Form 1 Globalization Module draft

SECTION X: DOMESTIC AND GLOBAL TRANSACTIONS
This section collects information on the business’s domestic and global transactions. The
section includes trade, business costs, IP, and transactions involving manufacturing activities.
Capital goods: Manufacturing equipment such as machinery, electrical generators, and
computers and other durable goods used produce other goods for sale, except transportation
equipment. Exclude parts and accessories.
Core production activities: Production of goods and services to be sold in the market, thus
generating income for your company. For manufacturing companies, core production typically
involves production of physical goods, including digital goods such as downloadable software,
music and film. Core activities for service companies include the main service provided by your
business such as ICT services, R&D, engineering services, retailing, insurance, consulting, or
digital services.
Domestic (or U.S.-located): refers to any of the U.S. 50 states or Washington DC
Exported goods: Value of goods including the value of equipment, supplies, materials, etc. This
should equal the amounts reported in the Electronic Export Information (EEI) filed with U.S.
Customs and Border Protection plus the cost of transporting the goods to customers located in
foreign destinations (i.e., outside the 50 States, District of Columbia, U.S. Commonwealth
Territories, or U.S. possessions).
Exported services: An exported service is a service-related product (e.g., service performed,
including digital service, license agreement) that is sold or transferred to, or performed for
customers (individual, government, business establishment, etc.) located in foreign
destinations (i.e., outside the 50 States, District of Columbia, U.S. Commonwealth Territories, or
U.S. possessions).
Foreign affiliate: a foreign affiliate is an entity domiciled in a foreign country that is owned at
least 10% (based on voting interest) directly or indirectly by the U.S. reporter.
Foreign parent (of U.S.-located business): The first entity outside the United States in an.
affiliate's ownership chain that has a direct investment interest in the affiliate.
Goods. Physical, produced objects for which a demand exists, over which ownership rights can
be established and whose ownership can be transferred from one institutional unit to another
by engaging in transactions on markets
Imported goods: The value of goods purchased from customers located in foreign destinations
(i.e., outside the 50 States, District of Columbia, U.S. Commonwealth Territories, or U.S.
possessions) as indicated in import declarations filed with the U.S. Customs and Border
Protection.

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Imported services: An imported service is a service-related product (e.g., service performed,
including digital service, license agreement) that is purchased from customers located in foreign
destinations (i.e., outside the 50 States, District of Columbia, U.S. Commonwealth Territories, or
U.S. possessions).
Intellectual property (IP): includes (i) patents, processes, trade secrets; (ii) books, music; (iii)
trademarks; (iv) recorded performances and events such as radio and television programs and
motion pictures; (v) broadcast and record live performances and events; (vi) general use
computer software; (vii) franchise fees; (viii) other.
Majority-owned foreign affiliate or subsidiary: A foreign affiliate in which the combined
ownership of all its U.S. parents exceeds 50 percent.
Manufacturing: processing, assembly, labeling, packing and related services on materials and
physical components
Operating expenses or costs: Include personnel costs, expensed equipment and materials
(parts and supplies not for resale), expensed purchased services, and other operating expenses.
EXCLUDE capitalized expenses, interest, income taxes, dad debt, and impairment.
Research and development (R&D): R&D comprise creative and systematic work undertaken in
order to increase the stock of knowledge and to devise new applications of available
knowledge.
Services: Services are the result of a production activity that changes the conditions of the
consuming units or facilitates the exchange of products or financial assets. They cannot be
traded separately from their production. Services can also include some knowledge-capturing
products.
Support business functions: Activities that permit or facilitate core activities and are associated
with your costs of production. Support business functions may be performed internally or
purchased from third parties. These activities include:
• Distribution and logistics
• Marketing, sales/after-sales services (help desks, call centers)
• Administrative and management functions
• Research and development (R&D)
• Information and Communication Technology (ICT) services
• Engineering, design, testing and related technical services
Unaffiliated company or business: entity that is owned less than 10% (based on voting interest)
directly or indirectly by your company. Examples: independent contractors and suppliers.
Utility patents: Patents for inventions. Exclude design patents and plant patents. Exclude
provisional patent applications.
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A. Type of Exporting Activity
1. Did this business export goods or services in 2018?

Yes

No

If A.1 equals NO, go to Question A.4.
2. What was the dollar amount of this business’ export of goods from domestic operations in
2018?
$Bil. Mil. Thou.
,000

3. What was the dollar value of the exported goods from domestic operations by type of goods
in 2018? Details must sum to total dollar amount of exported goods.
$Bil. Mil. Thou.
A. Capital goods
B. Non-capital goods intended for further
processing, assembly or manufacturing
C. Non-capital goods intended for resale
without further processing, assembly or
manufacturing
Total value of exported goods

,000
,000
,000
,000

Yes

No

4. Did this business export any services in 2018?
If A.4 equals NO, go to Section B.
5. What was the dollar amount of this business’ export of services from domestic operations in
2018?
$Bil. Mil. Thou.
,000

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B. Type of Importing Activity
1. Did this business import goods or services in 2018?

Yes

No

If B.1 equals NO, go to Question B.4.
2. What was the dollar amount of this business’ import of goods by domestic operations in
2018?
$Bil. Mil. Thou.
,000

3. What was the dollar value of the imported goods by domestic operations by type of goods in
2018? Details must sum to total dollar amount of imported goods.
$Bil. Mil. Thou.
A. Capital goods
B. Non-capital goods intended for further
processing, assembly or manufacturing
C. Non-capital goods intended for resale
without further processing, assembly or
manufacturing
Total value of imported goods

,000
,000
,000
,000

Yes

No

4. Did this business import any services in 2018?
If B.4 equals NO, go to Section C.
5. What was the dollar amount of this business’ imported services by domestic operations in
2018?
$Bil. Mil. Thou.
,000

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C. Type and Sources of Business Costs
1. What was the dollar amount of this business’ domestic operating costs or expenses in 2018?
$Bil. Mil. Thou.
,000

2. How much of this business’ domestic operating costs (item C1) was associated with the
following activities? Details must sum to total dollar amount of operating costs or expenses.

a. Core production

$Bil. Mil. Thou.
,000

Support business functions:
b. Distribution and logistics
c. Marketing, sales/after sales services
d. Administrative or management functions
e. Research and development (R&D)
f. Information and Communication Technology (ICT) services
g. Engineering and other technical services (includes testing
and design)
h. Other

,000
,000
,000
,000
,000
,000
,000

Total Domestic Operating Costs or Expenses:

,000

3. Did any unaffiliated firms located in the U.S. conduct any of the following activities for your
business? Unaffiliated firms include independent contractors and suppliers.

a. Core production

Yes

No

Support business functions:
b. Distribution and logistics
c. Marketing, sales/after sales services
d. Administrative or management functions
e. Research and development (R&D)
f. Information and Communication Technology (ICT) services
g. Engineering and other technical services (includes testing
and design)

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4. Did any firms located outside the U.S. conduct any of the following activities for your
business? Firms located outside the U.S. may be either independent contractors/suppliers or
firms related to your business such as your foreign affiliates, foreign parent company, or
companies owned by your foreign parent.

a. Core production

Yes

No

Support business functions:
b. Distribution and logistics
c. Marketing, sales/after sales services
d. Administrative or management functions
e. Research and development (R&D)
f. Information and Communication Technology (ICT) services
g. Engineering and other technical services (includes testing
and design)

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D. Intellectual Property Transactions
1. Did this business sell or license intellectual property in 2018?

Yes

No

Yes

No

If D.1 equals NO, go to D.4.
2. Did this business sell or license intellectual property to a
firm in a foreign location?
If D.2 equals NO, go to D.4.
3. Which types of intellectual property were sold or licensed to firms to foreign locations?

a.
b.
c.
d.
e.

Utility Patents
Design Patents
Trademarks
Copyrights
Other (Broadcasts, Performances, Trade Secrets)

4. Did this business purchase or pay licensing fees for
intellectual property in 2018?

Yes

No

Yes

No

If D.4 equals NO, go to Section E.
Yes

No

5. Did this business purchase or pay licensing fees for intellectual property
to a firm in a foreign location in 2018?
If D.5 equals NO, go to Section E.

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6. Which types of intellectual property were purchased or licensed from firms
in foreign locations?
a.
b.
c.
d.
e.

Utility Patents
Design Patents
Trademarks
Copyrights
Other (Broadcasts, Performances, Trade Secrets)

Yes

No

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E. Transactions Involving Manufacturing Activities
1. Did this business manufacture any goods in the U.S. in 2018?

Yes

No

Yes

No

Yes

No

2. Did this business have any manufacturing tasks (processing, assembly,
labeling, packing or related services on materials and physical components)
done on its behalf in 2018?
3. If ‘Yes’ to question 2, did this business determine the design or provide the
specifications for any of the goods that were manufactured on its behalf?

4. If ‘Yes’ to question 2, who performed the manufacturing for this business’ U.S.-located units
or establishments? Select all that apply.
Performed by U.S.-located unaffiliated companies
Performed by foreign affiliated companies
Performed by foreign unaffiliated companies

5. Did this business perform any manufacturing on behalf of others in 2018?

6. If ‘Yes’ to question 5, did this business determine the design or specifications
for any of the goods that were manufactured on others behalf?

Yes

No

Yes

No

7. If ‘Yes’ to question 5, please indicate the type of company for whom this business’ U.S.located units or establishments performed manufacturing activities. Select all that apply.
Performed by U.S.-located unaffiliated companies
Performed by foreign affiliated companies
Performed by foreign unaffiliated companies

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