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http://www.state.gov/r/pa/prs/ps/2006/63041.htm
Office of the Spokesman
Washington, DC
March 13, 2006
How Foreign Direct Investment Benefits the United States
� Foreign Direct Investment (FDI) Creates New Jobs: U.S. affiliates of foreign companies (majority owned) employ 5.3 million U.S. workers, or 4.7% of private industry employment. (Source: Bureau of Economic Analysis (BEA), U.S. Department of Commerce)
� Foreign Investment Boosts Wages: U.S. affiliates of foreign companies tend to pay higher wages than U.S. companies. Foreign companies support an annual U.S. payroll of $318 billion, with average annual compensation per employee of over $60,000. Average compensation per employee within these companies has risen every year since 1992 (Source: BEA). Some studies have found that foreign companies have paid wages in the past that were as much as 15% higher on average than wages paid by U.S. companies. (Source: National Bureau of Economic Research � Robert Lipsey, Working Paper 9293)
� Foreign Investment Strengthens U.S. Manufacturing: 41 percent of the jobs related to U.S. affiliates of foreign companies are in the manufacturing sector. (Source: BEA)
� Foreign Investment Brings in New Research, Technology, and Skills: Affiliates of foreign companies spent $30 billion on research and development in 2003 and $109 billion on plants and equipment. (Source: BEA). These advances are often adopted by locally-owned companies.
� Foreign Investment Contributes to Rising U.S. Productivity: The increased investment and competition from FDI leads to higher productivity growth, a key ingredient that increases U.S. competitiveness abroad and raises living standards at home. (Source: Bureau of Economic and Business Affairs (EB), U.S. Department of State)
� Foreign Investment Contributes to U.S. Tax Revenues: In 2002, foreign affiliates paid $17.8 billion in taxes, which represented 12 percent of U.S. corporate tax revenues. (Source: Internal Revenue Service)
� Foreign Investment Can Help U.S. Companies Penetrate Foreign Markets, and Increase U.S. Exports: U.S. companies can use multinationals� distribution networks and knowledge about foreign tastes to export into new markets. Approximately 21 percent of all U.S. exports come from U.S. subsidiaries of foreign companies. (Source: BEA)
� Foreign Investment Helps Keep U.S. Interest Rates Low: The inflow of foreign capital also decreases the cost of borrowing money for domestic entrepreneurs, especially in the small- to medium-sized enterprise sector. (Source: EB)
Last edited by jerZ07002 on Apr-07-2008 at 05:48
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