--PROFITS FROM IMPORTS-: Business Goes Abroad to Sell in the U.S.

—PROFITS FROM IMPORTS-

THE rising challenge of bargain-priced foreign imports has sparked a profound—and controversial—change in the strategy of many U.S. businesses. To meet the competition, hundreds of U.S. firms are going abroad to manufacture or buy products to sell in U.S. markets. Already U.S. firms import or manufacture overseas an estimated $1 billion worth of products each year for U.S. customers—and the trend is growing fast.

The shift overseas has raised a storm of protest at home. Some businessmen use it as an argument for higher tariffs; Chambers of Commerce often consider it downright "disloyal"; unions complain that it "exports" U.S....