IWS Documented News INTERNATIONAL

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 §806.15 [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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