Firms
in sentence
3712 examples of Firms in a sentence
The tax would also provide
firms
with incentives to innovate in ways that reduce energy usage and emissions – giving them a dynamic competitive advantage.
Banks, airlines, credit card companies, social media firms, hotel chains, social clubs, and other organizations should participate as well, to avoid being perceived as profiting from serving such criminals.
This matters, especially for labor-intensive activities (ranging from toy manufacturing to data-entry services), whether by affiliates of foreign multinational enterprises (which account for more than half of China’s exports) or by local firms, which are losing competitiveness in international markets.
Any part of these production chains can be located wherever it suits the firms’ international competitiveness best.
And such
firms
have the experience to scout the globe for the right investment locations.
Domestic Chinese firms, too, need to respond to these pressures.
This partly reflects training in foreign affiliates, but the main reason has been the Chinese government’s sustained effort to foster education and training, encourage technology transfers from foreign to domestic firms, and, in particular, to build up research and development capabilities.
At the same time, China’s labor-intensive production will increasingly move to countries with lower labor costs – including Bangladesh, India, Indonesia, and neighboring Vietnam (where Chinese
firms
have already established about 1,000 affiliates), as well as various African countries.
These countries’ investment-promotion agencies – indeed, those of all countries, including developed ones – should increasingly target
firms
in China to lure them to their shores.
As a result,
firms
based in the coastal provinces that have to move their production (and see no need to diversify away from China) can choose to relocate to China’s interior, rather than going abroad.
The pattern is clear: this sort of transition away from labor-intensive manufacturing happened before in today’s developed countries, when
firms
headquartered in Europe, Japan, and the United States moved production to developing countries.
China itself has benefited from today’s open international trade and investment regime, which allows
firms
to locate production where it is most beneficial for their international competitiveness – and is now beginning to shed labor-intensive industries itself.
They should help their countries’
firms
to adapt to the departure of some producers by establishing training programs, stimulating innovation, and maintaining or creating a competitive environment that encourages “creative destruction” while providing for a social safety net.
They also believe that the government deficit drives up inflation and interest rates, thereby crowding out other spending by consumers and
firms.
The most vulnerable
firms
are generally those with the highest public profile, those making the largest or most visible investments, those that are major sponsors of the Games, and those with some specific connection to Chinese government policies in Tibet.
Activists cannot possibly take aim at all foreign businesses in China, so most
firms
are unlikely to be specifically targeted or suffer reputational damage.
Nonetheless, where
firms
or industries are particularly vulnerable to reputational issues, image and ethics could be a significant factor in more marginal business decisions (particularly with rising costs and tougher labor regulations already causing some
firms
to look elsewhere).
While Western
firms
investing in China must face the prospect of protest and criticism back home from pro-Tibet campaigners, some companies are coming under pressure in China itself.
State-guided capitalism describes economies where growth is a central economic objective (as it is in the other two forms of capitalism), but attempts to achieve it by favoring specific
firms
or industries.
Big Firm or managerial capitalism characterizes economies where large
firms
– often so-called “national champions” – dominate production and employment.
Firms
get to be large by exploiting economies of scale, refining and mass-producing the radical innovations developed by entrepreneurs (discussed next).
Large
firms
are relatively risk-averse not only because they are bureaucracies, with layers of management required to sign off on any innovation, but also because they are reluctant to back innovations that threaten to render obsolete the products or services that currently account for their profits.
Economies in which dynamism comes from new
firms
historically have commercialized the radical innovations that keep pushing out the production-possibility frontier.
To be sure, no economy can realize its full potential only by having entrepreneurial
firms.
The optimal mix of
firms
contains a healthy dose of large enterprises, which have the financial and human resources to refine and mass-produce radical innovations, along with newer
firms.
Foreign
firms
that continue to conduct business in Iran now face the threat of sanctions, and banks that process transactions risk losing access to the US financial system.
The US Congress is considering legislation that allows the Trump administration to impose sanctions on European
firms
taking part in the project, even though these companies are contractually obliged to see the work through.
When the United States and the European Union decided to impose sanctions on the Libyan regime, including freezing shares owned by the LIA in European and American companies, many executives at these companies were surprised by how dramatically their
firms
were affected by the ownership structure.
Others, including me, argued that, given the excesses of private-sector leverage (in households, financial institutions, and corporate firms), this would be a U-shaped recession – long and deep.
After all, corporate borrowers do not borrow at the “risk-free” yield of, say, US Treasury bonds, and evidence shows that monetary expansion can push down the interest rate on government debt, but have hardly any effect on new bank lending to
firms
or households.
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