Invest in America

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Invest in America Logo.
Invest in America Logo.

Invest in America is part of the U.S. Department of Commerce's International Trade Administration to promote foreign direct investment to the United States, the only such U.S. effort at the federal level.

On March 7, 2007, U.S. Commerce Under Secretary for International Trade Frank Lavin announced the creation of Invest in America, housed in the International Trade Administration, which promotes the United States as a destination for inward direct investment, also known as foreign direct investment.[1] Invest in America is the primary U.S. Government mechanism to manage foreign direct investment promotion.[2]Efforts are focused on outreach to foreign governments and investors, support for state governments’ investment promotion efforts, and addressing business climate concerns by serving as ombudsman in Washington for the international investment community.[3]

Invest in America reinforces President Bush’s statement on open economies of earlier this year that reaffirmed the commitment by the United States to promote open investment policies.[4] Through Invest in America, the Department of Commerce promotes the U.S. economy as the best place in the world to do business.

Contents

[edit] Mission

Invest in America promotes and supports foreign direct investment in the United States, contributing to U.S. job creation, innovation, and competitiveness.[5]

[edit] Activities

Policy: Invest in America bolsters the global competitiveness of the United States economy by addressing policy issues that concern foreign investors. Invest in America recently published a policy paper entitled, “Visas and Foreign Direct Investment.”[6] In addition to raising awareness of this issue, Invest in America is now actively engaged with stakeholders to address specific challenges raised in this paper.[7]

Ombudsman: Invest in America serves as ombudsman in Washington, D.C. for the international investment community, working across the Federal Government to act as a voice to address investor concerns and issues involving Federal agencies.[8] Invest in America receives inquiries from potential and current foreign investors with regard to issues encountered within the Federal bureaucracy.

Aaron Brickman, Director of Invest in America.
Aaron Brickman, Director of Invest in America.

Promotion: Invest in America promotes investment in the United States by highlighting the advantages of investing in the United States, and countering the misconceptions some investors may have. Invest in America meets regularly with both domestic and international stakeholders and organizes events such as "Invest in America Week."[9] The Department of Commerce’s global network provides the platform to educate international investors on the advantages that come with investing in the United States. Invest in America welcomes all inquiries and is equipped to serve as a foreign investor’s first point of contact for an investment in the United States. Initial meetings may involve gaining information about the United States economy as a whole, making contacts with appropriate federal agencies, and discussing U.S. policies and basic investment procedures.

State Cooperation: Invest in America is a federal complement to existing U.S. state efforts. By adding a consistent federal message that America is open for business, Invest in America makes each state message stronger and more resonant, and enhance the prospects for all. Invest in America complements state efforts, but remains neutral in any competition between them. Invest in America promotes the United States, not specific states, as the premier site for foreign direct investment.[10]Invest in America can provide all potential investors an investment contact list encompassing all fifty States, the District of Columbia, and U.S. territories. This comprehensive guide provides the economic development point of contact within each state who has been designated by each Governor to field international investment inquiries.[11]


Aaron Brickman is director of Invest in America.

[edit] Benefits of Foreign Direct Investment in the United States

Creates New Jobs: U.S. affiliates of majority-owned foreign companies employ over 5 million U.S. workers, or 4.4 percent of private industry employment.[12] Between 2003 and 2007, more than 3,300 new projects were announced or opened by foreign companies, yielding $184 billion in investment and about 447,000 new jobs.[13]

Boosts Wages: U.S. affiliates of foreign companies tend to pay higher wages than other U.S. companies. Internationally owned companies support an annual U.S. payroll of $335.9 billion, with average annual compensation per employee of more than $66,000. On average, U.S. subsidiaries of foreign firms pay 25 percent higher wages and salaries than the rest of the private sector.[14]

Increases U.S. Exports: Approximately 19 percent of all U.S. exports ($169.2 billion) come from U.S. subsidiaries of foreign companies.[15] U.S. companies use multinationals’ distribution networks and knowledge about foreign tastes to export into new markets.

Strengthens U.S. Manufacturing and Services: Of the jobs supported by U.S. affiliates of foreign companies, 39 percent are in the manufacturing sector. That sector accounts for 12 percent of overall private sector employment.[16] Furthermore, approximately 60 percent of all foreign investment in the United States is in the services sector, which improves the global competitiveness of this critical segment of the U.S. economy.[17]

Brings in New Research, Technology, and Skills: In 2005, U.S. affiliates of majority-owned foreign companies spent nearly $32 billion on research and development and $121 billion on plants and equipment.[18]

[edit] References

  1. ^ U.S. Initiative Aims To Smooth Way for Foreign Investment
  2. ^ www.investamerica.gov
  3. ^ www.investamerica.gov
  4. ^ President Bush's Statement on Open Economies
  5. ^ www.investamerica.gov
  6. ^ Visas and foreign direct investment; supporting U.S. competitiveness by facilitating international travel
  7. ^ Department of Commerce - Secretary's Speeches - Remarks at the Organization for International Investment Annual Dinner
  8. ^ http://www.trade.gov/investamerica/invest-america.pdf
  9. ^ Invest in America Week 2008
  10. ^ http://www.trade.gov/investamerica/invest-america.pdf
  11. ^ http://www.trade.gov/investamerica/contact_list.pdf
  12. ^ Bureau of Economic Analysis, U.S. Department of Commerce, “Operations of Multinational Companies,” http://www.bea.gov/international/index.htm#omc
  13. ^ OCO Monitor, Accessed on March 6, 2008.
  14. ^ Bureau of Economic Analysis, U.S. Department of Commerce, “Operations of Multinational Companies,” http://www.bea.gov/international/index.htm#omc; “National Economic Accounts,” http://www.bea.gov/national/.
  15. ^ Thomas Anderson, “U.S. Affiliates of Foreign Companies: Operations in 2005,” Bureau of Economic Analysis, August 2007. http://www.bea.gov/scb/pdf/2007/08%20August/0807_foreign.pdf
  16. ^ U.S. Department of the Treasury, “Fact Sheet: An Open Economy is Vital to U.S. Prosperity,” May 2007.
  17. ^ Analysis of BEA Data, U.S. Department of Commerce, “Operations of Multinational Companies,” http://www.bea.gov/international/index.htm#omc
  18. ^ Bureau of Economic Analysis, U.S. Department of Commerce, “Operations of Multinational Companies,” http://www.bea.gov/international/index.htm#omc

[edit] External links