Tuesday, May 15, 2012
Tweet[IWS] CRS: FOREIGN DIRECT INVESTMENT IN THE UNITED STATES: AN ECONOMIC ANALYSIS [10 May 2012]
IWS Documented News Service
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Institute for Workplace Studies----------------- Professor Samuel B. Bacharach
School of Industrial & Labor Relations-------- Director, Institute for Workplace Studies
Cornell University
16 East 34th Street, 4th floor---------------------- Stuart Basefsky
New York, NY 10016 -------------------------------Director, IWS News Bureau
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Congressional Research Service (CRS)
Foreign Direct Investment in the United States: An Economic Analysis
James K. Jackson, Specialist in International Trade and Finance
May 10, 2012
http://www.fas.org/sgp/crs/misc/RS21857.pdf
[full-text, 11 pages]
Summary
Foreign direct investment in the United States declined sharply after 2000, when a record $300
billion was invested in U.S. businesses and real estate. (Note: The United States defines foreign
direct investment as the ownership or control, directly or indirectly, by one foreign person
[individual, branch, partnership, association, government, etc.] of 10% or more of the voting
securities of an incorporated U.S. business enterprise or an equivalent interest in an
unincorporated U.S. business enterprise. 15 CFR ยง806.15 [a][1].) In 2010, according to U.S.
Department of Commerce data, foreigners invested $236 billion in U.S. businesses and real
estate. Foreign direct investments are highly sought after by many state and local governments
that are struggling to create additional jobs in their localities. While some in Congress encourage
such investment to offset the perceived negative economic effects of U.S. firms investing abroad,
others are concerned about foreign acquisitions of U.S. firms that are considered essential to U.S.
national and economic security.
Contents
Recent Investments.......................................................................................................................... 1
Acquisitions and Establishments ..................................................................................................... 6
Economic Performance.................................................................................................................... 6
Conclusions...................................................................................................................................... 8
Figures
Figure 1. Foreign Direct Investment in the United States and U.S. Direct Investment Abroad, Annual Flows, 1990-2010................ 1
Tables
Table 1. Foreign Direct Investment Position in the United States on a Historical-Cost Basis at Year-End 2010.................... 4
Contacts
Author Contact Information............................................................................................................. 8
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