Beyond the Numbers

"Foreign Direct Investment in the United States" examines the factors that have motivated foreign firms to invest in the United States. Foreign direct investment (FDI) has changed from being a one-lane country road, handling a modest flow of financial traffic to a two-way superhighway carrying huge amounts of capital into, and out of, the country. There is an explanation regarding how this has all come about, through a multidimensional/multidisciplinary approach to the subject, applying both microeconomic and organizational theory. Cultural and political factors associated with FDI are considered whilst two full chapters are devoted to an analysis of the effectiveness of public policies (both federal and state) in attracting capital to the U.S. The book contains data that tracks FDI since 1950 by industry and by country of origin. Of special interest is the discussion of the relationship between the U.S. and Japan and how the chronic current account surplus of Japan became FDI to the U.S.