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Investment in the US

Benefits of Investment in the US

Investing in the United States brings with it many advantages. With more than 300 million people, a landmass of 3.7 million square miles spanning a continent, and an economy larger than any other, the United States is the most important single market for any global company. The American workforce ranks as one of the best educated, most productive, and most innovative in the world. As a place to do business, the United States offers a predictable and transparent legal system, outstanding infrastructure, and access to the world’s most lucrative consumer market.

Economy: The United States has the largest and most technologically advanced economy in the world, with a per capita GDP of approximately $45,000. Not only do foreign investors have the freedom to make economic decisions within the U.S. economy, but also enjoy comparatively low levels of regulation, taxation, and government participation. Furthermore, the United States consistently ranks at or near the top of most major indicators of an attractive business and investment climate. The United States ranked first in the most recent United Nations Foreign Direct Investment Potential Index, Business Competitive Index, and Global Innovation Index. The United States is the most consistently competitive, innovative, and open economy in the world.

Consumer Market: Global companies invest in the United States to be closer to their customers in the world’s most dynamic consumer market. In terms of size and purchasing power, the U.S. market provides opportunities that can’t be found anywhere else in the world. With a per capita disposable income of $31,735, the United States accounts for 42 percent of the global consumer goods market and 24 percent of the global luxury goods market. In addition, the United States maintains free trade agreements with 14 partner countries, giving foreign investors in the United States duty-free access to approximately 600 million consumers in diverse markets throughout the globe.

Research and Development: The United States is a center for global innovation. In 2004, the United States was responsible for 35 percent of total OECD research and development expenditures. Since 1990, the United States has been home to more Nobel Laureates in the sciences than all other countries combined.

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Technology: American companies are at or near the forefront in technological advances and innovation, especially in computers, information technology, and the medical, aerospace, and military equipment sectors. Foreign investors want to invest in the United States because we have an investment climate that is second to none. Our markets are open to products, ideas, and above all, innovation.

Patent Protections: The world comes to the United States to protect its intellectual property. This is because the United States provides a strong intellectual property rights protection and enforcement regime spanning over a century. Of the 183,000 patents granted by the U.S. Patent Office in 2006, 48 percent originated from a foreign country.

Education: The U.S. higher education system is unparalleled. Seven of the top ten ranked universities in the world are in the United States. There are more than 4,000 universities and colleges in the United States, including branch campuses. This intellectual environment not only creates a highly skilled labor pool but also helps drive research and development through partnerships and grants with industry and government. The United States also boasts a community college system that provides cost-efficient education and training within thousands of communities throughout the United States. This gives the American workforce a competitive edge to succeed in a globalized job market.

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Skilled Workforce: The United States boasts a highly skilled labor pool. 51 million Americans have obtained a Bachelor’s degree or higher. In addition to the massive number of Americans with post-secondary degrees, the federal government spent an estimated $23 billion on workforce training in 2005, and state governments spent billions more.

Productive Workforce: Investors in the United States gain access to a highly productive and adaptable workforce. American workers are highly trained and have been quick to utilize and capitalize on innovative technologies to improve productivity. Since 2000, U.S. business productivity has risen at an average annual rate of approximately 2.75 percent. In manufacturing, the United States led the G-7 in productivity between 2002 and 2005.

Transportation/Infrastructure: Of the top ten economies in the world by GDP, the United States has the largest roadway system, railway network, number of airports, and quantity of Internet hosts. Five of the top ten airports by air cargo volume are in the United States including the busiest cargo airport in the world. A number of the world’s busiest ports for international bulk cargo and container traffic are also in the United States.

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Link to chart data

Hospitable Society: The United States is a friendly and hospitable country, where many foreigners live and invest. As a nation of immigrants, the United States boasts some of the largest cultural diasporas in the world.

 

The Impact of Foreign Investment in the US

Foreign Direct Investment Creates New Jobs: U.S. affiliates of foreign companies (majority owned) employ over 5 million U.S. workers, or 4.4% of private industry employment. An additional 4.6 million U.S. jobs indirectly depend on foreign investment in the United States. Between 2002-2006, nearly 2,900 new projects were announced or opened by foreign companies, yielding $82 billion in investment and about 170,000 new jobs.

Foreign Direct Investment Boosts Wages: U.S. affiliates of foreign companies tend to pay higher wages than U.S. companies. Foreign companies support an annual U.S. payroll of $335.9 billion, with average annual compensation per employee of over $65,000. Average compensation per employee within these companies has risen every year since 1992. U.S. subsidiaries of foreign firms pay 32 percent higher compensation than the private-sector national average.

Foreign Direct Investment Helps U.S. Companies Penetrate International Markets and Increase U.S. Exports: U.S. companies can use multinationals’ distribution networks and knowledge about foreign tastes to export into new markets. Approximately 19 percent of all U.S. exports ($169.2 billion) are generated by U.S. subsidiaries of foreign companies.

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Foreign Direct Investment Strengthens U.S. Manufacturing: 33 percent of the jobs related to U.S. affiliates of foreign companies are in the manufacturing sector, a sector which accounts for just 12 percent of overall private sector employment.

Foreign Direct Investment Brings in New Research, Technology, and Skills: Affiliates of foreign companies spent over $31 billion on research and development in 2005 and $121 billion on plants and equipment.

Foreign Direct Investment Contributes to Rising U.S. Productivity: The increased investment and competition from inward investment leads to higher productivity growth, a key ingredient that increases U.S. competitiveness abroad and raises living standards at home.

Foreign Direct Investment Contributes to U.S. Tax Revenues: In 2003, foreign affiliates paid $19.1 billion in taxes, which represented 11 percent of U.S. corporate tax revenues.

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FOR MORE INFORMATION ABOUT INVESTING IN THE UNITED STATES, OR IF YOU WOULD LIKE HELP IN STARTING A COMPANY THERE, PLEASE CONTACT:

 

Fahima SADAOUI RAMOS
North America Desk
Direction des Actions et de la Coopération Internationales
Chambre de Commerce et d'Industrie de Paris
2 rue de Viarmes - 75040 Paris cedex 01
Tél. +33 1 55 65 36 95 - Fax. +33 1 55 65 36 92
E-mail. fsadaouiramos@ccip.fr
www.ccip.fr/international


US - France Economic Ties - statistics


U.S. States

Please follow this link for a list of U.S. state, city and regional development agencies that are members of AmCham France and can facilitate your investments.


Clusters and Regional Development: The Case of Seattle
The US economy as seen from France

 

 

 

© Copyright AmCham France 2007 - Website Editor Francesca Hansen, Website by Paul-Etienne Malaurie

 

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