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Politics : Politics for Pros- moderated

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To: LindyBill who wrote (404430)1/15/2011 10:28:22 AM
From: unclewest1 Recommendation  Read Replies (3) of 793955
 
This is disconcerting.

January 8-14, 2011
Financial, FT
Lex on the foreign exposure of US S&P 500 companies, January 14

"Oft quoted is that half of S&P 500 companies’ revenues are from beyond America’s shores. But a closer look at the government’s national and international accounts tells a less heartening story in aggregate. For a start, the proportion of after-tax profits earned by US companies abroad has been falling since the end of 2008. Today, it makes up less than a tenth of total profits."

"Another misconception is that US firms are geared into the sexiest parts of the planet. As Smithers & Co notes, corporate America is mostly exposed to regions with outlooks as dull as at home. According to the latest quarterly data from the Bureau of Economic Analysis, 60 per cent of overseas income comes from Canada, Europe and Japan. By contrast China, accounts for less than 3 per cent, and Asia overall less than a fifth. Even neighbourly South America chips in only 6 per cent of foreign profits."


ft.com
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