Los Angeles Economy

The economy of Los Angeles is driven by agriculture, petroleum, entertainment (motion pictures, television, and recorded music), aerospace, international trade, and tourism. Los Angeles is also the largest manufacturing center in the United States. The contiguous ports of Los Angeles and Long Beach together comprise the most significant port in North America and one of the most important ports in the world. They are vital to trade within the Pacific Rim. Los Angeles is the world center for the entertainment industry, including adult entertainment. Other significant industries include media production, finance, aerospace, telecommunications, law, tourism, health and medicine, and transportation.

The city is home to three major Fortune 500 companies, including aerospace contractor Northrop Grumman, energy company Occidental Petroleum Corporation, and homebuilding company KB Home.

Other companies headquartered in Los Angeles include Twentieth Century Fox, Herbalife, Univision, Metro Interactive, LLC, Premier America, CB Richard Ellis, Gibson, Dunn & Crutcher LLP, Guess, Inc., O'Melveny & Myers LLP, Paul, Hastings, Janofsky & Walker LLP, TOKYOPOP, The Jim Henson Company, Paramount Pictures, Robinsons-May, Sunkist, Fox Sports Net, Health Net, Inc., and 21st Century Insurance.

The metropolitan area contains the headquarters of even more companies, many of whom wish to escape the city's high taxes. For example, Los Angeles charges a gross receipts tax based on a percentage of business revenue, while most neighboring cities charge only small flat fees. The companies below clearly benefit from their proximity to Los Angeles, while at the same time they also avoid the city's taxes (and other problems). Some of the major companies headquarted in cities adjacent to Los Angeles include Shakey's Pizza (Alhambra), Academy of Motion Pictures Arts and Sciences (Beverly Hills), City National Bank (Beverly Hills), Hilton Hotels (Beverly Hills), DiC Entertainment (Burbank), The Walt Disney Company (Fortune 500 - Burbank), Warner Brothers (Burbank), Countrywide Financial Corporation (Fortune 500 - Calabasas), THQ (Calabasas), Belkin (Compton), National Public Radio West (Culver City), Sony Pictures Entertainment (parent of Columbia Pictures, located in Culver City), Computer Sciences Corporation (Fortune 500 - El Segundo), DirecTV (El Segundo), Mattel (Fortune 500 - El Segundo), Unocal (Fortune 500 - El Segundo), DreamWorks SKG (Glendale), Sea Launch (Long Beach), ICANN (Marina Del Rey), Cunard Line (Santa Clarita), Princess Cruises (Santa Clarita), Activision (Santa Monica), and RAND (Santa Monica).