Dataquest Many foreign governments continue to pursue restrictive trade and investment policies that adversely affect U.S. exports by limiting imports. They also erect tariff and nontariff barriers to protect local suppliers and force the transfer of technology. Such policies often distort trade by limiting competition and slowing innovation. Over time, users in these countries end up with products with higher prices and outdated technologies. The Industry and Trade U.S. computer suppliers, including their foreign affiliates, remain a dominant force in the world market.
Foreign sales are key to the industry's growth.
U.S. computer equipment exports grew from 45 percent of its shipments in 1989 to 58 percent in 1991. Foreign operations now account for more than half of the total revenues of many leading U.S. suppliers, and some report foreign sales amounting to 70 percent of their total business or more. U.S. companies' role in global exports is underestimated substantially because they produce in and export from many countries. According to trade data, the U.S.-based computer industry lost world export market share, from 24 percent in 1989 to 22 percent in 1992. Competitor nations, including Canada, Mexico, Singapore, and South Korea, gained.