[Annotated] America leaves foreign firms out in the cold

Populism, economic concentration and regulation are some of the reasons foreign bosses are souring on^[각주:1] the land of the free

Which is it? The home of free speech, the rule of law and the rich world's most dynamic economy? Or a land of social decay, septic politics^[각주:2] and the rich world's worst roads and schools? America divides^[각주:3] foreign observers. It divides foreign firms, too. Some bosses fall head over heels for^[각주:4] its insatiable^[각주:5] consumers and dazzling^[각주:6] technology. Other executives are put off by^[각주:7] its insufferable^[각주:8] lawyers and hypocritical^[각주:9] protectionism. Donald Trump promises to give foreign firms a rude awakening^[각주:10] when he reaches the White House: this month he beat up^[각주:11] Toyota for making cars in Mexico and selling them north of the border. But in truth many foreign firms fell out of love with^[각주:12] America years ago.

The conventional view is that foreign companies are irresistibly^[각주:13] attracted to the place. If one affair ends in tears^[각주:14], there is always a new paramour^[각주:15] in the wings^[각주:16]. In the 1970s British buccaneers^[각주:17], led by Sir James Goldsmith, picked up neglected firms. In the 1980s Japanese firms lost their financial virginity^[각주:18] by paying too much for Hollywood studios and Californian skyscrapers^[각주:19]. A decade later continental^[각주:20] European firms rushed across the pond, culminating in^[각주:21] Daimler's doomed tryst with^[각주:22] Chrysler, a rival carmaker^[각주:23]. By this account, Chinese firms are the latest to get the love bug, with China's richest man, Wang Jianlin, in the role of the besotted^[각주:24] tycoon^[각주:25], having paid a blockbuster $4bn^[각주:26] to assemble^[각주:27] a chain^[각주:28] of mature American cinemas since 2012.

But this narrative^[각주:29] is hopelessly out of date. The most accurate metaphor for foreign firms in America today is of disappointed hopes^[각주:30]. Their share of private output has been flat at ^[각주:31]about 6% since 2000. The share of sales that European firms make in America has declined from 20% in 2003 to 17% now, according to Morgan Stanley, a bank. Foreign firms' profits in America fell from $134bn in 2006 to $123bn in 2014, the latest year for which figures are available^[각주:32]. Their return on equity fell to 6%, compared with 11% in 2006. American multinationals^[각주:33] make 12% on their home turf^[각주:34]. 

This souring romance^[각주:35] reflects three deep shifts^[각주:36] in America's economy. First, technology has a greater importance than it used to. At the same time the gap between Silicon Valley's giants^[각주:37] and their peers abroad has grown wider. A generation ago Europe and Japan had real contenders^[각주:38] in the technology industry, such as Nokia and Sony. Now they have no answer to the likes of^[각주:39] Apple, Google and Uber.

Second, waves of mergers and acquisitions^[각주:40] have made the economy more concentrated. That has raised the barriers to entry for outsiders. If you split the world's companies into 68 industries, American firms are the largest in two-thirds of them. Foreign companies in America are often subscale^[각주:41] and too small to buy the leading firms in their sector. So they try to grow organically^[각주:42] or buy weaklings^[각주:43] instead. In 2013 SoftBank, a Japanese technology group, paid $22bn to buy a struggling^[각주:44] mobile-phone operator^[각주:45], Sprint, which is now losing a billion dollars a year. The most profitable investment in living memory^[각주:46] by a foreign firm in America was not a gutsy^[각주:47] triumph but a passive stake^[각주:48] in a domestic oligopoly^[각주:49]: Vodafone's 45% share of Verizon Wireless, which it sold for ^[각주:50]$130bn in 2014.

The third reason for foreign firms' discontent is the growth in lobbying^[각주:51], litigation^[각주:52] and regulatory action^[각주:53] in America. Foreign companies feel they are at a competitive disadvantage^[각주:54]. In the most regulated sector of all - banks - their market share^[각주:55] has fallen to 14% from 18% in the past 24 months, partly, they argue, owing to onerous new rules. Most fines involves lots of official discretion^[각주:56]. In carmaking and energy, Volkswagen and BP have admitted their respective^[각주:57] responsibilities for fake America leaves foreign firms out in the cold and the Deepwater Horizon oil spill^[각주:58]. But many European bosses believe that the cumulative^[각주:59] $70bn of legal costs^[각주:60] and penalties^[각주:61] they have paid or currently face far exceed^[각주:62] those that General Motors and ExxonMobil paid for similarly grave mistakes^[각주:63]. In December Barclays vowed to^[각주:64] fight a $5bn-odd^[각주:65] fine for mortgage mis-selling^[각주:66], which it argues is harsher than those faced by American banks.

The Trump administration^[각주:67] could well awaken^[각주:68] a protectionist impulse at^[각주:69] big domestic firms that lies not far beneath the surface, reckon the most pessimistic of all. Jamie Dimon's latest letter to the shareholders^[각주:70] of JPMorgan Chase warns that American banks' dominance^[각주:71] could be threatened by Chinese rivals. A report on semiconductors^[각주:72] for the White House this month, written by a body^[각주:73] that includes the bosses of Google, Qualcomm and Northrop competition. America's airlines constantly complain about unfair competition from Emirates and other rivals.

Takeovers^[각주:74] or makeovers^[각주:75]

A more populist America may require fresh tactics from foreigners. Some are working on their connections. Masayoshi Son, boss of SoftBank, pledged to^[각주:76] invest $50bn in America after meeting Mr Trump in December. The head of Anbang Insurance, a Chinese firm that is no stranger to^[각주:77] relationship-based capitalism at home^[각주:78], dined with^[각주:79] Mr Trump's son-in-law, Jared Kushner, in November. Anbang owns the Waldorf Astoria, among other American assets. Another approach is to buy a well-placed^[각주:80] oligopoly. InBev's purchase in 2008 of Anheuser-Busch, maker of Budweiser Beer, has become a model for winning in America. Other deals in 2016 echoed it. Bayer agreed to buy Monsanto, which dominates the agricultural-seed business, and BAT is bidding for^[각주:81] Reynolds American, which has a big share of the tobacco market.

A last option is for foreign firms to assume a more American identity. In sensitive sectors^[각주:82], they already try to take on a local character^[각주:83]. BAE Systems, a defence concern, has a separate American board stacked with^[각주:84] former brass hats^[각주:85]. After the trade spats^[각주:86] of the 1980s, Asian car firms localized^[각주:87] their production and management. Rupert Murdoch shifted his media empire's domicile^[각주:88] from Australia to America in 2004. As any dating-website veteran^[각주:89] will tell you, if you can't find love, change your appearance.

1. sour ; 1. (관계・태도・사람들 등이) 안 좋아지다, 틀어지다; 안 좋아지게[틀어지게] 만들다 [본문으로]
2. septic ; (상처나 인체 부위가) 패혈성의, 패혈증이 생긴 ;; 부패한 정치라는 의미 [본문으로]
3. divide ; 7. CAUSE DISAGREEMENT | [타동사][VN] (사람들을) 분열시키다 [본문으로]
4. fall head over heels for ; (너무 좋아서) 나동그라지다 [본문으로]
5. insatiable ; 채울[만족시킬] 수 없는; 만족할 줄 모르는 [본문으로]
6. dazzling ; 눈부신, 휘황찬란한; 현혹적인 [본문으로]
7. be put off by ; 정떨어지다 [본문으로]
8. insufferable ; 눈부신, 휘황찬란한; 현혹적인 [본문으로]
9. hypocritical ; 위선의, 위선(자)적인 [본문으로]
10. awakening ; 1. [C] [주로 단수로] 자각[인식](의 계기) [본문으로]
11. beat up ; ~를 두들겨 패다[마구 차다] ;; 흐름상 강하게 비판하다 라는 의미 [본문으로]
12. fall out of love with ; 정나미가 떨어지다 [본문으로]
13. irresistible ; 억누를[저항할] 수 없는 ;; 못견디게 [본문으로]
14. in tears ; 눈물을 흘리며, 울며 [본문으로]
15. paramour ; (구식 또는 문예체) 애인, 연인 [본문으로]
16. in the wings ; 기다리고[대기하고] 있는 [본문으로]
17. buccaneer ; 2. [특히 사업에서] 노회한 사업가 ;; US [|bʌkə|nɪr] / UK [|bʌkə|nɪə(r)] [본문으로]
18. lose their financial virginity ; 흐름상 일본 기업이 무리한 투자를 하였다는 의미 [본문으로]
19. skyscraper ; 고층 건물 [본문으로]
20. continental ; 1. Continental [명사 앞에만 씀] (또한 英) (영국・아일랜드를 포함하지 않는) 유럽 대륙의 [본문으로]
21. culminate in ; 드디어[결국] …이 되다 [본문으로]
22. tryst ; [명사] (문예체 또는 유머) (애인 사이의) 밀회 [본문으로]
23. carmaker ; 자동차 제조업자 [본문으로]
24. besotted ; ~ (by/with sb/sth) (…이 좋아/…에 빠져) 정신을 못 차리는 [본문으로]
25. tycoon ; (재계의) 거물 [본문으로]
26. blockbuster $4bn ; 엄청나게 많은 돈 이라는 뉘앙스 전달 [본문으로]
27. assemble ; 1. 모이다, 모으다, 집합시키다 [본문으로]
28. chain ; 3. OF SHOPS/HOTELS | [C] (상점・호텔 등의) 체인 [본문으로]
29. narrative ; 앞에 서술한 일련의 과정을 의미 [본문으로]
30. foreign firms 를 비유하자면 disappointed hopes 정도로 표현할 수 있을 것이라는 의미 [본문으로]
31. be flat at ; 같은 수준을 유지하고 있다 는 의미 [본문으로]
32. the latest year for figures are available ; 최근에도 그 수치나 결과가 적용된다는 의미 [본문으로]
33. multinational ; [명사] 다국적 기업 [본문으로]
34. home turf ; 홈 경기장 ;; 흐름상 자신의 국가 를 의미 [본문으로]
35. souring romance ; 틀어질듯한 로맨스 [본문으로]
36. shift ; 1. CHANGE | [C] ~ (in sth) (위치・입장・방향의) 변화 [본문으로]
37. giant ; 흐름상 대기업을 의미 [본문으로]
38. contender ; (어떤 것을 두고 겨루는) 도전자[경쟁자] [본문으로]
39. the likes of ; sb/sth (비격식) ~와 같은 부류 [본문으로]
40. mergers and acquisitions ; (경영) 기업 인수 합병 ((略 M&A)) [본문으로]
41. subscale ; 규모가 작다는 의미 [본문으로]
42. organically ; 2. 구성상으로, 조직상[체제상]으로 [본문으로]
43. weakling ; (못마땅함) 허약자, 약골 [본문으로]
44. struggling ; 발버둥이 치는; 기를 쓰는, 분투하는 [본문으로]
45. mobile phone operator ; 이동 통신 사업자 [본문으로]
46. in living memory ; (시대적으로) 아직도 살아 있는 사람들이 기억하는 [본문으로]
47. gutsy ; 1. 배짱 있는, 대담한 [본문으로]
48. stake ; 1. (종종 stakes) 내기; 내기에 건 돈, 내기의 밑천. [본문으로]
49. oligopoly ; (경제) 소수 독점, 과점(寡占) ((소수 매주(賣主)의 시장 지배)) ;; US [ɑ̀liɡɑ́pəli] [본문으로]
50. sell for ; (얼마에) 팔리다[팔다]. [본문으로]
51. lobbying ; 로비 활동, 의안 통과[저지] 활동(운동); 청원[진정] 운동; 원외 활동 [본문으로]
52. litigation ; (법률) 소송[고소] (과정) [본문으로]
53. regulatory action ; 규제 조치 [본문으로]
54. competitive disadvantage ; 경쟁적 열위 [본문으로]
55. market share ; (상업) 시장 점유율 [본문으로]
56. discretion ; 1. (자유) 재량(권) [본문으로]
57. respective ; [명사 앞에만 씀] 각자의, 각각의 [본문으로]
58. oil spill ; (해상의) 석유 유출 [본문으로]
59. cumulative ; 2. 누계의 [본문으로]
60. legal costs ; 법무 비용 [본문으로]
61. legal penalty ; 법정형 [본문으로]
62. far 을 사용해 동사 exceed 를 강조 [본문으로]
63. grave mistake ; 대실수 [본문으로]
64. vow to ; 굳게 약속, 서약 하다 [본문으로]
65. $5bn-odd ; 5십억 달러 남짓 [본문으로]
66. mis-sell ; [VERB] To mis-sell something such as a pension or an insurance policy means to sell it to someone even though you know that it is not suitable for them. [본문으로]
67. administration ; 4. [C] 흔히 Administration (특히 미국의) 행정부 [본문으로]
68. awaken ; 2. (감정이) 일다; (감정을) 불러일으키다 [본문으로]
69. impulse ; 1. [C , U] [주로 단수로] ~ (to do sth) (갑작스러운) 충동 [본문으로]
70. shareholder ; 주주(株主) [본문으로]
71. dominance ; [U] 우월(ascendancy); 권세; 지배; 우세; [생물·심리] 우성(優性) [본문으로]
72. semiconductor ; 반도체 [본문으로]
73. body ; 흐름상 group of people 정도의 의미 [본문으로]
74. takeover ; 1. 기업[경영권] 인수 [본문으로]
75. makeover ; (사람・장소의 모습을 개선하기 위한) 단장 [본문으로]
76. pledge to ; …을 서약하게 하다. [본문으로]
77. be no stranger to ; ~에 익숙한[~을 많이 겪어 본] [본문으로]
78. at home ; 자국, 국내에서 정도의 의미 ;; home turf [본문으로]
79. dine with ; …와 식사를 하다. [본문으로]
80. well-placed ; [형용사] 믿을 수 있는 <정보원>; 좋은 지위에 있는; 알맞은 장소에 설치된; 정확히 겨냥한 [본문으로]
81. bid for ; ~에 입찰하다 [본문으로]
82. sensitive sector ; (증권·금융) (주식 시장 등과 같이) 사람들의 심리 상태에 따라 민감하게 반응하는 산업 분야. [본문으로]
83. take on ; ~를 고용[채용]하다 [본문으로]
84. stake with ; …을 쌓다. [본문으로]
85. brass hat ; 2. 고급 관료; (재계 등의) 거물 [본문으로]
86. spat ; 1. (비격식) 승강이, 옥신각신함, 입씨름 [본문으로]
87. localize ; 1. (영향 등을) 국한시키다[국부적이 되게 하다] ;; 해당 국가의 문화에 맞게 조정하다 [본문으로]
88. domicile ; [명사] (격식 또는 법률) 거주지[주소](특히 공식적・법률적 목적으로 주소를 가리킬 때 쓰는 말) ;; US [|dɑ:mɪsaɪl;|doʊm-] [본문으로]
89. veteran ; US·UK [|vetərən] [본문으로]