U.S. Direct Investment Abroad

U.S. Direct Investment Abroad

A major investment by an American corporation outside the United States. For example, an American company may buy a factory in Indonesia because labor costs are lower. Many economists believe that U.S. direct investment abroad is good for an economy, as it provides jobs and increases domestic capital. Critics point out that profits usually leave the invested country and go to the American company. U.S. direct investment abroad is a type of foreign direct investment.
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Foreign Direct Investment in the United States and U.
SOURCE: Science and Engineering Indicators 2012, from Bureau of Economic Analysis Survey of U.
net purchases (-) of foreign securities -119 -136 -128 -128 Bonds -61 -35 -14 -24 Stocks -58 -101 -114 -104 Stock swaps -3 -96 -123 -80 Direct investment, net 1 36 101 129 Foreign direct investment in the United States 106 179 289 308 U.
Direct Investment comprises accounts that distinguish U.
This article presents detailed statistics on direct investment positions and related financial transactions and income flows for U.
The Department of Commerce also uses three different methods for valuing direct investments that yield roughly comparable estimates for the net position, although the three methods do provide estimates on U.
The rate of return on foreign direct investment in the United States is lower than that on U.
overseas investments are in developed countries: Europe alone accounts for over half of all U.
Although large financial inflows last year tended to increase net payments, the inflows were more than offset by an increase in the rate of return on U.
However, net investment income remained positive long after the net investment position became negative because foreign direct investment in the United States has earned a far lower rate of return than U.
net purchases of -116 -88 -89 foreign securities Stocks --60 -41 -76 Bonds -56 -47 -13 Direct investment, net -4 -28 64 Foreign direct investment 78 93 196 in the United States U.
However, net investment income remained positive (chart 7) long after the net investment position became negative because foreign direct investment in the United States has earned a far lower rate of return than U.
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