Germany’s $95 billion in revenue electronics giant, Siemens AG, sells medical and telecommunications equipment, power plants, automotive products, and computers. Siemens has been operating in the United States since 1952, but its U.S. revenues account for only about 25% of worldwide revenues. It intends to expand further in the U.S. market. According to the head of its U.S. operation, “The United States is a real testing ground. If you make it here, you establish your credentials for the rest of the world.”

a. What does this statement mean? How would you measure the benefits flowing from this rationale for investing in the United States?

b. What other advantages might Siemens realize from a larger American presence?