FDI in the United States

Overview by Globlatrade.net:

FDI in Figures

FDI dropped in 2009 because of the financial crisis which weakened the global economy. There should be a mild recovery following the beginning of the recovery in 2010. The United States remains the world’s number one destination for foreign investment. In fact, the country continues to offer a predictable and transparent juridical system, developed infrastructures and an access to the world’s most lucrative consumer market. Consequently, it remains the world’s primary economic power, holds the first place in international finance and is the third most populated country in the world.

Foreign Direct Investment 2007 2008 2009
FDI Inward Flow (million USD) 265,957 324,560 129,883
FDI Stock (million USD) 3,596,885 2,552,572 3,120,583
Performance Index*, Ranking on 141 Economies 116 99 118
Potential Index**, Ranking on 141 Economies 1 1 -
Number of Greenfield Investments*** 864 970 1,220
FDI Inwards (in % of GFCF****) 10.7 12.8 7.6
FDI Stock (in % of GDP) 26.1 17.9 21.9

Source: UNCTAD

Note: * The UNCTAD Inward FDI Performance Index is Based on a Ratio of the Country's Share in Global FDI Inflows and its Share in Global GDP. ** The UNCTAD Inward FDI Potential Index is Based on 12 Economic and Structural Variables Such as GDP, Foreign Trade, FDI, Infrastructures, Energy Use, R&D, Education, Country Risk. *** Green Field Investments Are a Form of Foreign Direct Investment Where a Parent Company Starts a New Venture in a Foreign Country By Constructing New Operational Facilities From the Ground Up. **** Gross Fixed Capital Formation (GFCF) Measures the Value of Additions to Fixed Assets Purchased By Business, Government and Households Less Disposals of Fixed Assets Sold Off or Scrapped.


FDI Inflows By Countries and Industry

Main Investing Countries 2009, in %
UK 19.6
Japan 11.4
The Netherlands 10.3
Canada 9.7
Germany 9.4
Switzerland 8.2
France 8.1
Luxembourg 5.5
Main Invested Sectors 2009, in %
Manufacturing 34.1
Wholesale trade 14.2
Finance (except depository and insurance companies) 12.6
Information 6.3
Depository institutions 4.8

Source: Bureau of Economic Analysis, US Department of Commerce

Form of Company Preferred By Foreign Investors
The most common form of organization for foreign investors is a limited liability company.
Form of Establishment Preferred By Foreign Investors
Sources of Statistics
U.S Bureau of Economic Analysis

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Why You Should Choose to Invest in the United States

Strong Points
The American market has several advantages. With a population of more than 300 million people and the world's strongest economy, the United States represents the most important market in the world, irrespective of the sector. The American manpower is considered to have a high level of qualification and to be one of the most productive and most innovative in the world. The United States has developed strong regional "clusters", which are a collection of companies in the same activity sector in a zone. These centers are very attractive to foreign investors.
Weak Points
The country's weak points are a very competitive economy and a financial system that has been seriously affected by the financial crisis. The American economy is in grave difficulty. The subprime lending crisis has ended some major investment projects.
Government Measures to Motivate or Restrict FDI
The American policies on taxation and regulations provide foreign investors with a lot of management freedom.  However, in the present security environment, foreign-government controlled investments are sometimes considered as a source of concern, more and more so since the tragic September 11 th events.

The American Ministry of External trade provides a Invest in America: Guide to Federal Incentives and Programs Available to Investors, which gives information, programs and appropriate federal agencies .

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    U.S. Department of Commerce, the United States