Here is a hypothetical question for two hypothetical car companies. One car company is the $20,000 USA Motors, Inc. car. It's a mid-sized passenger car. The other car is the Fx Motors, Inc, and they also offer a $20,000 family car. USA Motors is Headquartered in Detroit, but their cars are assembled in Mexico of parts mostly made in China. USA Motor's stock is traded on the NYSE, and it is a domestic company in this regards.
Fx Motors is HQ'ed in China, and their cars, for the American markets,
are assembled in the USA. They buy most of the car parts from
American vendors. For example, they purchase the transmission and
mufflers from a company in Kansas that makes these products. However,
Fx Motors is listed on the NYSE as an ADR, since it is HQ'ed in
Q1: Purchasing from which car company is more beneficial to America's
economy, assuming that the cars are identical in quality?
Q2: What is the criteria's of being an "American" comapny: Most
revenues are from USA; Most employees are from USA; or Corporate HQs
is in USA?
- posted 9 years ago