Starting from the half of the 20th century, American enterprises started moving a series of their operations overseas int he search for gaining a competitive edge over their competitors. Cost reduction in the form of transport and labor costs was the main factor behind the moving of businesses overseas.
However, the political and economic environment of numerous countries in the world where these companies operate is complicated, as sudden government changes can bring the economy downwards or upwards. Another important factor is the guarantee of security of these businesses. The control of these businesses by governments or sudden attacks by locals are commons events that have happened throughout history. This is why it is important for the Department of State to constantly monitor US enterprises overseas in order to guarantee the protection of their interests.
