prospects for future growth. In some of the investments in 1999, foreign investors offered very high prices to fight off competing bids to acquire the U.S. companies. As a result, the gross product associated with each dollar of new investments was much smaller in 1999 than in 1998.(3)

In 1999, employment by affiliates increased 6 percent, to 6.0 million, following a 9-percent increase in 1998. The increase in 1999 resulted from both new investments and expansions in the operations of existing affiliates. The affiliate share of U.S. private-industry employment increased from 5.2 percent in 1998 to a record 5.4 percent.(4) Affiliate exports and imports of goods also increased in 1999, but the affiliate shares of total U.S. exports and imports of goods decreased.

The following are additional highlights of the operations of U.S. affiliates in 1999:

* By country of ownership, the United Kingdom remained the largest investing country in terms of affiliate gross product. Germany was second largest, having overtaken Japan in 1998.

* By industry, affiliates classified in manufacturing accounted for more than half of the gross product of all affiliates. Within manufacturing, transportation equipment emerged as the largest industry, closely followed by chemicals.

* The affiliate share of U.S. employment rose substantially in the information sector as a result of new foreign acquisitions.

* By State, the affiliate share of private-industry employment was highest in Hawaii, South Carolina, and North Carolina. Affiliates accounted for more than a fifth of manufacturing employment in Kentucky and South Carolina.

* The decline in the affiliate share of U.S. exports of goods was mainly due to a large decrease in exports by Japanese-owned wholesale trade affiliates, reflecting depressed market conditions in Japan.

* The decline in the affiliate share of U.S. imports of goods partly reflected increases in imports by other U.S. firms from countries, such as Mexico and China, that do not have a major investment presence in the United States.

This article examines changes in the gross product, employment, and trade in goods of U.S. affiliates in 1999, particularly as they relate to the corresponding totals for the U.S. economy. For each of these measures, changes in affiliate operations are examined, both in the aggregate and by major investing country. For gross product, the changes are also examined by industry of affiliate, and for employment, the affiliate shares of the economy are examined by industry and by State.

Gross Product

In 1999, the gross product (or value added) of nonbank U.S. affiliates in current dollars increased 8 percent, from $420 billion to $452 billion. In comparison, total U.S. GDP in private nonbank industries increased 6 percent.(5) The U.S. affiliates' share of total U.S. GDP in private industries edged up from 6.3 percent in 1998 to a record 6.4 percent in 1999.

The gross product of U.S. affiliates that are majority-owned by foreign direct investors increased 10 percent; in contrast, the gross product of affiliates that are not majority-owned decreased 8 percent, primarily as a result of selloffs. The majority-owned affiliates' share of the gross product of all affiliates increased from 84 percent to 87 percent, and their share of U.S. GDP in private industries increased from 5.3 percent to 5.5 percent.

By country of ownership

Affiliates with ultimate beneficial owners (UBO's) in seven major investing countries--Canada, France, Germany, Japan, the Netherlands, Switzerland, and the United Kingdom--have accounted for more than 80 percent of the gross product of all nonbank affiliates since at least 1977, the first year for which annual data on affiliate operations are available. In 1999, as throughout 1977-98, the largest investing country in terms of affiliate gross product was the United Kingdom: British-owned affiliates accounted for 18.2 percent of the gross product of all nonbank affiliates and for 1.2 percent of total U.S. GDP in private industries (table 2 and chart 2). German-owned affiliates accounted for the second-largest share of affiliate gross product (15.5 percent), and Japanese-owned affiliates accounted for the third-largest share (14.3 percent). Germany replaced Japan as the second-largest country in terms of gross product in 1998, when German direct investors made some very large new investments.

CHART 2

Investing-Country Shares of the Gross
Product of All Nonbank U.S. Affiliates, 1999

Other (18.3%)
Canada (9.5%)
France (9.4%)
Germany (15.5%)
Japan (14.3%)
Netherlands (7.9%)
Switzerland (6.9%)
United Kingdom (18.2%)

U.S. Bureau of Economic Analysis

Note: Table made from pie chart.
Table 2.--Gross Product of Nonbank U.S. Affiliates by Country of
Ultimate Beneficial Owner, 1997-99

 Millions of dollars

 1997 1998 1999

 All nonbank affiliates:

 All countries 389,432 419,828 451,656

Canada 34,732 39,853 43,037

Europe 248,970 268,466 294,501
 France 36,182 37,443 42,243
 Germany 46,330 66,852 70,181
 Netherlands 34,740 29,165 35,618
 Switzerland 26,331 28,207 31,153
 United Kingdom 78,289 75,310 81,981
 Other 27,099 31,489 33,326

Latin America and Other
 Western Hemisphere 13,682 17,346 20,731

Africa 2,870 2,912 1,250

Middle East 7,481 4,628 2,863

Asia and Pacific 74,541 79,039 79,454
 Japan 63,017 65,034 64,721
 Other 11,524 14,005 14,733

United States 7,156 7,585 9,820

 Majority-owned nonbank
 affiliates:

 All countries 313,655 353,860 390,957

Canada 29,779 34,174 36,538

Europe 199,458 228,775 257,653
 France 24,356 25,268 29,436
 Germany 36,914 57,975 61,175
 Netherlands 27,797 26,094 31,491
 Switzerland 22,268 22,798 26,053
 United Kingdom 66,112 70,602 79,198
 Other 22,013 26,038 30,299

Latin America and Other
 Western Hemisphere 12,126 15,732 19,361

Africa (D) (D) 1,212

Middle East 2,619 2,460 2,103

Asia and Pacific 65,069 68,005 69,230
 Japan 55,280 56,291 56,965
 Other 9,789 11,714 12,265

United States (D) (D) 4,860

 Percentage of
 all-countries total

 1997 1998 1999

 All nonbank affiliates:

 All countries 100.0 100.0 100.0

Canada 8.9 9.5 9.5

Europe 63.9 63.9 65.2
 France 9.3 8.9 9.4
 Germany 11.9 15.9 15.5
 Netherlands 8.9 6.9 7.9
 Switzerland 6.8 6.7 6.9
 United Kingdom 20.1 17.9 18.2
 Other 7.0 7.5 7.4

Latin America and Other
 Western Hemisphere 3.5 4.1 4.6

Africa .7 .7 .3

Middle East 1.9 1.1 .6

Asia and Pacific 19.1 18.8 17.6
 Japan 16.2 15.5 14.3
 Other 3.0 3.3 3.3

United States 1.8 1.8 2.2

 Majority-owned nonbank
 affiliates:

 All countries 100.0 100.0 100.0

Canada 9.5 9.7 9.3

Europe 63.6 64.7 65.9
 France 7.8 7.1 7.5
 Germany 11.8 16.4 15.6
 Netherlands 8.9 7.4 8.1
 Switzerland 7.1 6.4 6.7
 United Kingdom 21.1 20.0 20.3
 Other 7.0 7.4 7.7

Latin America and Other
 Western Hemisphere 3.9 4.4 5.0

Africa (D) (D) .3

Middle East .8 .7 .5

Asia and Pacific 20.7 19.2 17.7
 Japan 17.6 15.9 14.6
 Other 3.1 3.3 3.1

United States (D) (D) 1.2

 Addendum:
 Percent
 Percentage of U.S. change in
 private-industry affiliate
 gross domestic product gross
 product,
 1997 1998 1999 1998-99

 All nonbank affiliates:

 All countries 6.2 6.3 6.4 7.6

Canada .5 .6 .6 8.0

Europe 3.9 4.0 4.1 9.7
 France .6 .6 .6 12.8
 Germany .7 1.0 1.0 5.0
 Netherlands .6 .4 .5 22.1
 Switzerland .4 .4 .4 10.4
 United Kingdom 1.2 1.1 1.2 8.9
 Other .4 .5 .5 5.8

Latin America and Other
 Western Hemisphere .2 .3 .3 19.5

Africa (*) (*) (*) -57.1

Middle East .1 .1 (*) -38.1

Asia and Pacific 1.2 1.2 1.1 .5
 Japan 1.0 1.0 .9 -.5
 Other .2 .2 .2 5.2

United States .1 .1 .1 29.5

 Majority-owned nonbank
 affiliates:

 All countries 5.0 5.3 5.5 10.5

Canada .5 .5 .5 6.9

Europe 3.2 3.4 3.6 12.6
 France .4 .4 .4 16.5
 Germany .6 .9 .9 5.5
 Netherlands .4 .4 .4 20.7
 Switzerland .4 .3 .4 14.3
 United Kingdom 1.0 1.1 1.1 12.2
 Other .3 .4 .4 16.4

Latin America and Other
 Western Hemisphere .2 .2 .3 23.1

Africa (D) (D) (*) (D)

Middle East (*) (*) (*) -14.5

Asia and Pacific 1.0 1.0 1.0 1.8
 Japan .9 .8 .8 1.2
 Other .2 .2 .2 4.7

United States (D) (D) .1 (D)

(*) Less than 0.05 percent.

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

In 1999, the gross product of the Netherlands-owned affiliates increased 22 percent, a rate substantially faster than the rates of the affiliates of the other six major investing countries. The sharp increase reflected both acquisitions of large U.S. companies and substantial increases in production and sales by existing affiliates (particularly those in petroleum, which had reduced output during a market downturn in 1998). Among investing countries, the increase in the gross product of the Netherlands-owned affiliates in dollar terms ($6.5 billion) was exceeded only by that of British-owned affiliates ($6.7 billion). Despite large-scale new investments in 1999, the rate of increase in the gross product of British-owned affiliates--9 percent--was only slightly higher than that of all non-bank affiliates, reflecting the offsetting effect of selloffs of British ownership interests in several large U.S. companies.(6)

The gross product of Japanese-owned affiliates was virtually flat in 1999. Growth in the gross product of Japanese-owned affiliates was held down by large reductions in value added for a number of affiliates in finance and by selloffs of minority interests in U.S. companies; these reductions more than offset substantial increases in gross product for Japanese-owned affiliates in motor-vehicle manufacturing and motor-vehicle wholesale trade.

By industry of affiliate

In 1999, as in 1998, affiliates classified in manufacturing accounted for more than half of the gross product of all nonbank affiliates (table 3). Among other sectors, wholesale trade accounted for the largest share of affiliate gross product; wholesale trade includes a number of large affiliates with substantial secondary operations in manufacturing.

Table 3.--Gross Product of Nonbank U.S. Affiliates by Industry of
Affiliate, 1997-99

 Millions of dollars

 1997 1998 1999

 All nonbank affiliates:

 All industries 389,432 419,828 451,656

Manufacturing 190,635 224,850 236,165

 Food 11,092 11,048 10,950
 Petroleum and coal products 23,476 24,819 26,042
 Chemicals 41,199 42,576 41,288
 Plastics and rubber products 7,772 9,170 10,039
 Nonmetallic mineral products 12,005 11,852 12,948
 Primary metals 8,526 10,075 7,541
 Fabricated metal products 8,275 6,989 7,958
 Machinery 13,856 14,277 14,664
 Computers and
 electronic products 18,177 19,862 22,454
 Electrical equipment,
 appliances, and
 components 9,534 9,958 10,744
 Transportation equipment 14,694 37,147 43,211
 Other 22,029 27,075 28,326

Wholesale trade 49,375 51,781 54,664
Retail trade 24,960 26,990 28,359
Information 27,838 23,147 27,581
Finance (except depository
 institutions) and insurance 27,820 23,780 27,969
Real estate and rental and
 leasing 8,987 9,765 11,850
Professional, scientific,
 and technical services 6,347 7,961 7,991
Other industries 53,469 51,555 57,078

 Majority-owned nonbank
 affiliates:

 All industries 313,655 353,860 390,957

Manufacturing 169,279 201,116 216,110

 Food 9,929 9,947 10,580
 Petroleum and coal products 19,764 21,637 (D)
 Chemicals 38,050 39,022 37,146
 Plastics and rubber products 7,136 8,506 9,229
 Nonmetallic mineral products 11,472 11,265 12,310
 Primary metals 5,155 6,541 6,026
 Fabricated metal products 6,506 6,333 7,054
 Machinery 12,778 13,342 13,684
 Computers and electronic
 products 17,425 17,826 21,068
 Electrical equipment,
 appliances, and
 components 9,020 (D) 10,246
 Transportation equipment 12,970 34,982 40,397
 Other 19,074 (D) (D)

Wholesale trade 44,489 47,877 52,406
Retail trade 15,901 17,990 20,050
Information 11,483 13,767 18,809
Finance (except depository
 institutions) and insurance 23,550 19,808 22,927
Real estate and rental and
 leasing 7,027 7,604 9,332
Professional, scientific,
 and technical services 5,619 6,743 7,829
Other industries 36,307 38,955 43,495

 Addendum:
 Percent
 Percentage of change in
 all-industries affiliate
 total gross
 product,
 1997 1998 1999 1998-99

 All nonbank affiliates:

 All industries 100.0 100.0 100.0 7.6

Manufacturing 49.0 53.6 52.3 5.0

 Food 2.8 2.6 2.4 -.9
 Petroleum and coal products 6.0 5.9 5.8 4.9
 Chemicals 10.6 10.1 9.1 -3.0
 Plastics and rubber products 2.0 2.2 2.2 9.5
 Nonmetallic mineral products 3.1 2.8 2.9 9.2
 Primary metals 2.2 2.4 1.7 -25.2
 Fabricated metal products 2.1 1.7 1.8 13.9
 Machinery 3.6 3.4 3.2 2.7
 Computers and
 electronic products 4.7 4.7 5.0 13.1
 Electrical equipment,
 appliances, and
 components 2.4 2.4 2.4 7.9
 Transportation equipment 3.8 8.8 9.6 16.3
 Other 5.7 6.4 6.3 4.6

Wholesale trade 12.7 12.3 12.1 5.6
Retail trade 6.4 6.4 6.3 5.1
Information 7.1 5.5 6.1 19.2
Finance (except depository
 institutions) and insurance 7.1 5.7 6.2 17.6
Real estate and rental and
 leasing 2.3 2.3 2.6 21.3
Professional, scientific,
 and technical services 1.6 1.9 1.8 .4
Other industries 13.7 12.3 12.6 10.7

 Majority-owned nonbank
 affiliates:

 All industries 100.0 100.0 100.0 10.5

Manufacturing 54.0 56.8 55.3 7.5

 Food 3.2 2.8 2.7 6.4
 Petroleum and coal products 6.3 6.1 (D) (D)
 Chemicals 12.1 11.0 9.5 -4.8
 Plastics and rubber products 2.3 2.4 2.4 8.5
 Nonmetallic mineral products 3.7 3.2 3.1 9.3
 Primary metals 1.6 1.8 1.5 -7.9
 Fabricated metal products 2.1 1.8 1.8 11.4
 Machinery 4.1 3.8 3.5 2.6
 Computers and electronic
 products 5.6 5.0 5.4 18.2
 Electrical equipment,
 appliances, and
 components 2.9 (D) 2.6 (D)
 Transportation equipment 4.1 9.9 10.3 15.5
 Other 6.1 (D) (D) (D)

Wholesale trade 14.2 13.5 13.4 9.5
Retail trade 5.1 5.1 5.1 11.5
Information 3.7 3.9 4.8 36.6
Finance (except depository
 institutions) and insurance 7.5 5.6 5.9 15.7
Real estate and rental and
 leasing 2.2 2.1 2.4 22.7
Professional, scientific,
 and technical services 1.8 1.9 2.0 16.1
Other industries 11.6 11.0 11.1 11.7

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

The manufacturing share of total affiliate gross product decreased slightly, from 54 percent in 1998 to 52 percent in 1999. The rate of increase in affiliate gross product in manufacturing was more modest than the rates in most other sectors, partly because of selloffs of foreign ownership interests in U.S. manufacturing companies. Within manufacturing, the gross product of affiliates classified in primary metals decreased 25 percent, mainly as a result of selloffs. Because many of these selloffs were of minority interests, the decrease in the gross product of majority-owned affiliates in primary metals was much smaller--only 8 percent. Affiliate gross product in chemicals also decreased, partly because of affiliate selloffs of business units. In contrast, affiliate gross product in transportation equipment increased substantially, reflecting stepped-up production and sales by affiliates in the motor vehicle industry. As a result of these changes, transportation equipment overtook chemicals to become the largest manufacturing subsector in terms of affiliate gross product. Prior to 1998, a year of major new foreign investment in the motor vehicle industry, the gross product of affiliates in transportation equipment had been less than half that of affiliates in chemicals.

Outside of manufacturing, the gross product of affiliates increased substantially in 1999 in the information, the finance and insurance, and the "real estate and rental and leasing" sectors. The increase in the information sector was mainly due to new foreign investments in the telecommunications and publishing industries. In the finance and insurance sector, the increase in affiliate gross product reflected both new acquisitions and increases in value added from existing affiliate operations. In the "real estate and rental and leasing" sector, the increase was partly due to changes in the industry classification of affiliates with operations in more than one industry.(7)

Employment

In 1999, employment by U.S. affiliates of foreign companies increased 6 percent, somewhat slower than in 1998 but faster than in any other year since 1989 (table 4). The increase, from 5.6 million to 6.0 million, reflected both new foreign investments and expansions in the operations of existing affiliates. In contrast, the increase in 1998 was mainly due to new investments. In 1999, employment by majority-owned affiliates more than accounted for the increase; employment by other affiliates decreased slightly, mainly as a result of selloffs.

Table 4.--Employment of Nonbank U.S. Affiliates of Foreign Companies,
1977-99

 Thousands of
 employees

 Majority-
 All nonbank owned
 affiliates nonbank
 affiliates

1977 1,218.7 n.a.
1978 1,429.9 n.a.
1979 1,753.2 n.a.
1980 2,033.9 n.a.
1981 2,416.6 n.a.
1982 2,448.1 n.a.
1983 2,546.5 n.a.
1984 2,714.3 n.a.
1985 2,862.2 n.a.
1986 2,937.9 n.a.
1987 3,224.3 2,602.7
1988 3,844.2 3,119.0
1989 4,511.5 3,573.4
1990 4,734.5 3,841.7
1991 4,871.9 3,991.3
1992 4,715.4 3,903.9
1993 4,765.6 3,851.7
1994 4,840.5 3,954.0
1995 4,941.8 4,022.6
1996 5,105.0 4,155.6
1997 5,201.9 4,269.1
1998(r) 5,646.1 4,669.5
1999(p) 6,003.3 5,031.1

Percent change from
 preceding year:

1988 19.2 19.8
1989 17.4 14.6
1990 4.9 7.5
1991 2.9 3.9
1992 -3.2 -2.2
1993 1.1 -1.3
1994 1.6 2.7
1995 2.1 1.7
1996 3.3 3.3
1997 1.9 2.7
1998(r) 8.5 9.4
1999(p) 6.3 7.7

 Percentage of U.S. Addendum:
 private-industry employment Employment of
 majority-owned
 Majority- nonbank affiliates
 All nonbank owned as a percentage
 affiliates nonbank of that of all
 affiliates nonbank affiliates

1977 1.7 n.a. n.a.
1978 1.9 n.a. n.a.
1979 2.3 n.a. n.a.
1980 2.7 n.a. n.a.
1981 3.1 n.a. n.a.
1982 3.2 n.a. n.a.
1983 3.3 n.a. n.a.
1984 3.4 n.a. n.a.
1985 3.4 n.a. n.a.
1986 3.5 n.a. n.a.
1987 3.7 3.0 80.7
1988 4.3 3.5 81.1
1989 4.9 3.9 79.2
1990 5.1 4.2 81.1
1991 5.3 4.4 81.9
1992 5.1 4.3 82.8
1993 5.0 4.1 80.8
1994 4.9 4.1 81.7
1995 4.9 4.0 81.4
1996 5.0 4.1 81.4
1997 4.9 4.0 82.1
1998(r) 5.2 4.3 82.7
1999(p) 5.4 4.5 83.8

Percent change from
 preceding year:

1988 ... ... ...
1989 ... ... ...
1990 ... ... ...
1991 ... ... ...
1992 ... ... ...
1993 ... ... ...
1994 ... ... ...
1995 ... ... ...
1996 ... ... ...
1997 ... ... ...
1998(r) ... ... ...
1999(p) ... ... ...

(p) Preliminary.

(r) "Revised.

n.a. Not available.

NOTES.--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 total
when the employment shares were computed.

The affiliate share of U.S. private-industry employment increased from 5.2 percent in 1998 to a record 5.4 percent in 1999. For majority-owned affiliates, the share increased from 4.3 percent to 4.5 percent.

By industry

In 1999, as in 1998, the affiliate share of U.S. employment at the broad sectoral level was highest in mining (15.9 percent), followed by manufacturing (13.6 percent) and information (9.3 percent) (table 5).(8) In mining and in manufacturing, the affiliate shares edged up despite slight decreases in affiliate employment, because of proportionally larger decreases in total U.S. employment in the two sectors. In information, the affiliate share increased more than 1 percentage point, reflecting a 49,000 increase in affiliate employment. Most of this increase was due to foreign acquisitions of existing U.S. companies, particularly in the telecommunications industry.

Table 5.--Employment by Nonbank U.S. Affiliates by Industry of Sales,
1997-99

 Thousands of employees

 All nonbank affiliates

 1997 1998 1999

 All industries(2) 5,201.9 5,646.1 6,003.3

Agriculture, forestry,
 fishing, and hunting 23.4 24.2 26.8
Mining, excluding oil and
 gas extraction 63.9 63.3 58.4
Utilities 8.9 7.6 11.4
Construction 69.2 73.7 77.8

Manufacturing(3) 2,103.0 2,290.8 2,274.8

 Food 141.6 143.9 124.0
 Beverages and tobacco products 29.7 36.1 32.5
 Textile mills 28.9 26.2 26.0
 Textile product mills 16.0 16.1 15.6
 Apparel 34.9 28.7 32.3
 Leather and allied products 2.3 2.9 1.9
 Wood products 11.6 14.0 15.9
 Paper 61.4 86.6 79.2
 Printing and related support
 activities 53.4 47.6 52.7
 Petroleum and coal products(4) 39.3 37.7 35.2
 Chemicals 305.6 306.8 294.9
 Plastics and rubber products 140.5 148.4 142.4
 Nonmetallic mineral products 109.8 118.5 117.0
 Primary metals 92.9 102.2 97.0
 Fabricated metal products 119.4 121.0 110.0
 Machinery 200.6 200.7 211.7
 Computer and electronic products 258.4 277.0 278.9
 Electrical equipment,
 appliances, and components 115.5 116.0 131.7
 Transportation equipment 242.2 363.9 385.4
 Motor vehicles, bodies and
 trailers, and parts 210.9 328.5 343.0
 Other 31.4 35.4 42.4
 Furniture and related products 16.3 15.6 15.6
 Miscellaneous manufacturing 82.5 80.9 75.1

Wholesale trade 379.2 392.4 407.1
Retail trade 718.6 711.2 761.6
Transportation and warehousing 182.2 152.4 179.7

Information 266.5 252.3 301.1
 Publishing industries 71.5 93.1 101.1
 Motion picture and sound
 recording industries 35.3 32.7 35.3
 Broadcasting and
 telecommunications 129.0 96.8 127.2
 Information services and
 data processing services 30.6 29.7 37.5

Finance (except depository
 institutions) and insurance 221.3 236.3 258.8
 Finance, except depository
 institutions 78.1 93.8 103.8
 Insurance carriers and
 related activities 143.3 142.5 155.0

Real estate and rental and leasing 54.7 62.5 72.1
Professional, scientific, and
 technical services(5) 135.4 154.1 152.8
Management of nonbank companies
 and enterprises 3.1 2.4 .9
Administration, support, waste
 management, and remediation
 services 276.3 389.0 491.4
Educational services(5) 7.1 10.0 9.3
Health care and social
 assistance(5) 122.0 133.6 100.4
Arts, entertainment, and
 recreation(5) 39.6 42.8 48.3
Accommodation and food services 293.2 354.4 401.5
Other services (except public
 administration and private
 households)(5) 51.4 61.0 51.6

Auxiliaries, except management
 of companies and enterprises 149.2 191.2 295.6

Unspecified(6) 33.8 41.0 21.9

 Thousands of employees

 Majority-owned
 nonbank affiliates

 1997 1998 1999

 All industries(2) 4,269.1 4,669.5 5,031.1

Agriculture, forestry,
 fishing, and hunting 12.1 J 13.2
Mining, excluding oil and
 gas extraction 50.5 56.2 52.5
Utilities 3.9 4.6 6.9
Construction 58.4 57.9 66.4

Manufacturing(3) 1,875.9 2,053.2 2,065.0

 Food 123.8 126.6 118.9
 Beverages and tobacco products 29.0 K J
 Textile mills 24.7 22.6 23.3
 Textile product mills 11.4 11.7 10.4
 Apparel 20.9 17.2 24.0
 Leather and allied products 1.4 2.0 1.5
 Wood products 8.3 10.1 11.7
 Paper 44.5 47.2 K
 Printing and related support
 activities 52.3 45.2 50.0
 Petroleum and coal products(4) 31.0 K 25.9
 Chemicals 281.2 278.1 270.1
 Plastics and rubber products 127.8 137.6 127.2
 Nonmetallic mineral products 103.3 112.2 112.8
 Primary metals 69.6 80.4 82.2
 Fabricated metal products 106.7 114.5 103.8
 Machinery 185.3 186.5 197.3
 Computer and electronic products 237.2 251.9 261.9
 Electrical equipment,
 appliances, and components 110.4 111.5 126.0
 Transportation equipment 220.7 343.2 357.6
 Motor vehicles, bodies and
 trailers, and parts 190.2 308.6 320.5
 Other 30.5 34.5 37.1
 Furniture and related products 15.6 15.4 15.4
 Miscellaneous manufacturing 70.9 75.0 71.8

Wholesale trade 339.5 355.9 367.2
Retail trade 530.0 535.6 585.7
Transportation and warehousing 123.2 139.3 168.8

Information 140.7 164.8 197.9
 Publishing industries 62.0 82.9 87.2
 Motion picture and sound
 recording industries 33.8 32.5 34.7
 Broadcasting and
 telecommunications 14.9 22.0 42.7
 Information services and
 data processing services 30.1 27.5 33.3

Finance (except depository
 institutions) and insurance 192.8 199.3 223.2
 Finance, except depository
 institutions 73.1 82.2 91.2
 Insurance carriers and
 related activities 119.7 117.1 132.1

Real estate and rental and leasing 42.8 44.5 49.3
Professional, scientific, and
 technical services(5) 121.3 131.7 135.4
Management of nonbank companies
 and enterprises 2.6 2.2 .9
Administration, support, waste
 management, and remediation
 services 218.0 292.8 403.7
Educational services(5) 6.0 7.6 6.4
Health care and social
 assistance(5) 92.4 103.9 71.9
Arts, entertainment, and
 recreation(5) 32.6 32.9 36.9
Accommodation and food services 218.8 M 252.8
Other services (except public
 administration and private
 households)(5) 48.2 55.8 45.0

Auxiliaries, except management
 of companies and enterprises 126.6 166.8 260.2

Unspecified(6) 32.8 39.8 21.9

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

 All nonbank affiliates

 1997 1998 1999

 All industries(2) 4.9 5.2 5.4

Agriculture, forestry,
 fishing, and hunting n.a. n.a. n.a.
Mining, excluding oil and
 gas extraction 16.0 15.8 15.9
Utilities 1.3 1.1 1.7
Construction 1.2 1.3 1.3

Manufacturing(3) 12.4 13.4 13.6

 Food 9.6 9.8 8.5
 Beverages and tobacco products 16.8 20.9 18.8
 Textile mills 7.4 6.8 7.2
 Textile product mills 6.8 7.4 7.0
 Apparel 4.9 4.3 5.6
 Leather and allied products 2.7 3.7 2.5
 Wood products 2.0 2.4 2.7
 Paper 10.7 15.2 14.2
 Printing and related support
 activities 6.4 5.6 6.3
 Petroleum and coal products(4) 18.1 18.1 17.7
 Chemicals 34.8 34.1 33.3
 Plastics and rubber products 13.7 14.4 13.6
 Nonmetallic mineral products 21.8 23.3 22.9
 Primary metals 15.2 16.6 16.2
 Fabricated metal products 6.8 6.7 6.1
 Machinery 14.2 13.9 15.1
 Computer and electronic products 15.3 16.5 17.3
 Electrical equipment,
 appliances, and components 19.4 19.3 22.5
 Transportation equipment 13.1 19.0 20.2
 Motor vehicles, bodies and
 trailers, and parts 18.5 28.2 29.3
 Other 4.4 4.8 5.8
 Furniture and related products 2.7 2.6 2.5
 Miscellaneous manufacturing 11.4 11.0 10.2

Wholesale trade 6.5 6.7 6.8
Retail trade 5.1 5.0 5.3
Transportation and warehousing 6.2 4.4 5.0

Information 8.7 8.0 9.3
 Publishing industries 7.1 9.2 10.1
 Motion picture and sound
 recording industries 12.8 11.6 12.0
 Broadcasting and
 telecommunications 9.0 6.6 8.5
 Information services and
 data processing services 8.8 7.7 8.7

Finance (except depository
 institutions) and insurance 5.8 6.2 6.5
 Finance, except depository
 institutions 5.3 6.2 6.3
 Insurance carriers and
 related activities 6.1 5.2 6.6

Real estate and rental and leasing 3.2 3.4 3.8
Professional, scientific, and
 technical services(5) 2.6 2.6 2.4
Management of nonbank companies
 and enterprises n.a. n.a. n.a.
Administration, support, waste
 management, and remediation
 services 3.8 5.0 5.9
Educational services(5) 2.8 n.a. n.a.
Health care and social
 assistance(5) 2.0 2.1 1.6
Arts, entertainment, and
 recreation(5) 3.3 3.6 3.9
Accommodation and food services 3.1 3.7 4.2
Other services (except public
 administration and private
 households)(5) 2.1 n.a. n.a.

Auxiliaries, except management
 of companies and enterprises n.a. n.a. n.a.

Unspecified(6) ... ... ...

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

 Majority-owned
 nonbank affiliates

 1997 1998 1999

 All industries(2) 4.0 4.3 4.5

Agriculture, forestry,
 fishing, and hunting n.a. n.a. n.a
Mining, excluding oil and
 gas extraction 12.7 14.0 14.3
Utilities .6 .7 1.0
Construction 1.0 1.0 1.1

Manufacturing(3) 11.0 12.0 12.3

 Food 8.4 8.6 8.1
 Beverages and tobacco products 16.5 (D) (D)
 Textile mills 6.3 5.9 6.4
 Textile product mills 4.9 5.4 4.7
 Apparel 2.9 2.6 4.2
 Leather and allied products 1.7 2.6 2.0
 Wood products 1.4 1.7 2.0
 Paper 7.7 8.3 (D)
 Printing and related support
 activities 6.3 5.4 6.0
 Petroleum and coal products(4) 14.2 (D) 14.5
 Chemicals 32.1 30.9 30.5
 Plastics and rubber products 12.5 13.4 12.1
 Nonmetallic mineral products 20.5 22.1 22.1
 Primary metals 11.4 13.1 13.8
 Fabricated metal products 6.0 6.3 5.8
 Machinery 13.1 12.9 14.1
 Computer and electronic products 14.0 15.0 16.2
 Electrical equipment,
 appliances, and components 18.6 18.5 21.5
 Transportation equipment 11.9 18.0 18.8
 Motor vehicles, bodies and
 trailers, and parts 16.7 26.5 27.4
 Other 4.3 4.6 5.0
 Furniture and related products 2.6 2.6 2.5
 Miscellaneous manufacturing 9.8 10.2 9.8

Wholesale trade 5.9 6.0 6.1
Retail trade 3.8 3.8 4.0
Transportation and warehousing 4.2 4.0 4.7

Information 4.6 5.2 6.1
 Publishing industries 6.2 8.2 8.7
 Motion picture and sound
 recording industries 12.2 11.5 11.8
 Broadcasting and
 telecommunications 1.0 1.5 2.8
 Information services and
 data processing services 8.6 7.1 7.7

Finance (except depository
 institutions) and insurance 5.1 5.2 5.6
 Finance, except depository
 institutions 5.0 5.4 5.5
 Insurance carriers and
 related activities 5.1 5.1 5.6

Real estate and rental and leasing 2.5 2.5 2.6
Professional, scientific, and
 technical services(5) 2.3 2.2 2.2
Management of nonbank companies
 and enterprises n.a. n.a. n.a.
Administration, support, waste
 management, and remediation
 services 3.0 3.8 4.8
Educational services(5) 2.4 n.a. n.a.
Health care and social
 assistance(5) 1.5 1.6 1.1
Arts, entertainment, and
 recreation(5) 2.7 2.7 3.0
Accommodation and food services 2.3 (D) 2.6
Other services (except public
 administration and private
 households)(5) 1.9 n.a. n.a.

Auxiliaries, except management
 of companies and enterprises n.a. n.a. n.a.

Unspecified(6) ... ... ...

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

n.a. Data required to compute shares are not available.

(1.) The data on U.S. employment in private industries that were used
in calculating these percentages are classified by industry of
establishment.

For "all industries," they are from table 6.4C of the "National Income
and Product Accounts (NIPA) Tables" in this issue of the SURVEY OF
CURRENT BUSINESS. For industries at the sectoral level or below, the
data for 1997 are from the Census Bureau's 1997 Economic Census, and
the data for 1998 and 1999 are from the Census Bureau's County Business
Patterns. For "all industries," the total for U.S. employment in
nonbank private industries is equal to employment in private industries
less the employment of depository institutions and 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 6; the
latter are from BEA's Regional Economic Information System. The
estimates in table 6, unlike those used for this table, do not exclude
employment in depository institutions. In addition, the estimates used
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.

(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 7. 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 Economy by
Industry"), whereas in table 7, 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 total in table 7.

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

(5.) The data on U.S. employment used to calculate the percentages
shown on this line cover taxable establishments only. For, this
industry, a breakdown between employment in taxable and tax-exempt
establishments is included in data from the 1997 Economic Census but
not in the data from County Business Patterns. Employment in taxable
establishments in 1998 and 1999 was estimated by applying the ratio of
employment in taxable establishments to total employment in the
industry from the 1997 Economic Census data to the employment data
from County Business Patterns.

(6.) This line includes all employment that U.S. affiliates did not
specify in terms of industry of sales when they filled of their survey
form. Affiliates that filed the long form (that is, affiliates with
assets, sales, or net income or loss greater than $100 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 "oil 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 rather than in mining.

Size 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; 5--10,000 to 24,999; K--25,000
to 49,999; L--50,000 to 99,999; U--100,000 or more.

Within manufacturing, the affiliate share of all-U.S.-business employment was highest in chemicals (33.3 percent), followed by nonmetallic mineral products (22.9 percent), electrical equipment, appliances and components (22.5 percent), and transportation equipment (20.2 percent). The affiliate share in electrical equipment, appliances, and components increased more than 3 percentage points, partly as a result of acquisitions by existing affiliates. The affiliate share in transportation equipment also increased substantially, reflecting increases in employment associated with both expanded production by affiliates in motor vehicles and new foreign investment in motor vehicle parts manufacturing. The affiliate share of employment in food and in beverages and tobacco decreased substantially; the decrease in the food industry mainly resulted from selloffs of foreign ownership interests in companies with large bakery operations, and the decrease in beverages and tobacco was mainly due to affiliate selloffs of beverage manufacturing units.

In other sectors, the affiliate share of employment in "administration, support, waste management, and remediation services" increased substantially, reflecting large increases in employment associated with acquisitions, including some by existing affiliates. Within the finance and insurance sector, the affiliate share of employment in insurance increased, also as a result of acquisitions.

By State

In 1999, as in earlier years, the U.S.-affiliate shares of private-industry employment were highest in Hawaii (10.1 percent), South Carolina (8.7 percent), and North Carolina (7.7 percent); these three States also had the highest shares for majority-owned affiliates (table 6). Employment by affiliates in Hawaii was predominantly by Japanese-owned affiliates, particularly those in accommodation and food services. In contrast, affiliates with UBO's in Europe accounted for about three-fourths of the employment by affiliates in both South Carolina and North Carolina.

Table 6.--Employment by Nonbank U.S. Affiliates by State, 1997-99

 Thousands of employees

 All nonbank affiliates

 1997 1998 1999

 Total(2) 5,201.9 5,646.1 6,003.3

New England 344.8 378.4 399.7
 Connecticut 89.1 98.9 103.4
 Maine 32.0 32.9 32.6
 Massachusetts 163.6 177.6 194.1
 New Hampshire 31.6 35.6 36.1
 Rhode Island 19.1 22.2 21.6
 Vermont 9.4 11.2 11.9

Mideast 913.3 1,001.9 1,059.1
 Delaware 19.1 24.8 28.3
 District of Columbia 11.2 13.8 15.3
 Maryland 91.8 95.5 98.7
 New Jersey 212.5 237.2 245.1
 New York 353.5 389.2 410.2
 Pennsylvania 225.2 241.4 261.5

Great Lakes 839.6 1,012.3 1,055.2
 Illinois 224.9 267.3 283.5
 Indiana 128.9 160.9 165.1
 Michigan 171.6 236.5 246.1
 Ohio 236.3 258.7 260.1
 Wisconsin 77.9 88.9 100.4

Plains 301.8 300.6 327.0
 Iowa 37.9 36.1 40.1
 Kansas 45.8 49.3 55.1
 Minnesota 99.0 84.8 91.8
 Missouri 85.0 92.9 100.5
 Nebraska 20.3 21.5 25.3
 North Dakota 3.7 5.6 7.7
 South Dakota 10.1 10.4 6.5

Southeast 1,372.7 1,452.7 1,549.4
 Alabama 66.0 73.9 78.3
 Arkansas 34.0 37.2 37.8
 Florida 242.3 263.2 286.0
 Georgia 191.0 202.0 216.0
 Kentucky 90.0 93.8 97.7
 Louisiana 58.3 59.8 63.1
 Mississippi 22.9 23.8 25.6
 North Carolina 226.3 239.9 258.8
 South Carolina 119.5 126.3 136.0
 Tennessee 147.5 148.7 151.8
 Virginia 147.3 155.0 170.5
 West Virginia 27.6 29.1 27.8

Southwest 463.9 508.1 541.3
 Arizona 59.7 64.4 70.8
 New Mexico 18.3 17.8 16.4
 Oklahoma 34.7 40.2 43.9
 Texas 351.2 385.7 410.2

Rocky Mountain 140.9 140.3 165.2
 Colorado 81.6 77.3 91.4
 Idaho 12.4 14.3 18.4
 Montana 4.5 7.0 13.7
 Utah 35.3 33.9 35.0
 Wyoming 7.1 7.8 6.7

Far West 795.4 827.5 881.4
 Alaska 9.1 10.5 10.5
 California 569.6 598.7 638.8
 Hawaii 50.2 43.4 44.4
 Nevada 26.5 28.3 32.7
 Oregon 52.4 55.2 58.3
 Washington 87.6 91.4 96.7

Puerto Rico 17.4 17.0 17.2
Other U.S. areas(3) 10.2 7.1 7.7
Foreign(4) 1.9 (*) .1

 Thousands of employees

 Majority-owned
 nonbank affiliates

 1997 1998 1999

 Total(2) 4,269.1 4,669.5 5,031.1

New England 302.0 327.9 347.8
 Connecticut 81.8 89.9 93.7
 Maine 22.3 22.7 21.7
 Massachusetts 145.7 156.9 174.0
 New Hampshire 26.9 29.8 30.0
 Rhode Island 18.2 20.1 19.5
 Vermont 7.1 8.5 8.9

Mideast 774.2 841.9 916.1
 Delaware 14.9 19.9 24.4
 District of Columbia 7.3 10.2 13.3
 Maryland 62.6 67.7 89.0
 New Jersey 192.3 200.9 210.0
 New York 297.4 328.0 347.6
 Pennsylvania 199.7 215.2 231.8

Great Lakes 723.1 878.6 922.9
 Illinois 193.7 223.9 238.2
 Indiana 113.0 140.1 145.0
 Michigan 141.1 210.2 220.7
 Ohio 204.5 223.5 227.3
 Wisconsin 70.8 80.9 91.7

Plains 222.2 237.8 256.4
 Iowa 32.1 31.8 34.9
 Kansas 30.5 31.2 33.4
 Minnesota 63.9 71.1 77.4
 Missouri 68.5 74.0 80.8
 Nebraska 14.3 14.9 19.3
 North Dakota 3.3 5.1 4.8
 South Dakota 9.6 9.7 5.8

Southeast 1,124.2 1,195.7 1,294.6
 Alabama 52.5 57.9 61.6
 Arkansas 29.6 31.1 31.3
 Florida 174.3 190.1 207.9
 Georgia 160.6 173.0 189.0
 Kentucky 71.9 75.0 81.4
 Louisiana 46.2 45.8 49.2
 Mississippi 17.3 18.2 19.8
 North Carolina 195.6 208.5 226.0
 South Carolina 111.4 117.4 126.9
 Tennessee 127.1 128.3 132.8
 Virginia 117.5 126.5 144.9
 West Virginia 20.2 23.9 23.8

Southwest 356.4 397.1 425.4
 Arizona 43.0 46.4 53.5
 New Mexico 11.3 11.2 10.2
 Oklahoma 29.2 30.9 33.3
 Texas 272.9 308.6 328.4

Rocky Mountain 95.4 97.2 122.7
 Colorado 56.1 56.1 72.2
 Idaho 7.1 7.8 11.0
 Montana 2.8 4.8 9.7
 Utah 24.2 22.6 24.6
 Wyoming 5.2 5.9 5.2

Far West 648.5 671.7 721.7
 Alaska 8.5 9.3 9.1
 California 467.7 487.0 526.7
 Hawaii 43.5 38.9 39.3
 Nevada 19.7 21.3 24.9
 Oregon 41.8 43.4 46.3
 Washington 67.3 71.8 75.4

Puerto Rico 13.8 14.4 15.8
Other U.S. areas(3) 7.5 6.8 7.4
Foreign(4) 1.9 (*) .1

 Percentage of total
 private industry
 employment in the State(1)

 All nonbank affiliates

 1997 1998 1999

 Total(2) 4.9 5.1 5.3

New England 5.9 6.3 6.5
 Connecticut 6.1 6.7 6.9
 Maine 6.8 6.8 6.5
 Massachusetts 5.8 6.1 6.6
 New Hampshire 6.2 6.8 6.7
 Rhode Island 4.8 5.5 5.2
 Vermont 3.9 4.5 4.7

Mideast 5.2 5.6 5.7
 Delaware 5.6 7.0 7.7
 District of Columbia 2.7 3.3 3.5
 Maryland 4.8 4.9 4.9
 New Jersey 6.6 7.2 7.3
 New York 5.1 5.5 5.7
 Pennsylvania 4.7 4.9 5.2

Great Lakes 4.5 5.3 5.4
 Illinois 4.4 5.1 5.4
 Indiana 5.1 6.2 6.2
 Michigan 4.4 6.0 6.1
 Ohio 4.9 5.3 5.3
 Wisconsin 3.3 3.7 4.1


Plains 3.7 3.6 3.9
 Iowa 3.1 2.9 3.2
 Kansas 4.3 4.4 4.9
 Minnesota 4.5 3.7 4.0
 Missouri 3.7 4.0 4.2
 Nebraska 2.8 2.9 3.3
 North Dakota 1.4 2.1 2.9
 South Dakota 3.4 3.4 2.1

Southeast 5.4 5.5 5.8
 Alabama 4.2 4.6 4.8
 Arkansas 3.6 3.9 3.9
 Florida 4.3 4.5 4.7
 Georgia 6.1 6.2 6.4
 Kentucky 6.1 6.3 6.4
 Louisiana 3.8 3.8 4.0
 Mississippi 2.5 2.5 2.7
 North Carolina 7.1 7.4 7.7
 South Carolina 8.1 8.3 8.7
 Tennessee 6.5 6.4 6.4
 Virginia 5.4 5.6 6.0
 West Virginia 4.9 5.1 4.8

Southwest 4.3 4.5 4.7
 Arizona 3.4 3.5 3.7
 New Mexico 3.3 3.2 2.9
 Oklahoma 3.0 3.4 3.6
 Texas 4.8 5.0 5.2

Rocky Mountain 4.0 3.9 4.4
 Colorado 4.7 4.3 4.9
 Idaho 2.9 3.2 4.0
 Montana 1.5 2.3 4.4
 Utah 4.1 3.8 3.9
 Wyoming 4.1 4.4 3.7

Far West 4.8 4.8 5.0
 Alaska 4.5 5.1 5.0
 California 4.9 5.0 5.1
 Hawaii 11.4 9.9 10.1
 Nevada 3.2 3.3 3.6
 Oregon 4.0 4.1 4.3
 Washington 4.1 4.1 4.3

Puerto Rico n.a. n.a. n.a.
Other U.S. areas(3) n.a. n.a. n.a.
Foreign(4) n.a. n.a. n.a.

 Percentage of total
 private industry
 employment in the State(1)

 Majority-owned
 nonbank affiliates

 1997 1998 1999

 Total(2) 4.0 4.2 4.5

New England 5.1 5.4 5.7
 Connecticut 5.6 6.1 6.2
 Maine 4.7 4.7 4.3
 Massachusetts 5.2 5.4 5.9
 New Hampshire 5.3 5.7 5.6
 Rhode Island 4.6 4.9 4.7
 Vermont 2.9 3.4 3.5

Mideast 4.4 4.7 5.0
 Delaware 4.3 5.6 6.6
 District of Columbia 1.8 2.5 3.1
 Maryland 3.3 3.5 4.4
 New Jersey 6.0 6.1 6.3
 New York 4.3 4.7 4.8
 Pennsylvania 4.1 4.4 4.6

Great Lakes 3.9 4.6 4.8
 Illinois 3.8 4.3 4.5
 Indiana 4.5 5.4 5.5
 Michigan 3.6 5.3 5.5
 Ohio 4.3 4.6 4.6
 Wisconsin 3.0 3.4 3.7

Plains 2.8 2.9 3.0
 Iowa 2.7 2.6 2.7
 Kansas 2.8 2.8 3.0
 Minnesota 2.9 3.1 3.3
 Missouri 3.0 3.2 3.4
 Nebraska 2.0 2.0 2.5
 North Dakota 1.3 2.0 1.8
 South Dakota 3.2 3.2 1.8

Southeast 4.4 4.6 4.8
 Alabama 3.3 3.6 3.8
 Arkansas 3.1 3.2 3.2
 Florida 3.1 3.2 3.4
 Georgia 5.1 5.3 5.6
 Kentucky 4.9 5.0 5.3
 Louisiana 3.0 2.9 3.1
 Mississippi 1.9 1.9 2.1
 North Carolina 6.1 6.4 6.8
 South Carolina 7.5 7.7 8.1
 Tennessee 5.6 5.5 5.6
 Virginia 4.3 4.6 5.1
 West Virginia 3.6 4.2 4.1

Southwest 3.3 3.5 3.7
 Arizona 2.5 2.5 2.8
 New Mexico 2.0 2.0 1.8
 Oklahoma 2.5 2.6 2.7
 Texas 3.7 4.0 4.2

Rocky Mountain 2.7 2.7 3.3
 Colorado 3.2 3.1 3.9
 Idaho 1.7 1.8 2.4
 Montana .9 1.6 3.1
 Utah 2.8 2.6 2.7
 Wyoming 3.0 3.4 2.9

Far West 3.9 3.9 4.1
 Alaska 4.2 4.5 4.3
 California 4.0 4.0 4.2
 Hawaii 9.9 8.9 8.9
 Nevada 2.4 2.5 2.8
 Oregon 3.2 3.2 3.4
 Washington 3.1 3.2 3.3

Puerto Rico n.a. n.a. n.a
Other U.S. areas(3) n.a. n.a. n.a
Foreign(4) n.a. n.a. n.a

(*) Less than 50 employees.

(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 table 4 and the all-industries line of table 5, which
are from table 6.4C of the "National Income and Product Accounts (NIPA)
Tables." They differ from the NIPA estimates of employment because they
include depository institutions, and, 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.

n.a. Not available.

Affiliates accounted for more than a fifth of manufacturing employment in two States--Kentucky (23.8 percent) and South Carolina (21.5 percent) (table 7). Most of the manufacturing employment of affiliates in Kentucky was by Japanese- and German-owned affiliates. Affiliates with UBO's in Germany, France, and Japan together accounted for most of the manufacturing employment of affiliates in South Carolina. In both States, the affiliate shares of manufacturing employment increased in 1999, partly as a result of new investments. In contrast, the affiliate share of manufacturing employment decreased substantially in New Jersey--from 19.6 percent to 17.6 percent--mainly as a result of selloffs of foreign ownership interests in U.S. companies.

Table 7.--Manufacturing Employment by Nonbank U.S. Affiliates by
State, 1997-99

 Thousands of employees

 All nonbank affiliates

 1997 1998 1999

 Total(2) 2,063.7 2,256.9 2,250.1

New England 108.7 116.4 124.5
 Connecticut 26.7 31.3 32.0
 Maine 12.9 12.5 11.7
 Massachusetts 43.8 44.7 53.2
 New Hampshire 14.6 17.1 17.4
 Rhode Island 7.2 8.1 6.5
 Vermont 3.5 2.8 3.7

Mideast 284.6 309.6 293.9
 Delaware 7.6 8.7 7.9
 District of Columbia .5 .6 .5
 Maryland 22.2 22.4 19.8
 New Jersey 76.5 79.3 68.5
 New York 75.0 82.4 76.0
 Pennsylvania 102.8 116.4 121.1

Great Lakes 454.6 553.1 547.5
 Illinois 104.4 115.8 111.6
 Indiana 85.5 114.9 112.0
 Michigan 84.1 126.1 126.6
 Ohio 135.9 144.0 140.8
 Wisconsin 44.7 52.2 56.5

Plains 127.3 140.3 143.6
 Iowa 21.4 22.2 23.6
 Kansas 17.2 18.6 19.4
 Minnesota 32.5 34.5 33.9
 Missouri 42.1 49.1 48.8
 Nebraska 9.0 9.7 10.9
 North Dakota 1.5 2.1 3.2
 South Dakota 3.6 4.2 3.9

Southeast 629.4 650.2 653.5
 Alabama 42.7 46.8 47.7
 Arkansas 24.7 25.9 26.2
 Florida 46.7 50.6 48.5
 Georgia 83.8 89.8 83.0
 Kentucky 63.5 66.5 69.6
 Louisiana 21.0 21.6 24.1
 Mississippi 12.3 12.4 13.8
 North Carolina 117.5 117.5 122.6
 South Carolina 68.5 70.9 72.4
 Tennessee 86.8 85.1 81.0
 Virginia 47.8 49.2 50.9
 West Virginia 14.1 13.9 13.6

Southwest 166.9 186.2 184.4
 Arizona 15.5 16.6 16.6
 New Mexico 3.9 2.9 2.9
 Oklahoma 15.6 15.9 15.7
 Texas 131.9 150.8 149.2

Rocky Mountain 34.4 36.8 37.4
 Colorado 19.4 18.4 18.4
 Idaho 3.6 4.2 4.9
 Montana .6 1.2 2.7
 Utah 9.3 11.6 10.3
 Wyoming 1.5 1.4 1.1

Far West 245.4 255.4 256.0
 Alaska 1.5 1.8 1.6
 California 185.3 194.6 199.3
 Hawaii 1.4 1.3 1.4
 Nevada 5.2 5.2 5.2
 Oregon 21.7 21.0 20.4
 Washington 30.3 31.6 28.0

Puerto Rico 9.7 8.6 8.8
Other U.S. areas(3) 2.7 .2 .4
Foreign(4) 0 0 0

 Thousands of employees

 Majority-owned
 nonbank affiliates

 1997 1998 1999

 Total(2) 1,846.3 2,030.3 2,045.4

New England 100.1 109.2 117.4
 Connecticut 24.2 28.9 29.3
 Maine 11.5 11.3 10.9
 Massachusetts 40.3 42.4 50.8
 New Hampshire 13.9 16.4 16.8
 Rhode Island 7.0 7.7 6.3
 Vermont 3.2 2.5 3.3

Mideast M M 274.5
 Delaware I I 7.0
 District of Columbia .5 .5 .4
 Maryland 19.9 20.9 18.6
 New Jersey 72.2 74.8 65.6
 New York 68.2 74.9 68.7
 Pennsylvania 96.8 109.9 114.2

Great Lakes 408.7 496.3 499.1
 Illinois 95.3 104.2 101.0
 Indiana 79.0 104.2 102.8
 Michigan 72.1 111.3 113.4
 Ohio 120.8 127.4 128.6
 Wisconsin 41.5 49.2 53.3

Plains 116.5 127.4 131.2
 Iowa 21.1 20.8 22.0
 Kansas 15.3 16.9 18.2
 Minnesota 28.8 30.8 30.2
 Missouri 37.9 44.0 44.6
 Nebraska 8.4 8.9 10.2
 North Dakota 1.5 2.0 2.3
 South Dakota 3.5 4.0 3.7

Southeast 562.4 580.8 590.8
 Alabama 36.2 41.4 40.6
 Arkansas 21.6 22.7 22.0
 Florida 41.2 43.9 42.6
 Georgia 75.4 81.1 76.7
 Kentucky 50.1 53.2 58.5
 Louisiana 18.9 18.9 22.2
 Mississippi 10.5 10.7 11.9
 North Carolina 107.7 107.3 114.3
 South Carolina 65.1 66.4 68.2
 Tennessee 80.0 78.3 75.6
 Virginia 44.3 45.8 46.2
 West Virginia 11.4 11.1 12.0

Southwest 150.9 171.9 171.3
 Arizona 13.4 14.1 15.3
 New Mexico 3.8 2.8 2.8
 Oklahoma 15.1 14.9 15.2
 Texas 118.6 140.1 138.0

Rocky Mountain K K 32.4
 Colorado 16.7 14.8 15.4
 Idaho 3.5 4.1 4.8
 Montana F F 2.1
 Utah 8.2 9.3 9.0
 Wyoming 1.4 1.4 1.1

Far West 206.3 218.3 220.3
 Alaska 1.5 1.5 1.3
 California 154.4 164.5 170.7
 Hawaii 1.3 1.2 1.2
 Nevada 5.0 4.9 4.7
 Oregon 19.0 18.3 17.8
 Washington 25.1 27.9 24.6

Puerto Rico 7.5 7.3 8.0
Other U.S. areas(3) .2 .2 .3
Foreign(4) 0 0 0

 Percentage of total
 manufacturing employment
 in the State(1)

 All nonbank affiliates

 1997 1998 1999

 Total(2) 12.2 13.3 13.5

New England 11.2 12.2 13.3
 Connecticut 10.6 12.7 13.5
 Maine 15.7 15.4 14.5
 Massachusetts 10.5 10.9 13.1
 New Hampshire 14.8 16.9 17.9
 Rhode Island 9.5 10.9 9.1
 Vermont 8.2 6.3 8.3

Mideast 12.8 14.2 13.8
 Delaware 18.5 19.9 19.1
 District of Columbia 17.5 18.4 16.6
 Maryland 13.5 13.7 12.4
 New Jersey 18.7 19.6 17.6
 New York 9.5 11.0 10.4
 Pennsylvania 12.4 14.2 15.0

Great Lakes 11.7 14.1 14.1
 Illinois 11.8 13.1 13.0
 Indiana 13.7 18.1 17.6
 Michigan 10.1 15.2 15.5
 Ohio 13.8 14.5 14.3
 Wisconsin 7.9 9.2 9.8

Plains 9.4 10.1 10.5
 Iowa 9.1 9.0 9.6
 Kansas 8.9 9.5 9.9
 Minnesota 8.5 9.1 8.9
 Missouri 11.3 12.8 13.1
 Nebraska 8.4 8.8 10.0
 North Dakota 6.8 9.1 14.1
 South Dakota 7.7 8.7 8.2

Southeast 14.7 15.2 15.5
 Alabama 12.1 13.3 14.0
 Arkansas 10.7 11.1 11.4
 Florida 10.8 11.8 11.5
 Georgia 15.7 16.8 15.6
 Kentucky 22.0 22.9 23.8
 Louisiana 12.7 12.6 14.6
 Mississippi 5.4 5.4 6.2
 North Carolina 15.2 15.2 16.2
 South Carolina 19.8 20.7 21.5
 Tennessee 17.9 17.6 17.0
 Virginia 12.9 13.4 13.9
 West Virginia 19.4 18.6 18.7

Southwest 12.3 13.3 13.6
 Arizona 8.0 8.3 8.6
 New Mexico 9.8 7.1 7.5
 Oklahoma 9.5 9.4 9.4
 Texas 13.7 15.3 15.6

Rocky Mountain 8.9 9.3 9.8
 Colorado 11.2 10.6 11.2
 Idaho 5.4 6.3 7.4
 Montana 3.1 5.8 13.2
 Utah 7.8 9.3 8.4
 Wyoming 17.8 16.0 11.2

Far West 10.2 10.5 10.7
 Alaska 13.9 14.8 13.8
 California 10.2 10.6 11.1
 Hawaii 9.3 8.7 9.9
 Nevada 13.7 13.2 13.3
 Oregon 10.2 9.9 9.7
 Washington 9.2 9.4 8.5

Puerto Rico n.a. n.a. n.a.
Other U.S. areas(3) n.a. n.a. n.a.
Foreign(4) n.a. n.a. n.a.

 Percentage of total
 manufacturing employment
 in the State(1)

 Majority-owned
 nonbank affiliates

 1997 1998 1999

 Total(2) 10.9 11.9 12.2

New England 10.3 11.4 12.5
 Connecticut 9.6 11.7 12.3
 Maine 14.0 14.0 13.5
 Massachusetts 9.7 10.3 12.6
 New Hampshire 14.0 16.2 17.3
 Rhode Island 9.3 10.4 8.8
 Vermont 7.5 5.6 7.4

Mideast (D) (D) 12.9
 Delaware (D) (D) 16.9
 District of Columbia 17.5 16.7 13.8
 Maryland 12.1 12.8 11.7
 New Jersey 17.6 18.5 16.8
 New York 8.7 10.0 9.4
 Pennsylvania 11.7 13.4 14.1

Great Lakes 10.5 12.7 12.9
 Illinois 10.7 11.8 11.7
 Indiana 12.6 16.4 16.1
 Michigan 8.7 13.4 13.9
 Ohio 12.3 12.8 13.1
 Wisconsin 7.4 8.7 9.3

Plains 8.6 9.2 9.6
 Iowa 8.9 8.5 8.9
 Kansas 7.9 8.6 9.3
 Minnesota 7.5 8.1 8.0
 Missouri 10.2 11.5 12.0
 Nebraska 7.9 8.1 9.4
 North Dakota 6.8 8.6 10.0
 South Dakota 7.5 8.3 7.7

Southeast 13.1 13.6 14.0
 Alabama 10.3 11.7 11.9
 Arkansas 9.4 9.8 9.6
 Florida 9.5 10.2 10.1
 Georgia 14.1 15.2 14.5
 Kentucky 17.4 18.3 20.0
 Louisiana 11.4 11.0 13.4
 Mississippi 4.6 4.6 5.3
 North Carolina 13.9 13.9 15.1
 South Carolina 18.8 19.3 20.3
 Tennessee 16.5 16.2 15.9
 Virginia 12.0 12.4 12.6
 West Virginia 15.7 14.9 16.4

Southwest 11.1 12.3 12.7
 Arizona 6.9 7.1 7.9
 New Mexico 9.6 6.9 7.3
 Oklahoma 9.2 8.9 9.1
 Texas 12.4 14.2 14.4

Rocky Mountain (D) (D) 8.5
 Colorado 9.6 8.5 9.3
 Idaho 5.3 6.1 7.3
 Montana (D) (D) 10.2
 Utah 6.9 7.5 7.4
 Wyoming 16.6 15.7 11.6

Far West 8.5 8.9 9.2
 Alaska 13.9 12.4 11.0
 California 8.5 9.0 9.5
 Hawaii 8.6 8.3 8.3
 Nevada 13.2 12.6 12.1
 Oregon 8.9 8.6 8.5
 Washington 7.6 8.3 7.4

Puerto Rico n.a. n.a. n.a.
Other U.S. areas(3) n.a. n.a. n.a.
Foreign(4) n.a. n.a. n.a.

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

(1.) The data on employment in manufacturing used to calculate these
shares for 1997 are from the Census Bureau's 1997 Economic Census; for
1998 and 1999, the data are from the Census Bureau's County Business
Patterns.

(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 5 (see footnote 3 to
table 5). 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.

n.a. Not available.

NOTE.--Size 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.

Trade in Goods

U.S. affiliates of foreign companies have a major presence in U.S. trade in goods. In most years since 1977, they have accounted for 20-25 percent of U.S. exports of goods and for 30-35 percent of U.S. imports of goods; these shares are much higher than affiliates' shares of either gross product or employment (table 8).(9) The relatively high affiliate shares in trade partly reflect the concentration of foreign direct investment activity in manufacturing, a sector that is much more trade intensive than most service sectors. They also reflect the activity of wholesale trade affiliates, which have served as conduits for flows of goods between the United States and the foreign investing countries.(10) Trade in goods by U.S. affiliates has been dominated by majority-owned affiliates: In the past decade, these affiliates have consistently accounted for more than 80 percent of affiliate exports and more than 90 percent of affiliate imports.

Table 8.--U.S. Trade in Goods by Nonbank U.S. Affiliates, 1977-99

 Millions of dollars

 U.S. exports of goods
 shipped by affiliates

 Of which: To the
 Total foreign parent
 group

All nonbank affiliates:

1977 24,858 11,691
1978 32,169 16,570
1979 44,341 22,073
1980 52,199 20,983
1981 64,066 26,911
1982 60,236 25,024
1983 53,854 22,577
1984 58,186 27,072
1985 56,401 25,900
1986 49,560 21,873
1987 48,091 19,109
1988 69,541 26,425
1989 86,316 34,276
1990 92,308 37,764
1991 96,933 42,222
1992 103,925 48,767
1993 106,615 47,350
1994 120,683 51,147
1995 135,153 57,246
1996 140,886 60,831
1997 141,305 63,025
1998(r) 151,005 57,565
1999(p) 152,229 59,516

 Majority-owned
 nonbank affiliates:

1988 57,209 26,001
1989 72,413 33,778
1990 79,368 37,177
1991 85,254 41,373
1992 91,686 47,567
1993 94,329 46,241
1994 107,057 49,864
1995 121,277 55,842
1996 125,897 59,544
1997 128,394 61,288
1998(r) 136,949 56,115
1999(p) 139,272 58,012

 Millions of dollars

 U.S. imports of goods
 shipped to affiliates

 Of which: From

 Total the foreign par-
 ent group

All nonbank affiliates:

1977 43,896 30,878
1978 56,567 39,466
1979 63,039 45,295
1980 75,803 47,010
1981 82,259 52,196
1982 84,290 51,915
1983 81,464 54,802
1984 100,489 70,451
1985 113,331 81,740
1986 125,732 93,418
1987 143,537 108,201
1988 155,533 118,362
1989 171,847 129,926
1990 182,936 137,458
1991 178,702 132,166
1992 184,464 137,799
1993 200,599 150,789
1994 232,362 174,641
1995 250,824 191,222
1996 268,673 197,656
1997 264,924 202,355
1998(r) 292,046 205,181
1999(p) 307,111 225,831

 Majority-owned
 nonbank affiliates:

1988 144,896 112,012
1989 158,792 122,899
1990 170,677 131,665
1991 169,362 128,143
1992 172,260 132,217
1993 186,369 144,698
1994 214,485 166,085
1995 232,250 182,148
1996 248,562 187,889
1997 249,310 193,969
1998(r) 277,909 199,524
1999(p) 294,794 221,068

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

 Of which: To the
 Total foreign parent
 group

All nonbank affiliates:

1977 20.2 9.5
1978 22.1 11.4
1979 23.8 11.8
1980 23.1 9.3
1981 26.8 11.3
1982 27.8 11.6
1983 26.2 11.0
1984 26.0 12.1
1985 25.8 11.8
1986 21.9 9.7
1987 18.9 7.5
1988 21.5 8.2
1989 23.8 9.4
1990 23.5 9.6
1991 23.0 10.0
1992 23.2 10.9
1993 22.9 10.2
1994 23.5 10.0
1995 23.1 9.8
1996 22.5 9.7
1997 20.5 9.1
1998(r) 22.1 8.4
1999(p) 21.9 8.6

 Majority-owned
 nonbank affiliates:

1988 17.7 8.0
1989 19.9 9.3
1990 20.2 9.5
1991 20.2 9.8
1992 20.5 10.6
1993 20.3 9.9
1994 20.9 9.7
1995 20.7 9.5
1996 20.1 9.5
1997 18.6 8.9
1998(r) 20.1 8.2
1999(p) 20.0 8.3

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

 Of which: From
 Total the foreign par-
 ent group

All nonbank affiliates:

1977 29.0 20.4
1978 32.1 22.4
1979 30.0 21.5
1980 30.9 19.2
1981 31.5 20.0
1982 34.6 21.3
1983 31.6 21.2
1984 30.4 21.3
1985 33.7 24.3
1986 34.4 25.5
1987 35.3 26.6
1988 35.2 26.8
1989 36.3 27.4
1990 36.9 27.8
1991 36.7 27.1
1992 34.6 25.9
1993 34.6 26.0
1994 35.0 26.3
1995 33.7 25.7
1996 33.8 24.9
1997 30.5 23.3
1998(r) 32.0 22.5
1999(p) 30.0 22.0

 Majority-owned
 nonbank affiliates:

1988 32.8 25.3
1989 33.5 26.0
1990 34.5 26.6
1991 34.8 26.3
1992 32.3 24.8
1993 32.1 24.9
1994 32.3 25.0
1995 31.2 24.5
1996 31.3 23.6
1997 28.7 22.3
1998(r) 30.5 21.9
1999(p) 28.8 21.6

(p) Preliminary.

(r) Revised.

NOTE.--The data on total U.S. exports and imports of goods that were
used to calculate the shares shown in this table are Census-based data
published in BEA's international transactions accounts (see table 2.
lines A1 and A9 in Douglas B. Weinberg. "U.S. International
Transactions, First Quarter 2001." SURVEY OF CURRENT BUSINESS
81 (July 2001): 56-57).

Much of the trade in goods by affiliates--about 40 percent of exports and 70 percent of imports--is intrafirm trade (that is, trade between the affiliates and their foreign parents or other member companies of their foreign parent groups). In most years, U.S.-affiliate intrafirm trade has accounted for 8-12 percent of U.S. exports and for 20-28 percent of U.S. imports; almost all of this trade has been by majority-owned affiliates.

Exports

In 1999, exports of goods by U.S. affiliates increased 1 percent, to $152.2 billion (table 8). The increase was slightly slower than the 2-percent growth rate for total U.S. exports of goods; as a result, the affiliate share of U.S. exports of goods decreased slightly from 22.1 percent in 1998 to 21.9 percent in 1999. In 1998, affiliate exports had increased 7 percent despite a decrease in total U.S. exports, mainly as a result of foreign acquisitions of U.S. manufacturing companies with large exports.

The slow growth in affiliate exports in 1999 can be attributed to a $4.8 billion, or 10-percent, decrease in exports by Japanese-owned affiliates; exports by affiliates with UBO's in other countries increased 6 percent (table 9). The decrease in exports by Japanese-owned affiliates, which followed a 12-percent decrease in 1998, partly reflected sluggish growth in the Japanese economy, which held down Japanese demand for U.S. goods.(11) The decreases in both years were mainly accounted for by reduced exports by wholesale trade affiliates, particularly affiliates of Japan's large general trading companies, which have long played a central role in handling shipments of U.S. goods to Japan. As a result of the decreases in exports, the Japanese-owned affiliates' share of total U.S.-affiliate exports of goods dropped from 37 percent in 1997 to 27 percent in 1999.

Table 9.--U.S. Trade in Goods of Nonbank U.S. Affiliates by Selected
Country of Ultimate Beneficial Owner, 1997-99

 Millions of dollars

 1997 1998 1999

 U.S. exports shipped by
 affiliates:

 All countries 141,305 151,005 152,229

Canada 8,155 7,958 7,515
France 14,112 15,172 16,358
Germany 14,114 28,848 31,637
Netherlands 4,713 4,151 5,309
Sweden 3,665 4,463 4,274

Switzerland 5,857 5,411 5,353
United Kingdom 14,461 15,690 15,713
Japan 52,524 45,998 41,180
Korea, Republic of 5,064 4,848 5,766
Other 18,640 18,466 19,124

 U.S. imports shipped to
 affiliates:

 All countries 264,924 292,046 307,111

Canada 15,333 15,494 16,292
France 12,847 12,684 15,331
Germany 32,206 55,076 53,194
Netherlands 11,435 10,416 15,932
Sweden 5,510 6,874 4,344

Switzerland 6,633 6,769 6,907
United Kingdom 15,309 16,683 19,028
Japan 120,693 122,567 123,867
Korea, Republic of 9,229 12,439 15,507
Other 35,729 33,044 36,709

 Percentage of
 all-countries total

 1997 1998 1999

 U.S. exports shipped by
 affiliates:

 All countries 100.0 100.0 100.0

Canada 5.8 5.3 4.9
France 10.0 10.0 10.7
Germany 10.0 19.1 20.8
Netherlands 3.3 2.7 3.5
Sweden 2.6 3.0 2.8

Switzerland 4.1 3.6 3.5
United Kingdom 10.2 10.4 10.3
Japan 37.2 30.5 27.1
Korea, Republic of 3.6 3.2 3.8
Other 13.2 12.2 12.6

 U.S. imports shipped to
 affiliates:

 All countries 100.0 100.0 100.0

Canada 5.8 5.3 5.3
France 4.8 4.3 5.0
Germany 12.2 18.9 17.3
Netherlands 4.3 3.6 5.2
Sweden 2.1 2.4 1.4

Switzerland 2.5 2.3 2.2
United Kingdom 5.8 5.7 6.2
Japan 45.6 42.0 40.3
Korea, Republic of 3.5 4.3 5.0
Other 13.5 11.3 12.0

 Percentage of total Addendum:
 U.S. exports or imports Percent
 of goods change
 in affiliate
 exports or
 1997 1998 1999 imports,
 1998-99
 U.S. exports shipped by
 affiliates:

 All countries 20.5 22.1 21.9 .8

Canada 1.2 1.2 1.1 -5.6
France 2.0 2.2 2.4 7.8
Germany 2.0 4.2 4.5 9.7
Netherlands .7 .6 .8 27.9
Sweden .5 .7 .6 -4.7

Switzerland .8 .8 .8 1.1
United Kingdom 2.1 2.3 2.3 .1
Japan 7.6 6.7 5.9 -10.5
Korea, Republic of .7 .7 .8 18.9
Other 2.7 2.7 2.7 3.6

 U.S. imports shipped to
 affiliates:

 All countries 30.5 32.0 30.0 5.2

Canada 1.8 1.7 1.6 5.2
France 1.5 1.4 1.5 20.9
Germany 3.7 6.0 5.2 -3.4
Netherlands 1.3 1.1 1.6 53.0
Sweden .6 .8 .4 -36.8

Switzerland .8 .7 .7 2.0
United Kingdom 1.8 1.8 1.9 14.1
Japan 13.9 13.4 12.1 1.1
Korea, Republic of 1.1 1.4 1.5 24.7
Other 4.1 3.6 3.6 11.1

NOTE--Affiliates of the nine countries listed in this table accounted
for the largest shares of affiliate trade in each of the years 1997-99

Among affiliates of other investing countries, exports by German-owned affiliates increased $2.8 billion in 1999, largely as a result of expanded exports by affiliates in the motor vehicle and electrical equipment industries; the German-owned affiliates' share of U.S.-affiliate exports of goods increased from 19 percent to 21 percent. Exports by the Netherlands-owned affiliates increased $1.2 billion, mainly as a result of expanded exports by affiliates in the computer and electronic products industry.

Imports

In 1999, imports of goods by U.S. affiliates increased 5 percent, to $307.1 billion. Total U.S. imports of goods increased at a much faster rate of 12 percent, so the affiliate share of U.S. imports of goods decreased from 32.0 percent in 1998 to 30.0 percent in 1999. The affiliate share had increased in 1998 as a result of foreign acquisitions of companies with large imports.

The decrease in the affiliate share of U.S. imports was partly attributable to large increases in imports by other U.S. firms from countries, such as Mexico and China, that do not have a major investment presence in the United States and thus for which U.S.-affiliate trade has been relatively minor.(12)

By country of UBO, imports increased only marginally for Japanese-owned affiliates (which accounted for the largest share of affiliate imports) and decreased 3 percent for German-owned affiliates (which accounted for the second-largest share). The low rate of increase for Japanese-owned affiliates was partly due to reduced imports by wholesale trade affiliates. The decrease for German-owned affiliates was mainly a result of reduced imports by manufacturing affiliates.

Tables 10 and 11 follow.

Table 10.1--Selected Data of Nonbank U.S. Affiliates by Industry of
Affiliate, 1998

 Millions of dollars

 Expend-
 itures
 Gross for prop-
 Total property, erty,
 assets plant, and plant,
 equipment and
 equip-
 ment

All industries 3,534,509 990,332 136,292

Manufacturing 875,574 506,474 59,087

 Food 44,698 21,677 1,996
 Beverages and tobacco products 27,518 6,429 563
 Textiles, apparel, and leather
 products 8,096 5,613 430
 Wood products 1,695 1,198 96
 Paper 28,413 19,647 1,272
 Printing and related support
 activities 6,509 4,650 417
 Petroleum and coal products 106,887 121,617 10,720

 Chemicals 195,855 95,188 10,692
 Basic chemicals 47,848 38,704 4,420
 Resins and synthetic rubber,
 fibers, and filaments 19,719 10,397 1,181
 Pharmaceuticals and medicines 81,651 26,311 2,955
 Soap, cleaning compounds, and
 toilet preparations 21,552 7,376 630
 Other 25,086 12,402 1,506

 Plastics and rubber products 25,179 19,508 2,368
 Nonmetallic mineral products 36,301 27,690 2,516
 Primary and fabricated metals 63,126 41,972 4,307
 Primary metals 37,537 30,842 2,982
 Fabricated metal products 25,590 11,130 1,325

 Machinery 41,357 15,119 1,637
 Agriculture, construction, and
 mining machinery 8,154 2,522 332
 Industrial machinery 5,041 2,272 229
 Other 28,162 10,325 1,076

 Computers and electronic
 products 84,530 34,737 6,328
 Computers and peripheral
 equipment 9,457 3,103 447
 Communications equipment 23,286 6,315 1,115
 Audio and video equipment (D) (D) (D)
 Semiconductors and other
 electronic components 21,202 13,940 2,830
 Navigational, measuring, and
 other instruments 11,216 3,017 712
 Magnetic and optical media (D) (D) (D)

 Electrical equipment,
 appliances, and components 30,381 13,163 1,400

 Transportation equipment 148,706 68,915 13,205
 Motor vehicles, bodies and
 trailers, and parts 138,678 66,851 12,853
 Other 10,028 2,065 352
 Furniture and related products 1,034 521 77

 Miscellaneous manufacturing 25,289 8,829 1,063

Wholesale trade 290,419 104,795 24,685
 Motor vehicles and motor vehicle
 parts and supplies 90,871 46,239 15,700
 Professional and commercial
 equipment and supplies 23,107 7,673 1,744
 Electrical goods 30,397 9,064 1,532
 Other durable goods 51,414 14,132 1,720
 Petroleum and petroleum products 21,929 7,205 672
 Other nondurable goods 72,701 20,482 3,317

Retail trade 52,616 34,348 4,398
 Food and beverage stores 35,820 24,901 3,039
 Other 21,797 9,447 1,359

Information 156,137 58,162 9,343
 Publishing industries 54,481 7,454 1,132
 Motion picture and sound
 recording industries 20,828 3,083 423
 Broadcasting and
 telecommunications 76,823 46,255 7,594
 Broadcasting, cable networks,
 and program distribution 25,843 3,486 532
 Telecommunications 50,980 42,769 7,062
 Information services and data
 processing services 4,005 1,370 194

Finance (except depository
 institutions) and insurance 1,791,843 41,039 8,220
 Finance, except depository
 institutions 1,017,842 8,916 3,103
 Insurance carriers and related
 activities 774,001 32,123 5,117

Real estate and rental and leasing 124,154 100,377 14,030
 Real estate 108,897 93,316 12,286
 Rental and leasing (except real
 estate) 15,257 7,061 1,743

Professional, scientific, and
 technical services 24,124 5,199 742
 Architectural, engineering, and
 related services 3,928 1,354 173
 Computer systems design and
 related services 8,190 1,756 313
 Management, scientific, and
 technical consulting 1,026 79 15
 Other 10,979 2,008 240

Other industries 219,641 139,938 15,788
 Agriculture, forestry, fishing,
 and hunting 5,041 3,371 420
 Mining 50,172 49,477 4,685
 Utilities 19,758 12,603 1,383
 Construction 15,449 6,697 1,693
 Transportation and warehousing 34,295 24,753 3,376
 Management of nonbank companies
 and enterprises 16,145 239 57
 Administration, support, and
 waste management 16,317 6,837 975
 Health care and social
 assistance 12,393 3,882 418
 Accommodation and food services 32,996 24,796 1,551
 Accommodation 26,175 21,514 1,199
 Food services and drinking
 places 6,821 3,282 351
 Miscellaneous services 17,075 7,283 1,229

 Millions of dollars

 Sales Net Gross
 income product

All industries 1,875,489 32,312 419,828

Manufacturing 831,401 17,634 224,850

 Food 49,571 750 11,048
 Beverages and tobacco products 15,119 830 4,679
 Textiles, apparel, and leather
 products 8,774 207 3,180
 Wood products 2,225 135 690
 Paper 19,723 28 7,411
 Printing and related support
 activities 6,862 -180 2,720
 Petroleum and coal products 93,659 304 24,819

 Chemicals 142,124 3,373 42,576
 Basic chemicals 35,335 939 9,917
 Resins and synthetic rubber,
 fibers, and filaments 15,682 -18 4,099
 Pharmaceuticals and medicines 53,397 1,507 18,297
 Soap, cleaning compounds, and
 toilet preparations 20,228 1,038 5,502
 Other 17,481 -93 4,762

 Plastics and rubber products 26,174 295 9,170
 Nonmetallic mineral products 29,768 1,947 11,852
 Primary and fabricated metals 66,458 1,494 17,064
 Primary metals 42,042 728 10,075
 Fabricated metal products 24,416 766 6,989

 Machinery 47,837 948 14,277
 Agriculture, construction, and
 mining machinery 9,488 292 2,524
 Industrial machinery 5,738 -144 1,817
 Other 32,611 800 9,936

 Computers and electronic
 products 96,718 -2,009 19,862
 Computers and peripheral
 equipment 16,064 -1,074 1,738
 Communications equipment 26,351 -1,090 5,108
 Audio and video equipment (D) (D) (D)
 Semiconductors and other
 electronic components 20,669 15 5,327
 Navigational, measuring, and
 other instruments (D) (D) 2,867
 Magnetic and optical media 2,854 -179 (D)

 Electrical equipment,
 appliances, and components 32,388 1,235 9,958

 Transportation equipment 171,886 7,287 37,147
 Motor vehicles, bodies and
 trailers, and parts 163,143 7,078 34,585
 Other 8,743 210 2,562
 Furniture and related products 1,739 77 599
 Miscellaneous manufacturing 20,376 913 7,797

Wholesale trade 496,320 4,251 51,781
 Motor vehicles and motor vehicle
 parts and supplies 111,894 1,087 10,095
 Professional and commercial
 equipment and supplies 38,742 428 5,893
 Electrical goods 53,858 164 6,892
 Other durable goods 95,299 1,000 10,774
 Petroleum and petroleum products 52,647 44 4,847
 Other nondurable goods 143,879 1,528 13,280

Retail trade 99,526 1,021 26,990
 Food and beverage stores 70,574 1,298 19,006
 Other 28,953 -277 7,984

Information 74,039 -1,027 23,147
 Publishing industries 27,891 1,090 10,610
 Motion picture and sound
 recording industries 7,739 243 1,402
 Broadcasting and
 telecommunications 34,809 -2,535 9,585
 Broadcasting, cable networks,
 and program distribution 10,913 -174 2,457
 Telecommunications 23,896 -2,361 7,129
 Information services and data
 processing services 3,600 175 1,549

Finance (except depository
 institutions) and insurance 181,630 9,986 23,780
 Finance, except depository
 institutions 71,643 1,343 7,408
 Insurance carriers and related
 activities 109,987 8,642 16,371

Real estate and rental and leasing 20,660 1,312 9,765
 Real estate 16,462 891 7,796
 Rental and leasing (except real
 estate) 4,197 420 1,970

Professional, scientific, and
 technical services 20,441 -273 7,961
 Architectural, engineering, and
 related services 5,353 157 1,811
 Computer systems design and
 related services 7,267 -495 3,018
 Management, scientific, and
 technical consulting 555 60 335
 Other 7,266 5 2,797

Other industries 151,473 -591 51,555
 Agriculture, forestry, fishing,
 and hunting 2,127 104 726
 Mining 22,737 -1,796 8,704
 Utilities 23,896 689 2,460
 Construction 27,026 -314 5,170
 Transportation and warehousing 25,010 845 9,136
 Management of nonbank companies
 and enterprises (D) (D) -277
 Administration, support, and
 waste management 18,013 -484 10,031
 Health care and social
 assistance 8,784 -177 4,350
 Accommodation and food services 17,529 202 9,057
 Accommodation 8,368 63 4,470
 Food services and drinking
 places 9,161 139 4,586
 Miscellaneous services (D) (D) 2,199

 Millions of
 dollars

 Thou-
 Com- sands of
 pensation employ-
 of ees
 employees

All industries 262,112 5,646.1

Manufacturing 135,830 2,547.0

 Food 7,032 163.4
 Beverages and tobacco products 2,067 40.1
 Textiles, apparel, and leather
 products 2,257 69.1
 Wood products 433 11.8
 Paper 4,521 87.2
 Printing and related support
 activities 2,402 44.8
 Petroleum and coal products 5,880 76.5

 Chemicals 25,350 379.0
 Basic chemicals 5,512 83.7
 Resins and synthetic rubber,
 fibers, and filaments 2,450 39.1
 Pharmaceuticals and medicines 11,406 144.9
 Soap, cleaning compounds, and
 toilet preparations 3,218 55.4
 Other 2,764 55.9

 Plastics and rubber products 6,448 138.9
 Nonmetallic mineral products 6,581 136.4
 Primary and fabricated metals 11,165 218.1
 Primary metals 6,258 102.7
 Fabricated metal products 4,908 115.3

 Machinery 10,248 205.6
 Agriculture, construction, and
 mining machinery 1,537 35.5
 Industrial machinery 1,383 24.3
 Other 7,328 145.9

 Computers and electronic
 products 16,595 289.4
 Computers and peripheral
 equipment 2,019 35.6
 Communications equipment 4,681 82.7
 Audio and video equipment (D) K
 Semiconductors and other
 electronic components 3,753 74.7
 Navigational, measuring, and
 other instruments 2,495 43.0
 Magnetic and optical media (D) J

 Electrical equipment,
 appliances, and components 7,277 166.3

 Transportation equipment 21,869 383.6
 Motor vehicles, bodies and
 trailers, and parts 19,914 341.4
 Other 1,955 42.2
 Furniture and related products 427 14.8
 Miscellaneous manufacturing 5,277 122.1

Wholesale trade 27,536 520.7
 Motor vehicles and motor vehicle
 parts and supplies 4,228 69.2
 Professional and commercial
 equipment and supplies 3,766 73.4
 Electrical goods 4,221 75.9
 Other durable goods 6,444 123.0
 Petroleum and petroleum products 864 11.5
 Other nondurable goods 8,012 167.7

Retail trade 15,427 685.1
 Food and beverage stores 10,601 495.3
 Other 4,826 189.8

Information 14,928 270.1
 Publishing industries 6,726 119.7
 Motion picture and sound
 recording industries 1,299 27.4
 Broadcasting and
 telecommunications 5,876 107.4
 Broadcasting, cable networks,
 and program distribution 1,334 19.9
 Telecommunications 4,542 87.5
 Information services and data
 processing services 1,027 15.6

Finance (except depository
 institutions) and insurance 22,665 235.1
 Finance, except depository
 institutions 11,325 65.7
 Insurance carriers and related
 activities 11,340 169.5

Real estate and rental and leasing 1,823 40.9
 Real estate 1,177 22.6
 Rental and leasing (except real
 estate) 646 18.3

Professional, scientific, and
 technical services 7,335 108.8
 Architectural, engineering, and
 related services 1,602 28.0
 Computer systems design and
 related services 2,944 39.2
 Management, scientific, and
 technical consulting 249 2.5
 Other 2,539 39.1

Other industries 36,568 1,238.5
 Agriculture, forestry, fishing,
 and hunting 444 12.3
 Mining 4,655 66.7
 Utilities 594 9.3
 Construction 4,613 83.6
 Transportation and warehousing 5,806 174.7
 Management of nonbank companies
 and enterprises 49 1.0
 Administration, support, and
 waste management 9,005 367.3
 Health care and social
 assistance 3,403 111.2
 Accommodation and food services 6,139 332.1
 Accommodation 2,367 95.9
 Food services and drinking
 places 3,772 236.1
 Miscellaneous services 1,861 80.2

 Millions of dollars

 U.S. ex- U.S. im-
 ports of ports of
 goods goods
 shipped shipped
 by affili- to affili-
 ates ates

All industries 151,005 292,046

Manufacturing 88,088 130,203

 Food 2,380 3,521
 Beverages and tobacco products 1,519 1,242
 Textiles, apparel, and leather
 products 455 518
 Wood products 222 236
 Paper 1,756 627
 Printing and related support
 activities 152 294
 Petroleum and coal products 2,908 9,133

 Chemicals 14,892 14,403
 Basic chemicals 4,579 3,663
 Resins and synthetic rubber,
 fibers, and filaments 2,490 1,367
 Pharmaceuticals and medicines 4,172 7,400
 Soap, cleaning compounds, and
 toilet preparations 947 436
 Other 2,704 1,536

 Plastics and rubber products 2,316 3,633
 Nonmetallic mineral products 870 1,624
 Primary and fabricated metals 5,193 8,651
 Primary metals 3,133 6,275
 Fabricated metal products 2,060 2,376

 Machinery 7,403 6,980
 Agriculture, construction, and
 mining machinery 1,290 1,884
 Industrial machinery 1,236 1,040
 Other 4,877 4,056

 Computers and electronic
 products 15,782 29,072
 Computers and peripheral
 equipment 2,748 (D)
 Communications equipment 4,475 5,922
 Audio and video equipment (D) (D)
 Semiconductors and other
 electronic components 3,132 5,277
 Navigational, measuring, and
 other instruments (D) 668
 Magnetic and optical media 305 386

 Electrical equipment,
 appliances, and components 4,906 2,968

 Transportation equipment 25,253 45,999
 Motor vehicles, bodies and
 trailers, and parts 23,288 44,455
 Other 1,965 1,544
 Furniture and related products 71 64
 Miscellaneous manufacturing 2,011 1,240

Wholesale trade 55,821 154,483
 Motor vehicles and motor vehicle
 parts and supplies 4,017 46,409
 Professional and commercial
 equipment and supplies 2,293 17,668
 Electrical goods 4,775 25,360
 Other durable goods 13,821 31,716
 Petroleum and petroleum products 3,559 6,426
 Other nondurable goods 27,356 26,903

Retail trade 1,400 4,008
 Food and beverage stores 14 424
 Other 1,385 3,583

Information 838 209
 Publishing industries (D) (D)
 Motion picture and sound
 recording industries (D) 0
 Broadcasting and
 telecommunications 1 (D)
 Broadcasting, cable networks,
 and program distribution 0 0
 Telecommunications 1 (D)
 Information services and data
 processing services 2 0

Finance (except depository
 institutions) and insurance 0 2
 Finance, except depository
 institutions 0 2
 Insurance carriers and related
 activities 0 0

Real estate and rental and leasing 35 226
 Real estate (D) (D)
 Rental and leasing (except real
 estate) (D) (D)

Professional, scientific, and
 technical services 288 228
 Architectural, engineering, and
 related services 147 (D)
 Computer systems design and
 related services 97 (D)
 Management, scientific, and
 technical consulting (D) 0
 Other (D) 4

Other industries 4,535 2,687
 Agriculture, forestry, fishing,
 and hunting 304 92
 Mining 3,602 471
 Utilities 53 1,831
 Construction 278 100
 Transportation and warehousing 173 38
 Management of nonbank companies
 and enterprises (*) 3
 Administration, support, and
 waste management (D) 4
 Health care and social
 assistance (D) (D)
 Accommodation and food services (*) 3
 Accommodation (*) 3
 Food services and drinking
 places 0 0
 Miscellaneous services 43 (D)

(*) Less than $500,000.

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

NOTES.--Size 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--25,00
to 49,999: L--50,000 to 99,999; M--100,000 or more.

Estimates for 1998 are revised.
Table 10.2.--Selected Data of Nonbank U.S. Affiliates by Industry of
Affiliate, 1999

 Millions of dollars

 Expend-
 itures
 Gross for prop-
 Total property, erty,
 assets plant, and plant,
 equipment and
 equip-
 ment

All industries 4,135,217 1,069,209 136,283

Manufacturing 982,809 540,825 62,905

 Food 43,908 21,840 2,061
 Beverages and tobacco products 15,841 5,547 553
 Textiles, apparel, and leather
 products 10,595 6,320 453
 Wood products 1,732 1,279 100
 Paper 27,070 18,547 1,109
 Printing and related support
 activities 9,746 5,887 994
 Petroleum and coal products 108,252 118,832 6,931

 Chemicals 206,151 98,419 9,186
 Basic chemicals 59,213 42,535 3,571
 Resins and synthetic rubber,
 fibers, and filaments 14,678 9,208 796
 Pharmaceuticals and medicines 88,881 26,376 2,617
 Soap, cleaning compounds, and
 toilet preparations 21,611 8,227 774
 Other 21,767 12,074 1,428

 Plastics and rubber products 28,723 20,804 2,425
 Nonmetallic mineral products 44,280 33,098 3,482
 Primary and fabricated metals 64,822 40,494 3,074
 Primary metals 33,388 28,599 1,861
 Fabricated metal products 31,434 11,895 1,213

 Machinery 62,054 17,411 1,896
 Agriculture, construction, and
 mining machinery 19,071 3,940 518
 Industrial machinery 6,957 2,959 231
 Other 36,026 10,511 1,146

 Computers and electronic
 products 98,773 35,679 4,754
 Computers and peripheral
 equipment 5,558 2,160 277
 Communications equipment 34,671 7,728 1,207
 Audio and video equipment (D) (D) 754
 Semiconductors and other
 electronic components 29,952 15,580 2,037
 Navigational, measuring, and
 other instruments 8,796 2,685 306
 Magnetic and optical media (D) (D) 173

 Electrical equipment,
 appliances, and components 41,001 14,887 1,810

 Transportation equipment 185,592 89,087 22,341
 Motor vehicles, bodies and
 trailers, and parts 172,456 86,583 21,905
 Other 13,137 2,504 436
 Furniture and related products 1,155 590 75
 Miscellaneous manufacturing 33,116 12,104 1,664

Wholesale trade 303,806 99,287 18,302
 Motor vehicles and motor vehicle
 parts and supplies 83,519 42,794 12,042
 Professional and commercial
 equipment and supplies 25,793 8,495 1,132
 Electrical goods 29,206 8,292 1,080
 Other durable goods 48,798 12,424 1,131
 Petroleum and petroleum products 21,788 6,562 517
 Other nondurable goods 94,702 20,721 2,400

Retail trade 70,956 37,694 5,226
 Food and beverage stores 36,191 27,814 3,847
 Other 34,765 9,880 1,379

Information 212,450 77,803 12,881
 Publishing industries 62,715 8,552 1,236
 Motion picture and sound
 recording industries 26,015 4,292 762
 Broadcasting and
 telecommunications 117,541 63,330 10,432
 Broadcasting, cable networks,
 and program distribution 29,223 2,765 546
 Telecommunications 88,318 60,565 9,886
 Information services and data
 processing services 6,179 1,628 450

Finance (except depository
 institutions) and insurance 2,162,809 51,872 8,985
 Finance, except depository
 institutions 1,156,694 14,090 3,436
 Insurance carriers and related
 activities 1,006,115 37,782 5,549

Real estate and rental and leasing 131,014 108,546 11,029
 Real estate 113,120 98,314 9,338
 Rental and leasing (except real
 estate) 17,894 10,232 1,691

Professional, scientific, and
 technical services 27,319 6,114 1,023
 Architectural, engineering, and
 related services 5,330 1,716 358
 Computer systems design and
 related services 8,952 1,971 367
 Management, scientific, and
 technical consulting 1,273 109 12
 Other 11,765 2,318 287

Other industries 244,053 147,068 15,931
 Agriculture, forestry, fishing,
 and hunting 6,290 4,070 523
 Mining 45,189 43,429 3,671
 Utilities 28,234 16,939 2,831
 Construction 17,184 6,946 1,995
 Transportation and warehousing 37,063 31,922 2,473
 Management of nonbank companies
 and enterprises 26,255 274 50
 Administration, support, and
 waste management 14,300 5,727 421
 Health care and social
 assistance 11,619 3,697 287
 Accommodation and food services 32,471 25,733 2,053
 Accommodation 24,313 21,038 1,453
 Food services and drinking
 places 8,157 4,696 600
 Miscellaneous services 25,450 8,331 1,626

 Millions of dollars

 Sales Net Gross
 income product

All industries 2,035,356 27,535 451,656

Manufacturing 906,382 16,514 236,165

 Food 50,426 255 10,950
 Beverages and tobacco products 14,041 554 4,740
 Textiles, apparel, and leather
 products 10,943 -655 2,805
 Wood products 2,482 147 794
 Paper 19,006 279 6,943
 Printing and related support
 activities 9,258 -84 3,687
 Petroleum and coal products 109,551 4,432 26,042

 Chemicals 142,527 3,359 41,288
 Basic chemicals 39,610 288 11,854
 Resins and synthetic rubber,
 fibers, and filaments 11,297 162 2,647
 Pharmaceuticals and medicines 53,618 2,247 16,303
 Soap, cleaning compounds, and
 toilet preparations 21,430 938 6,339
 Other 16,572 -277 4,146

 Plastics and rubber products 30,372 884 10,039
 Nonmetallic mineral products 33,997 1,948 12,948
 Primary and fabricated metals 59,500 650 15,498
 Primary metals 34,173 -176 7,541
 Fabricated metal products 25,327 826 7,958

 Machinery 50,952 -26 14,664
 Agriculture, construction, and
 mining machinery 13,212 -49 2,836
 Industrial machinery 6,786 -289 1,926
 Other 30,954 313 9,903

 Computers and electronic
 products 108,226 -2,878 22,454
 Computers and peripheral
 equipment 13,215 -387 1,405
 Communications equipment 34,799 -2,474 6,393
 Audio and video equipment (D) (D) 4,007
 Semiconductors and other
 electronic components 27,737 230 7,268
 Navigational, measuring, and
 other instruments (D) (D) 2,691
 Magnetic and optical media 2,323 -580 689

 Electrical equipment,
 appliances, and components 39,974 128 10,744

 Transportation equipment 201,609 7,767 43,211
 Motor vehicles, bodies and
 trailers, and parts 191,837 7,754 40,693
 Other 9,772 13 2,518
 Furniture and related products 1,893 81 618
 Miscellaneous manufacturing 21,626 -326 8,738

Wholesale trade 500,839 5,350 54,664
 Motor vehicles and motor vehicle
 parts and supplies 112,896 2,043 10,656
 Professional and commercial
 equipment and supplies 42,467 -7 6,610
 Electrical goods 53,946 184 6,978
 Other durable goods 87,881 1,062 9,482
 Petroleum and petroleum products 54,988 -21 5,221
 Other nondurable goods 148,661 2,089 15,718

Retail trade 114,300 1,555 28,359
 Food and beverage stores 75,663 1,479 18,895
 Other 38,637 76 9,464

Information 91,453 -3,423 27,581
 Publishing industries 32,183 416 11,605
 Motion picture and sound
 recording industries 8,035 312 1,581
 Broadcasting and
 telecommunications 46,671 -4,278 12,502
 Broadcasting, cable networks,
 and program distribution (D) (D) 2,106
 Telecommunications (D) (D) 10,396
 Information services and data
 processing services 4,565 127 1,893

Finance (except depository
 institutions) and insurance 206,641 9,750 27,969
 Finance, except depository
 institutions 73,807 232 10,415
 Insurance carriers and related
 activities 132,834 9,517 17,554

Real estate and rental and leasing 26,037 903 11,850
 Real estate 19,851 644 9,148
 Rental and leasing (except real
 estate) 6,187 259 2,702

Professional, scientific, and
 technical services 21,865 -1,002 7,991
 Architectural, engineering, and
 related services 5,723 (*) 2,200
 Computer systems design and
 related services 7,649 -646 3,113
 Management, scientific, and
 technical consulting 648 38 344
 Other 7,844 -394 2,334

Other industries 167,840 -2,112 57,078
 Agriculture, forestry, fishing,
 and hunting 2,813 115 1,040
 Mining 20,047 -783 7,681
 Utilities 32,358 526 2,417
 Construction 30,615 86 6,342
 Transportation and warehousing 27,307 -1,324 10,542
 Management of nonbank companies
 and enterprises 135 52 -1,054
 Administration, support, and
 waste management 17,174 164 11,281
 Health care and social
 assistance 8,727 -500 4,294
 Accommodation and food services 22,134 -74 11,520
 Accommodation 8,602 -339 4,574
 Food services and drinking
 places 13,532 265 6,946
 Miscellaneous services 6,530 -374 3,015

 Millions of
 dollars

 Thou-
 Com- sands of
 pensation employ-
 of ees
 employees

All industries 289,958 6,003.3

Manufacturing 143,419 2,616.7

 Food 6,333 156.3
 Beverages and tobacco products 1,681 37.2
 Textiles, apparel, and leather
 products 2,523 71.2
 Wood products 505 12.5
 Paper 4,578 80.6
 Printing and related support
 activities 2,892 57.2
 Petroleum and coal products 5,032 60.7

 Chemicals 25,693 363.2
 Basic chemicals 7,001 94.3
 Resins and synthetic rubber,
 fibers, and filaments 1,552 30.6
 Pharmaceuticals and medicines 10,796 130.7
 Soap, cleaning compounds, and
 toilet preparations 3,606 60.8
 Other 2,738 46.9

 Plastics and rubber products 7,098 144.0
 Nonmetallic mineral products 7,243 143.0
 Primary and fabricated metals 10,969 211.6
 Primary metals 5,264 89.6
 Fabricated metal products 5,705 122.1

 Machinery 11,660 222.6
 Agriculture, construction, and
 mining machinery 2,300 47.6
 Industrial machinery 1,635 28.7
 Other 7,724 146.2

 Computers and electronic
 products 18,792 291.0
 Computers and peripheral
 equipment 1,408 23.3
 Communications equipment 7,436 102.7
 Audio and video equipment 3,187 35.8
 Semiconductors and other
 electronic components 4,228 78.1
 Navigational, measuring, and
 other instruments 2,047 37.0
 Magnetic and optical media 485 14.2

 Electrical equipment,
 appliances, and components 8,494 189.9

 Transportation equipment 23,606 422.6
 Motor vehicles, bodies and
 trailers, and parts 21,433 380.6
 Other 2,173 42.1
 Furniture and related products 437 15.0
 Miscellaneous manufacturing 5,884 138.1

Wholesale trade 30,096 518.4
 Motor vehicles and motor vehicle
 parts and supplies 4,222 66.1
 Professional and commercial
 equipment and supplies 4,803 76.3
 Electrical goods 4,141 70.3
 Other durable goods 6,124 119.5
 Petroleum and petroleum products 983 10.2
 Other nondurable goods 9,823 176.1

Retail trade 16,794 737.0
 Food and beverage stores 11,140 510.2
 Other 5,654 266.8

Information 19,534 332.2
 Publishing industries 8,059 133.8
 Motion picture and sound
 recording industries 1,304 34.6
 Broadcasting and
 telecommunications 8,780 142.5
 Broadcasting, cable networks,
 and program distribution 1,465 18.6
 Telecommunications 7,315 123.9
 Information services and data
 processing services 1,391 21.3

Finance (except depository
 institutions) and insurance 27,760 263.6
 Finance, except depository
 institutions 14,025 73.6
 Insurance carriers and related
 activities 13,735 190.0

Real estate and rental and leasing 2,650 52.2
 Real estate 1,356 22.4
 Rental and leasing (except real
 estate) 1,294 29.8

Professional, scientific, and
 technical services 8,021 119.3
 Architectural, engineering, and
 related services 1,993 33.3
 Computer systems design and
 related services 3,270 41.6
 Management, scientific, and
 technical consulting 273 3.3
 Other 2,486 41.2

Other industries 41,684 1,363.7
 Agriculture, forestry, fishing,
 and hunting 598 16.2
 Mining 4,399 59.5
 Utilities 708 12.7
 Construction 5,249 85.7
 Transportation and warehousing 6,646 177.6
 Management of nonbank companies
 and enterprises 94 1.2
 Administration, support, and
 waste management 10,556 452.5
 Health care and social
 assistance 3,385 105.0
 Accommodation and food services 7,901 373.5
 Accommodation 2,386 98.7
 Food services and drinking
 places 5,515 274.8
 Miscellaneous services 2,147 79.8

 Millions of dollars

 U.S. ex- U.S. im-
 ports of ports of
 goods goods
 shipped shipped
 by affili- to affili-
 ates ates

All industries 152,229 307,111

Manufacturing 96,527 140,924

 Food 2,441 4,162
 Beverages and tobacco products 1,286 679
 Textiles, apparel, and leather
 products 531 826
 Wood products 229 223
 Paper 1,705 585
 Printing and related support
 activities 394 1,151
 Petroleum and coal products 3,139 13,661

 Chemicals 14,575 15,373
 Basic chemicals 5,828 4,666
 Resins and synthetic rubber,
 fibers, and filaments 1,207 1,015
 Pharmaceuticals and medicines 4,166 7,841
 Soap, cleaning compounds, and
 toilet preparations 910 407
 Other 2,463 1,444

 Plastics and rubber products 2,651 4,332
 Nonmetallic mineral products 971 1,871
 Primary and fabricated metals 4,421 7,549
 Primary metals 2,368 5,275
 Fabricated metal products 2,053 2,274

 Machinery 7,086 7,104
 Agriculture, construction, and
 mining machinery 2,143 2,104
 Industrial machinery 1,319 957
 Other 3,625 4,043

 Computers and electronic
 products 16,991 33,685
 Computers and peripheral
 equipment 2,463 6,947
 Communications equipment 4,783 7,957
 Audio and video equipment (D) (D)
 Semiconductors and other
 electronic components 5,686 7,203
 Navigational, measuring, and
 other instruments (D) 658
 Magnetic and optical media 26 (D)

 Electrical equipment,
 appliances, and components 7,187 3,246

 Transportation equipment 30,476 45,064
 Motor vehicles, bodies and
 trailers, and parts 28,332 43,439
 Other 2,143 1,625
 Furniture and related products 90 67
 Miscellaneous manufacturing 2,354 1,348

Wholesale trade 48,629 157,366
 Motor vehicles and motor vehicle
 parts and supplies 2,651 50,070
 Professional and commercial
 equipment and supplies 4,012 16,970
 Electrical goods 4,937 27,159
 Other durable goods 10,437 29,736
 Petroleum and petroleum products 3,221 7,968
 Other nondurable goods 23,372 25,463

Retail trade 1,521 4,303
 Food and beverage stores 4 430
 Other 1,517 3,873

Information 1,053 160
 Publishing industries (D) (D)
 Motion picture and sound
 recording industries (D) 0
 Broadcasting and
 telecommunications 6 (D)
 Broadcasting, cable networks,
 and program distribution 0 0
 Telecommunications 6 (D)
 Information services and data
 processing services 5 0

Finance (except depository
 institutions) and insurance 0 1
 Finance, except depository
 institutions 0 1
 Insurance carriers and related
 activities 0 0

Real estate and rental and leasing (D) 562
 Real estate (D) (D)
 Rental and leasing (except real
 estate) (D) (D)

Professional, scientific, and
 technical services (D) 357
 Architectural, engineering, and
 related services 239 (D)
 Computer systems design and
 related services (D) (D)
 Management, scientific, and
 technical consulting 0 0
 Other 36 9

Other industries 3,777 3,440
 Agriculture, forestry, fishing,
 and hunting 355 144
 Mining 2,720 531
 Utilities 146 2,481
 Construction 189 29
 Transportation and warehousing 220 (D)
 Management of nonbank companies
 and enterprises (*) (D)
 Administration, support, and
 waste management 21 1
 Health care and social
 assistance (D) (D)
 Accommodation and food services (*) 2
 Accommodation (*) 2
 Food services and drinking
 places 0 0
 Miscellaneous services (D) 62

(*) Less than $500,000.

(D) Suppressed to avoid disclosure of individual companies.

NOTE.--Estimates for 1999 are preliminary.
Table 11.1--Selected Data of Nonbank U.S. Affiliates by Country of
Ultimate Beneficial Owner, 1998

 Millions of dollars

 Expendi-
 Gross tures for
 property, property,
 Total plant, plant,
 assets and and
 equip- equip-
 ment ment

 All countries 3,534,509 990,332 136,292

Canada 369,955 94,817 11,573

Europe 2,240,155 567,748 73,078
 Austria 8,022 777 101
 Belgium 16,464 13,189 1,484
 Denmark 5,332 1,643 169
 Finland 10,091 4,163 549
 France 389,809 86,677 10,813

 Germany 426,034 128,583 21,906
 Ireland 22,967 9,263 785
 Italy 21,986 7,129 1,031
 Liechtenstein 795 456 37
 Luxembourg 3,229 1,881 150
 Netherlands 321,598 91,885 12,065

 Norway 10,777 4,401 961
 Spain 3,559 1,465 254
 Sweden 54,076 13,763 1,915
 Switzerland 454,802 32,112 4,300
 United Kingdom 487,855 169,673 16,492
 Other 2,759 688 66

Latin America and Other Western
 Hemisphere 74,620 33,148 3,514

 South and Central America 36,647 18,702 1,295
 Brazil 9,561 1,272 223
 Mexico 8,309 3,194 307
 Panama 3,380 1,318 71
 Venezuela 12,150 10,185 443
 Other 3,246 2,733 251

 Other Western Hemisphere 37,973 14,446 2,219
 Bahamas 1,217 881 62
 Bermuda 24,592 8,344 1,293
 Netherlands Antilles 4,965 3,265 421
 United Kingdom Islands,
 Caribbean 7,105 1,900 436
 Other 95 56 6

Africa 13,492 11,203 (D)
 South Africa 8,483 (D) 402
 Other 5,008 (D) (D)

Middle East 17,819 11,302 1,208
 Israel 3,124 908 71
 Kuwait 2,073 2,064 79
 Lebanon 961 907 51
 Saudi Arabia 6,589 3,707 (D)
 United Arab Emirates 2,489 2,472 (D)
 Other 2,583 1,244 167

Asia and Pacific 673,224 245,173 41,621
 Australia 61,468 17,159 3,416
 China 1,212 568 53
 Hong Kong 9,036 6,408 816
 Indonesia 747 419 43
 Japan 560,119 195,770 33,962
 Korea, Republic of 15,069 6,906 1,505
 Malaysia 1,877 936 115
 New Zealand 597 173 11
 Philippines 237 156 13
 Singapore 7,416 5,174 520
 Taiwan 13,988 10,450 1,067
 Other 1,458 1,054 101

United States 145,244 26,941 (D)

Addenda:
 European Union (15)(1) 1,771,735 530,458 67,736
 OPEC(2) 28,352 23,873 2,111

 Millions of dollars

 Sales Net Gross
 income product

 All countries 1,875,489 32,312 419,828

Canada 153,648 2,174 39,853

Europe 1,072,226 26,049 268,466
 Austria 2,731 43 414
 Belgium 22,580 778 6,099
 Denmark 4,102 50 945
 Finland 11,763 391 2,808
 France 142,309 1,783 37,443

 Germany 281,774 8,869 66,852
 Ireland 14,150 -124 5,154
 Italy 16,794 -52 3,499
 Liechtenstein 776 20 243
 Luxembourg 3,403 112 702
 Netherlands 140,527 1,072 29,165

 Norway 19,662 -279 2,141
 Spain 2,047 -96 453
 Sweden 37,913 953 8,811
 Switzerland 104,620 4,201 28,207
 United Kingdom 264,372 8,314 75,310
 Other 2,702 14 217

Latin America and Other Western
 Hemisphere 59,844 1,078 17,346

 South and Central America 33,236 482 8,471
 Brazil 3,784 29 180
 Mexico 9,143 123 1,644
 Panama 2,602 -189 (D)
 Venezuela 15,321 548 5,275
 Other 2,386 -28 (D)

 Other Western Hemisphere 26,608 595 8,875
 Bahamas 937 -146 249
 Bermuda 18,272 702 5,809
 Netherlands Antilles 4,196 -5 1,616
 United Kingdom Islands,
 Caribbean 3,114 50 1,182
 Other 88 -5 18

Africa 13,180 300 2,912
 South Africa 11,560 321 2,027
 Other 1,620 -21 884

Middle East 15,995 514 4,628
 Israel 2,501 -23 525
 Kuwait 839 149 433
 Lebanon 487 206 196
 Saudi Arabia 8,249 235 2,319
 United Arab Emirates 559 43 243
 Other 3,360 -96 912

Asia and Pacific 534,748 -1,000 79,039
 Australia 28,199 -683 6,835
 China 1,664 49 285
 Hong Kong 6,794 -91 1,605
 Indonesia 1,172 27 284
 Japan 453,646 1,152 65,034
 Korea, Republic of 22,535 -313 1,911
 Malaysia 1,298 -2 350
 New Zealand 1,239 -31 103
 Philippines 124 53 102
 Singapore 4,804 -289 888
 Taiwan 12,357 -799 1,405
 Other 914 -73 236

United States 25,848 3,197 7,585

Addenda:
 European Union (15)(1) 945,057 22,114 237,730
 OPEC(2) 26,880 974 9,069

 Millions of
 dollars

 Thou-
 Com- sands of
 pensation employ-
 of ees
 employees

 All countries 262,112 5,646.1

Canada 26,802 665.9

Europe 169,027 3,566.6
 Austria 349 7.1
 Belgium 3,021 130.8
 Denmark 647 16.0
 Finland 1,729 32.3
 France 25,259 527.5

 Germany 42,761 786.8
 Ireland 3,191 66.6
 Italy 2,755 62.2
 Liechtenstein 175 2.8
 Luxembourg 341 11.4
 Netherlands 16,127 408.6

 Norway 1,750 42.4
 Spain 403 8.8
 Sweden 5,408 110.7
 Switzerland 21,391 378.9
 United Kingdom 43,570 970.8
 Other 153 2.9

Latin America and Other Western
 Hemisphere 8,863 223.2

 South and Central America 3,090 63.4
 Brazil 297 4.7
 Mexico 1,120 30.9
 Panama (D) J
 Venezuela 740 8.9
 Other (D) I

 Other Western Hemisphere 5,773 159.7
 Bahamas 217 7.1
 Bermuda 3,724 118.1
 Netherlands Antilles 1,239 15.8
 United Kingdom Islands,
 Caribbean 575 18.2
 Other 19 .5

Africa 1,587 23.9
 South Africa 1,126 18.3
 Other 462 5.6

Middle East 2,083 73.7
 Israel 431 9.3
 Kuwait 76 2.7
 Lebanon 101 2.5
 Saudi Arabia 776 20.9
 United Arab Emirates 67 2.1
 Other 632 36.1

Asia and Pacific 50,601 1,032.2
 Australia 4,144 83.8
 China 127 2.4
 Hong Kong 886 30.8
 Indonesia 210 5.9
 Japan 41,752 837.5
 Korea, Republic of 1,171 19.3
 Malaysia 288 7.0
 New Zealand 107 3.3
 Philippines 21 .9
 Singapore 562 10.7
 Taiwan 1,127 26.0
 Other 206 4.5

United States 3,148 60.6

Addenda:
 European Union (15)(1) 145,598 3,140.2
 OPEC(2) 2,050 42.1

 Millions of dollars

 U.S. ex- U.S. im-
 ports of ports of
 goods goods
 shipped shipped
 by affili- to affili-
 ates ates

 All countries 151,005 292,046

Canada 7,958 15,494

Europe 79,698 120,418
 Austria 448 504
 Belgium 497 1,206
 Denmark 469 846
 Finland 1,184 2,088
 France 15,172 12,684

 Germany 28,848 55,076
 Ireland 360 338
 Italy 1,341 2,983
 Liechtenstein 66 221
 Luxembourg (D) (D)
 Netherlands 4,151 10,416

 Norway 756 841
 Spain (D) 291
 Sweden 4,463 6,874
 Switzerland 5,411 6,769
 United Kingdom 15,690 16,683
 Other 46 (D)

Latin America and Other Western
 Hemisphere 5,572 9,888

 South and Central America 2,352 8,601
 Brazil (D) 1,150
 Mexico 817 2,890
 Panama 603 191
 Venezuela 114 (D)
 Other (D) (D)

 Other Western Hemisphere 3,219 1,287
 Bahamas (D) (D)
 Bermuda (D) 749
 Netherlands Antilles (D) 141
 United Kingdom Islands,
 Caribbean 17 350
 Other 2 (D)

Africa 785 939
 South Africa (D) (D)
 Other (D) (D)

Middle East (D) 2,331
 Israel 388 (D)
 Kuwait (D) 12
 Lebanon (D) (*)
 Saudi Arabia (D) (D)
 United Arab Emirates 66 74
 Other (D) 42

Asia and Pacific 55,221 142,092
 Australia 1,410 1,304
 China (D) 62
 Hong Kong 90 1,587
 Indonesia (D) 38
 Japan 45,998 122,567
 Korea, Republic of 4,848 12,439
 Malaysia 158 14
 New Zealand (D) (D)
 Philippines 4 21
 Singapore 240 450
 Taiwan 1,101 3,051
 Other (D) (D)

United States 966 884

Addenda:
 European Union (15)(1) 73,421 111,533
 OPEC(2) 437 5,136

(*) Less than $500,000.

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

(1.) The European Union (15) comprises Austria. Belgium, Denmark,
Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, the
Netherlands, Portugal, 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.

NOTES.--Size 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.

Estimates for 1998 are revised.
Table 11.2--Selected Data of Nonbank U.S. Affiliates by Country of
Ultimate Beneficial Owner, 1999

 Millions of dollars

 Expendi-
 Gross tures for
 property, property,
 Total plant, plant,
 assets and and
 equip- equip-
 ment ment

 All countries 4,135,217 1,069,209 136,283

Canada 410,254 102,411 11,096

Europe 2,707,203 634,501 82,951
 Austria 8,662 1,211 135
 Belgium 18,372 10,050 1,611
 Denmark 7,044 1,649 148
 Finland 10,263 4,760 689
 France 512,368 107,917 13,283

 Germany 507,652 155,303 33,001
 Ireland 22,488 8,397 677
 Italy 35,114 9,455 1,074
 Liechtenstein 809 478 37
 Luxembourg 3,281 1,990 160
 Netherlands 449,446 97,944 7,502

 Norway 9,213 4,380 1,051
 Spain 6,969 3,746 264
 Sweden 68,619 14,920 1,812
 Switzerland 507,157 31,919 3,614
 United Kingdom 536,127 179,499 17,767
 Other 3,621 884 127

Latin America and Other Western
 Hemisphere 121,614 44,437 5,691

 South and Central America 31,406 18,856 1,549
 Brazil 2,513 1,277 172
 Mexico 11,293 5,253 769
 Panama 3,659 1,315 117
 Venezuela 12,844 10,566 452
 Other 1,098 445 40

 Other Western Hemisphere 90,208 25,581 4,142
 Bahamas 1,213 956 (D)
 Bermuda 49,590 15,996 2,465
 Netherlands Antilles 4,806 3,318 (D)
 United Kingdom Islands,
 Caribbean 34,405 5,181 1,021
 Other 194 130 9

Africa 5,411 3,012 342
 South Africa 3,714 1,812 178
 Other 1,697 1,199 164

Middle East 18,103 10,500 932
 Israel 3,795 955 73
 Kuwait 2,143 1,943 56
 Lebanon 1,158 1,038 126
 Saudi Arabia 6,771 3,573 308
 United Arab Emirates 2,697 2,312 290
 Other 1,538 679 79

Asia and Pacific 654,272 243,584 30,455
 Australia 67,343 18,219 1,827
 China 1,178 576 56
 Hong Kong 10,125 6,600 1,101
 Indonesia 676 422 35
 Japan 534,484 193,203 24,798
 Korea, Republic of 15,579 7,097 984
 Malaysia 1,755 850 80
 New Zealand 587 85 10
 Philippines 270 161 14
 Singapore 7,499 4,894 497
 Taiwan 13,358 10,376 995
 Other 1,417 1,100 58

United States 218,361 30,763 4,816

Addenda:
 European Union (15)(1) 2,187,693 597,339 78,179
 OPEC(2) 25,986 18,959 1,164

 Millions of dollars

 Sales Net Gross
 income product

 All countries 2,035,356 27,535 451,656

Canada 159,743 -584 43,037

Europe 1,199,123 24,545 294,501
 Austria 3,240 -51 500
 Belgium 19,491 620 5,382
 Denmark 4,334 66 993
 Finland 13,869 81 3,057
 France 167,417 -1,822 42,243

 Germany 313,152 7,702 70,181
 Ireland 13,596 239 4,841
 Italy 21,303 -231 4,493
 Liechtenstein 881 9 255
 Luxembourg 3,301 154 676
 Netherlands 182,093 4,360 35,618

 Norway 22,293 -1,486 1,019
 Spain 3,785 -69 960
 Sweden 43,021 1,600 10,849
 Switzerland 104,189 4,166 31,153
 United Kingdom 279,117 9,189 81,981
 Other 4,043 18 300

Latin America and Other Western
 Hemisphere 76,125 -1,303 20,731

 South and Central America 36,479 130 8,226
 Brazil 3,285 29 376
 Mexico 10,394 -142 1,754
 Panama 2,252 67 898
 Venezuela 18,502 204 4,974
 Other 2,046 -28 223

 Other Western Hemisphere 39,646 -1,433 12,505
 Bahamas 867 -258 205
 Bermuda 26,206 -590 8,898
 Netherlands Antilles 3,157 -36 1,682
 United Kingdom Islands,
 Caribbean 9,251 -548 1,677
 Other 165 -1 43

Africa 4,704 89 1,250
 South Africa 3,481 115 878
 Other 1,223 -26 372

Middle East 12,599 348 2,863
 Israel 2,606 -131 405
 Kuwait 826 68 282
 Lebanon 649 70 281
 Saudi Arabia 6,120 244 1,136
 United Arab Emirates 531 120 302
 Other 1,867 -22 456

Asia and Pacific 543,281 -521 79,454
 Australia 31,184 612 6,760
 China 1,486 -5 197
 Hong Kong 7,003 -327 1,302
 Indonesia 1,030 -1 252
 Japan 453,423 -327 64,721
 Korea, Republic of 28,357 186 2,361
 Malaysia 1,144 -38 279
 New Zealand 1,179 -6 139
 Philippines 197 20 54
 Singapore 4,231 -195 1,098
 Taiwan 13,105 -409 2,004
 Other 943 -32 287

United States 39,781 4,961 9,820

Addenda:
 European Union (15)(1) 1,068,696 21,846 261,913
 OPEC(2) 27,210 642 6,979

 Millions of
 dollars

 Thou-
 Com- sands of
 pensation employ-
 of ees
 employees

 All countries 289,958 6,003.3

Canada 30,965 665.2

Europe 187,989 3,901.1
 Austria 516 10.9
 Belgium 3,001 123.3
 Denmark 709 13.7
 Finland 1,975 35.2
 France 31,465 604.9

 Germany 44,754 847.7
 Ireland 3,347 64.2
 Italy 3,820 99.9
 Liechtenstein 186 3.4
 Luxembourg 298 8.6
 Netherlands 19,322 484.8

 Norway 1,796 41.6
 Spain 549 11.5
 Sweden 7,247 147.6
 Switzerland 23,208 434.6
 United Kingdom 45,583 965.6
 Other 214 3.8

Latin America and Other Western
 Hemisphere 12,211 290.7

 South and Central America 3,109 62.6
 Brazil 185 3.5
 Mexico 1,241 33.9
 Panama 769 12.4
 Venezuela 758 8.7
 Other 157 4.1

 Other Western Hemisphere 9,102 228.1
 Bahamas 214 6.7
 Bermuda 5,958 168.6
 Netherlands Antilles 1,404 15.9
 United Kingdom Islands,
 Caribbean 1,494 36.0
 Other 33 .8

Africa 898 13.2
 South Africa 572 8.5
 Other 325 4.7

Middle East 1,757 48.6
 Israel 452 9.7
 Kuwait 71 2.7
 Lebanon 147 4.1
 Saudi Arabia 661 15.3
 United Arab Emirates 78 2.0
 Other 349 14.8

Asia and Pacific 52,501 1,018.3
 Australia 4,653 84.8
 China 129 2.4
 Hong Kong 809 25.5
 Indonesia 200 4.5
 Japan 43,154 834.2
 Korea, Republic of 1,198 18.1
 Malaysia 253 5.9
 New Zealand 101 1.9
 Philippines 20 .7
 Singapore 606 10.7
 Taiwan 1,159 25.0
 Other 220 4.5

United States 3,637 66.2

Addenda:
 European Union (15)(1) 162,686 3,419.2
 OPEC(2) 1,797 33.7

 Millions of dollars

 U.S. ex- U.S. im-
 ports of ports of
 goods goods
 shipped shipped
 by affili- to affili-
 ates ates

 All countries 152,229 307,111

Canada 7,515 16,292

Europe 84,693 128,625
 Austria 335 595
 Belgium 592 1,558
 Denmark 376 652
 Finland 1,351 2,754
 France 16,358 15,331

 Germany 31,637 53,194
 Ireland 318 310
 Italy 1,678 3,335
 Liechtenstein 68 288
 Luxembourg 411 (D)
 Netherlands 5,309 15,932

 Norway 686 1,167
 Spain 154 762
 Sweden 4,274 4,344
 Switzerland 5,353 6,907
 United Kingdom 15,713 19,028
 Other 81 (D)

Latin America and Other Western
 Hemisphere 6,139 12,164

 South and Central America 2,209 10,201
 Brazil (D) 1,344
 Mexico 864 2,770
 Panama (D) 166
 Venezuela 169 4,925
 Other 163 995

 Other Western Hemisphere 3,930 1,963
 Bahamas (D) 43
 Bermuda (D) 1,204
 Netherlands Antilles (D) (D)
 United Kingdom Islands,
 Caribbean 78 (D)
 Other 6 8

Africa 375 215
 South Africa (D) (D)
 Other (D) (D)

Middle East 696 1,194
 Israel 354 (D)
 Kuwait (D) (D)
 Lebanon (D) (*)
 Saudi Arabia 98 (D)
 United Arab Emirates 62 39
 Other 5 33

Asia and Pacific 50,852 147,074
 Australia 1,375 1,465
 China 1,017 105
 Hong Kong 110 1,809
 Indonesia (D) 42
 Japan 41,180 123,867
 Korea, Republic of 5,766 15,507
 Malaysia (D) 15
 New Zealand 55 (D)
 Philippines 5 (D)
 Singapore 289 408
 Taiwan 924 3,183
 Other 12 76

United States 1,959 1,548

Addenda:
 European Union (15)(1) 78,538 119,450
 OPEC(2) 522 5,415

(*) Less than $500,000.

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

(1.) The European Union (15) comprises Austria, Belgium, Denmark,
Finland, France, Germany, Greece, Ireland. Italy, Luxembourg, the
Netherlands, Portugal, 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.--Estimates for 1999 are preliminary.

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 resident 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 tip 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.

Gross product. The contribution to U.S. gross domestic product, which is the goods and services produced by labor and property located in the United States. Gross product, often referred to as "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 gross product estimates presented in this article 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 of gross product of U.S. affiliates are conceptually consistent with BEA's estimates of U.S. GDP by industry; both sets of estimates are measured as the sum of the costs incurred (except for intermediate inputs) and the profits earned in production. However, there are some minor differences in measurement. For example, in the profits measure used to estimate U.S.-affiliate gross product, amortization of intangible assets is treated as an expense, which is not the case in the profits measure used to estimate U.S. GDP by industry. This and other differences in measurement are small relative to total affiliate gross product and thus have a negligible effect on the affiliate shares of private-industry GDP shown in tables 1 and 2.

Data on Foreign Direct Investment in the United States

BEA collects three broad sets of data on foreign direct investment in the United States (FDIUS): (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; new investment data were published in "Foreign Direct Investment in the United States: New Investment in 2000" in the June 2001 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 2000," "U.S. International Transactions, First Quarter 2001" and "Direct Investment Positions for 2000: Country and Industry Detail" in the July 2001 issue of the SURVEY.

Each of the three data sets focuses on a distinct aspect of FDIUS. 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 FDIUS. (Benchmark surveys, which are BEA's most comprehensive surveys of foreign direct investment in terms of both coverage of companies and subject matter, are taken in place of the annual survey once 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 gross product of affiliates is estimated from data reported in these surveys.

Except in benchmark survey years, these data, unlike the new investment data, cover only nonbank affiliates. The financial and operating data for affiliates are on a fiscal year basis. The data cover the entire operations of the U.S. affiliate, irrespective 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 are collected on a calendar year basis in BEA's survey of new FDIUS. In addition, the new investment survey collects selected data on the operations of the newly acquired or established affiliates. For newly acquired affiliates, these data are for (or as of the end of) the most recent fiscal year preceding the acquisition, and for newly established businesses, they are projected for (or as of the end of) the first year of operation. The data cover the entire operations of the business, irrespective of the percentage of foreign ownership.

International transactions and direct investment position data. These data are collected in the quarterly survey of FDIUS. The data cover the U.S. affiliate's transactions and positions with its foreign parent or 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, direct investment income, royalties and license fees, and other services transactions with the foreign parent group.

(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. This guide is available on BEA's Web site at <www.bea.doc.gov/bea/ail.htm>.

For a comparison of the data on affiliate operations with the data on new investment, see the appendix "Sources of Data" in Mahnaz Fahim-Nader 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.

Acknowledgments

The 1999 annual survey was conducted under the supervision of Joseph F. Cherry III, with contributions by Juris E. Abolins, Chester C. Braham, Hien X. Dang, Constance T. Deve, Charles R. Gravitz, Lonnie Hunter, Edna A. Ludden, Betty K. Maddy, Isabel L. McConnell, Demetria A. McCormick, Gregory L. McCormick, Sidney A. Moskowitz, Christine L. Perrone, Clarence D. Smith, Marie P. Smith, John R. Starnes, and Kimyetta Whitehead.

Computer programming for data estimation and the generation of data tables was provided by Diane Young and Neeta Kapoor.

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

In this article, data on employment are used to estimate affiliate shares of the U.S. economy by North American Industry Classification System (NAICS) industry 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, the data on affiliate employment can be used to calculate the affiliate shares of the U.S. economy at a greater level of industry detail than can be calculated using the gross product 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 Census Bureau (see table 5, footnote 1).

(2.) Establishment-level data from a joint project of BEA and the Bureau of the Census can be used to calculate affiliate shares at an even greater level of detail. These data show each four-digit manufacturing industry in the Standard Industrial Classification; they are currently available for 1987-92. The data for foreign-owned manufacturing establishments are analyzed in a number of SURVEY articles that can be accessed at BEA's Web site at <www.bea.doc.gov/bea/ail.htm>. A forthcoming publication will present establishment data for both manufacturing and nonmanufacturing industries in the economic census year 1997 and will be on a NAICS basis.

(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 will be in metal manufacturing, and none in metal mining. When the mining employees are distributed by industry of sales, they are classified in manufacturing even though the industry of that establishment is mining.

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

Data Availability

This article presents a summary of the preliminary estimates from the 1999 annual survey of foreign direct investment in the United States. More detailed estimates will be published this fall; the availability of these will be announced on the inside back cover of the SURVEY. Revised estimates will be published next year.

Estimates of U.S. affiliate operations in 1977-98 are available in compressed files that can be downloaded from BEA's Web site at <www.bea.doc.gov>. The estimates for 1991-98 are also available in publications.

For more information on these products and how to order them, see the International Investment Division Product Guide on BEA's Web site at <www. bea.doc.gov/bea/dil.htm>, or write to the Research Branch (BE-50), International Investment Division, Bureau of Economic Analysis, U.S. Department of Commerce, Washington, DC 20230.

(1.) The estimates of gross product of U.S. affiliates are conceptually consistent with those of total U.S. GDP, or gross product originating, by industry (see the box "Key Terms").

The financial and operating data of nonbank U.S. affiliates presented in this article cover the entire operations of each U.S. affiliate, irrespective of the percentage of foreign ownership. All data are on a fiscal year basis. Thus, for 1999, an individual affiliate's fiscal year is its financial reporting year that ended in calendar year 1999.

The estimates of gross product and the other data items for affiliate operations for 1999 are preliminary. The estimates for 1998 are revised; for most of the key data items, the revisions to the totals ranged from -3 percent, to 1 percent.

(2.) According to data from BEA's annual survey of new foreign investments, outlays by foreign direct investors to acquire or establish businesses in the United States increased from $69.7 billion in 1997 to $215.3 billion in 1998 and to $275.0 billion in 1999 (the high before 1998 was $79.9 billion in 1996). Investment outlays increased further in 2000, to a record $320.9 billion; see Ned G. Howenstine, "Foreign Direct Investment in the United States: New Investment in 2000," SURVEY OF CURRENT BUSINESS 81 (June 2001): 27-34. Investments also grew rapidly as measured by the foreign direct investment position in the United States, which measures financing provided to U.S. affiliates by members of their foreign parent groups. Measured at historical cost, the position increased 14 percent in 1998 and 24 percent in 1999 (and 28 percent in 2000); see Maria Borga and Raymond J. Mataloni, Jr., "Direct Investment Positions for 2000: Country and Industry Detail," SURVEY 81 (July 2001): 16-29.

(3.) Additional evidence for lower value-added levels for new investments in 1999 is provided by data from the annual survey of new foreign investments. These data indicate that while the investments themselves were larger in 1999 than in 1998, the sales of the U.S. business enterprises acquired or established were 25 percent lower, and the net income was 81 percent lower. See table 5 in Ned G. Howenstine and Rosaria Troia, "Foreign Direct Investment in the United States: New Investment in 1999," SURVEY 80 (June 2000): 58 and table 5 in Howenstine, "New Investment in 2000," 30.

(4.) Because U.S. affiliates tend to be relatively concentrated in less labor-intensive sectors of the economy (such as manufacturing), their share of employment has consistently been lower than their share of gross product.

(5.) The rate of change in U.S. private-industry GDP serves as a convenient benchmark against which the increase in U.S.-affiliate gross product can be evaluated, but the two growth rates are not strictly comparable, because the latter partly reflects transfers in ownership that do not represent increased production for the whole economy. Similarly, changes in U.S.-affiliate employment, exports, and imports, which partly reflect changes in ownership, are not strictly comparable with the corresponding changes for the whole economy,

(6.) In 1999, outlays by British direct investors to acquire or establish U.S. businesses in the United States totaled $109 billion, 40 percent of the total outlays by all direct investors. See table 4 in Howenstine, "New Investment in 2000," 29.

(7.) Each U.S. affiliate is classified in the industry that accounts for the largest portion of its sales. Many U.S. affiliates are involved in a variety of business activities; changes in the mix of these activities can cause an affiliate's industry classification to change, but an affiliate is reclassified only if the changes are significant or have persisted for at least 2 years.

(8.) Employment data by industry of sales are used to estimate shares; this basis approximates the establishment-based disaggregation of the corresponding data for all U.S. businesses. See the box "Using Employment Data to Estimate Affiliate Shares of the U.S. Economy by Industry."

(9.) U.S. trade flows with foreign affiliates of U.S. parent companies have accounted for roughly comparable shares of U.S. exports and imports of goods--about 25-30 percent of exports and about 20 percent of imports in most years since 1982.

(10.) In 1999, affiliates in wholesale trade accounted for 32 percent of affiliate exports and for 51 percent of affiliate imports. These affiliates played an even larger role in U.S.-affiliate trade in earlier years: In each year in 1977-91, wholesale trade affiliates accounted for more than 50 percent of affiliate exports and for more than 60 percent of affiliate imports.

(11.) Data on the destination of U.S.-affiliate exports, which were most recently collected in the 1997 Benchmark Survey of Foreign Direct Investment in the United States, indicate that exports to Japan accounted for 52 percent of the total exports of Japanese-owned affiliates in 1997.

(12.) Data on the origin of U.S.-affiliate imports, which were collected most recently in the 1997 benchmark survey, indicate that affiliates accounted for only 14 percent of U.S. imports from Mexico and only 4 percent of U.S. imports from China. In contrast, affiliates accounted for 37 percent of U.S. imports from Europe and 82 percent of U.S. imports from Japan.