Fdi and United States
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- Date Submitted: 06/30/2010 06:21 PM
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FDI and Trading for United States and State of Missouri
The purpose of this paper is to highlight foreign direct investment and international trading for the United States and the State of Missouri. We will address who are the main investors in the US and Missouri as well as provide visibility where the US investments overseas. The paper will also look at the trading partners for the United States and Missouri.
Keys to economic globalization are trading and investment between countries. Trading consists primarily of imports and exports of goods and services. Investments generally consist of short term and long term debt and equity investments. The common definition of foreign investment as defined by Wikipedia is a measure of foreign ownership of productive assets, such as factories, mines and land. However, in more recent times foreign investment consists more in equity and debt instruments. An increase in foreign investment for an area can indicate strength in a locations economic outlook and an investment in a foreign location can help indicate economic globalization.
United States Foreign Direct Investment
In 2008, the United States had approximately $4.3 trillion invested in foreign securities which was significantly below 2005-2007 levels. The major source of this decline was from the steep decline of foreign equity securities. On the flip side, foreign investors held approximately $10.3 trillion of United States holdings as of June 2008 per the U.S. Department of the Treasury (Table 1). Although the U.S. foreign investment declined in 2008, both United States and foreign investment in the United States has trended upward significantly over the past 5-10 years especially in the form of equity investments (Figure 1). These are staggering numbers that emphasize the importance of globalization and the importance of foreign markets no matter where your business resides.
Table 1
Source: Information obtained from US Department of the Treasury...
The purpose of this paper is to highlight foreign direct investment and international trading for the United States and the State of Missouri. We will address who are the main investors in the US and Missouri as well as provide visibility where the US investments overseas. The paper will also look at the trading partners for the United States and Missouri.
Keys to economic globalization are trading and investment between countries. Trading consists primarily of imports and exports of goods and services. Investments generally consist of short term and long term debt and equity investments. The common definition of foreign investment as defined by Wikipedia is a measure of foreign ownership of productive assets, such as factories, mines and land. However, in more recent times foreign investment consists more in equity and debt instruments. An increase in foreign investment for an area can indicate strength in a locations economic outlook and an investment in a foreign location can help indicate economic globalization.
United States Foreign Direct Investment
In 2008, the United States had approximately $4.3 trillion invested in foreign securities which was significantly below 2005-2007 levels. The major source of this decline was from the steep decline of foreign equity securities. On the flip side, foreign investors held approximately $10.3 trillion of United States holdings as of June 2008 per the U.S. Department of the Treasury (Table 1). Although the U.S. foreign investment declined in 2008, both United States and foreign investment in the United States has trended upward significantly over the past 5-10 years especially in the form of equity investments (Figure 1). These are staggering numbers that emphasize the importance of globalization and the importance of foreign markets no matter where your business resides.
Table 1
Source: Information obtained from US Department of the Treasury...