In 2022, no country had a higher foreign direct investment (FDI) position in the United States than Japan, followed by the United Kingdom and Canada. At that time, Japan had over 711 billion U.S. dollars invested in the United States.
What is FDI?
FDI is an international investment, in this case when a foreign firm or individual invests in a business in the United States. The worldwide value of FDI flows is immense, which is a result of the increasing connectedness of world financial markets. In this statistic, we see countries that are connected to the U.S. for historic and geographic reasons, such as the UK and Canada respectively, investing large sums of money in U.S. enterprises. The countries which received the most FDI from the United States in 2022 were the Netherlands, the UK, and Luxembourg.
The effects of FDI
Foreign direct investment, like any increase in capital, leads to a higher number of jobs. The economy of the target country grows, and the investing country generally earns a good rate of return. Critics of FDI worry that it opens companies to the influence of foreign individuals and firms.
Countries with highest foreign direct investment position in the United States in 2022
(in billion U.S. dollars, on a historical-cost basis)
In accounting, historical cost is the original monetary value of an economic item. Historical cost is based on the stable measuring unit assumption. In some circumstances, assets and liabilities may be shown at their historical cost, as if there had been no change in value since the date of acquisition.
U.S. direct investment abroad is defined as ownership by a U.S. investor of at least ten percent of a foreign business. The direct investor is known as a U.S. parent, and the U.S.-owned foreign business is known as a foreign affiliate. International transactions statistics cover the foreign affiliates’ transactions with their U.S. parents, so these statistics focus on the U.S. parent’s share, or interest, in its affiliates rather than on the affiliates’ overall size or level of operations. The major items include capital flows, which measure the funds that U.S. parents provide to their foreign affiliates, and income, which measures the return on those funds. Direct investment position statistics are stocks and are cumulative; they measure the total outstanding level of U.S. direct investment abroad at year end.
*The "United Kingdom Islands, Caribbean" is comprised of British Virgin Islands, Cayman Islands, Montserrat, and Turks and Caicos Islands.
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BEA. (September 15, 2023). Countries with highest foreign direct investment position in the United States in 2022 (in billion U.S. dollars, on a historical-cost basis) [Graph]. In Statista. Retrieved November 22, 2024, from https://www.statista.com/statistics/456713/leading-fdi-countries-usa/
BEA. "Countries with highest foreign direct investment position in the United States in 2022 (in billion U.S. dollars, on a historical-cost basis)." Chart. September 15, 2023. Statista. Accessed November 22, 2024. https://www.statista.com/statistics/456713/leading-fdi-countries-usa/
BEA. (2023). Countries with highest foreign direct investment position in the United States in 2022 (in billion U.S. dollars, on a historical-cost basis). Statista. Statista Inc.. Accessed: November 22, 2024. https://www.statista.com/statistics/456713/leading-fdi-countries-usa/
BEA. "Countries with Highest Foreign Direct Investment Position in The United States in 2022 (in Billion U.S. Dollars, on a Historical-cost Basis)." Statista, Statista Inc., 15 Sep 2023, https://www.statista.com/statistics/456713/leading-fdi-countries-usa/
BEA, Countries with highest foreign direct investment position in the United States in 2022 (in billion U.S. dollars, on a historical-cost basis) Statista, https://www.statista.com/statistics/456713/leading-fdi-countries-usa/ (last visited November 22, 2024)
Countries with highest foreign direct investment position in the United States in 2022 (in billion U.S. dollars, on a historical-cost basis) [Graph], BEA, September 15, 2023. [Online]. Available: https://www.statista.com/statistics/456713/leading-fdi-countries-usa/