Foreign Direct Investment in the United States: An Economic Analysis

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. In 2007, according to Department of Commerce data, foreigners invested 237 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 investments 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. This report will be updated as events warrant.