TAILIEUCHUNG - Foreign Direct Investment in the United States: An Economic Analysis

Foreigners invested $325 billion in . businesses and real estate in 2008, according to data published by the Department of As Figure 1 shows, this represents a sharp increase over the $237 billion invested in 2007. Investments abroad by . parent firms fell slightly in 2008 to $318 billion, down from the $333 billion they invested abroad in 2007. The increase in foreign direct investment flows mirrors a turnaround in global flows. According to the United Nations’ World Investment Report, global foreign direct investment inflows increased by 30% in 2007 and 38% in 2006 | Congressional Research k Service---- Foreign Direct Investment in the United States An Economic Analysis James K. Jackson Specialist in International Trade and Finance July 28 2010 Congressional Research Service 7-5700 RS21857 CRS Report for Congress------------- Prepared for Members and Committees of Congress Foreign Direct Investment in the United States An Economic Analysis Summary Foreign direct investment in the United States declined sharply after 2000 when a record 300 billion was invested in . 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 . business enterprise or an equivalent interest in an unincorporated . business enterprise. 15 CFR a 1 . In 2008 according to Department of Commerce data foreigners invested 325 billion. 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 . firms investing abroad others are concerned about foreign acquisitions of . firms that are considered essential to . national and economic security. Congressional Research Service Foreign Direct Investment in the United States An Economic Analysis Contents Recent Acquisitions and Economic Figures Figure 1. Foreign Direct Investment in the United States and . Direct Investment Abroad Annual Flows 1990-2009 in billions of dollars .1 Tables Table 1. Foreign Direct Investment Position in the United States on a Historical-Cost Basis at Year-End 2009 .3 Contacts Author Contact Congressional Research .

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