The U.S. is the world's largest recipient of FDI. In 2007, U.S. $ 237 billion was amounted in foreign direct investment. FDI affects the U.S. economy in many positive ways.
For example:
Create new jobs: U.S. Subsidiaries of foreign companies (majority owned) employ about 5.3 million American workers. Between 2003 and 2009 more than 4.500 new projects by foreign companies was reported or introduced, which resulted in over $ 314 billion in investments and about 632.500 new jobs.
Higher Wages: American subsidiaries of foreign firms tend to pay higher wages than other U.S. firms. Internationally-owned companies announce an annual U.S. payroll of $ 364 billion with an average annual compensation in excess of $ 68,000 per employee. On average, U.S. subsidiaries of foreign companies pay 25 percent higher wages than other U.S. establishments.
Increasing U.S. Exports: U.S. Companies are using multi-national distribution networks and knowledge when they export to new markets. Approximately 19 percent of all U.S. exports ($ 195 billion) come from U.S. subsidiaries of foreign companies.
Strengthens U.S. Manufacturing and Services: Thirty percent of the jobs supported by U.S. subsidiaries of foreign companies are in the manufacturing sector, accounting for 12 percent of all jobs within manufacturing in the U.S. Approximately 60 percent of all foreign investment in the U.S. is in the service sector, improving the global competitiveness in this critical segment of the U.S. economy.
Introduce New Research, Technology and Competence: Partners for foreign companies (majority owned) spent more than $ 34 billion on research and development in 2006 and $ 160 billion on facilities and equipment.
Helps to increase production: FDI leads to higher productivity through greater access to capital and competition. Productivity is an important factor that increases U.S. competitiveness abroad and raises living standards at home.
Cecilia Helland