International Companies and Subsidiaries


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    IMPLAN Support
    Hello Alexander, Thank you for your Forum Post. Yes, you are on the right track. If the production is taking place in the US, you can select a sector that produces that good and zero out any proprietor income if it is expected to go back to the parent company located in Swiss and run your impacts. Since the production will take place in the United States, induced impacts will be in the United States under the assumption that the employees hired by the company and its suppliers are local. Employment is place of work based, so if the production is taking place in the model region, then the labor for producing the product takes place in the model region. Similarly, if the producer purchases inputs from the US in order to produce this good, even the indirect effects would be local i.e. in the United States. In conclusion, if you are comfortable in saying that the production is taking place in the US, you can model an industry change by impacting the respective sector with the entire United States as your study area. Hope this helps and please let us know if you have any other questions. Regards, IMPLAN Staff
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