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GLOBAL LEADERS IN JOB CREATION VIA INWARD FOREIGN INVESTMENT

exeqfind | 03.06.2013

It’s always good to see evidence that North America continues to play a leading role the creation of jobs via being globally competitive and a recent report produced by IBM titled “Global Location Trends” bears this out.

It’s always good to see evidence that North America continues to play a leading role the creation of jobs via being globally competitive and a recent report produced by IBM titled “Global Location Trends” bears this out.

The report details where companies locate and expand their operations in order to maintain their competitiveness.  The report’s authors – Jacob Dencik and Roel Spee stated that “companies are taking a more strategic approach to optimizing their international operations by reducing risk, while continuing to seek new market opportunities.  And these markets – or locations – must ensure that they improve their value propositions for investors by identifying their strengths and addressing their weaknesses.”

The report examines countries and then ranks them according to the number of jobs created directly as a result of inward foreign investment.  The top five countries for job creation relative to inward foreign investment are:

#1 – China

#2 – India

#3 – United States

#4 – Mexico

#5 – United Kingdom

We’ve been hearing a great deal about Mexico’s industrial or maquiladora sector experiencing a surge in both Greenfield start-ups and production coming into Mexico from Asia.  The production coming into Mexico from Asia is often found to be production that was originally relocated from Mexico to Asia and we are now seeing that production coming back.  The report further substantiates this by showing that although China and India are in the leading positions, their job creation from 2010 to 2011 dropped by 15 percent and 21 percent, respectively.  However, Mexico’s job creation related to inward foreign investment during this same period increased by 25 percent.

Inward foreign investment for the United States remained stable during this same period.  The report stated that US business environments reflect less differentiation between states and communities than in other locations around the world.  The top 10 states for job creation through foreign investment in 2011 were:

#1 – South Carolina

#2 – Texas

#3 – North Carolina

#4 – Indiana

#5 – Ohio

#6 – Georgia

#7 – Alabama

#8 – California

#9 – Mississippi

#10 – Illinois

Warren Carter is an executive search consultant with ExeQfind and pays close attention to regional and global competitive trends to be  better aware of both what locations are most competitive for business but also to be in a better position to advise career managers and leaders that may be required to undergo a corporate relocation to take the next step in their career.   Warren also serves on the Executive Board of IRC Global Executive Search Partners and has traveled and worked with organizations from all corners of the world.  Warren can be reached at (619) 921-1795 

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