Are Western companies becoming less global?

The Western multinational corporations of the 21st century are becoming less reliant on China and more reliant on intangible assets. While they have been adding fewer foreign factories to the FDI stock, they are still investing in foreign production. Technological progress is changing the way multin

March 18, 2023 . 7:41 AM

1 min read

Western multinationals are becoming less reliant on China and more reliant on intangible assets such as software and patents.
American and European companies have been adding fewer foreign factories to the foreign direct investment (FDI) stock.
American and European foreign investments have been decreasing in the past decade or so.
Western businesses are still investing in foreign production, but increasingly sourcing their goods from geopolitically friendly places.
Technological progress means that many firms’ most productive assets are now not their physical plant and equipment but intangibles like computer programs and patents.