Foreign Direct Investment in the United States: A Comprehensive Analysis

AS1 Report

Contents
Chapter 1. INTRODUCTION.........................................................................................................................3
Chapter 2. Literature Review......................................................................................................................3
Concept of FDI.........................................................................................................................................3
Country’s actions related to the international events including changing regulations and tariff, political
issues and major developments over recent years.................................................................................4
Important economic / financial trends for the chosen country over 5 years..........................................5
Chapter 3. FDI Analysis of the chosen country...........................................................................................6
Chapter 4. Conclusion.................................................................................................................................7
RFERENCES..................................................................................................................................................8

Chapter 1. INTRODUCTION
Foreign Direct Investment or FDI can be defined as an investment that is made by either
a firm or an organization in one country with the main interest of business located in another
country. FDI generally takes place when an investor establishes their business operations in a
foreign country. This report is based on Foreign Direct Investment in the United States, which is
the largest recipient of FDI in the world (Chilton, Milner and Tingley, 2020). This is because
companies recognize the country as one of the most stable as well as innovative markets. But
as the global economy continues to evolve, it is important for the country to compete actively
and attract as well as retain investment. The report provides a detailed understanding of the
concept of FDI as well as detailed knowledge of the country’s foreign direct investment. Lastly,
there is also an explanation about the latest economic as well as financial trends for the chosen
country over 5 years.
Chapter 2. Literature Review
Concept of FDI
Foreign Direct Investment is recognized as one of the powerful aspects that is important
for the growth as well as economic development of a country. It enables the countries that do
not have enough capital to build up their physical capital and create various employment
opportunities as well as enhance the skills of local labor. FDI takes place when an investor sets
up a business in a foreign country or sets their business operations there (Sapkota and Bastola,
2017). Foreign Direct Investments are utilized actively utilized in open markets rather than
closed markets for investors. There are three different types of Foreign Direct Investments,
namely, Horizontal, Vertical as well as Conglomerate. Horizontal FDII refers to establishing the
same type of business in another country whereas vertical FDI means that a related business is
established, where as conglomerate FDI involves unrelated business in a new country. As far as
FDI in the United States is concerned, The Bureau of Economic Analysis tracks the same.
Foreign Direct Investments are generally made in economies that are open and offer a
skilled workforce growth prospects for the investor. FDI involves more than just a capital