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AmCham actively encourages investment into the US economy, and has some of the best people you could ever talk with regarding business. That being said, export
by Joel_Mckay 3y ago
AmCham actively encourages investment into the US economy, and has some of the best people you could ever talk with regarding business.
That being said, exporting tech products into the US economy is like giving your competitors a 2 year head start. The US trade and tariff system is expensive to navigate, restrictive on value-added services (free-trade doesn't apply to something sourced from 18 different origins), and constantly evolving on the state level to keep competitors out of domestic markets. Thus, many will choose to create legal entities inside the US to handle sales, taxes, and mitigate many trade/sales encumbrances (see Texas business registry for details.)
Many of these firms also create zombie entities in the US and Germany for manufacturing tariff/anti-dumping reasons. Accordingly, most of the value added still occurs someplace offshore...
It is very common for existing troubled known-brand companies on stock exchanges to undergo takeover by foreign firms to bypass domestic exchange rules. The new boards then acquire off-shore junk assets (China recycling depots or South American mines are popular), arbitrarily over-value whatever the junk holding is worth, and report the new "growth" valuation for "investors" to gamble on...
From an investor perspective... you will see both healthy entity creation, and the dirty side of stock investment cons... Tip, if a firms reported cash-flow is inconsistent with reported growth, than one probably should dig deeper.
The financial rhetoric of social-media and political mouthpieces should be parsed with great care... especially in an election year.
Good luck, =3