Business arrangements used by US wood-based companies involved in direct foreign investment

Two hundred foreign investments (wholly-owned subsidiaries and joint ventures) were identified for 12 of the nation's 1981 top 20 sales-leading transnational wood-based companies. Investments were scattered over much of the world with a significant preference for developed countries (135 of the 200 foreign investments). Company executives agreed that the ability to compete in world markets would be key to a company's long-term success. Only three companies indicated foreign investments were of growing importance. Factors influencing company decisions about type of foreign investment included length of investment, developed versus developing country, social and political conditions in host country, foreign pressure to reduce equity, control of profit remittances and share of financial burden. -Authors