The Rising Influence of Rising Affluence

[OakesCS]

What I do not understand is why such relocations are disproportionally common in the oil-services industry. Do you have an explanation

a big part of the reason is because the USA has strict laws for US companies regarding what technologies and materials can be used in other countries. So If the US has sanctions against Iran or the Sudan, then US companies can't export information, materials, or equipment to those countries (i can't even send an e-mail to many countries). It gets more complex because a company does not have to be a US company for US laws to apply; however, for foreign owned companies it's easier to deal with the inconveniences of US law. I also suspect that US laws regarding things like bribery might be stricter and moving people and equipment in and out of many oil producing countries frequently involves monetary transactions somewhat different than what is considered to be standard in the US. Again, US law can apply even if the company isn't incorporated in the US but discovery and enforcement might be more difficult. Another reason, is that the gov'ts and populations in some places that have oil just don't like Americans so it can be somewhat easier to operate in those countries if the company is not perceived as being American.