Person buying an American product abroad .does she improve us wealthy directly and does she s helping the war

Question

i know us companies receives royalties, how those royalties enter in the entreprise? do they pay direct taxes? can i say that a person buying an american product abroad is helping directly american economy and helping the war? thanks

Answer 1

If someone abroad buys American products, he is increasing the profits of American companies and thus bolstering the economy. Since companies have to pay taxes on their profits, some of that money will go towards funding the war. Some of it will go to things like building schools, crime prevention, fire fighting, welfare and the other things the government does.