Foreign Direct Investment in the United States

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In 2011, President Obama followed suit: “The United States reaffirms our open investment policy, a commitment to treat all investors in a fair and equitable manner under the law, and I encourage all countries to pursue such a policy. My Administration is committed to ensuring that the United States continues to be the most attractive place for businesses to locate, invest, grow, and create jobs.”

Today, the United States is home to more FDI than any other country in the world, with a total stock valued at $2.9 trillion as of 2014. This reflects both strong fundamentals for business growth and an incredible diversity of opportunity across the 50 states and territories. The federal government, along with state, local, and tribal governments nationwide, remains committed to facilitating international investment.

In May 2015, the consulting firm A.T. Kearney unveiled the most recent edition of its Foreign Direct Investment Confidence Index, which captured the sentiments of C-level executives and business heads from major companies. For the third year in a row, the United States was ranked as the top destination for international investment.

What is driving this renewed confidence? The reasons are many, including a resurging US economy, a strong domestic consumer market and enhanced access to other markets, stability and transparency, innovation, advanced manufacturing, an educated workforce, and low-cost energy.

Economic Growth: Prospects for the US economy continue to improve: during the course of 2013 through 2014, real GDP grew at a 2.8 percent annual pace.1 As of the writing of this article, the most recent monthly report issued by the US Bureau of Labor Statistics in March 2015 revealed that the private sector continues a healthy expansion with the longest streak on record for job growth.2