July 2009
Welcome to the latest update from Invest in America, the U.S. Department of Commerce’s program to promote foreign direct investment to the United States.
Outreach
Invest in America will participate in:
- APPA Economic Development & Broadband Conference San Francisco, California on July 27, 2009
- Michigan Economic Developers Association Annual Meeting in Kalamazoo, Michigan on August 20, 2009
- Invest in America Seminar – 13th China International Fair for Investment and Trade in Xiamen, China, September 8-11, 2009
- National Association of Foreign Trade Zones Conference in Dallas, Texas on September 23, 2009
- 2009 IEDC Annual Conference in Reno, Nevada on October 5, 2009
- WAIPA World Investment Conference in Milan, Italy, October 12-14, 2009
- Greenbuild International Conference & Expo in Phoenix, Arizona, November 11-13, 2009
Reports of Note
Bureau of Economic Analysis (BEA) data presented in the June 2009 “Foreign Direct Investment in the United States: New Investment in 2008” article shows that outlays for foreign direct investors to acquire or to establish U.S. businesses was $260.4 billion in 2008, a 3 percent increase over the previous year. Outlays in 2008 were the third largest on record and the sixth consecutive increase since a falloff in 2001-2002. [Note: “Outlays” are defined by BEA in this article as expenditures by a foreign direct investor to acquire or establish a new U.S. affiliate. The foreign direct investor, its affiliated foreign companies (foreign parent group), and/or its existing U.S. affiliates may supply the funds for the expenditures (outlays).]
OCO Consulting’s most recent OCO Insight publication, entitled a “A New Investment Paradigm,” explores the major transitions underway in the FDI market, brought about in part by the economic crises and its resulting impact on FDI volumes. The authors contend that significant challenges exist in determining how to respond to these FDI market changes given the many variables currently in play, ranging from slower investment decisions, upheaval in core sectors and markets, new forms of investment and heightened pressure to deliver economic recovery and jobs from a depleted pool of FDI. This review examines these issues and reflects on how to address the challenges.
A report published by the McKinsey Global Institute this month explores how the financial crisis, and ensuing global recession, has enabled Asian sovereign and petrodollar investors to emerge as a more prominent source of capital relative to their hedge fund and private equity peers, both now and into the foreseeable future. Of particular interest in “The New Power Brokers: How Oil, Asia, Hedge Funds, and Private Equity Are Faring in the Financial Crisis” is the expected larger share of global FDI flows that oil exporting countries and China control. The authors contend that as the financial sector adjusts to a tighter credit and, possibly, regulatory environment, Asian sovereign and petrodollar investors are expected to remain an increasingly critical source of FDI.
Data
- Inquiries to date in 2009: 158
- Ombudsman cases in 2009: 13
Invest in America’s ombudsman program has achieved a number of successes in working across the federal government to address investor concerns and issues involving federal agencies. If a foreign investor has a federal-level issue that is jeopardizing an investment in the United States, please contact Invest in America at 202-482-5199 or email Invest in America at info@investamerica.gov.
Please address all comments and suggestions to info@investamerica.gov. For more information about Invest in America, please visit our website at www.investamerica.gov.
