This is an very important issue you bring up. I think you are pointing out that a foreign business which has a significant of it's operations in the US now, will be as disadvantaged as a foreign company that does all of it's production off-shore and then just ships in the products, and you are correct. What the FairTax does, relative to the existing system, is essentially pusnish off-shore production and reward production in the US. So the larger portion of a company's production is in the US, providing jobs to our economy, the more they will be imune from the change to the FairTax, and the more incentive they would have to move MORE of their production here. Conversly, the less of a company's production is in the US, the greater the disadvantage they would have under the FairTax, however would have even GREATER incentive to move their production to the US.
Our existing system is the exact opposite, and rewards companies for moving their production to other countries, and punishes those who try to produce in the US.
I'm no Marxist, but I will admit that Marx was a brilliant man. The "heavy progressive income tax" called for in the Communist Manefesto is indeed an incredibly effective tool to redistribute wealth in a developed nation's economy, both internally, and internationally.
Wow, that's bad... sorry about my last response to you. I should have profread better. I'm hoping you'll be able to discern what I meant, if not please let me know and I'll try again. :o)