Economics Today and Tomorrow, Student Edition
Economics Today and Tomorrow, Student Edition
1st Edition
ISBN: 9780078747663
Author: McGraw-Hill
Publisher: Glencoe/McGraw-Hill School Pub Co
Question
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Chapter 20, Problem 16AA
To determine

The share of United States of worldwide direct investment.

Expert Solution & Answer
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Explanation of Solution

Foreign direct investment: Foreign direct investment (FDI) refers to the investment in the form of controlling ownership in a firm in a country by the firm based in another country. It includes both buying assets in a firm that already exists and establishing a business in another country.

The United States of America is a well-developed country. It has a highly productive labor force, well-developed infrastructure, and favorable business environment, etc. This helps the United States of America to attract maximum inflow of investment. At the end of June 2019 global FDI flows decreased from 1.40 trillion in 2018 to 1.39 trillion (source: UNCTAD). The USA attracted the highest 251 billion direct investment inflows.

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