Domestic Policy Issues Stemming From U.S. Direct Investment Abroad

Despite the public attention directed at U.S. multinational corporations and their investments abroad, confusion continues to exist about the effects of such investment on the U.S. economy and security. The impact of foreign direct investment has centered around the question of whether foreign investment displaces or enhances U.S. exports. Recent discussion has focused on: technology flows through investment abroad and their impact on U.S. trade competitiveness, host-country demands and incentives that could contribute to reduced U.S. exports, and joint U.S.-foreign ventures and their impact on trade and competition.