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U.S. Multinational Food Manufacturers Choose Production in Foreign Markets Over Exports

Author

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  • Malanoski, Margaret

Abstract

U .S. food manufacturers supply their products to foreign consumers primarily through local production in foreign markets. In fact, exports pale in comparison to sales by foreign affiliates of U.S. firms. In 1992, processed food sales from U.S.-owned foreign affiliates totaled $89 billion- almost four times U.S. export sales of processed foods. And while U.S. exports of processed foods continued to grow, the gap between them and foreign affiliate sales more than doubled between 1982 and 1992 (fig. 1). Foreign production also occurs through licenses between U.S. and foreign firms. These agreements allow foreign firms to produce and sell the U.S. firms' products in specified foreign markets (see "International Licensing of Foods and Beverages Makes Markets Truly Global," elsewhere in this issue).

Suggested Citation

  • Malanoski, Margaret, 1994. "U.S. Multinational Food Manufacturers Choose Production in Foreign Markets Over Exports," Food Review/ National Food Review, United States Department of Agriculture, Economic Research Service, vol. 17(3), September.
  • Handle: RePEc:ags:uersfr:266157
    DOI: 10.22004/ag.econ.266157
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    Citations

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    Cited by:

    1. Padilla, Luis & Richards, Timothy J., 1999. "Locational Determinants Of Us Foreign Direct Investment In Food And Kindred Products In Latin America," 1999 Annual meeting, August 8-11, Nashville, TN 21514, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    2. Lipton, Kathryn L., 1998. "The Food and Fiber System: Contributing to the U.S. and World Economies," Agricultural Information Bulletins 33761, United States Department of Agriculture, Economic Research Service.
    3. Ruppel, Fred J. & Malanoski, Margaret A. & Neff, Steven A., 1996. "Processed Foods Trade Benefits U.S. Agriculture and Consumers," Food Review/ National Food Review, United States Department of Agriculture, Economic Research Service, vol. 19(2), pages 1-4.

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