Foreign Direct Investment in the United States

1
Foreign Direct Investment in the United States

• By Deland Basora and Mindy Boggs

2
The Status of Direct Foreign Investment

• Size of Growth
• In 1997 (FDI) Was Over 90,478,000,000
• In 1994 (FDI)) Was Slightly Over 45,000,000,000
• Largest Foreign Investors in the U.S.
• Germany-10,274,000,000
• Japan-9,430,000,000
• Canada-9,411,000,000
• Possible Reasons Why Investment Has Increased
• World Is Becoming More Integrated
• Corporations Searching For Growth

3
The Status of Direct Foreign Investment

• Largest Product/Service Sectors
• Manufacturing-36,228,000,000
• Chemicals and Allied Products-14,494,000,000
• Others Include Machinery, Insurance, Wholesale
  Trade
• States With Largest Amounts of (FDI)
• California-100,718,000 in 1996
• Ohio-32,617,000
• 5 States Make up 33.5 of Total Investment
• California, Texas, New York, Illinois, Ohio

4
Japanese Business Culture

• Managerial Practices
• Future Oriented
• Life Time Employment
• Promote Within
• Strategic Pricing
• Business Practices
• Keirutsu
• Closely-knit group to produce products and
  services with efficiency.
• Honda and Mitsubishi

5
Advantages and Disadvantages of Foreign Direct
Investment

• Advantages
• Increase in Competition
• Increase in Capital Expenditures
• Betterment of Research and Development
• Rise in Employment
• Disadvantages
• Use of Vital Resources
• Foreign Protectionism
• Foreign Control

6
Recommendation

• Continue To Encourage FDI
• Increase Prosperity in the Global Market
• Learn From Other Nations
• Economy of America May Continue to Improve
• Regulate and Watch Closely

7
Any Questions?