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The results of a study by the National Association of Manufacturers into quantification of disadvantages that undermine U.S. manufacturing are provided. The study indicates that 'American manufacturers are losing control of home markets not simply because of low-wage competitors, but as a result of the high cost of doing business in the U.S.' Structural costs that manufacturers have no control over are offsetting productivity gains that allowed companies to stay competitive until the present and have added a hefty 22 percent to the cost of doing business, says the NAM/Emerson study. When compared with its nine largest trading partners (United Kingdom, Canada, Mexico, Japan, China, Germany, South Korea, Taiwan, and France), the U.S. had more costs due to taxes, employee benefits, tort litigation, and regulatory compliance. U.S. exports dropped substantially in the last five years, and imports have risen for many goods. The current U.S. tax structure is the largest single obstacle to increased economic expansion and results in a reduction of the U.S.'s competitiveness by 5.6 percent, says the study.
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