Multinationals Thrive Amidst the Greenback’s Pain: A Closer Look at Las Vegas Sands, Lam Research, and Philip Morris
In today’s global economy, multinationals that generate the majority of their sales from outside the U.S. have been experiencing a unique advantage in the face of a weakening dollar. The greenback’s decline has given these companies a competitive edge in international markets, allowing them to expand their customer base and increase profits. In this article, we will discuss three such multinationals: Las Vegas Sands, Lam Research, and Philip Morris.
Las Vegas Sands
Las Vegas Sands Corporation (LVS) is a leading global developer and operator of resort properties. With a significant presence in Asia, LVS derives approximately 60% of its revenues from international markets. The company’s portfolio includes iconic resorts such as The Venetian Macao, The Palazzo at The Venetian Macao, and The Parisian Macao. The weaker dollar has made these properties more attractive to foreign tourists, leading to increased visitation and higher revenues.
Moreover, the depreciating dollar also gives LVS a competitive edge when it comes to purchasing goods and services from international suppliers. This translates into cost savings, which can be passed on to customers in the form of lower prices or used to boost profitability.
Lam Research
Lam Research Corporation is a leading supplier of semiconductor equipment and services. Approximately 85% of the company’s revenues come from outside the U.S. The semiconductor industry is a global one, with manufacturers located in various parts of the world. As a result, a weaker dollar makes Lam Research more competitive in the global marketplace. This is because the company can offer its products at lower prices to foreign customers, making it more likely to win contracts and expand its customer base.
Furthermore, a weaker dollar also enables Lam Research to invest more in research and development. This is crucial in the technology industry, where innovation is key to maintaining a competitive edge. By allocating more resources to R&D, the company can develop new products and technologies that meet the evolving needs of its global customer base.
Philip Morris
Philip Morris International Inc. (PMI) is a leading international tobacco company, with approximately 70% of its revenues coming from outside the U.S. The company’s portfolio includes well-known brands such as Marlboro, Parliament, and L&M. The weaker dollar has a positive impact on PMI’s bottom line in several ways.
First, the depreciating dollar makes PMI’s products more affordable in foreign markets, leading to increased sales. Second, it reduces the cost of importing raw materials and components, resulting in cost savings for the company.
Moreover, the weaker dollar also enables PMI to expand its global presence through acquisitions and partnerships. For instance, in 2014, the company acquired a 73% stake in Turkey’s leading tobacco company, Tekel, for $2.7 billion. This acquisition helped PMI to strengthen its position in the Turkish market and diversify its revenue streams.
Effects on Individuals
For individuals, a weaker dollar can have both positive and negative implications. On the one hand, it makes U.S. exports more competitive in international markets, leading to increased demand for American-made goods. This can create new job opportunities and boost economic growth. On the other hand, it can also lead to higher prices for imported goods and services, making everyday items more expensive for consumers.
Effects on the World
At a global level, a weaker dollar can have significant implications for the world economy. It can lead to increased trade and economic integration, as well as new opportunities for multinationals to expand their global footprint. However, it can also lead to currency wars, as countries seek to devalue their currencies to maintain competitiveness. This can create tensions and instability in international markets.
Conclusion
In conclusion, multinationals such as Las Vegas Sands, Lam Research, and Philip Morris are well-positioned to benefit from a weaker dollar. By deriving the majority of their revenues from international markets, these companies can leverage the competitive edge provided by a depreciating greenback to expand their customer base, reduce costs, and invest in innovation. However, the effects of a weaker dollar are not limited to multinationals. They can also have significant implications for individuals and the world economy as a whole. As such, it is important for policymakers, businesses, and individuals to stay informed about currency trends and their potential impact on the global economy.
- Las Vegas Sands Corporation. (2021). Investor Relations. Retrieved August 2, 2021, from
- Lam Research Corporation. (2021). About Us. Retrieved August 2, 2021, from
- Philip Morris International Inc. (2021). About Us. Retrieved August 2, 2021, from
