Summary of Global Exposure Guide 2025 Industry and Company Overview - The report focuses on the geographical revenue exposure of companies in North America, Europe, Japan, and Emerging Markets (EM) for the year 2025, published by Morgan Stanley [1][17]. Key Highlights North America - Companies derive **26%** of their revenue from foreign sources, with Europe being the largest source at **11%**. Other sources include Asia ex-Japan & ex-China at **4%**, Latin America at **4%**, and China at **3%** [2]. - Sectors with the highest foreign revenue exposure: - Technology: **55%** - Materials: **48%** - Industrials: **30%** - Industry groups with the highest exposure: - Semiconductors: **62%** - Tech Hardware & Equipment: **59%** - Household & Personal Products: **50%** - Defensive sectors (Utilities, Health Care, Real Estate) have the lowest foreign exposure [2]. Europe - European companies earn **56%** of their revenue domestically and **44%** from foreign markets, with a decline in domestic revenue generation over nearly three decades [3]. - Key foreign markets for European companies: - North America: **22%** - Asia Pacific: **19%** - Sectors with the highest foreign market exposure: - Semiconductors, Energy, and Pharmaceuticals [3]. Japan - Japanese companies derive **56%** of their sales domestically and **44%** from overseas, with the Americas accounting for **18%** of overseas revenues [4]. - Sectors with the highest overseas exposure include mining, rubber products, and transportation equipment [4]. Emerging Markets (EM) - Companies in APxJ and EM derive over **28%** of revenues from foreign markets, with the US/Canada being the largest source at **8%** and Europe at **6%** [5]. - Chinese companies have a rising foreign revenue share, now at **16%**, while over **43%** of EM-ex-China sales are generated abroad [5]. Additional Insights - US companies are most exposed to consumers, driving over **50%** of revenues, while European companies are least exposed [11]. - European companies incur over **30%** of their costs in Developed Europe, with **11%** of North American companies incurring more than half of their costs in North America [12]. - The report highlights the importance of geographical revenue exposure amid geopolitical and supply chain shifts, aligning with Morgan Stanley's key theme for 2025: Multipolar World [14][16]. Conclusion - The Global Exposure Guide provides a comprehensive analysis of revenue exposure across different regions and sectors, emphasizing the increasing importance of foreign markets for companies in North America, Europe, Japan, and Emerging Markets [17][29].