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[IWS] CRS: THE UNITED STATES AS A NET DEBTOR NATION: OVERVIEW OF THE INTERNATIONAL INVESTMENT POSITION [17 December 2013]

IWS Documented News Service

_______________________________

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

________________________________________________________________________

 

Congressional Research Service (CRS)

 

The United States as a Net Debtor Nation: Overview of the International Investment Position

James K. Jackson, Specialist in International Trade and Finance

December 17, 2013

http://www.fas.org/sgp/crs/misc/RL32964.pdf

[full-text, 20 pages]

 

Summary

The international investment position of the United States is an annual measure of the assets

Americans own abroad and the assets foreigners own in the United States. The net position, or the

difference between the two, sometimes is referred to as a measure of U.S. international

indebtedness. This designation is not strictly correct, because the net international investment

position reveals the difference between the total assets Americans own abroad and the total

amount of assets foreigners own in the United States. These assets generate flows of capital into

and out of the economy that have important implications for the value of the dollar in

international exchange markets. Some Members of Congress and some in the public have

expressed concerns about the U.S. net international investment position because of the role

foreign investors are playing in U.S. capital markets and the potential for large outflows of

income and services payments. Some observers also argue that the U.S. reliance on foreign

capital inflows places the economy in a vulnerable position.

 

Contents

Background ...................................................................................................................................... 1

Valuing Investments ......................................................................................................................... 3

Investment Patterns .......................................................................................................................... 6

International Investment: Sources and Economic Impact.............................................................. 10

Congressional Response ................................................................................................................ 15

 

Figures

Figure 1. U.S. Direct Investment Abroad: Estimated Value of Accumulated Position, 1990-2012.................................................... 5

Figure 2. Foreign Direct Investment in the United States: Estimated Value of Accumulated Position, 1990-2012........................... 6

Figure 3. U.S.-Owned Assets Abroad and Foreign–Owned Assets in the United States, 1994-2012 ............................................. 7

Figure 4. Foreign Official and Private Investment Positions in the United States, 1994- 2012 .................................................... 9

Figure 5. U.S. and Foreign Investment Position, By Major Component, 2012 ............................. 10

Figure 6. U.S. Income Receipts and Payments on U.S.-Owned Assets Abroad and on Foreign-Owned Assets in the United States, 2012.............. 14

 

Tables

Table 1. U.S. Net International Investment Position........................................................................ 1

Table 2. U.S. International Investment Status .................................................................................. 8

Table 3. Saving and Investment in Selected Countries and Areas; 2008-2012, and 2013 (est.) ............................................ 12

Table 4. Estimates of Wealth in the United States, 2012 Current-Cost, Gross Stock Values ......... 15

 

Contacts

Author Contact Information........................................................................................................... 17

 

 

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This information is provided to subscribers, friends, faculty, students and alumni of the School of Industrial & Labor Relations (ILR). It is a service of the Institute for Workplace Studies (IWS) in New York City. Stuart Basefsky is responsible for the selection of the contents which is intended to keep researchers, companies, workers, and governments aware of the latest information related to ILR disciplines as it becomes available for the purposes of research, understanding and debate. The content does not reflect the opinions or positions of Cornell University, the School of Industrial & Labor Relations, or that of Mr. Basefsky and should not be construed as such. The service is unique in that it provides the original source documentation, via links, behind the news and research of the day. Use of the information provided is unrestricted. However, it is requested that users acknowledge that the information was found via the IWS Documented News Service.

 

 




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