Macroeconomic

Consider two hypothetical companies:
1- ABC Computers based in San Francisco, California. The shareholders, managers, and directors are Americans. However, most of the employees of the
company are South Korean where the computers are manufactured and then exported to the USA.

2- XYZ Computers is based in Germany. Their shareholders, managers, and directors are German. However, most of the employees of the company are
Californians where the (high tech) computers are designed and manufactured. Many of these are exported to Germany.

Many people would say the ABC is an American company while XYZ is not. Robert Reich argues otherwise. He looks at the impact that the company has on the
US economy (employment, for example) as the best guide. XYZ has much more impact here than ABC.

Is IBM an American company? More than 40% of its employees are foreign. IBM’s Japanese subsidiary employs more than 18,000 Japanese workers and is one
of Japan’s leading exports of computers. Whirlpool employs more than 43,000 people around the world in 45 countries. Is this an American company? What about
Chiquita Banana whose operations are in Central America and much of its exports do not go to the USA? Is this an American company? What about Boeing,
General Motors, Mc Donalds?

How would you define a company as ‘American’? Is there such a thing as a purely American company? What does ‘purely American’ mean to you? Is this a result
of globalization where more and more of the world’s economies are integrated?