U.S. Businesses Acquired or Established by Foreign Direct Investors -- Investment Outlays, by Industry of U.S. Business Enterprise and Country of Ultimate Beneficial Owner statistics

[In millions of dollars (65,932 represents $65,932,000,000). Foreign direct investment is the ownership or control, directly or indirectly, by one foreign individual branch, partnership, association, association, trust, corporation, or government of 10 percent or more of the voting securities of a U.S. business enterprise or an equivalent interest in an unincorporated one. Data represent number and full cost of acquisitions of existing U.S. business enterprises, including business segments or operating units of existing U.S. business enterprises and establishments of new enterprises. Investments may be made by the foreign direct investor itself, or indirectly by an existing U.S. affiliate of the foreign direct investor. Covers investments in U.S. business enterprises with assets of over $1 million, or ownership of 200 acres of U.S. land]


Industry	Investment outlays					Investment outlays
and
country	1990	1991	1992	1993	1994	1995	1996	1997	1998	1999

Total	65,932	25,538	15,333	26,229	45,626	57,195	79,929	69,708	215,256	(NA)

INDUSTRY

Petroleum ..	1,141	702	463	882	469	1,520	1,059	762	(D)	(NA)
Manufacturing	23,898	11,461	6,014	11,090	21,218	26,643	27,835	19,603	89,739	(NA)
Wholesale trade	1,676	623	698	837	2,156	1,168	4,746	2,612	3,266	(NA)
Retail trade	1,250	1,605	256	1,495	1,542	2,838	2,988	435	1,938	(NA)
Depository institutions ¹	897	482	529	958	2,026	2,301	1,944	3,547	1,563	(NA)
Finance, except
depository institutions ¹	2,121	2,199	797	1,599	2,195	7,837	8,676	7,019	16,607	(NA)
Insurance	2,093	2,102	291	1,105	450	654	4,688	8,526	4,709	(NA)
Real estate	7,771	3,823	2,161	1,883	2,647	2,996	4,175	4,119	6,144	(NA)
Services	19,369	2,256	2,023	4,162	7,163	5,881	15,292	12,187	10,099	(NA)
Other ..	5,716	284	2,101	2,218	5,760	5,359	8,528	10,898	(D)	(NA)

COUNTRY ²

Canada	3,430	3,454	1,351	3,797	4,128	8,029	9,700	11,755	22,635	11,388
Europe	36,011	13,994	8,344	16,845	31,920	38,195	49,427	44,014	170,173	205,150
France	10,217	4,976	406	1,249	1,404	1,129	6,021	2,578	14,493	24,579
Germany ³	2,363	1,922	1,964	2,841	3,328	13,117	12,858	6,464	39,873	24,393
Netherlands	2,247	1,661	1,331	2,074	1,537	1,061	6,476	10,244	19,009	26,896
Switzerland .	3,905	1,327	1,259	804	5,044	7,533	4,910	6,745	4,525	7,119
United Kingdom	13,096	2,169	2,255	8,238	17,261	9,094	14,757	11,834	84,995	110,115
Other Europe	4,183	1,939	1,129	1,639	3,346	6,261	4,405	6,149	7,278	12,048
Latin America and other
Western Hemisphere	796	375	1,438	874	1,352	1,550	1,790	924	11,354	34,013
South and Central America	399	108	1,152	527	(D)	1,283	(D)	166	920	1,377
Other Western Hemisphere	397	267	286	347	(D)	267	(D)	758	10,433	32,636
Africa	(D)	(D)	(D)	(D)	(D)	(D)	(D)	(D)	212	(D)
Middle East	472	1,006	238	1,308	(D)	447	(D)	847	2,810	546
Asia and Pacific	23,170	6,560	3,716	3,004	5,263	8,688	12,751	11,786	7,329	11,502
Australia	1,412	251	164	129	1,522	2,270	2,222	7,600	(D)	(D)
Japan	19,933	5,357	2,921	2,065	2,715	3,602	8,813	2,326	4,862	8,048
Other Asia and Pacific	1,825	952	631	810	1,026	2,816	1,716	1,860	(D)	(D)
United States /4..	(D)	(D)	(D)	(D)	201	(D)	(D)	(D)	743	(D)

(D) Suppressed to avoid disclosure of data of individual companies.
1 Prior to 1992, "depository institutions" excludes, and "finance, depository institutions" includes, savings institutions and credit unions. Beginning with 1992, savings institutions and credit unions have been reclassified from "finance, except depository institutions" to "depository institutions".
2 For investments in which more than one investor participated, each investor and each investor's outlays are classified by country of each ultimate beneficial owner.
3 Prior to 1990, this line includes data only for the Federal Republic of Germany. Beginning in 1990, this line also includes the former German Democratic Republic (GDR). This change has no effect on the data because, prior to 1991, there were no U.S. affiliates of the former GDR.
4 The UBO (ultimate beneficial owner) is that person, proceeding up a U.S. affiliate 's ownership chain, beginning with and including the foreign parent, that is not owned more than 50 percent by another person. The foreign parent is the first foreign person in the affiliate's ownership chain. Unlike the foreign parent, the UBO of an affiliate may be located in the United States.

Source: U.S. Bureau of Economic Analysis, Survey of Current Business, June 2000, and previous June issues.

http://www.bea.doc.gov/bea/ai1.htm

* Key Terms

Direct investment. Investment in which a resident of one country obtains a lasting interest in, and a degree of influence over the management of, a business enterprise in another country. In the United States, the criterion used to distinguish direct investment from other types of investment is ownership of at least 10 percent of the voting securities of an incorporated business enterprise or the equivalent interest in an unincorporated business enterprise.

U.S. direct investment abroad (USDIA). The ownership or control, directly or indirectly, by one U.S. resident of 10 percent or more of the voting securities of an incorporated foreign business enterprise or the equivalent interest in an unincorporated foreign business enterprise.

Foreign direct investment in the United States (FDIUS). The ownership or control, directly or indirectly, by one foreign resident of 10 percent or more of the voting securities of an incorporated U.S. business enterprise or the equivalent interest in an unincorporated U.S. business enterprise.

Foreign affiliate. A foreign business enterprise in which a single U.S. investor (that is, a U.S. parent) owns at least 10 percent of the voting securities, or the equivalent.

U.S. affiliate. A U.S. business enterprise in which a single foreign investor (that is, a foreign parent) owns at least 10 percent of the voting securities, or the equivalent. Direct investment capital flows. Fundsthat parent companiespro-vide to their affiliates net of funds that affiliates provide to their parents. For USDIA, capital flows also include the funds that U.S. direct investors pay to unaffiliated foreign parties when affiliates are acquired and the funds that U.S. investors receive from them when affiliates are sold. Similarly, FDIUS capital flows include the funds that foreign direct investors pay to unaffiliated U.S. residents when affiliates are acquired and the funds that foreign investors receive from them when affiliates are sold.

Direct investment capital flows consist of equity capital, intercompany debt,andreinvested earnings. Equity capital flows are the net of equity capital increases and decreases. Equity capital increases consist of payments made by parents to third parties for the purchase of capital stock when they acquire an existing business, as well as funds that parents provide to their affiliates that increase their ownership interest in the affiliates. Equity capital decreases are funds parents receive when they reduce their equity interest in existing affiliates. Intercompany debt flows result from changes in net outstanding loans and trade accounts between parents and their affiliates; they include loans by parents to affiliates and loans by af- filiates to parents. Reinvested earnings are the parents claim on the undistributed after-tax earnings of the affiliates.

Direct investment position. The value of direct investors equity in, and net outstanding loans to, their affiliates. The position may be viewed as the parents contributions to the total assets of their affiliates or as the financing provided in the form of equity (including reinvested earnings) or debt by parents to their affiliates. Financing obtained from other sources, such as local or foreign third-party borrowing, is excluded.

BEA provides estimates of the positions for USDIA and for FDIUS that are valued on three baseshistorical cost, current cost, and market value. At historical cost, the positions are valued according to the values carried on the books of affiliates; thus, most investments reflect price levels of earlier time periods. At current cost, the portion of the position representing parents shares of their affiliates tangible assets (property, plant, and equipment and inventories) is revalued from historical cost to replacement cost. At market value, the owners equity portion of the position is revalued to current market value using indexes of stock prices.

Valuation adjustments to the historical-cost position. Adjustments to account for the differences between changes in the position, which are measured at book value, and direct investment capital flows, which are measured at transactions value. (Unlike the positions on a current-cost and market-value basis, the historical-cost position is not adjusted to account for changes in the replacement cost of the tangible assets of affiliates or in the market value of parent companies equity in affiliates.)

Valuation adjustments to the historical-cost position consist of currency translation and other adjustments. Currency-translation adjustments are made to account for changes in the exchange rates that are used to translate affiliates foreign-currency-denominated assets and liabilities into U.S. dollars. The precise effects of currency fluctuations on these adjustments depend on the value and currency composition of affiliates assets and liabilities. Depreciation of foreign currencies against the dollar usually results in negative translation adjustments because it tends to lower the dollar value of foreign-currency-denominated net assets. Similarly, appreciation of foreign currencies usually results in positive adjustments because it tends to raise the dollar value of foreign-currency-denominated net assets.

Other adjustments are made to account for differences between the proceeds from the sale or liquidation of affiliates and their book values, for differences between the purchase prices of affiliates and their book values, for writeoffs resulting from uncompensated expropriations of affiliates, for changes in industry of affiliate or country of foreign parent, and for capital gains and losses (other than currency translation adjustments). These capital gains and losses represent the revaluation of the assets of ongoing affiliates for reasons other than exchange-rate changes, such as the partial sale of the assets for an amount different from their historical cost.

The largest component of capital flows underlying the changes in both positions was equity capital, which includes the funds used to acquire and establish new affiliates and capital contributions to existing affiliates. Equity capital accounted for almost half of the total outflows for USDIA and over four-fifths of the total inflows for FDIUS.

*

http://www.allcountries.org/uscensus/1315_u_s_businesses_acquired_or_established.html

These tables are based on figures supplied by the United States Census Bureau, U.S. Department of Commerce and are subject to revision by the Census Bureau.

Copyright © 2006 Photius Coutsoukis and Information Technology Associates, all rights reserved.