If baseball, the great American pastime, crowned champions for playing only in their ballparks, the Chicago Cubs would have far more pennants flying over Wrigley Field. The global economy operates similarly. A nation that wants to stay on top must win abroad, not just at home.
For years, headlines have celebrated the more than 8 million Americans employed by foreign-owned companies and the $1 trillion that these investors inject into the U.S. economy. The praise is deserved. Foreign direct investment modernizes supply chains, upgrades infrastructure, and funds research in every state. Yet, inbound capital is only part of the equation.
We rarely focus on the additional benefits of foreign direct investment, specifically the success of U.S. companies in overseas markets.
Majority-owned foreign affiliates of American multinationals employ tens of millions of workers abroad and repatriate earnings that finance factories and rising wages at home. The effect is visible in towns nationwide where global revenue supports local payroll.
Look abroad and you will find markets that are larger and faster-growing than anything within our borders. India will soon boast a middle class bigger than the entire U.S. population. Indonesia, Nigeria and Vietnam are not far behind (especially as new trade deals are announced). When American firms install wind turbines near Jakarta or launch telehealth in Lagos, they generate profits that later fund innovation in Ohio and jobs in Arizona.
New customers globally can serve as a hidden venture capital. If we do not pursue them, our competitors and our adversaries will.
A global reach allows U.S. companies to spread risk. A dip in domestic demand need not derail an exporter whose orders come from three continents. Diversification is a principle every prudent investor accepts, and it should guide national strategy.
An American factory outside the United States sends a clear message about our values. It signifies the rule of law, open markets and ingenuity. That influence, sometimes referred to as soft power, is stronger when tied to paychecks and training programs rather than speeches.
None of this is easy. Companies that venture abroad confront tariffs, content rules, bureaucratic red tape, and, of course, questions about creating jobs abroad instead of at home. Cultural misreads, from product sizes to payment terms, can sink a promising deal, as can questions or criticism from U.S. policymakers who may see only part of the benefits.
Washington owns underused tools that can help. The Foreign Commercial Service, the Export‑Import Bank, and the Development Finance Corp. provide intelligence, financing and diplomatic backing that turn maybe deals into done deals.
Modern trade agreements are equally critical. Clear rules for intellectual property, digital flows and dispute settlement are lifelines for small exporters whose margins cannot absorb arbitrary fees. Each month that America stalls on updating these frameworks, rivals gain ground.
Domestic manufacturing incentives are healthy, but they should not punish firms for sourcing components overseas. An iPhone designed in California and assembled in India still fills trucks in Kentucky, pays coders in North Carolina, and funds pensions in Kansas. The goal is resilience, not isolation.
Examples prove the point. McDonald’s tweaks its menu in Japan, Chile and South Africa, and the resulting international revenue helps keep beef suppliers busy in the Midwest. Amazon’s European and Latin American platforms allow it to invest billions in cloud infrastructure in Virginia. Tesla’s Shanghai plant provides the company with direct access to the world’s largest electric-vehicle market, while supporting battery research in Nevada. Success abroad and prosperity at home move together like the left and right wheels of the same bicycle.
Inbound and outbound capital reinforce each other. A company that conquers global markets attracts foreign partners who want a share of its technology and expertise. Overseas investors, in turn, introduce management practices and supply-chain innovations that sharpen American competitiveness. Treating the two streams as rivals is like arguing whether the batters or the outfield players win baseball games. Champions need both.
Congress and the administration should pursue a twin strategy. Keep the United States the premier destination for foreign investment, and equip our businesses with resources, training grants and modern trade pacts so they can win customers everywhere. Anything less is playing half a game and conceding the trophy.
America’s future depends as much on what we build and sell abroad as on what we produce at home. If we want to remain the world’s strongest economy, we cannot spend the season guarding home plate. We must step into every batter’s box in every stadium, swing with confidence, and round the bases as if our national prosperity depends on it, because it does.
