Open for Business: The United States remains the top global destination for foreign direct investment

This guide - much like our U.S. International Corridors practice - is intended to help multinational executives cut through the macroeconomic and geopolitical noise to make some sense of the challenges and draw confidence from the opportunities of investing in the United States, the world's largest, strongest and most business-friendly economy.

Brewing trade wars, a broadening appetite for protectionism, populist leaders rising to power across many countries, the ascension of China, an at-times strained Western Alliance and ever-evolving cybersecurity threats. These are just some of the headlines multinational executives are faced with today. In spite of these challenges, the U.S. maintains its place as the most attractive FDI destination.

In this 20-page publication, we explore the full power of the U.S. market and its importance to companies considering cross-border investment. We examine the reasons why the U.S. remains the world's foremost destination for foreign direct investment.

Economic strength and stability – The U.S. economy is less than 1.5 times larger than China’s, but per capita consumption in the U.S. is 12 times greater than in China. This simply means more goods and services are available per consumer, and they are in a better position to buy them.

Productivity – Many businesses consider increased consumption to be the holy grail, but to economists, the key to growth, both long and short term, is productivity. Despite the low-productivity world in which we currently live, U.S. labor and capital productivity stand out among its peers.

A business-friendly regulatory environment – Some of the foundational ways that is pursued include lowering the cost of doing business, shortening the timeframe for federal project review, and reducing and simplifying regulations that are deemed unnecessary or economically harmful.

Commitment to objective jurisprudence – The U.S. judicial system is built upon a tradition of fair adjudication, recognizing the value of ensuring a robust intellectual property system.

Receptivity to foreign investment – Many U.S. states actively work to encourage FDI through various financial incentive and tax credit programs as well as targeted legislation designed to address specific company priorities. A more competitive federal corporate tax rate only fortifies this scenario.

Combined with the benefits of unparalleled technological innovation, a skilled and ambitious workforce and state-ofthe-art R&D capabilities, these factors offer foreign investors a highly business-friendly environment to expand their presence in the U.S.

 

 

Open for Business

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