Abstract

This article focuses on the need for revitalization of American industries to face global competition as of September 1984. If the foundations of the American economy are to be rebuilt, it must begin with a new concept of the firm. If changes are made, the American firm can succeed. Operated as it is now, it can but fail. American industry is going to have to learn to design products for foreign markets. If foreign firms invade the American market but American firms do not invade foreign markets, foreign firms will use secure home markets as bases from which they can pick off American firms in the American market. American firms will occasionally be defeated at home and will have no compensating foreign victories. In the world economy, a firm that cannot compete successfully in foreign markets will not survive in the American market. In the era of American supremacy, American firms could follow a multinational strategy of simply buying successful firms in foreign markets. Infusing foreign firms with superior technology, these firms were worth more to Americans than they were to their local owners. Takeovers were permitted by foreign governments to gain the benefits of superior American technology and capital.