In the United States, foreign direct investment is the ownership or control, directly or indirectly, by one foreign person of 10 percent or more of the voting securities of an incorporated business enterprise in the US or an equivalent interest in an unincorporated business enterprise in the US. The foreign person can be an individual, branch, partnership, association or government.
After 2000, foreign direct investment in the US declined sharply when nearly $300 billion was invested in American businesses and real estate. In comparison just $100 billion was invested in 2004. Many states and local governments were trying to foreign direct investments to create additional jobs during that period when the US was facing serious problem of unemployment. The Congress also encouraged foreign direct investment in the US in an attempt to offset the so-called negative economic effects of American firms investing abroad.
On the whole, Britain is the largest foreign direct investor in the US followed by French, Dutch and Japanese.
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