Success In Foreign Markets Benefits U.S. Economy
Many global securities firms garner between one quarter and one third of their revenues from foreign markets. These profits can be repatriated back to their U.S. parents, strengthening the firms’ capital base and allowing for the expansion of operations and the creation of more jobs. Profits generated in foreign markets are an important counterbalance, particularly during periods of declining profitability.
The securities industry’s success in foreign countries - along with its stellar performance in U.S. markets - increased securities firms’ contribution to the total output of the U.S. economy nearly 15-fold between 1977 and 1998, greater than any other sector in the economy and more than three times GDP growth.