How to Build a Strong Brand Presence in the U.S.

The Spread of Global Supply Networks: Empirical Evidence Global supply networks have been documented for specific industries and products, providing compelling evidence.14 IT has been at the forefront of developing and growing networks, as it is the only industry with a global agreement that eliminates tariffs on agreed-upon items since the WTO's inception. On many counts, IT is one of the world's most dynamic industries, with a staggering number of new product breakthroughs and equally amazing drops in quality-adjusted pricing. The industry has extensive supply networks that connect various phases of production through global flows of cash, ideas, people, and trade in commodities and services. IT-hardware businesses began unbundling computer production decades ago, and these networks are still evolving today.

Many nations participate in global networks based on their 

Comparative advantage, such as design in skill-rich countries like the US and assembly in labor-rich ones like China. Global networks have benefited not just participating IT corporations, but also all IT users worldwide. More systematic evidence on the rise of global supply networks is more difficult to get. Government statistics agencies' roots were constructed generations ago when firms mostly produced commodities, not services, and used national inputs. However, their dynamic fluidity has quickly overtaken them. A recent study uses global trade and production statistics, credible assumptions, and meticulous calculations to divide trade flows by value added in exporting nations and value added in other countries.15 Without global supply networks, each country's exports would consist entirely of its own value-added production stages. As global supply networks expand, each country's exports may include foreign-sourced tasks and inputs paired with locally specialized ones. Figure 12 shows the estimated share of foreign value added in world exports every ten years.To maintain global competitiveness, successful American corporations have established and expanded worldwide supply chains. Completely American-made products are becoming increasingly rare. Global networks increase U.S. output and employment. "Made in America" is gradually encompassing the rest of the world.

What places in these networks do American corporations often occupy

The US has attributes that make it ideal for high-value, firm-wide functions, including highly educated and motivated personnel, deep capital markets, and an innovative and risk-taking culture. In comparison, lower-income countries often have motivated workers who excel at low-value, labor-intensive occupations. Companies in the US prioritize high-paying positions in R&D, skilled production, logistics, management, and marketing, which are crucial to global supply chains.But America's positions in global supply networks are not stable. Companies must constantly adapt their strategy, as a successful network may not be sustainable in the future. Optimal network methods are subject to fast change due to the ongoing evolution of the three primary forces that drive them. Emerging countries continue to open their economies to global corporations, while governmental constraints fall and IT advances accelerate. From 1970 to 2009.Successful network strategies for American corporations vary significantly over time, both between companies and within them. It is unrealistic to expect success.The dynamic evolution of production can be seen at the level of individual activities, in addition to the aggregate shares for all multinationals. From 1999 to 2009, the average annual rate of growth in R&D spending in U.S. companies was 4.4 percent, exceeding the average annual rate of growth in overall parent value added of 1.7 percent. This aligns with the idea that American companies prioritize knowledge-intensive tasks in global supply networks. The ratio of U.S. parent capital investment spending to R&D spending indicates a shift in knowledge intensity among parents. The ratio decreased from 3.3 in 1999 to 2.1 in 2009, due to rapid rise in R&D spending. Multinational corporations increasingly focus on developing innovative ideas to improve products and processes.

Examining different industries might provide insight into how

Organizations evolve their production methods. Each parent and affiliate enterprise is assigned a principal industry that generates the majority of its sales each year. As organizations shift from manufacturing goods to services, they may change their principal industry classification in global supply networks. This trend has increased over time. According to the U.S. Department of Commerce, a successful American company will continue to operate in the same way it does today, with employees performing duties globally. Companies that do not innovate face worldwide competition and eventually fail. There is no perfect measure of America's integration into global supply chains. America, like other countries, has significant gaps in its statistics infrastructure, hindering knowledge of this crucial aspect of its operations. According to the analysis behind Figure 12, the foreign component of U.S. exports has tripled over the last 40 years, from 7% in 1970 to 22% in the late 2000s, with a significant increase since 1990. The increasing globalization of American production has two significant trade effects.One is the growing importance of trade in services, in addition to trade in goods. America's capabilities in global supply networks include exporting.

America's participation in global supply networks leads to both

Increased exports and imports. In 2011, full 62 percent of America's $2.2 trillion in goods imports were intermediate inputs employed in the country with American labor, capital, and expertise. To succeed in these networks, U.S. enterprises must import as well as export.Data on global enterprises based in the United States highlights the significance of these networks for American businesses. Figure 13 highlights the expanding importance of these networks. For three years (1989, 1999, and 2009), the study shows how much of the overall sales of U.S. parents and international affiliates are attributed to intermediate input purchases rather than value contributed by these business sectors. services to optimize production processes. America has a growing trade surplus in services, reaching a record $179.0 billion in 2011 with $604.9 billion in exports, demonstrating its strengths.