Performance of US contractors in foreign markets

Abstract

The international construction market shrank considerably in the period 1980–88. US contractors' performance in this period was less than satisfactory. This paper first discusses briefly the principal causes for this decline in international construction (the reduction in oil prices, an increase in Third World countries' external debts, local companies becoming more competitive, and governments' barriers to foreign contractors). It then uses published statistical data to identify the common features of US construction companies that undertake work overseas. Finally, it attempts to explain the factors such as financing, taxing, the Foreign Corrupt Practices Act, and foreign competition that may have affected US competitiveness abroad.