Invest in America

The reliably stable commercial and legal environment found in the United States benefits foreign investors.

Foreign direct investment (FDI) flows into the United States totaled $319.7 billion in 2008, a 16 percent increase from the previous year’s $275.8 billion.

This strong inward FDI flow occurred despite the broader U.S. and global economic headwinds in 2008. The steady stream of negative economic news is well known to global investors but worth recounting here.

The United States officially entered a recession in December 2007, with most major global economies following suit soon after. The financial crisis, which entered its most dramatic stage during the fourth quarter of 2008, violently shook the world’s credit, capital and consumer markets.

During 2008, global FDI inflows, which totaled $1.8 trillion in 2007, decreased dramatically. Though final annual statistics are not yet available, preliminary data from the United Nations Conference on Trade and Development (UNCTAD) shows an accelerating decline in global FDI inflows on a quarterly basis throughout 2008 and into 2009. The data reveals that global FDI inflows totaled $294 billion in the first quarter of 2008 but had fallen to $206 billion by the fourth quarter of 2008.

The United States’ ability to attract FDI continued to grow in 2008 primarily due to three factors:

The first is the natural and historic advantage the United States has over countries due to its growth-oriented business climate. The United States sits atop rankings issued by The World Economic Forum (Global Competitiveness Report, 2008); the World Business/INSEAD joint survey (Global Innovation Index, 2007); and the UNCTAD Inward FDI Potential Index. According to the World Bank’s Ease of Doing Business Survey, the United States ranked third. In head-to-head comparisons against other countries, the United States is consistently found to be one of the best locations for foreign investment.

The second factor attracting foreign investment is the country’s reputation as a safe destination for FDI relative to other countries. During times of economic peril, it is natural that foreign investors will pursue quality. Companies investing in America gain access to the largest and most competitive national economy in the world. The U.S. labor pool is one of the world’s best educated and most productive. The United States is a proven global leader in science and technology, and is a center for innovation. Creativity is rewarded and safeguarded by a strong regime for the protection and enforcement of intellectual property rights. All of these characteristics, many of which are deeply ingrained in American culture, are appealing to foreign investors during these difficult economic times.

The third and final factor is the United States’ longstanding openness to foreign investment. In almost all significant respects, foreign investors in the United States are on equal footing with domestic investors – there is no distinction between the two. This policy has remained consistent throughout many Administrations. Foreign investors are welcomed to participate in the U.S. economy.

Just as the United States remains a stable destination for FDI, Invest in America continues to support foreign investors as they pursue opportunities in this country. Invest in America is the primary U.S. Government mechanism to coordinate inward investment promotion.

Our efforts are focused on outreach to foreign governments and investors, support for state governments’ investment promotion efforts, and addressing business climate concerns by serving as ombudsman in Washington, DC for the international investment community. Since its inception in 2007,

Invest in America has answered more than 300 individual investor inquiries and handled 35 ombudsman cases, providing helpful guidance to foreign investors who are considering or actively pursuing an investment opportunity in the United States.
Potential and current investors are invited to contact Invest in America.