Direct investment positions for 2008: country and industry detail.

Ibarra, Marilyn ; Koncz, Jennifer

IN 2008, both the U.S. direct investment abroad and foreign direct investment in the United States positions, valued at historical-cost, grew 8 percent. This marked a slowdown in growth for both positions compared with 2007, when the U.S. direct investment abroad--or "outward"--position rose 18 percent and the foreign direct investment in the United States--or "inward"--position rose 15 percent. (1)

The much slower growth in the outward direct investment position reflected a drop in new investment activity abroad by U.S. parent companies. (2) The slowdown in growth in the inward direct investment position reflected the write-downs of financial assets, especially in banking and nonbank finance and insurance, as a result of unsettled conditions in financial markets.

Highlights of U.S. direct investment abroad include the following:

* The increase in the outward direct investment position in 2008 (8 percent) significantly lagged the increase in 2007 (18 percent) and was the smallest since 2005 (4 percent). In 1996-2006, annual growth averaged 12 percent. The slowdown in growth in 2008 reflected lower equity capital flows and a shift in valuation adjustments from positive to negative.

* Reinvested earnings were the largest contributor to the increase in the outward position, as they have been in most years. Reinvested earnings rose 6 percent in 2008 as a result of slightly higher earnings and an increase in the share of earnings reinvested in several industries. Earnings grew 2 percent in 2008; earnings gains in the first half of the year were not fully offset by sharp declines later in the year.

* Net equity investments also contributed to the increase in the outward position although these investments were substantially lower in 2008 than in 2007. The decline in equity investment, much of which was for acquisitions of foreign businesses by U.S. companies, coincided with a decline in global merger and acquisition activity; a lack of available credit, plunging stock markets, and a worldwide financial crisis late in the year undermined companies' ability and incentives to make acquisitions. Intercompany debt inflows and negative valuation adjustments decreased the position.

Highlights of foreign direct investment in the United States include the following:

* The inward direct investment position growth (8 percent) in 2008 significantly lagged the increase (15 percent) in 2007. In 1996-2006, annual growth averaged 12 percent. The slowdown in growth in 2008 reflected the turbulent financial market conditions, which are reflected in large valuation adjustments, that began in the second half of 2007 and persisted throughout 2008.

* Net equity capital investment was the largest component of the increase in the inward position in 2008, as it has been in most years. Boosted by a few large transactions, net equity capital investment grew 61 percent in 2008, the third consecutive year of growth, despite the financial market conditions and a slowdown in economic growth in the United States and in several countries that are important sources of foreign direct investment.

* Reinvested earnings were a substantial component of the increase in the inward position in 2008, as they have been since 2004. Reinvested earnings grew in 2008 despite a decline in earnings because the portion of earnings reinvested increased sharply. Intercompany debt transactions also increased the position, though to a lesser extent. In contrast, valuation adjustments decreased the position.

This article presents details on the direct investment positions valued at historical-cost by type of capital flow. It also presents details for outward investment by country of foreign affiliate and for inward investment by country of foreign parent. (3) Revisions to previously released statistics are also discussed.

U.S. Direct Investment Abroad

The U.S. direct investment position abroad valued at historical cost--the book value of U.S. direct investors' equity in, and net outstanding loans to, their foreign affiliates--was $3,162.0 billion at the end of 2008 (table A and chart 1). As in previous years, three host countries--the Netherlands, the United Kingdom, and Canada--accounted for over a third of the total position (table 1.2 and chart 2). Positions in the Netherlands and the United Kingdom were more than twice as large as the positions of all other countries except Canada. In 2008, the Netherlands surpassed the United Kingdom as the largest host country, with a U.S. position of $442.9 billion, or 14 percent of the total. In the Netherlands, most of the position increase and nearly 70 percent of the position was accounted for by holding companies, which may have invested the funds in other countries or industries. (See the box "Holding Companies in the Data on U.S. Direct Investment Abroad.") The position in the United Kingdom was $420.9 billion (13 percent), and the position in Canada was $227.3 billion (7 percent).

[GRAPHIC 1 OMITTED]

In 2008, the outward direct investment position grew 8 percent, or $245.1 billion, down significantly from the 18 percent growth in 2007. The slowdown in growth reflected lower equity capital flows and a shift in valuation adjustments from positive to negative.

Changes by component

The $245.1 billion increase in the outward direct investment position was the net result of capital outflows of $311.8 billion and valuation adjustments of -$66.7 billion (table B and chart 3).

[GRAPHIC 3 OMITTED]

Capital flows

Capital outflows for U.S. direct investment abroad were $311.8 billion in 2008, down from $378.4 billion in 2007. Capital flows in 2008 resulted from reinvested earnings of $231.3 billion and net equity capital investment of $90.2 billion, which were partly offset by a $9.7 billion reduction in U.S. parents' net intercompany debt claims on their foreign affiliates.

Equity capital investment. U.S. parents' net equity investment in their foreign affiliates was $90.2 billion in 2008, down sharply from $174.9 billion in 2007. However, the 2008 net equity capital flows were still the fourth highest in the past 10 years. Net equity investment resulted from equity capital increases of $132.7 billion, which were partly offset by equity capital decreases of $42.4 billion. Equity capital increases were down 47 percent from 2007, largely reflecting a slowdown in acquisitions and establishments of new foreign affiliates. (4) Equity capital increases for the acquisition or establishment of new foreign affiliates were $49.2 billion, down from $125.3 billion. Equity capital increases also reflected capital contributions to existing foreign affiliates, which were $83.5 billion, down from $123.6 billion. Equity capital decreases, which reduce the outward position, were down 43 percent from 2007, reflecting a drop in liquidations or selloffs of foreign affiliates and in returns of capital from continuing affiliates.

Equity capital increases for the acquisition or establishment of new affiliates were largest in Europe, particularly in the Netherlands and the United Kingdom. In the Netherlands, the largest increase was in holding companies, whose holdings include retail trade affiliates in Europe and wholesale trade and professional, scientific, and technical services affiliates in Europe and "Latin America and Other Western Hemisphere." In the United Kingdom, the increases were mainly in manufacturing (primarily machinery), "other industries" (particularly electronics retail trade), and "finance (except banks) and insurance.'' (5)

Among industries, acquisitions of foreign businesses or establishment of new affiliates by U.S. direct investors were largest in "finance (except banks) and insurance," banking, and manufacturing (particularly in machinery and in electrical equipment, appliances, and components manufacturing).

The largest capital contributions were to affiliates in Europe, primarily in the United Kingdom and the Netherlands, and in "Latin America and Other Western Hemisphere," primarily in the "United Kingdom Islands, Caribbean" and Bermuda. By industry, the largest capital contributions were to affiliates in "finance (except banks) and insurance," followed by holding companies, and mining.

In 2008, equity capital decreases due to returns of capital from continuing affiliates were slightly higher than equity capital decreases due to liquidations or selloffs of affiliates. By industry, equity capital decreases were largest in "finance (except banks) and insurance." By region, equity capital decreases were largest in Europe and in Asia and Pacific.

Reinvested earnings. The difference between U.S. parent companies' shares in their foreign affiliates' total earnings and the distributions to the parents from the affiliates' current and cumulative retained earnings--that is, reinvested earnings--increased 6 percent in 2008, to $231.3 billion. Reinvested earnings accounted for more than 90 percent of the increase in the outward position and nearly three-fourths of the capital outflows.

In 2008, reinvested earnings were by far largest for affiliates in holding companies and then in manufacturing (particularly other manufacturing and chemicals), which together accounted for 61 percent of the total. By region, reinvested earnings were largest in Europe, accounting for 56 percent of the worldwide total. Reinvested earnings were particularly large in five European countries: the Netherlands, Ireland, Switzerland, the United Kingdom, and Luxembourg.

The growth in reinvested earnings resulted from a reduction in distributions and slightly higher foreign affiliate earnings. The reinvestment ratio--reinvested earnings relative to current-year earnings--rose from 65 percent in 2007 to 68 percent in 2008. Earnings increased 2 percent in 2008 as an increase in the first half of the year was only partly offset by a decline in the second half.

By industry, the largest increase in earnings was in mining. In addition, a large decrease in losses in banks contributed to the overall increase in earnings of foreign affiliates. In contrast, earnings decreased in several industries, including "finance (except banks) and insurance," holding companies, and information. By region, the largest increases in earnings were in "Latin American and Other Western Hemisphere" (primarily the "United Kingdom Islands, Caribbean") and in Canada.

Intercompany debt investment. U.S. parents' indebtedness to their foreign affiliates increased more than the foreign affiliates' indebtedness to their U.S. parents in 2008. Net intercompany debt inflows from foreign affiliates of $9.7 billion were more than accounted for by inflows from Canada and Asia and Pacific. In Canada, the inflows were largest from mining and manufacturing affiliates. In Asia and Pacific, inflows from "finance (except banks) and insurance" affiliates in Hong Kong and Japan mostly accounted for the regional inflows. By industry, manufacturing more than accounted for the global inflows.

Valuation adjustments

Valuation adjustments of -$66.7 billion reduced the outward direct investment position in 2008. In contrast, positive valuation adjustments of $61.3 billion increased the position in 2007.

The negative adjustments in 2008 resulted mostly from negative currency-translation adjustments as the U.S. dollar appreciated against many major currencies, including the British pound, the Canadian dollar, and the euro, from yearend 2007 to yearend 2008. These currency-translation adjustments were partly offset by $3.4 billion in "other" valuation adjustments.

Changes by area and by country

In 2008, the outward direct investment position increased in each of the major areas except Canada (table C). U.S. parents with foreign affiliates in Europe had the largest dollar increase, accounting for 61 percent of the overall increase in the position. Outside of Europe, the largest increases were in "Latin America and Other Western Hemisphere" and Asia and Pacific.

Europe. The position for this region increased $150.4 billion, with reinvested earnings accounting for 85 percent of the increase. Reinvested earnings were particularly large in holding companies and manufacturing (especially chemicals). The positions in three countries--the Netherlands, Ireland, and Switzerland--together accounted for nearly three-fourths of the increase in the position in Europe.

In the Netherlands, holding companies accounted for four-fifths of the increase, most of it due to reinvested earnings. In Ireland, the increase was widespread by industry. The largest increases were in professional, scientific, and technical services, largely attributable to valuation adjustments, and in holding companies, largely attributable to reinvested earnings. In Switzerland, a large share of the increase was in holding companies; both intercompany debt investment and reinvested earnings were large contributors to the increase.

The position decreased in Russia and the United Kingdom. In Russia, the position decreased by more than a third and was more than accounted for by a decrease in mining, mainly due to valuation adjustments. In the United Kingdom, the decrease was spread over several industries, including manufacturing (particularly petroleum refining and extraction and beverages) and "other industries" (particularly rental and leasing services).

Latin America and Other Western Hemisphere. The position increased $55.1 billion, with reinvested earnings accounting for most of the increase. The "United Kingdom Islands, Caribbean" had by far the largest increase, $30.7 billion; this increase was mainly in holding companies and in "finance (except banks) and insurance."

Asia and Pacific. The position increased $37.9 billion in 2008. The largest increases were in China, Singapore, and Australia; China alone accounted for 45 percent of the total increase. In China, the largest increase was in banking, due mostly to acquisitions and establishments of new affiliates. In Singapore, the largest increase was in holding companies. In Australia, the increase was more than accounted for by mining.

Within this region, the largest decrease in the position was in Japan, which was more than accounted for by a decrease in "finance (except banks) and insurance."

Middle East and Africa. The $4.2 billion increase in the Middle East position was the largest percentage increase (15 percent) of any region. Increases in the position were widespread by industry and by country; the largest increases were in Qatar, Israel, and Kuwait. In Africa, the $4.1 billion increase was the second largest percentage increase (13 percent) of all regions. Within this region, the largest increases were in Nigeria and Egypt.

Canada. In 2008, the position fell $6.7 billion. The decrease was more than accounted for by negative currency-translation adjustments. The largest decreases were in manufacturing (particularly transportation equipment and chemicals) and in mining.

Foreign Direct Investment in the United States

The foreign direct investment position in the United States valued at historical cost--the book value of foreign direct investors' equity in and outstanding loans to, their U.S. affiliates--was $2,278.9 billion at the end of 2008 (table A and chart 1). The United Kingdom accounted for the largest position, $454.1 billion, or 20 percent of the total, followed by Japan and the Netherlands, which each accounted for 11 percent of the total with positions of $259.6 billion and $259.4 billion, respectively (table 2.2 and chart 4). The next largest positions were for Canada (10 percent) and Germany (9 percent).

In 2008, the inward direct investment position increased 8 percent, or $169.0 billion, down markedly from the 15 percent increase in 2007. The slower growth in 2008 was the result of larger negative valuation adjustments and a decrease in net intercompany debt investment. These changes more than offset a sizable increase in equity capital and a much smaller increase in reinvested earnings.

Changes by component

The $169.0 billion increase in the inward direct investment position resulted from capital inflows of $316.1 billion, which were partly offset by negative valuation adjustments of $147.1 billion (table D and chart 5).

Capital flows

Capital inflows for foreign direct investment in the United States were $316.1 billion in 2008, up from $271.2 billion in 2007. Capital flows in 2008 consisted of $250.2 billion in net equity capital investment, $51.0 billion in reinvested earnings, and $15.0 billion in net intercompany debt investment.

Equity capital investment. Net equity capital investment by foreign parents in their U.S. affiliates was $250.2 billion in 2008, up from $155.4 billion in 2007 and nearly as high as in 2000, when net equity investments peaked at $259.6 billion. In 2008, net equity capital investment resulted from $288.2 billion in equity capital increases and partly offsetting equity capital decreases of $38.0 billion. Boosted by a few large transactions, equity capital increases were up 20 percent in 2008, as foreign investors' expenditures to acquire U.S. businesses increased despite tightening credit conditions, slower growth in the United States and countries that are important sources of direct investment, and a slowdown in worldwide merger activity. Acquisitions in 2008 were broadly based by industry. (6) Equity capital increases in 2008 also reflected capital contributions made by foreign parents to their existing U.S. affiliates, especially those in "finance (except banks) and insurance" and in banking. Many of these affiliates suffered capital losses in 2008. Equity capital decreases, which decrease the inward position, were down 55 percent from 2007, as there were fewer large selloffs of U.S. affiliates and returns of capital in 2008.

[GRAPHIC 5 OMITTED]

Equity capital increases in 2008 were widespread by industry and by country of foreign parent. The largest increases were in manufacturing and in "finance (except banks) and insurance," which together accounted for 58 percent of equity capital increases in 2008. Within manufacturing, equity capital increases were largest in "other" manufacturing, especially beverages and tobacco products, and in chemicals; increases in both were mostly attributable to acquisitions of U.S. businesses. European investors accounted for more than three-quarters of the equity increase in manufacturing. In "finance (except banks) and insurance," equity capital increases were broadly based by country of foreign parent and reflected both acquisitions, especially in insurance, and capital contributions to existing affiliates, especially in nonbank finance. Overall, by country, the largest equity increases were from the Netherlands, the United Kingdom, Japan, and Canada. Equity capital decreases were widely dispersed by industry and by country.

Reinvested earnings. The foreign parent's share of U.S. affiliates' current-period earnings less distributions to the parents from affiliates' current and cumulative retained earnings--that is, reinvested earnings--added $51.0 billion to the inward direct investment position in 2008. Reinvested earnings were up 14 percent from 2007 despite a small decline in earnings for 2008 as distributions to foreign parents fell more sharply than earnings. In recent years, reinvested earnings have contributed substantially to growth in the inward investment position.

Reinvested earnings were largest for affiliates in "finance (except banks) and insurance," in wholesale trade, and in "other industries" which together more than accounted for the overall total. Within "other industries," reinvested earnings were largest in mining. By country, reinvested earnings were largest for affiliates with parents in Switzerland, the United Kingdom, and France.

Earnings reinvested in U.S. affiliates increased 14 percent in 2008 despite a $3.7 billion, or 4 percent, decrease in earnings, to $93.2 billion. This marked the second consecutive year of decline in affiliates' earnings, which peaked at $126.3 billion in 2006. The decline in 2008 was in line with a 15 percent contraction in U.S. corporate profits. (7) U.S. affiliates' earnings were down in several industries but banks--which suffered a sharp increase in losses as a result of turmoil in financial markets--more than accounted for the overall decline. The reinvestment ratio--the ratio of reinvested earnings to total earnings--was 55 percent in 2008, up from 46 percent in 2007, as distributions to foreign parents fell more sharply than earnings. The largest increase in reinvested earnings was in "finance (except banks) and insurance," reflecting both improved earnings and reduced distributions to foreign parents. (8)

Intercompany debt investment. Borrowing and lending transactions between U.S. affiliates and foreign parent groups increased the inward direct investment position $15.0 billion in 2008, compared with $71.0 billion in 2007. Net debt investment in 2008 resulted from a $17.3 billion increase in U.S. affiliates' debt obligations to their foreign parents or other members of the foreign parent group, which was partly offset by a $2.3 billion increase in affiliates' debt claims on foreign parent group members. Net debt investment was held down by several sizable transactions in which U.S. affiliates paid down their debts. The largest increase in position due to net debt investment in 2008 was for affiliates in "finance (except banks) and insurance," followed by those in "other industries," especially utilities. By country, the "United Kingdom Islands, Caribbean" contributed most to the increase in the net intercompany debt position, followed by the United Kingdom and the Netherlands.

Valuation adjustments

Valuation adjustments decreased the inward position $147.1 billion in 2008 after decreasing it $1.8 billion in 2007. Valuation adjustments consisted of -$6.4 billion in currency-translation adjustments and -$140.7 billion in "other" valuation adjustments, which were largely attributable to capital losses. Negative valuation adjustments were largest, by far, in "finance (except banks) and insurance" and in banking. These industries were hit particularly hard by widespread write-downs of financial assets as a result of the unsettled financial market conditions that began in the second half of 2007.

Changes by area and by country

In 2008, Europe accounted for 68 percent of the overall increase in the inward direct investment position (table E). The increase in the position for Asia and Pacific was also substantial, accounting for 27 percent of the overall increase. (9)

Europe. The position increased $115.3 billion. Much of the increase was attributable to increases in the position for the Netherlands and the United Kingdom, which together accounted for more than two-thirds of the region's increase. There were also large increases for Hungary, Switzerland, and Spain.

The position for the Netherlands increased $51.2 billion. The largest increase was in manufacturing, followed by wholesale trade and information. Within manufacturing, acquisitions in "other" manufacturing, especially beverages and tobacco products, contributed most to the increase. Acquisitions also boosted the position in wholesale trade.

For the United Kingdom, the $27.6 billion increase was broadly based by industry. The largest increases were in wholesale trade and in manufacturing, especially "other" manufacturing and transportation equipment. In "other" manufacturing, much of the increase was in medical equipment and in petroleum.

The position for Hungary increased $17.5 billion, to $62.5 billion. The increase reflected many cases in which U.S. affiliates were owned by foreign parents in other countries, but the intercompany debt increases involved Hungarian members of the affiliates' foreign parent groups. The position for Switzerland increased $12.4 billion, mainly in manufacturing; the largest increase within manufacturing was in "other" manufacturing, especially medical equipment. In percentage terms, the position for Finland more than doubled, mainly because of acquisitions.

In contrast to these increases, the position for some countries within Europe decreased. The largest decreases were for Luxembourg and Sweden, which decreased $7.3 billion and $7.1 billion, respectively, and were mainly due to changes in the accounts of existing affiliates; outflows on intercompany debt payables contributed most to the changes.

Asia and Pacific. The position increased $46.1 billion in 2008. The position for Japan increased $29.1 billion, accounting for 63 percent of the region's increase. For Japan, increases were widespread by industry. The largest increases were in manufacturing, in wholesale trade, and in "finance (except banks) and insurance." Within manufacturing, chemicals had the largest increase, which was mainly due to acquisitions. Acquisitions were also the main cause of increases in wholesale trade and in "finance (except banks) and insurance.

The increase in position for Australia was also sizable. Much of the $14.1 billion increase was attributable to "other industries," including transportation and mining.

Canada. The position increased $13.9 billion and was largely attributable to increases in banking and in information. In both industries, acquisitions were the main contributor to the increase.

Middle East and Africa. The position for Africa increased $0.6 billion, with manufacturing contributing most to the change. In contrast, the position for the Middle East decreased $0.4 billion, reflecting decreases in real estate and rental and leasing and in banking.

Latin America and Other Western Hemisphere. The position decreased $6.6 billion. The "United Kingdom Islands, Caribbean" more than accounted for the change, with a $12.8 billion decrease.

Revisions

The statistics on direct investment positions presented in this article for 2008 are preliminary. The revised statistics for both outward and inward direct investment positions and related capital flows for 2006-2007 incorporate new survey data collected in BEA's quarterly surveys of transactions between parents and their affiliates and in annual surveys of multinational companies' financial and operating data. (10)

The historical-cost outward direct investment position for 2006 was revised up $22.6 billion, to $2,477.3 billion. The upward revision was attributable to a $20.0 billion revision to valuation adjustments from negative to positive and a $2.6 billion upward revision to capital flows. The outward position for 2007 was revised up $125.7 billion, to $2,916.9 billion. The revision was the result of the $22.6 billion upward revision to the 2006 position, a $64.6 billion upward revision to 2007 capital flows, and a $38.5 billion upward revision to 2007 valuation adjustments.

The historical-cost inward direct investment position for 2006 was revised down $3.4 billion, to $1,840.5 billion. The small downward revision resulted from a $3.9 billion downward revision to valuation adjustments and a partly offsetting upward revision of $0.4 billion to capital inflows. The inward position for 2007 was revised up $16.8 billion, to $2,109.9 billion. The revision was the net result of a $38.3 billion upward revision to capital inflows, which was partly offset by an $18.1 billion downward revision to valuation adjustments and the $3.4 billion downward revision to the 2006 position.

Tables 1.1-2.2 follow.

Data Availability

This article summarizes the preliminary statistics on direct investment positions for 2008. It also presents revised statistics on both outward and inward direct investment for 2006-2007. More detailed statistics on the positions and capital transactions and related income flows for both outward and inward investment will be published in the September 2009 SURVEY OF CURRENT BUSINESS.

Detailed statistics on the outward direct investment position and related capital and income flows for 1982-2008 and statistics on the inward direct investment position and related capital and income flows for 1980-2008 are available on BEA's Web site. To access these files, which can be downloaded at no charge, go to BEA's Web site at www.bea.gov.

For more information on these products and how to access them, see the guide to BEA information on direct investment at www.bea.gov/scb/account_articles/international/iidguide.htm.

Alternative Measures of the Direct Investment Positions

The detailed statistics on the positions of U.S. direct investment abroad and of foreign direct investment in the United States by country and industry are only prepared on a historical-cost basis, so they largely reflect the price levels of earlier periods. The statistics are also prepared on current-cost and market-value bases, but only at an aggregate level. The current-cost statistics value the U.S. and foreign parents' shares of their affiliates' investment in plant and equipment, using the current cost of capital equipment; in land, using general price indexes; and in inventories, using estimates of their replacement cost. The market-value statistics value the equity portion of direct investment using indexes of stock market prices.

The historical-cost statistics are not usually adjusted to reflect the changes in the current costs or the replacement costs of tangible assets or in the stock market valuations of firms. Over time, the current costs of tangible assets and the stock market valuations of firms tend to increase. As a result, the historical-cost statistics on the positions tend to be less than the current-cost and market-value statistics on the positions. However, due to the large declines in equity prices, the market value is less for the position of U.S. direct investment abroad in 2008. The current-cost statistics on the position are discussed in "The International Investment Position of the United States at Yearend 2008" in this issue.

Alternative Direct Investment Positions, 2007 and 2008
[Millions of dollars]

 Changes in 2008
 Position at
 Valuation method yearend Capital
 2007 (r) Total flows

U.S. direct investment abroad:
 Historical cost 2,916,930 245,091 311,796
 Current cost 3,451,482 247,302 332,012
 Market value 5,227,962 -2,156,773 332,012

Foreign direct investment in the
 United States:
 Historical cost 2,109,876 169,016 316,112
 Current cost 2,450,132 196,715 319,737
 Market value 3,593,291 -1,036,409 319,737

 Changes in 2008
 Position at
 Valuation method Valuation yearend
 adjustments 2008 (p)

U.S. direct investment abroad:
 Historical cost -66,705 3,162,021
 Current cost -84,710 3,698,784
 Market value -2,488,785 3,071,189

Foreign direct investment in the
 United States:
 Historical cost -147,097 2,278,892
 Current cost -123,022 2,646,847
 Market value -1,356,146 2,556,882

(p) Preliminary

(r) Revised

Holding Companies in the Data on U.S. Direct Investment Abroad

For the past two decades, U.S. parent companies have funneled an increasing share of their direct investments abroad through holding company affiliates. (1) Foreign affiliates classified as holding companies accounted for 36 percent of the U.S. direct investment position abroad in 2008. (2) In 1982, foreign affiliates classified as holding companies accounted for 9 percent of the U.S. direct investment position abroad (chart A). The upward trend of the holding company share is part of a broader trend of indirect ownership in which U.S. parents own foreign affiliates that, in turn, own other foreign affiliates.

One consequence of the rising use of indirect ownership arrangements is that U.S. direct investment abroad statistics on the position and related flows show industry and country patterns that are increasingly different from the industries and countries in which the production and sale of goods and services by foreign affiliates occurs. (3)

Data from BEA's surveys of the operations of U.S. parent companies and their foreign affiliates suggest the degree to which indirect ownership structures may affect the country and industry distributions of the outward position data? The statistics on the operations of these foreign affiliates are classified in the country where the affiliate's physical assets are located or where its primary activity is carried out, and they are classified in the industry that reflects the affiliate's primary activity. Thus, these statistics reflect more closely the countries and industries in which the production of goods and services by foreign affiliates actually occurs than do the statistics classified by the country and industry of the affiliate with which the parent company has a direct position or transaction.

The use of holding company affiliates appears to be the most important reason for differences in the patterns of investment by country or by industry between the position statistics and the operations statistics. However, other factors also contribute, including indirect ownership through other types of affiliates, the fact that the operations statistics, unlike the position statistics, are not adjusted for percentage of U.S. ownership, and duplication in some measures of affiliate operations--such as assets and earnings when affiliates hold equity or debt positions in one another. A comparison of the statistics on the outward direct investment position with the statistics on the assets and the net property, plant, and equipment (PP&E) of foreign affiliates for 2006 (the latest year for which detailed operations statistics are available) illustrates the differences in distribution between the position statistics and the statistics on the operations. In that year, manufacturing's share of the outward position, 18 percent, was similar to its 15 percent share of the assets, but much lower than its 40 percent share of the PP&E, of foreign affiliates. By country, the Netherlands' share of the direct investment position was 11 percent, compared with its 9 percent share of assets and 3 percent share of PP&E. (5)

For further discussion of the effect of holding companies on the direct investment abroad series, see the "Technical Note" in Maria Borga and Raymond J. Mataloni, Jr., "Direct Investment Positions for 2000: Country and Industry Detail," SURVEY OF CURRENT BUSINESS 81 (July 2001): 23-25.

1. A holding company is a company whose primary activity is holding the securities or financial assets of other companies.

2. In 2008, the share reached a new record high, slightly surpassing the previous record of 35 percent in 2004. The lower shares in 2005-2007 were primarily the result of large earnings distributions (and the resulting negative reinvested earnings) in 2005 associated with the American Jobs Creation Act of 2004. The largest distributions were from holding companies, especially those with parents in chemicals manufacturing.

3. Statistics on the outward position and related flows are allocated to the industries and countries of the affiliates with which the U.S. parent companies have direct transactions and positions rather than to the industries and countries of the affiliates whose operations the parents ultimately own or control. This convention follows international guidelines in the International Monetary Fund's Balance of Payments Manual, 6th edition.

4. Besides chain-of-ownership information, data collected on the operations survey include items such as assets, sales, employment, and net property, plant, and equipment.

5. The statistics used to derive the shares of the assets and the PP&E cover only those foreign affiliates that are majority-owned by U.S. direct investors.

[GRAPHIC A OMITTED]

Key Terms

For a more detailed discussion of the terms in this box, see Foreign Direct Investment in the United States: Final Results From the 2002 Benchmark Survey and U.S. Direct Investment Abroad: Final Results From the 2004 Benchmark Survey. These methodologies are also available on BEA's Web site at www.bea.gov.

Direct investment

This is investment in which a resident (in the broad legal sense, including a company) of one country obtains a lasting interest in, and a degree of influence over the management of, a business enterprise in another country. In the United States (and in the international statistical guidelines), the criterion used to define direct investment is ownership of at least 10 percent of the voting securities of an incorporated business enterprise or the equivalent interest in an unincorporated business enterprise.

U.S. direct investment abroad (outward direct investment) represents the ownership or control, directly or indirectly, by one U.S. resident (U.S. parent) of at least 10 percent of a foreign business enterprise, which is called a foreign affiliate.

Foreign direct investment in the United States (inward direct investment) represents the ownership or control, directly or indirectly, by one foreign resident (foreign parent) of at least 10 percent of a U.S. business enterprise, which is called a U.S. affiliate. Foreign direct investment includes equity and net debt investments by the foreign parent as well as net debt investments by any other members of the foreign parent group. The foreign parent group consists of (1) the foreign parent, (2) any foreign person (including a company), proceeding up the foreign parent's ownership chain, that owns more than 50 percent of the person below it, up to and including the ultimate beneficial owner (UBO), and (3) any foreign person, proceeding down the ownership chain(s) of each of these members, that is owned more than 50 percent by the person above it.

The UBO of a U.S. affiliate is the first person that is not more than 50 percent owned by another person in the affiliate's ownership chain beginning with the foreign parent. The UBO ultimately owns or controls the affiliate and derives the benefits and assumes the risks associated with ownership or control. Unlike the foreign parent, the UBO of a U.S. affiliate may be located in the United States.

Direct investment position

This is the value of direct investors' equity in, and net outstanding loans to, their affiliates. The direct investment position may be viewed as the direct investor's net financial claims on their affiliates. BEA prepares statistics of the positions for outward direct investment and for inward direct investment at historical cost, current cost, and market value. This article features the historical-cost measure. This valuation is principally derived from the books of affiliates and generally reflects the acquisition cost of the investments, cumulative reinvested earnings, and cumulative depreciation of fixed assets. Historical-cost statistics are consistent with U.S. generally accepted accounting principles (GAAP) in most areas. GAAP, however, values the holdings of most financial instruments at current-period prices rather than at historical cost. See the box "Alternative Measures of the Direct Investment Positions."

Direct investment capital flows arise from transactions that change financial claims (assets) and liabilities between U.S. parents and their foreign affiliates or between U.S. affiliates and their foreign parents. Capital outflows arise from transactions that increase U.S. assets or decrease U.S. liabilities. Capital inflows arise from transactions that decrease U.S. assets or increase U.S. liabilities. Direct investment capital flows consist Of equity capital investment, intercompany debt investment, and reinvested earnings.

Equity capital investment is the difference between equity capital increases and decreases. Equity capital increases arise from (1) parents' establishments of new affiliates, (2) payments by parents to unaffiliated parties for the purchase of capital stock or other equity interests when they acquire an existing business, (3) payments to acquire additional ownership interests in their affiliates, and (4) capital contributions to their affiliates. Equity capital decreases are the funds parents receive when they reduce their equity interest in their affiliates.

Intercompany debt investment results from changes in net outstanding loans between parents (or, for inward investment, other foreign parent group members) and their affiliates, including loans by parents to affiliates and loans by affiliates to parents.

Reinvested earnings (without current-cost adjustment) are the parents' share of the current-period operating earnings of their affiliates less distributions of earnings that affiliates make to their parents. A related measure of reinvested earnings is featured in the international transactions accounts; this measure includes a current-cost adjustment that reflects current-period prices. This adjustment converts depreciation charges to a current-cost, or replacement-cost, basis; it adds charges for depletion of natural resources back to income and reinvested earnings, because these charges are not treated as production costs in the national income and product accounts; and it reallocates expenses for mineral exploration and development across periods, so that they are written off over their economic lives rather than all at once.

Various valuation adjustments to the historical-cost position are made to account for the differences between changes in the historical-cost positions, which are measured at book value, and direct investment capital flows, which are measured at transaction value. (Unlike the positions on current-cost and market-value bases, the historical-cost position is not usually adjusted to account for changes in the replacement cost of the tangible assets of affiliates or in the market value of parent companies' equity in affiliates.)

Valuation adjustments to the historical-cost position consist of currency-translation adjustments and "other" adjustments. Currency-translation adjustments account for changes in the exchange rates that are used to translate affiliates' foreign-currency-denominated assets and liabilities into U.S. dollars. "Other" valuation adjustments account for (1) differences between the proceeds from the sale or liquidation of affiliates and their book values, (2) differences between the purchase prices of affiliates and their book values, (3) writeoffs resulting from uncompensated expropriations of affiliates, (4) the reclassification of investment positions between direct investment and other investment, and (5) capital gains and losses (excluding currency-translation adjustments) on transactions, such as the sale of assets (excluding inventories) or capital gains and losses that represent the revaluation of the assets of ongoing affiliates for reasons other than exchange-rate changes, such as the write-down of assets. In addition, for individual industries, offsetting adjustments may be made to effect changes in the industry classification of an affiliate. For individual countries, offsetting adjustments are made when the political boundaries of countries change. In addition, for inward direct investment, offsetting adjustments are made when transactions between foreign residents result in a change in the country of the foreign parent.

Acknowledgments

The statistics on the U.S. direct investment position abroad are largely based on data from BEA's quarterly survey of transactions between U.S. parent companies and their foreign affiliates. The survey was conducted under the supervision of Mark W. New, who was assisted by Iris Branscome, Laura A. Downey, David L. Grayton, Marie K. Laddomada, Sherry Lee, Louis C. Luu, Leila C. Morrison, and Dwayne Torney. Computer programming for data estimation and tabulation was provided by Marie Colosimo.

The statistics on the foreign direct investment position in the United States are based largely on data from BEA's quarterly survey of transactions between U.S. affiliates of foreign companies and their foreign parents. The survey was conducted under the supervision of Gregory G. Fouch, who was assisted by Peter J. Fox, Barbara C. Huang, Susan M. LaPorte, Robert L. Rosholt, and Helen P. Yiu. Computer programming for data estimation and tabulation was provided by Karen E. Poffel and Paula D. Brown.

(1.) In this article, "outward direct investment" and "outward" are shorthand for "U.S. direct investment abroad." Likewise, "inward direct investment" or "inward" are shorthand for "foreign direct investment in the United States."

(2.) The measure of direct investment capital flows used in this article differs from the measure of direct investment capital flows used in the international transaction accounts because the reinvested earnings component of capital flows included here excludes a current cost adjustment. See the box "Key Terms" for more information. In this article, "(direct investment) capital flows" is shorthand for "(direct investment) capital flows without current-cost adjustment" and "reinvested earnings" is shorthand for "reinvested earnings without current-cost adjustment."

(3.) The outward direct investment position and related capital flow statistics are classified by country of the foreign affiliate with which the U.S. parent has direct transactions and positions. The inward direct investment position and related capital flow statistics are classified by country of the foreign parent or of other members of the foreign parent group that have direct transactions and positions with the U.S. affiliate.

(4.) The falloff in equity capital increases coincided with a drop of nearly a third in the volume of global mergers and acquisitions in 2008, according to data from Thompson Reuters.

(5.) In this article, "banks" refers to "depository institutions," which is the industry title that appears in the tables.

(6.) According to data from BEA's survey of new foreign direct investment, total outlays to acquire or establish U.S. businesses, which include those financed by capital inflows from foreign parents, were $260.4 billion in 2008, up slightly from 2007. See Thomas Anderson, "Foreign Direct Investment in the United States: New Investment in 2008," SURVEY OF CURRENT BUSINESS 89 (June 2009): 54-61. The new investment data include only those transactions in which U.S. businesses are newly acquired or established by foreign direct investors, regardless of the source of funding. Changes in the inward direct investment position differ from new investment outlays by excluding investment financed by sources other than the foreign parent group and by including transactions that fund ongoing operations of U.S. affiliates, subtractions from investment as well as additions, and valuation adjustments.

Despite these differences, the two types of data are related because any outlays to acquire or establish U.S. businesses that are funded by foreign parent groups are included in the capital transactions that largely determine the changes in the inward direct investment position. It is of note that although foreign parent-funded outlays to acquire or establish U.S. businesses typically appear in the direct investment capital transactions as equity investments, these transactions are sometimes funded in part, or in whole, by debt investment from the foreign parent. According to data from the new investment survey, foreign parent groups financed nearly 90 per cent of total outlays to acquire or establish U.S. businesses in 2008.

(7.) The measure of U.S. corporate profits referenced here excludes inventory valuation and capital consumption adjustments as does the measure of affiliates' earnings discussed in this article (see table 1.12 of the national income and product accounts).

(8.) The measure of affiliate earnings discussed here reflects income earned as a result of current production and excludes capital gains and losses; capital gains and losses of U.S. affiliates are included in "other" valuation adjustments made to the position.

(9.) In this article, the statistics on the inward direct investment position are classified by country of foreign parent or of other members of the foreign parent group that have direct transactions and positions with the U.S. affiliate, which is consistent with international standards. Statistics classified on this basis may be higher or lower than those classified by country of ultimate beneficial owner (UBO) for certain countries, particularly when investments have been channeled through affiliates in financial centers in other countries. For tabulations on both bases through 2007 (preliminary), see table 17 in "Direct Investment, 2004 2007: Detailed Historical-Cost Positions and Related Capital and Income Flows" SURVEY 88 (September 2008): 120. Revised statistics for 2006 and 2007 as well as preliminary statistics for 2008 on both bases will be published in the September 2009 SURVEY.

(10.) For the previously published statistics, see Marilyn Ibarra and Jennifer Koncz, "Direct Investment Positions for 2007: Country and Industry Detail," SURVEY 88 (July 2008): 20-35.

Table A. Direct Investment Positions on a Historical-Cost Basis,
1982-2008

 Percent change from
 Billions of dollars preceding year

Yearend Outward Inward Outward Inward
 position (1) position (2) position (1) position (2)

1982 207.8 124.7 ... ...
1983 212.2 137.1 2.1 9.9
1984 218.1 164.6 2.8 20.1
1985 238.4 184.6 9.3 12.2
1986 270.5 220.4 13.5 19.4
1987 326.3 263.4 20.6 19.5
1988 347.2 314.8 6.4 19.5
1989 381.8 368.9 10.0 17.2
1990 430.5 394.9 12.8 7.0
1991 467.8 419.1 8.7 6.1
1992 502.1 423.1 7.3 1.0
1993 564.3 467.4 12.4 10.5
1994 612.9 480.7 (3) (3)
1995 699.0 535.6 14.1 11.4
1996 795.2 598.0 13.8 11.7
1997 871.3 681.8 9.6 14.0
1998 1,000.7 778.4 14.8 14.2
1999 1,216.0 955.7 21.5 22.8
2000 1,316.2 1,256.9 8.2 31.5
2001 1,460.4 1,344.0 10.9 6.9
2002 1,616.5 1,327.2 10.7 -1.3
2003 1,769.6 1,395.2 9.5 5.1
2004 2,160.8 1,520.3 22.1 9.0
2005 2,241.7 1,634.1 3.7 7.5
2006 2,477.3 (r) 1,840.5 (r) 10.5 12.6
2007 2,916.9 (r) 2,109.9 (r) 17.7 14.6
2008 3,162.0 (p) 2,278.9 (p) 8.4 8.0

(p) Preliminary

(r) Revised

(1.) U.S. direct investment position abroad.

(2.) Foreign direct investment position in the United States.

(3.) The direct investment positions reflect a discontinuity
between 1993 and 1994 because of the reclassification of
intercompany debt between parent companies and affiliates that are
nondepository financial intermediaries from direct investment to
other investment accounts.

Table B. Change in the Outward Direct Investment Position
on a Historical-Cost Basis by Component
[Billions of dollars]

 2007 2008

Total 439.7 245.1
 Capital flows without current-cost adjustment 378.4 311.8
 Equity capital 174.9 90.2
 Increases 248.9 132.7
 Decreases 74.0 42.4
 Intercompany debt -15.3 -9.7
 Reinvested earnings without current-cost
 adjustment 218.8 231.3
 Valuation adjustments 61.3 -66.7
 Currency translation 54.8 -70.1
 Other 6.5 3.4

Table C. Change in the Outward Direct Investment Position
on a Historical-Cost Basis by Country of Foreign Affiliate

 Change (2007-2008)

 Billions of
 dollars Percent

All countries 245.1 8

 Canada -6.7 -3

 Europe 150.4 9
 Of which:
 Netherlands 53.5 14
 Ireland 31.3 27
 Switzerland 25.4 26
 Germany 10.0 10
 Luxembourg 9.5 6
 Sweden 8.3 24
 Spain 3.0 5
 France 4.9 7
 United Kingdom -3.7 -1
 Russia -5.2 -36

 Latin America and Other Western Hemisphere 55.1 11
 Of which:
 United Kingdom Islands, Caribbean 30.7 28
 Netherlands Antilles 5.0 77
 Mexico 4.4 5
 Bermuda 3.6 2

 Africa 4.1 13

 Middle East 4.2 15

 Asia and Pacific 37.9 8
 Of which:
 China 17.1 60
 Singapore 11.7 12
 Australia 5.2 6
 Japan -2.7 -3

Table D. Change in the Inward Direct Investment Position
on a Historical-Cost Basis by Component
[Billions of dollars]

 2007 2008

Total 269.4 169.0
 Capital flows without current-cost
 adjustment 271.2 316.1
 Equity capital 155.4 250.2
 Increases 240.6 288.2
 Decreases 85.3 38.0
 Intercompany debt 71.0 15.0
 Reinvested earnings without
 current-cost adjustment 44.8 51.0
Valuation adjustments -1.8 -147.1
 Currency translation 4.9 -6.4
 Other -6.6 -140.7

Table E. Change in the Inward Direct Investment Position
on a Historical-Cost Basis by Country of Each Member
of the Foreign Parent Group

 Change (2007-2008)

 Billions
 of dollars Percent

All countries 169.0 8

 Canada 13.9 7

 Europe 115.3 8
 Of which:
 Netherlands 51.2 25
 United Kingdom 27.6 6
 Hungary 17.5 39
 Switzerland 12.4 8
 Spain 11.2 41
 Finland 7.1 131
 Italy 4.3 32
 France 3.3 2
 Germany -3.0 -1
 Belgium -5.1 -21
 Sweden -7.1 -17
 Luxembourg -7.3 -6

 Latin America and Other Western Hemisphere -6.6 -12
 Of which:
 Bermuda 6.1 129
 United Kingdom Islands, Caribbean -12.8 -37

 Africa 0.6 43

 Middle East -0.4 -3

 Asia and Pacific 46.1 14
 Of which:
 Japan 29.1 13
 Australia 14.1 28

Table 1.1. U.S. Direct Investment Position Abroad on a
Historical-Cost Basis, 2007
[Millions of dollars]

 Manufacturing

 All
 industries Mining
 Total

 All countries 2,916,930 143,430 493,064

Canada 233,971 27,794 78,059

Europe (1) 1,659,499 42,832 241,498
 Austria 16,527 1 4,009
 Belgium 62,959 14 18,963
 Czech Republic 4,180 0 1,850
 Denmark 8,273 6 3,576
 Finland 2,196 0 950
 France 70,113 96 28,502
 Germany 100,806 732 29,446
 Greece 2,116 -4 540
 Hungary 4,302 (D) 826
 Ireland 114,876 (D) 15,693
 Italy 26,731 30 11,169
 Luxembourg 153,639 163 3,335
 Netherlands 389,430 3,534 26,009
 Norway 12,044 8,031 1,564
 Poland 15,239 0 4,098
 Portugal 3,123 1 692
 Russia 14,404 10,171 2,213
 Spain 66,621 68 10,968
 Sweden 35,120 0 4,192
 Switzerland 97,917 139 8,521
 Turkey 5,974 -3 1,426
 United Kingdom 424,612 8,706 61,076
 Other 28,299 (D) 1,880
Latin America and Other
 Western Hemisphere 508,711 26,053 61,187
 South America 103,697 15,530 31,655
 Argentina 14,061 2,843 2,933
 Brazil 47,750 2,899 20,028
 Chile 11,568 1,177 2,351
 Colombia 4,496 1,409 1,340
 Ecuador 977 522 147
 Peru 7,551 4,882 509
 Venezuela 15,748 1,335 4,143
 Other 1,547 463 204
 Central America 103,122 4,194 25,463
 Costa Rica 2,265 (*) 1,373
 Honduras 640 0 443
 Mexico 91,259 4,165 22,807
 Panama 6,509 50 131
 Other 2,449 -21 709
 Other Western Hemisphere 301,891 6,329 4,070
 Barbados 674 8 287
 Bermuda 162,286 277 965
 Dominican Republic 766 0 458
 United Kingdom
 Islands, Caribbean 108,559 2,270 612
 Other 29,606 3,773 1,747

Africa 32,496 14,591 3,419
 Egypt 7,147 (D) 340
 Nigeria 1,433 67 94
 South Africa 5,198 (D) 2,343
 Other 18,718 (D) 642

Middle East 28,256 5,613 10,528
 Israel 9,464 0 6,256
 Saudi Arabia 5,013 406 (D)
 United Arab Emirates 2,969 (D) 506
 Other 10,810 (D) (D)

Asia and Pacific 453,997 26,547 98,373
 Australia 83,346 14,135 13,777
 China 28,579 1,772 18,261
 Hong Kong 50,199 (*) 3,668
 India 14,540 236 3,106
 Indonesia 17,679 5,971 349
 Japan 81,923 5 16,888
 Korea, Republic of 26,854 -1 9,203
 Malaysia 13,037 (D) 4,831
 New Zealand 5,395 332 1,249
 Philippines 7,066 21 3,920
 Singapore 94,810 (D) 14,295
 Taiwan 15,711 (*) 3,616
 Thailand 8,850 187 4,716
 Other 6,010 (D) 492

Addenda:
 European Union (27) (2) 1,504,444 15,092 227,205
 OPEC (3) 59,776 15,175 8,833

 Manufacturing

 Primary
 and
 Food Chemicals fabricated
 metals

 All countries 39,100 102,678 22,389

Canada 3,729 13,432 4,633

Europe (1) 25,924 54,300 12,410
 Austria 1 236 (D)
 Belgium 309 8,901 568
 Czech Republic 20 92 67
 Denmark 130 13 47
 Finland 0 124 34
 France 6,058 3,529 3,938
 Germany 726 5,301 2,247
 Greece 61 (D) 0
 Hungary 145 122 15
 Ireland 212 4,851 223
 Italy 813 2,374 525
 Luxembourg 0 (D) (*)
 Netherlands (D) 3,959 985
 Norway (D) 173 300
 Poland 836 841 357
 Portugal 10 124 12
 Russia 1,151 134 (D)
 Spain 705 4,094 191
 Sweden (D) 346 40
 Switzerland 147 2,981 158
 Turkey 48 559 2
 United Kingdom 6,302 15,352 2,364
 Other 244 (D) 156
Latin America and Other
 Western Hemisphere 4,982 14,572 2,450
 South America 1,934 8,966 800
 Argentina 207 1,546 11
 Brazil 1,121 5,213 709
 Chile 34 695 3
 Colombia 112 409 6
 Ecuador 28 20 (*)
 Peru (D) 191 (D)
 Venezuela 337 820 18
 Other (D) 73 (D)
 Central America 2,912 4,798 873
 Costa Rica 164 171 53
 Honduras -1 10 4
 Mexico 2,609 4,449 822
 Panama 35 70 4
 Other 106 97 -11
 Other Western Hemisphere 136 809 777
 Barbados 31 11 9
 Bermuda 0 (D) (*)
 Dominican Republic 64 30 (D)
 United Kingdom
 Islands, Caribbean 11 43 -37
 Other 30 (D) (D)

Africa 128 361 220
 Egypt 4 -64 8
 Nigeria 19 25 7
 South Africa 10 367 181
 Other 95 33 24

Middle East 131 1,213 67
 Israel 122 200 0
 Saudi Arabia 0 (D) (D)
 United Arab Emirates 11 115 (D)
 Other -2 (D) 0

Asia and Pacific 4,207 18,799 2,610
 Australia 1,497 3,725 1,125
 China 690 4,051 575
 Hong Kong 7 648 47
 India 54 1,373 (D)
 Indonesia -5 244 -5
 Japan 209 2,672 193
 Korea, Republic of 924 1,051 181
 Malaysia 37 902 16
 New Zealand (D) 158 31
 Philippines 196 689 11
 Singapore 1 1,589 56
 Taiwan 50 588 95
 Thailand 73 990 121
 Other (D) 120 (D)

Addenda:
 European Union (27) (2) 24,471 50,427 11,889
 OPEC (3) 373 2,077 87

 Manufacturing

 Computers Electrical
 Machinery and equipment
 electronic appliances,
 products and
 components

 All countries 32,397 69,159 18,909

Canada 4,476 4,352 2,333

Europe (1) 18,328 24,459 11,660
 Austria 289 (D) (D)
 Belgium 237 665 864
 Czech Republic 168 67 120
 Denmark 253 921 53
 Finland (D) 158 (D)
 France 1,825 1,960 181
 Germany 3,164 4,301 1,927
 Greece 1 14 0
 Hungary 69 53 -4
 Ireland 344 4,133 -50
 Italy 1,006 1,058 305
 Luxembourg (D) (D) (*)
 Netherlands 1,277 1,976 (D)
 Norway 1,241 (D) -8
 Poland 29 146 4
 Portugal (D) 73 15
 Russia (*) 51 4
 Spain 178 169 443
 Sweden 245 834 148
 Switzerland 1,636 1,397 489
 Turkey 3 19 1
 United Kingdom 5,870 4,566 2,048
 Other 92 (D) 20
Latin America and Other
 Western Hemisphere 3,198 1,840 1,486
 South America 2,292 2,121 54
 Argentina 144 81 -121
 Brazil 1,920 2,023 58
 Chile 66 11 (*)
 Colombia 57 (*) 9
 Ecuador 1 3 0
 Peru 4 1 0
 Venezuela 102 -1 108
 Other -3 2 0
 Central America (D) (D) 1,432
 Costa Rica 0 (D) 121
 Honduras (*) 0 0
 Mexico (D) (D) 1,311
 Panama 0 (*) 0
 Other 1 (D) (*)
 Other Western Hemisphere (D) (D) 0
 Barbados (*) 237 0
 Bermuda (D) (D) 0
 Dominican Republic 0 -13 0
 United Kingdom
 Islands, Caribbean 1 24 0
 Other 0 (*) 0

Africa 281 96 140
 Egypt (D) 5 5
 Nigeria (D) 0 0
 South Africa 154 91 135
 Other (D) (*) 0

Middle East 405 5,217 48
 Israel (D) 5,133 (D)
 Saudi Arabia (D) (D) 0
 United Arab Emirates (D) (D) (D)
 Other 2 0 0

Asia and Pacific 5,709 33,194 3,244
 Australia 757 750 209
 China 1,313 6,931 578
 Hong Kong 398 1,406 228
 India 662 (D) 179
 Indonesia 15 (D) (D)
 Japan 490 3,232 923
 Korea, Republic of 273 2,816 333
 Malaysia 109 3,387 3
 New Zealand 34 107 (D)
 Philippines 46 2,232 2
 Singapore 1,198 8,887 621
 Taiwan 203 2,127 73
 Thailand 209 1,010 50
 Other 1 98 0

Addenda:
 European Union (27) (2) 15,408 23,102 11,173
 OPEC (3) 403 91 135

 Manufacturing

 Trans-
 portation Other Wholesale
 equipment manu- trade
 facturing

 All countries 58,768 149,664 154,780

Canada 12,618 32,487 17,346

Europe (1) 26,656 67,762 86,986
 Austria 1,294 96 2,548
 Belgium 930 6,489 6,066
 Czech Republic 967 349 51
 Denmark 2 2,156 1,093
 Finland (D) 140 819
 France 2,307 8,704 4,525
 Germany 7,791 3,988 10,008
 Greece 0 (D) 736
 Hungary 146 280 257
 Ireland 19 5,961 -634
 Italy 1,558 3,529 2,541
 Luxembourg (D) 3,417 2,317
 Netherlands -187 5,322 13,529
 Norway 0 -48 559
 Poland 650 1,234 355
 Portugal 361 (D) 716
 Russia 149 (D) 493
 Spain 1,289 3,899 3,186
 Sweden 470 (D) 966
 Switzerland 271 1,442 17,399
 Turkey 305 490 1,551
 United Kingdom 8,000 16,574 16,902
 Other 197 (D) 1,004
Latin America and Other
 Western Hemisphere 8,868 23,791 17,989
 South America 4,228 11,262 4,311
 Argentina 314 752 324
 Brazil 2,348 6,635 1,649
 Chile (D) (D) 896
 Colombia (D) (D) 503
 Ecuador (D) (D) 107
 Peru 0 212 386
 Venezuela 1,068 1,692 279
 Other 24 60 166
 Central America 4,640 0 3,600
 Costa Rica 0 (D) 8
 Honduras 43 388 109
 Mexico 4,602 (D) 2,780
 Panama 0 21 433
 Other -5 (D) 269
 Other Western Hemisphere (*) (D) 10,078
 Barbados (*) 0 2,112
 Bermuda 0 96 -941
 Dominican Republic 0 (D) 130
 United Kingdom
 Islands, Caribbean 0 570 8,127
 Other 0 (D) 652

Africa 1,062 1,132 1,045
 Egypt (D) 248 97
 Nigeria 0 (D) 35
 South Africa 1,005 399 804
 Other (D) (D) 109

Middle East 23 3,425 1,880
 Israel 0 631 837
 Saudi Arabia 23 73 (D)
 United Arab Emirates 0 (D) (D)
 Other 0 (D) 8

Asia and Pacific 9,543 21,067 29,534
 Australia 1,682 4,032 3,627
 China 1,872 2,251 2,216
 Hong Kong 33 901 5,739
 India (D) (D) 636
 Indonesia -47 (D) 124
 Japan 2,820 6,348 8,166
 Korea, Republic of 1,161 2,465 1,430
 Malaysia 45 330 192
 New Zealand 5 (D) 276
 Philippines 2 742 332
 Singapore 1,019 924 4,248
 Taiwan 93 387 1,878
 Thailand 577 1,687 410
 Other (D) (D) 259

Addenda:
 European Union (27) (2) 25,886 64,849 66,236
 OPEC (3) 1,043 4,625 1,484

 Finance
 (except
 Information Deposi- depository
 tory institutions)
 institu- and
 tions insurance

 All countries 114,578 127,047 617,312

Canada 4,118 3,649 30,011

Europe (1) 77,387 86,348 310,123
 Austria -110 1 (D)
 Belgium -716 (D) 28,778
 Czech Republic 208 1,466 591
 Denmark 614 (D) 322
 Finland 147 0 25
 France 1,633 2,514 7,683
 Germany 2,759 2,574 13,688
 Greece 44 -119 659
 Hungary 64 (D) 75
 Ireland 10,651 (D) 23,295
 Italy 2,198 351 3,306
 Luxembourg 2,208 943 27,025
 Netherlands 8,879 (D) 49,636
 Norway 110 (D) 336
 Poland 507 (D) 1,416
 Portugal 100 0 413
 Russia 29 1,057 63
 Spain 412 1,144 7,455
 Sweden 196 (D) 8,631
 Switzerland 2,244 7,664 5,318
 Turkey 69 2,643 142
 United Kingdom 45,034 22,717 121,229
 Other 106 2,071 (D)
Latin America and Other
 Western Hemisphere 8,224 8,032 187,482
 South America 3,662 6,796 17,584
 Argentina 1,178 351 1,128
 Brazil 1,791 3,932 11,221
 Chile 129 1,214 2,526
 Colombia 58 (D) 376
 Ecuador 2 (D) 40
 Peru 210 (D) 130
 Venezuela 43 (D) 2,046
 Other 251 179 117
 Central America 3,006 21,811 15,942
 Costa Rica 16 (D) (D)
 Honduras (*) 26 13
 Mexico 2,985 (D) 14,645
 Panama -6 (D) 765
 Other 11 (D) (D)
 Other Western Hemisphere 1,556 -20,575 153,956
 Barbados -1 0 702
 Bermuda 585 (D) 91,644
 Dominican Republic 20 (D) 1
 United Kingdom
 Islands, Caribbean 472 -18,927 50,187
 Other 481 -1,835 11,422

Africa 134 1,750 2,237
 Egypt 2 (D) 23
 Nigeria 1 (D) (D)
 South Africa 98 615 127
 Other 34 575 (D)

Middle East 1,045 553 332
 Israel 960 (D) 86
 Saudi Arabia 13 0 (D)
 United Arab Emirates 83 (D) 28
 Other -11 88 (D)

Asia and Pacific 23,671 26,715 87,127
 Australia 12,217 2,459 11,007
 China 516 857 1,315
 Hong Kong 945 2,921 15,815
 India 3,117 2,552 1,987
 Indonesia -50 (D) (D)
 Japan 4,444 756 35,655
 Korea, Republic of 304 10,007 4,055
 Malaysia 116 1,160 425
 New Zealand 242 (D) 1,366
 Philippines 37 510 (D)
 Singapore 1,489 2,404 (D)
 Taiwan 270 799 8,305
 Thailand 22 1,471 1,128
 Other 1 345 (D)

Addenda:
 European Union (27) (2) 74,920 72,677 296,516
 OPEC (3) 108 (D) 2,810

 Pro-
 fessional,
 scientific, Holding Other
 and companies industries
 technical (nonbank)
 services

 All countries 68,978 998,618 199,123

Canada 9,114 29,867 34,013

Europe (1) 43,385 660,673 110,268
 Austria 341 6,991 (D)
 Belgium 2,009 2,810 (D)
 Czech Republic 27 (D) (D)
 Denmark 159 2,051 (D)
 Finland 87 2 165
 France 2,022 11,990 11,148
 Germany 4,439 30,394 6,766
 Greece 11 240 9
 Hungary 71 (D) 777
 Ireland 10,489 20,337 22,442
 Italy 1,068 1,325 4,744
 Luxembourg -24 116,577 1,095
 Netherlands 3,374 263,592 (D)
 Norway 172 269 (D)
 Poland 141 (D) (D)
 Portugal 39 126 1,036
 Russia 93 (D) (D)
 Spain 2,123 38,821 2,444
 Sweden 440 17,813 (D)
 Switzerland 721 50,216 5,695
 Turkey 11 (*) 136
 United Kingdom 15,528 93,087 40,333
 Other 43 4,067 (D)
Latin America and Other
 Western Hemisphere 1,902 174,210 23,632
 South America 1,111 18,555 4,493
 Argentina 58 4,650 597
 Brazil 665 4,987 579
 Chile 137 918 2,220
 Colombia 31 147 (D)
 Ecuador 2 (D) 18
 Peru 70 (D) 500
 Venezuela 117 7,281 (D)
 Other 32 1 134
 Central America 638 18,050 10,419
 Costa Rica 125 900 -216
 Honduras (*) -1 48
 Mexico 532 14,497 (D)
 Panama -25 2,650 (D)
 Other 6 4 264
 Other Western Hemisphere 152 137,605 8,720
 Barbados (*) (D) (D)
 Bermuda 136 64,271 (D)
 Dominican Republic 1 (*) (D)
 United Kingdom
 Islands, Caribbean 92 64,412 1,315
 Other -76 (D) (D)

Africa 320 7,889 1,111
 Egypt 1 -2 -57
 Nigeria -1 811 66
 South Africa 242 (D) 285
 Other 77 (D) 818

Middle East 563 7,083 659
 Israel 380 715 (D)
 Saudi Arabia 139 3,735 62
 United Arab Emirates 52 (D) 86
 Other -8 (D) (D)

Asia and Pacific 13,694 118,896 29,440
 Australia 3,939 15,709 6,475
 China 651 1,280 1,711
 Hong Kong 2,318 17,165 1,627
 India 1,926 401 578
 Indonesia 22 9,439 (D)
 Japan 2,075 5,507 8,427
 Korea, Republic of 339 (D) (D)
 Malaysia 240 2,946 (D)
 New Zealand 405 (D) 1,046
 Philippines 270 (D) 463
 Singapore 1,052 (D) (D)
 Taiwan 229 143 470
 Thailand 230 125 562
 Other 1 118 4,348

Addenda:
 European Union (27) (2) 42,379 606,892 102,528
 OPEC (3) 347 27,946 (D)

(*) A nonzero value between -$500,000 and $500,000.

(D) Suppressed to avoid disclosure of data of individual companies.

(1.) In 2007, the "Euro area" includes Austria, Belgium, Finland,
France, Germany, Greece, Ireland, Italy, Luxembourg, the
Netherlands, Portugal, Slovenia and Spain. For 2007, the U.S.
direct investment position in the "Euro area" was $1,009,292
million.

(2.) The European Union (27) comprises Austria, Belgium, Bulgaria,
Cyprus, the Czech Republic, Denmark, Estonia, Finland, France,
Germany, Greece, Ireland, Italy, Latvia, Lithuania, Luxembourg,
Malta, the Netherlands, Poland, Ports gal, Romania, Slovakia,
Slovenia, Hungary pain, Sweden, and the United Kingdom.

(3.) OPEC is the Organization of Petroleum Exporting Countries. In
2007, its members were Algeria, Angola, Indonesia, Iran, Iraq,
Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, the United Arab
Emirates, and Venezuela.

NOTE. Estimates for 2007 are revised.

Table 1.2. U.S. Direct Investment Position Abroad on a
Historical-Cost Basis, 2008
[Millions of dollars]

 Manufacturing
 All
 industries Mining
 Total

 All countries 3,162,021 151,859 512,293

Canada 227,298 23,778 72,523

Europe (1) 1,809,876 38,508 259,844
 Austria 17,518 1 4,637
 Belgium 65,054 15 20,058
 Czech Republic 4,654 (D) 1,808
 Denmark 10,393 28 3,871
 Finland 2,298 0 949
 France 75,040 99 29,207
 Germany 110,784 413 33,993
 Greece 2,125 -5 729
 Hungary 5,103 74 815
 Ireland 146,194 (D) 19,051
 Italy 28,653 60 11,684
 Luxembourg 163,167 163 6,305
 Netherlands 442,926 4,372 33,026
 Norway 10,889 6,037 1,862
 Poland 15,597 0 4,420
 Portugal 3,397 1 728
 Russia 9,157 4,165 2,768
 Spain 69,649 78 11,379
 Sweden 43,391 0 3,286
 Switzerland 123,358 190 8,996
 Turkey 6,089 -2 1,507
 United Kingdom 420,873 9,015 56,685
 Other 33,568 (D) 2,078
Latin America and Other
 Western Hemisphere 563,809 30,691 60,709
 South America 108,231 18,402 32,233
 Argentina 15,195 3,040 3,363
 Brazil 45,500 2,224 20,357
 Chile 12,613 1,058 2,238
 Colombia 6,263 3,234 1,333
 Ecuador 1,276 679 166
 Peru 8,458 6,276 580
 Venezuela 17,332 1,381 3,951
 Other 1,594 509 246
 Central America 110,424 4,908 23,990
 Costa Rica 2,525 (*) 989
 Honduras 700 0 (D)
 Mexico 95,618 4,865 21,821
 Panama 7,243 63 40
 Other 4,339 -21 (D)
 Other Western Hemisphere 345,153 7,382 4,486
 Barbados 873 8 366
 Bermuda 165,857 -201 1,303
 Dominican Republic 960 0 599
 United Kingdom Islands,
 Caribbean 139,290 (D) 695
 Other 38,174 (D) 1,523

Africa 36,640 18,375 2,856
 Egypt 8,771 (D) 111
 Nigeria 3,393 1,977 72
 South Africa 4,915 (D) 2,069
 Other 19,560 (D) 604

Middle East 32,488 6,518 11,763
 Israel 10,153 0 6,411
 Saudi Arabia 5,382 770 (D)
 United Arab Emirates 3,423 415 556
 Other 13,531 5,333 (D)

Asia and Pacific 491,910 33,989 104,598
 Australia 88,549 20,342 12,743
 China 45,695 3,014 21,428
 Hong Kong 515,051 (*) 3,742
 India 16,104 385 3,149
 Indonesia 17,909 5,895 299
 Japan 79,235 1 17,380
 Korea, Republic of 27,673 -1 9,165
 Malaysia 13,291 2,328 5,825
 New Zealand 52,661 322 1,339
 Philippines 5,914 24 3,714
 Singapore 106,529 589 16,544
 Taiwan 16,604 (*) 3,816
 Thailand 9,128 215 4,945
 Other 8,510 874 510

Addenda:
 European Union (27) (2) 1,630,785 16,045 244,149
 OPEC (3) 69,299 18,726 9,879

 Manufacturing

 and
 Food Chemicals fabricated
 metals

 All countries 41,802 108,049 24,038

Canada 4,394 10,384 5,427

Europe (1) 27,489 62,253 12,777
 Austria 1 232 (D)
 Belgium 369 8,816 481
 Czech Republic 39 90 94
 Denmark (D) 47 52
 Finland -1 109 28
 France 6,188 3,985 3,641
 Germany 837 6,538 2,523
 Greece (D) 139 0
 Hungary 158 116 19
 Ireland 261 7,252 199
 Italy 740 2,176 587
 Luxembourg 0 (D) (*)
 Netherlands (D) (D) 1,094
 Norway (D) 167 (D)
 Poland 879 968 465
 Portugal 12 138 12
 Russia 1,665 60 (D)
 Spain 849 4,677 214
 Sweden (D) 152 74
 Switzerland 149 2,751 154
 Turkey 27 655 5
 United Kingdom 6,332 15,929 2,371
 Other 324 (D) 152
Latin America and Other
 Western Hemisphere 5,050 14,228 2,790
 South America 2,098 9,273 902
 Argentina 112 1,887 13
 Brazil 1,277 4,607 772
 Chile 33 748 6
 Colombia 99 433 6
 Ecuador 41 30 (*)
 Peru (D) 256 (D)
 Venezuela 419 1,235 (D)
 Other (D) 76 (D)
 Central America 2,811 4,447 (D)
 Costa Rica 169 80 76
 Honduras 9 12 4
 Mexico 2,482 4,306 (D)
 Panama 36 -23 4
 Other 115 73 -11
 Other Western Hemisphere 141 508 (D)
 Barbados 33 11 9
 Bermuda 0 0 (*)
 Dominican Republic 51 56 50
 United Kingdom Islands,
 Caribbean 11 44 -39
 Other 45 (D) (D)

Africa 62 367 308
 Egypt 17 -76 (D)
 Nigeria 19 28 (D)
 South Africa -9 384 221
 Other 35 32 72

Middle East 145 1,615 85
 Israel 139 299 0
 Saudi Arabia 2 (D) (D)
 United Arab Emirates (D) 85 (D)
 Other (D) (D) 0

Asia and Pacific 4,662 19,202 2,652
 Australia 1,936 3,598 955
 China 730 4,614 609
 Hong Kong 2 137 64
 India 8 1,579 (D)
 Indonesia (D) 211 (*)
 Japan 294 2,723 160
 Korea, Republic of 866 1,022 (D)
 Malaysia 49 962 19
 New Zealand 449 136 36
 Philippines 131 683 (D)
 Singapore 4 1,690 66
 Taiwan 48 713 78
 Thailand 97 1,043 176
 Other (D) 91 (D)

Addenda:
 European Union (27) (2) 25,518 58,605 12,168
 OPEC (3) 528 2,797 177

 Manufacturing

 Computers Electrical
 Machinery and equipment,
 electronic appliances
 products and
 components

 All countries 368,071 76,453 24,095

Canada 4,211 4,611 2,515

Europe (1) 21,561 2,834,411 16,156
 Austria 301 (D) (D)
 Belgium 259 796 1,025
 Czech Republic (D) 103 (D)
 Denmark 173 893 67
 Finland (D) (D) (D)
 France 1,562 2,042 161
 Germany 3,577 5,039 1,485
 Greece 1 10 0
 Hungary 80 34 -11
 Ireland 385 4,379 (D)
 Italy 1,336 1,423 305
 Luxembourg (D) 163 (*)
 Netherlands 1,846 2,524 (D)
 Norway 1,190 48 -6
 Poland 23 144 -5
 Portugal (D) 149 15
 Russia 43 52 5
 Spain 216 261 406
 Sweden 321 1,033 184
 Switzerland 1,822 1,476 245
 Turkey 3 19 1
 United Kingdom 7,649 5,160 2,032
 Other 9 (D) 67
Latin America and Other
 Western Hemisphere 3,680 1,426 1,433
 South America 2,597 2,074 85
 Argentina 183 87 -134
 Brazil 2,157 1,970 51
 Chile 72 11 (D)
 Colombia 69 (*) (D)
 Ecuador 1 3 0
 Peru 4 1 0
 Venezuela 114 -1 (D)
 Other -3 2 0
 Central America (D) (D) 1,347
 Costa Rica 0 (D) 126
 Honduras (*) 0 0
 Mexico (D) (D) 1,221
 Panama 0 (*) 0
 Other 1 (D) (*)
 Other Western Hemisphere (D) (D) 0
 Barbados (*) 311 0
 Bermuda (D) (D) 0
 Dominican Republic 0 -20 0
 United Kingdom Islands,
 Caribbean 2 102 0
 Other 0 (*) 0

Africa 313 95 95
 Egypt (D) 5 5
 Nigeria 1 0 0
 South Africa 183 90 90
 Other (D) (*) 0

Middle East 416 4,959 47
 Israel 114 4,956 38
 Saudi Arabia (D) 0 0
 United Arab Emirates (D) 3 9
 Other 2 0 0

Asia and Pacific 6,626 37,018 3,850
 Australia 730 738 273
 China 1,534 8,142 701
 Hong Kong 640 1,738 229
 India 658 169 185
 Indonesia 19 8 (D)
 Japan 690 3,342 1,176
 Korea, Republic of 246 2,333 301
 Malaysia 151 4,186 4
 New Zealand 39 98 (D)
 Philippines 36 24,461 7
 Singapore 1,440 10,430 744
 Taiwan 176 2,396 84
 Thailand 265 883 51
 Other 1 110 0

Addenda:
 European Union (27) (2) 18,464 26,747 15,912
 OPEC (3) 443 13 191

 Manufacturing

 Trans-
 portation Other Wholesale
 equipment manu- trade
 facturing

 All countries 51,774 149,275 178,213

Canada 7,813 33,168 18,332

Europe (1) 23,802 67,463 999,801
 Austria 1,477 118 2,554
 Belgium 1,017 7,295 6,234
 Czech Republic 795 313 141
 Denmark 2 (D) 1,338
 Finland (D) 66 797
 France 1,978 9,650 4,850
 Germany 7,160 6,834 10,501
 Greece 0 (D) 717
 Hungary 190 230 287
 Ireland 31 (D) 1,249
 Italy 1,614 3,500 3,153
 Luxembourg 169 (D) 2,684
 Netherlands -138 4,521 17,120
 Norway 5 (D) 715
 Poland 557 1,388 454
 Portugal 295 (D) 782
 Russia -95 (D) 461
 Spain 742 4,015 3,337
 Sweden 88 (D) 736
 Switzerland 335 2,064 21,423
 Turkey 334 464 1,749
 United Kingdom 7,004 10,209 17,689
 Other (D) 728 1,009
Latin America and Other
 Western Hemisphere 9,876 22,226 24,265
 South America 4,859 10,345 3,803
 Argentina 494 722 426
 Brazil 2,783 6,740 980
 Chile (D) (D) 968
 Colombia (D) (D) 466
 Ecuador (D) (D) 124
 Peru 0 224 324
 Venezuela 1,156 821 263
 Other 26 (D) 252
 Central America 5,017 (D) 3,040
 Costa Rica 0 (D) 37
 Honduras -9 (D) 58
 Mexico 5,030 9,209 2,361
 Panama 0 22 338
 Other -5 (D) 246
 Other Western Hemisphere (*) (D) 17,421
 Barbados (*) 2 1,974
 Bermuda 0 132 3,790
 Dominican Republic 0 463 137
 United Kingdom Islands,
 Caribbean 0 575 10,699
 Other (*) (D) 821

Africa 807 809 1,157
 Egypt 22 (D) 105
 Nigeria 0 (D) 144
 South Africa 755 356 784
 Other 31 (D) 124

Middle East 33 4,464 2,145
 Israel 0 865 930
 Saudi Arabia 33 50 (D)
 United Arab Emirates 0 (D) (D)
 Other 0 (D) 12

Asia and Pacific 9,443 21,146 32,334
 Australia 1,479 3,033 3,856
 China 2,146 2,951 3,219
 Hong Kong 36 895 6,858
 India BO (D) 793
 Indonesia (D) 0 154
 Japan 2,567 6,429 9,036
 Korea, Republic of 923 (D) 1,812
 Malaysia 79 376 270
 New Zealand 5 (D) 211
 Philippines (D) (D) 228
 Singapore 1,369 800 3,322
 Taiwan 50 271 2,018
 Thailand 630 1,801 286
 Other (D) (D) 273

Addenda:
 European Union (27) (2) 23,183 63,552 74,933
 OPEC (3) 1,168 4,561 1,909

 Deposi- Finance
 Information tory (except
 institu- depository
 tions institutions)
 and
 insurance

 All countries 121,864 141,557 634,046

Canada 4,113 3,676 327,281

Europe (1) 80,971 80,823 328,307
 Austria -121 (D) 2,094
 Belgium -758 (D) 31,434
 Czech Republic 208 (D) 724
 Denmark 1,040 (D) 299
 Finland 156 (D) 26
 France 2,250 2,059 9,201
 Germany 2,495 2,321 14,441
 Greece 24 -119 553
 Hungary 40 (D) 63
 Ireland 15,723 10,227 24,235
 Italy 1,967 412 3,071
 Luxembourg 1,734 10,331 30,383
 Netherlands 8,099 (D) 49,629
 Norway 810 (D) 282
 Poland 586 (D) 1,343
 Portugal 115 0 443
 Russia 64 1,217 -20
 Spain 254 986 7,506
 Sweden 749 (D) 156,181
 Switzerland 2,649 7,240 48,441
 Turkey -42 2,703 65
 United Kingdom 42,867 19,727 122,854
 Other 64 2,237 9,218
Latin America and Other
 Western Hemisphere 8,609 12,699 195,083
 South America 4,068 6,272 18,036
 Argentina 1,285 450 1,133
 Brazil 2,210 3,096 9,286
 Chile 127 1,394 3,978
 Colombia 41 (D) 355
 Ecuador 2 (D) 46
 Peru 63 432 109
 Venezuela 81 (D) 3,057
 Other 258 100 72
 Central America 2,784 25,189 19,135
 Costa Rica 16 (D) (D)
 Honduras (*) (D) 108
 Mexico 2,758 (D) 15,736
 Panama -5 (D) 788
 Other 15 (D) (D)
 Other Western Hemisphere 1,757 -18,762 157,912
 Barbados 17 0 861
 Bermuda 632 (D) 81,179
 Dominican Republic (D) (D) 1
 United Kingdom Islands,
 Caribbean 436 -16,963 (D)
 Other (D) -1,997 (D)

Africa 128 1,899 1,814
 Egypt -9 (D) 32
 Nigeria 1 (D) (D)
 South Africa 110 (D) 135
 Other 26 632 (D)

Middle East 1,447 720 569
 Israel 1,343 (D) 103
 Saudi Arabia 6 0 (D)
 United Arab Emirates 112 (D) (D)
 Other -13 65 354

Asia and Pacific 26,596 41,740 75,544
 Australia 13,100 2,285 11,275
 China 223 (D) 1,895
 Hong Kong 833 3,694 11,535
 India 3,603 (D) 1,731
 Indonesia -76 (D) 758
 Japan 5,609 1,144 28,032
 Korea, Republic of 448 (D) 3,625
 Malaysia 74 (D) 466
 New Zealand 303 (D) 1,307
 Philippines 28 (D) 125
 Singapore 2,130 (D) 6,782
 Taiwan 310 (D) 7,141
 Thailand 9 1,511 946
 Other 1 372 -73

Addenda:
 European Union (27) (2) 77,498 67,339 314,098
 OPEC (3) 146 (D) 4,206

 Pro-
 fessional, Holding Other
 scientific, companies industries
 and (nonbank)
 technical
 services

 All countries 81,242 1,128,538 212,409

Canada 8,164 30,511 33,472

Europe (1) 53,845 750,883 116,716
 Austria 401 7,360 (D)
 Belgium 1,811 2,857 (D)
 Czech Republic 31 37 -51
 Denmark 176 1,973 (D)
 Finland 102 -20 (D)
 France 2,602 12,398 12,375
 Germany 5,401 32,769 8,450
 Greece 12 (D) (D)
 Hungary 87 291 (D)
 Ireland (D) 27,596 26,588
 Italy 1,160 1,925 5,221
 Luxembourg 80 120,320 467
 Netherlands (D) 306,257 (D)
 Norway 232 19 (D)
 Poland 164 (D) (D)
 Portugal 88 149 1,091
 Russia 123 (D) (D)
 Spain 2,123 40,850 3,138
 Sweden 546 19,862 (D)
 Switzerland 632 70,100 7,284
 Turkey 20 -4 93
 United Kingdom 13,913 101,062 37,060
 Other 104 5,138 (D)
Latin America and Other
 Western Hemisphere 2,078 204,950 24,724
 South America 1,174 20,051 4,193
 Argentina 77 4,691 731
 Brazil 616 6,287 444
 Chile 129 617 2,104
 Colombia 37 149
 Ecuador 2 (D) (1 D7
 Peru 76 (D) (D)
 Venezuela 206 7,610 (D)
 Other 31 1 123
 Central America 572 20,468 10,338
 Costa Rica 126 (D) -238
 Honduras (*) -2 (D)
 Mexico 460 16,865 (D)
 Panama -20 (D) (D)
 Other 6 -11 261
 Other Western Hemisphere 333 164,432 10,193
 Barbados 12 (D) (D)
 Bermuda 272 72,566 (D)
 Dominican Republic 1 (*) 10
 United Kingdom Islands,
 Caribbean 98 (D) 1,716
 Other -51 (D) 818

Africa 372 8,664 1,375
 Egypt 1 -17 28
 Nigeria (*) 817 53
 South Africa 289 409 305
 Other 82 7,455 988

Middle East 933 7,594 799
 Israel 354 724 (D)
 Saudi Arabia 293 3,539 144
 United Arab Emirates 200 (D) 102
 Other 87 (D) (D)

Asia and Pacific 15,850 125,935 35,324
 Australia 3,762 13,875 7,310
 China 773 1,556 (D)
 Hong Kong 2,931 19,552 2,360
 India 2,563 238 (D)
 Indonesia 14 9,552 (D)
 Japan 2,806 5,911 9,316
 Korea, Republic of 332 (D) (D)
 Malaysia 207 (D) 403
 New Zealand 346 (D) 942
 Philippines 217 (D) 443
 Singapore 1,329 71,250 (D)
 Taiwan 295 102 (D)
 Thailand 276 192 749
 Other (*) 122 6,432

Addenda:
 European Union (27) (2) 52,773 676,444 107,506
 OPEC (3) 828 29,774 (D)

(1) A nonzero value between -$500,000 and $500,000.

(D) Suppressed to avoid disclosure of data of individual companies.

(1.) In 2008, the "Euro area" includes Austria, Belgium, Cyprus,
Finland, France, Germany, Greece, Ireland, Italy, Luxembourg,
Malta, the Netherlands, Portugal, Slovenia and Spain. For 2008, the
U.S. direct investment position in the "Euro area" was $1,128,529
million.

(2.) The European Union (27) comprises Austria, Belgium, Bulgaria,
Cyprus, the Czech Republic, Denmark, Estonia, Finland, France,
Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania,
Luxembourg, Malta, the Netherlands, Poland, Portugal, Romania,
Slovakia, Slovenia, pain, Sweden, and the United Kingdom

(3.) OPEC is the Organization of Petroleum Exporting Countries. In
2008, its members were Algeria, Angola, Ecuador, Indonesia, Iran,
Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, the United Arab
Emirates, and Venezuela.

NOTE. Estimates for 2008 are preliminary.

Table 2.1. Foreign Direct Investment Position in the United States
on a Historical-Cost Basis, 2007
[Millions of dollars]

 Manufacturing

 All
 industries Total
 Food

 All countries 2,109,876 703,146 24,225

Canada 207,925 43,932 1,559

Europe (1) 1,507,594 541,226 18,384
 Austria 2,373 1,683 6
 Belgium 23,663 9,390 56
 Denmark 4,709 3,052 (D)
 Finland 5,413 3,289 (D)
 France 160,116 69,891 2,071
 Germany 214,506 51,288 (D)
 Ireland 32,679 16,600 1,852
 Italy 13,291 1,100 -39
 Luxembourg 120,524 57,988 729
 Netherlands 208,177 76,101 808
 Norway 5,564 -583 0
 Spain 27,511 3,366 (D)
 Sweden 42,129 24,102 (*)
 Switzerland 153,277 98,382 (D)
 United Kingdom 426,545 96,680 2,342
 Other 67,116 28,896 185

Latin America and Other
 Western Hemisphere 55,816 19,726 2,193
 South and Central America 14,021 4,192 2,084
 Brazil 1,750 698 (D)
 Mexico 6,287 3,413 (D)
 Panama 980 138 0
 Venezuela 4,196 96 (*)
 Other 808 -154 (D)
 Other Western Hemisphere 41,795 15,534 110
 Bahamas 598 (D) (D)
 Bermuda 4,697 11,660 (D)
 Netherlands Antilles 5,574 -214 2
 United Kingdom Islands,
 Caribbean 34,423 5,163 (D)
 Other -3,497 (D) (D)

Africa 1,396 -217 -1
 South Africa 243 (D) -1
 Other 1,153 (D) 0

Middle East 15,058 1,916 8
 Israel 6,556 1,863 8
 Kuwait 846 2 0
 Lebanon (D) (*) 0
 Saudi Arabia (D) 11 0
 United Arab Emirates 1,527 -29 0
 Other 544 69 0

Asia and Pacific 322,087 96,563 2,081
 Australia 50,233 3,358 23
 China 916 -231 (*)
 Hong Kong 3,742 1,377 -1
 India 2,822 145 51
 Japan 230,453 78,384 1,555
 Korea, Republic of 15,146 (D) 7
 Malaysia 490 32 -1
 New Zealand 975 (D) (D)
 Singapore 11,707 (D) (D)
 Taiwan 4,746 1,549 -1
 Other 857 89 5

Addenda:
 European Union (27) (2) 1,332,999 438,315 8,916
 OPEC (3) 12,741 63 (*)

 Manufacturing

 Primary
 and
 Chemicals fabri- Machinery
 cated
 metals

 All countries 213,483 48,897 59,110

Canada 5,729 5,899 346

Europe (1) 192,629 35,105 50,039
 Austria (D) 440 277
 Belgium (D) (D) 278
 Denmark 2,216 (D) 882
 Finland 600 (D) 1,454
 France 14,051 1,284 (D)
 Germany 21,283 4,735 2,093
 Ireland 4,709 (D) 4
 Italy 340 131 362
 Luxembourg 15,318 5,962 21,192
 Netherlands 37,287 (D) (D)
 Norway 676 673 (D)
 Spain 276 (D) -4
 Sweden (D) 4,085 (D)
 Switzerland 31,340 2,245 3,899
 United Kingdom 45,109 4,989 3,825
 Other 1,985 1,296 (D)

Latin America and Other
 Western Hemisphere 2,658 (D) -1,864
 South and Central America 247 1,135 -76
 Brazil -84 93 -22
 Mexico 232 1,197 -58
 Panama (D) (D) 34
 Venezuela -31 -2 -24
 Other (D) (D) -7
 Other Western Hemisphere 2,411 (D) -1,787
 Bahamas (D) (D) 0
 Bermuda (D) 68 (D)
 Netherlands Antilles (D) (D) 1
 United Kingdom Islands,
 Caribbean (D) (D) (D)
 Other 8 (*) -1,306

Africa -7 (D) (D)
 South Africa -6 (*) (D)
 Other -1 (D) -1

Middle East 1,039 (D) -9
 Israel 1,044 6 (*)
 Kuwait 0 0 0
 Lebanon 0 0 0
 Saudi Arabia -2 (D) -2
 United Arab Emirates -4 (D) -7
 Other 0 0 0

Asia and Pacific 11,434 6,071 (D)
 Australia (D) (D) (D)
 China -277 126 (*)
 Hong Kong (D) -1 -5
 India 42 (D) (D)
 Japan 9,818 2,355 3,861
 Korea, Republic of 38 (D) -2
 Malaysia -15 (D) (D)
 New Zealand (D) 8 5
 Singapore -63 5 (D)
 Taiwan 32 3 -2
 Other -10 1 9

Addenda:
 European Union (27) (2) 159,005 31,467 44,792
 OPEC (3) -41 -7 -38

 Manufacturing

 Electrical
 Computers equipment, Trans-
 and appliances, portation
 electronic and equipment
 products components

 All countries 66,599 21,507 68,314

Canada 4,443 -316 6,069

Europe (1) 41,015 17,960 30,652
 Austria 4 (D) 74
 Belgium (*) 19 4
 Denmark (D) (D) 0
 Finland 32 (D) 4
 France 17,322 (D) 2,548
 Germany 739 578 13,267
 Ireland -1 0 (D)
 Italy 138 111 75
 Luxembourg 519 1,195 (D)
 Netherlands 3,921 (D) 2,643
 Norway 408 0 5
 Spain (D) 3 71
 Sweden (D) (D) 4,324
 Switzerland 485 (D) (D)
 United Kingdom 14,141 515 5,423
 Other (D) (D) 203

Latin America and Other
 Western Hemisphere 1,308 (D) -110
 South and Central America -286 15 -144
 Brazil (D) -4 47
 Mexico -89 29 (D)
 Panama (D) (*) (D)
 Venezuela -1 (D) -3
 Other (D) (D) -13
 Other Western Hemisphere 1,593 (D) 33
 Bahamas (*) 0 0
 Bermuda (D) (D) 0
 Netherlands Antilles -2 0 -4
 United Kingdom Islands,
 Caribbean (D) (D) 37
 Other -1 (D) 0

Africa (D) (*) -20
 South Africa 0 (*) -11
 Other (D) (*) -10

Middle East (D) 2 8
 Israel 414 0 9
 Kuwait (*) 2 0
 Lebanon 0 0 0
 Saudi Arabia (*) 0 0
 United Arab Emirates (*) 0 -1
 Other (D) 0 0

Asia and Pacific 19,443 (D) 31,715
 Australia -39 -1 -25
 China 12 162 -133
 Hong Kong 653 -3 (D)
 India (D) -2 55
 Japan 18,363 1,068 31,782
 Korea, Republic of (D) -2 (D)
 Malaysia 61 (*) 6
 New Zealand -9 (") -3
 Singapore 131 16 26
 Taiwan 64 (D) -70
 Other 35 -13 39

Addenda:
 European Union (27) (2) 40,114 17,899 28,946
 OPEC (3) -1 -7 5

 Manufacturing

 Wholesale Retail
 Other trade trade
 manu-
 facturing

 All countries 201,012 274,587 32,688

Canada 20,201 4,458 4,498

Europe (1) 155,441 136,508 22,382
 Austria 781 (D) (D)
 Belgium -902 5,856 (D)
 Denmark (D) 877 5
 Finland 1,152 (D) (D)
 France 17,319 9,680 918
 Germany (D) 9,931 3,881
 Ireland 8,478 149 (D)
 Italy -18 1,539 1,917
 Luxembourg (D) 1,031 (D)
 Netherlands 19,482 18,643 (D)
 Norway (D) 2,814 (*)
 Spain 908 125 (D)
 Sweden 1,124 7,023 (D)
 Switzerland (D) 8,146 (D)
 United Kingdom 20,335 68,636 2,821
 Other 19,711 475 (D)

Latin America and Other
 Western Hemisphere 11,313 7,648 1,378
 South and Central America 1,217 5,225 26
 Brazil -48 (D) (D)
 Mexico 727 1,497 (D)
 Panama (D) -5 3
 Venezuela (D) (D) (*)
 Other 315 331 6
 Other Western Hemisphere 10,096 2,423 1,352
 Bahamas 8 7 0
 Bermuda 8,138 296 0
 Netherlands Antilles -245 239 (D)
 United Kingdom Islands,
 Caribbean 2,095 1,634 (D)
 Other 100 246 -1

Africa 195 585 (D)
 South Africa (D) (D) (*)
 Other (D) (D) (D)

Middle East 454 6,258 (D)
 Israel 383 472 (D)
 Kuwait 0 (D) 0
 Lebanon (*) (*) 0
 Saudi Arabia (D) (D) 0
 United Arab Emirates (D) -7 (*)
 Other (D) (D) 0

Asia and Pacific 13,408 119,131 4,354
 Australia 2,036 1,949 (D)
 China -122 818 1
 Hong Kong -16 1,742 (D)
 India 11 11 (*)
 Japan 9,582 101,125 4,359
 Korea, Republic of 80 10,624 (D)
 Malaysia 2 64 0
 New Zealand (D) 495 0
 Singapore -19 197 (D)
 Taiwan (D) 1,716 (D)
 Other 24 388 (*)

Addenda:
 European Union (27) (2) 107,176 125,242 18,252
 OPEC (3) 151 8,696 (*)

 Finance
 Deposi- (except
 tory depository
 Information institu- institutions)
 tions and
 insurance

 All countries 147,043 134,332 260,735

Canada 7,760 18,401 64,183

Europe (1) 134,889 97,229 178,937
 Austria -1 (D) (D)
 Belgium 8 (D) 1,240
 Denmark 1 0 (D)
 Finland 0 (D) 1
 France 16,157 17,540 28,283
 Germany 48,402 15,385 35,436
 Ireland (D) (D) 3,146
 Italy 32 621 (D)
 Luxembourg 8,567 0 3,716
 Netherlands 15,904 (D) 57,709
 Norway 392 5 22
 Spain (D) 19,250 966
 Sweden 585 -254 264
 Switzerland 12,235 (D) 27,235
 United Kingdom 19,216 50,496 18,501
 Other 10,878 379 1,162

Latin America and Other
 Western Hemisphere 1,096 4,253 -4,464
 South and Central America -16 3,480 (D)
 Brazil 21 490 (D)
 Mexico -18 1,121 55
 Panama (D) (D) (D)
 Venezuela (D) (D) -1
 Other -1 699 9
 Other Western Hemisphere 1,112 772 (D)
 Bahamas (D) (D) -22
 Bermuda 136 0 -11,476
 Netherlands Antilles (D) (D) -12
 United Kingdom Islands,
 Caribbean 1,230 156 9,676
 Other (D) (D) (D)

Africa (D) (D) (D)
 South Africa (D) 0 (D)
 Other (D) (D) (*)

Middle East (D) 1,299 0
 Israel (D) (D) (D)
 Kuwait 2 (D) (D)
 Lebanon 0 0 0
 Saudi Arabia 6 (D) 2
 United Arab Emirates 10 (D) 5
 Other (D) (D) 0

Asia and Pacific 0 (D) 21,824
 Australia 306 1,762 4,138
 China (*) (D) (D)
 Hong Kong (D) 413 (D)
 India 49 266 (*)
 Japan 1,859 8,505 14,737
 Korea, Republic of (D) 355 162
 Malaysia 2 (D) (*)
 New Zealand 0 0 1
 Singapore 13 351 (D)
 Taiwan (D) 1,108 70
 Other -2 193 29

Addenda:
 European Union (27) (2) 118,175 103,863 151,442
 OPEC (3) 7 1,377 -5

 Real
 estate Pro-
 and fessional Other
 rental scientific, industries
 and and
 leasing technical
 services

 All countries 48,526 58,770 450,049

Canada 3,991 2,588 58,112

Europe (1) 19,621 46,595 330,207
 Austria 73 (D) 20
 Belgium 230 229 3,376
 Denmark 8 (D) (D)
 Finland (D) (D) 338
 France 432 4,154 13,062
 Germany 6,680 781 42,723
 Ireland (D) -33 7,357
 Italy 198 (D) (D)
 Luxembourg 79 (D) 46,561
 Netherlands 3,084 8,134 27,495
 Norway 52 972 1,891
 Spain 148 (D) (D)
 Sweden (D) 100 (D)
 Switzerland (D) 486 7,506
 United Kingdom 4,976 27,063 138,157
 Other (D) (D) 21,759

Latin America and Other
 Western Hemisphere 8,992 1,534 15,653
 South and Central America (D) -50 397
 Brazil 55 -32 59
 Mexico (D) -6 175
 Panama (D) 3 256
 Venezuela 20 -6 -3
 Other 17 -10 -90
 Other Western Hemisphere (D) 1,585 15,256
 Bahamas 401 5 (D)
 Bermuda (D) 1,206 (D)
 Netherlands Antilles 907 (D) 4,593
 United Kingdom Islands,
 Caribbean 6,847 (D) 7,981
 Other 253 (D) 272

Africa 145 -2 649
 South Africa (*) -2 122
 Other 145 (*) 527

Middle East 2,136 23 2,303
 Israel (D) 75 665
 Kuwait (D) 0 (D)
 Lebanon (D) (*) (D)
 Saudi Arabia (D) (*) -37
 United Arab Emirates (D) -52 (D)
 Other 47 (*) (D)

Asia and Pacific 13,640 8,031 43,124
 Australia 7,314 (D) 30,929
 China (*) 71 117
 Hong Kong 147 (D) 43
 India -1 2,147 202
 Japan 5,700 5,356 10,430
 Korea, Republic of 71 -1 17
 Malaysia (D) 10 343
 New Zealand (D) -1 13
 Singapore 193 -3 674
 Taiwan 58 -45 203
 Other 18 -11 153

Addenda:
 European Union (27) (2) 17,159 42,785 317,766
 OPEC (3) (D) -59 (D)

(*) A nonzero value between -$500,000 and $500,000.

(D) Suppressed to avoid disclosure of data of individual companies.

(1.) In 2007, the "Euro area" includes Austria, Belgium, Finland,
France, Germany, Greece, Ireland, Italy, Luxembourg, the
Netherlands, Portugal, Slovenia, and Spain. For 2007, the "Euro
area" direct investment position in the United States was $808,666
million.

(2.) The European Union (27) comprises Austria, Belgium, Bulgaria,
Cyprus, the Czech Republic, Denmark, Estonia, Finland, France,
Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania,
Luxembourg, Malta, the Netherlands, Poland, Portugal, Romania,
Slovakia, Slovenia, Spain, Sweden, and the United Kingdom.

(3.) OPEC is the Organization of Petroleum Exporting Countries. In
2007, its members were Algeria, Angola, Indonesia, Iran, Iraq,
Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, the United Arab
Emirates, and Venezuela.

NOTE. Estimates for 2007 are revised.

Table 2.2. Foreign Direct Investment Position in the
United States on a Historical-Cost Basis, 2008
[Millions of dollars]

 Manufacturing

 All
 industries
 Total
 Food

 All countries 2,278,892 795,336 25,641

Canada 221,870 42,851 1,992

Europe (1) 1,622,911 617,579 19,833
 Austria 2,406 1,323 5
 Belgium 18,580 2,245 -9
 Denmark 4,992 3,346 (D)
 Finland 12,499 3,495 (D)
 France 163,430 75,973 2,197
 Germany 211,521 55,598 44
 Ireland 34,094 16,514 1,492
 Italy 17,575 5,923 97
 Luxembourg 113,248 48,364 852
 Netherlands 259,385 131,423 (D)
 Norway 6,755 851 (*)
 Spain 38,662 2,914 9
 Sweden 35,020 24,660 (*)
 Switzerland 165,697 107,154 10,176
 United Kingdom 454,123 102,800 3,016
 Other 84,922 34,996 (D)
Latin America and Other
 Western Hemisphere 49,233 25,421 2,236
 South and Central America 15,609 5,130 2,059
 Brazil 778 85 (D)
 Mexico 7,948 5,126 1,946
 Panama 881 54 0
 Venezuela 4,563 -168 -5
 Other 1,439 32 (D)
 Other Western Hemisphere 33,623 20,291 177
 Bahamas 81 82 (D)
 Bermuda 10,750 16,156 (D)
 Netherlands Antilles 6,266 (D) 2
 United Kingdom Islands,
 Caribbean 21,604 3,858 (D)
 Other -5,077 (D) -1

Africa 2,002 427 -2
 South Africa 643 -89 -2
 Other 1,359 516 (*)

Middle East 14,676 2,747 (D)
 Israel 6,143 2,708 (D)
 Kuwait 359 2 0
 Lebanon (D) (*) 0
 Saudi Arabia (D) 14 0
 United Arab Emirates 2,744 (D) 0
 Other 272 (D) 0

Asia and Pacific 368,200 106,312 (D)
 Australia 64,316 5,224 34
 China 1,235 -384 -3
 Hong Kong 3,973 1,494 -1
 India 4,527 151 -1
 Japan 259,569 86,952 1,562
 Korea, Republic of 15,632 (D) 4
 Malaysia 395 7 1
 New Zealand 1,062 (D) (D)
 Singapore 12,718 (D) -39
 Taiwan 3,900 1,425 -2
 Other 874 23 5

Addenda:
 European Union (27) (2) 1,434,060 503,714 9,620
 OPEC (3) 13,345 -177 -5

 Manufacturing

 Primary
 Chemicals and Machinery
 fabricated
 metals

 All countries 217,777 48,719 75,184

Canada 7,273 5,393 1,359

Europe (1) 189,776 36,744 50,549
 Austria (D) 544 369
 Belgium 3,920 (D) 201
 Denmark 2,383 0 1,087
 Finland 506 (D) 1,517
 France 18,542 1,800 (D)
 Germany 28,345 2,047 2,214
 Ireland 4,349 (D) (D)
 Italy 1,111 (D) 464
 Luxembourg 5,897 6,719 (D)
 Netherlands 39,632 (D) (D)
 Norway (D) (D) (D)
 Spain 315 (D) 1
 Sweden (D) 4,598 3,851
 Switzerland 26,575 2,928 4,428
 United Kingdom 44,927 5,562 3,844
 Other (D) 3,700 (D)
Latin America and Other
 Western Hemisphere 2,278 2,143 (D)
 South and Central America 481 1,596 172
 Brazil -79 (D) -22
 Mexico 546 1,718 263
 Panama (D) (D) (*)
 Venezuela -40 -2 -24
 Other (D) -49 -45
 Other Western Hemisphere 1,797 547 (D)
 Bahamas (D) (D) 0
 Bermuda 1,354 (D) (D)
 Netherlands Antilles (D) (D) (*)
 United Kingdom Islands,
 Caribbean (D) (D) 204
 Other (D) (D) (D)

Africa -8 (D) 3
 South Africa -6 -1 3
 Other -1 (D) (*)

Middle East (D) (D) -2
 Israel (D) (D) 0
 Kuwait 0 0 0
 Lebanon 0 0 0
 Saudi Arabia -1 (*) -2
 United Arab Emirates (D) (*) (*)
 Other 0 0 0

Asia and Pacific (D) 4,275 (D)
 Australia 1,000 1,400 238
 China -272 125 -34
 Hong Kong (D) -7 1
 India 81 (D) (D)
 Japan 15,264 2,628 4,183
 Korea, Republic of 39 95 (D)
 Malaysia -17 (D) (D)
 New Zealand (*) 8 3
 Singapore 1 8 (D)
 Taiwan 13 5 (D)
 Other -15 -2 (*)

Addenda:
 European Union (27) (2) 159,803 31,697 45,172
 OPEC (3) -70 -37 -28

 Manufacturing

 Compu- Electrical Trans-
 ters and equipment, portation
 electronic appliances, equipment
 products and
 components

 All countries 63,251 23,815 64,514

Canada -235 -26 6,631

Europe (1) 40,945 19,310 25,846
 Austria 3 (*) 15
 Belgium 2 36 -1
 Denmark (D) 0 (*)
 Finland (D) 2 (*)
 France 14,448 (D) 3,691
 Germany 529 298 12,969
 Ireland -8 (*) (*)
 Italy (D) 224 (D)
 Luxembourg (D) 1,263 318
 Netherlands 2,644 (D) (D)
 Norway 435 (D) (D)
 Spain 60 (*) 79
 Sweden (D) (D) (D)
 Switzerland 439 24 (D)
 United Kingdom 13,916 484 7,627
 Other (D) (D) 169
Latin America and Other
 Western Hemisphere 1,547 (D) -486
 South and Central America -168 (D) -564
 Brazil 11 -7 28
 Mexico -88 (D) (D)
 Panama (D) (*) (D)
 Venezuela -4 (D) (D)
 Other (D) -2 -7
 Other Western Hemisphere 1,715 (D) 78
 Bahamas (*) 0 0
 Bermuda (D) (D) 0
 Netherlands Antilles -2 0 -4
 United Kingdom Islands,
 Caribbean (D) 7 81
 Other (*) 0 0

Africa (D) (*) (D)
 South Africa 0 (*) 4
 Other (D) (*) (D)

Middle East (D) 1 (D)
 Israel (D) -1 (D)
 Kuwait (*) 2 0
 Lebanon 0 0 0
 Saudi Arabia 0 0 -1
 United Arab Emirates (*) 0 -6
 Other 0 0 0

Asia and Pacific 20,457 (D) 32,513
 Australia -12 5 -31
 China -7 118 -174
 Hong Kong (D) -4 1
 India (D) -4 38
 Japan 19,012 1,369 32,609
 Korea, Republic of (D) -1 84
 Malaysia 27 (*) 5
 New Zealand -9 0 -2
 Singapore 370 51 16
 Taiwan 71 (D) -75
 Other 27 -27 43

Addenda:
 European Union (27) (2) 40,061 19,260 24,296
 OPEC (3) -3 (D) (D)

 Manufacturing

 Wholesale Retail
 Other trade trade
 manu-
 facturing

 All countries 276,435 312,583 44,062

Canada 20,463 4,758 7,415

Europe (1) 234,576 167,610 28,276
 Austria (D) 263 (D)
 Belgium 3 6,147 (D)
 Denmark -1,377 891 4
 Finland 1,388 (D) (D)
 France 19,009 10,710 353
 Germany 9,153 16,415 4,390
 Ireland 9,067 187 (D)
 Italy 93 1,677 1,641
 Luxembourg (D) 1,204 (D)
 Netherlands 78,424 23,486 4,874
 Norway (D) 3,715 (*)
 Spain (D) 152 (D)
 Sweden 1,306 8,070 95
 Switzerland (D) 7,184 4,050
 United Kingdom 23,425 78,758 2,809
 Other (D) (D) 3,055
Latin America and Other
 Western Hemisphere 5,904 8,069 2,100
 South and Central America (D) 6,495 10
 Brazil -37 (D) (D)
 Mexico 1,272 1,760 (D)
 Panama 14 -11 2
 Venezuela 28 (D) (*)
 Other (D) 733 8
 Other Western Hemisphere (D) 1,575 2,090
 Bahamas (*) (D) (*)
 Bermuda (D) 248 0
 Netherlands Antilles -245 (D) (D)
 United Kingdom Islands,
 Caribbean 1,340 (D) 2,074
 Other 99 (D) (D)

Africa 358 493 -1
 South Africa -86 (D) (*)
 Other 444 (D) -1

Middle East 441 5,868 (D)
 Israel (D) (D) (D)
 Kuwait 0 (D) 0
 Lebanon (*) (*) 0
 Saudi Arabia 17 (D) 0
 United Arab Emirates (D) (D) (*)
 Other (D) (D) 0

Asia and Pacific 14,694 125,765 (D)
 Australia 2,591 1,469 1
 China -136 1,092 -5
 Hong Kong 6 1,772 (D)
 India 74 1 (*)
 Japan 10,326 108,278 6,108
 Korea, Republic of 79 (D) (D)
 Malaysia 11 68 (D)
 New Zealand (D) 461 0
 Singapore -56 251 -4
 Taiwan (D) (D) 35
 Other -7 581 (*)

Addenda:
 European Union (27) (2) 173,805 156,455 23,680
 OPEC (3) 79 9,026 (*)

 Finance
 Deposi- (except
 Information tory depository
 institu- institutions)
 tions and
 insurance

 All countries 157,973 119,124 248,888

Canada 11,808 27,780 62,132

Europe (1) 142,042 71,284 177,827
 Austria -6 (D) 1
 Belgium 4 (D) 1,005
 Denmark (*) 0 (*)
 Finland (D) (D) (*)
 France 16,798 7,559 27,114
 Germany 50,652 4,677 36,254
 Ireland 1,630 (D) 6,644
 Italy 87 (D) (D)
 Luxembourg 9,481 0 2,586
 Netherlands 20,133 -760 39,865
 Norway 358 (D) 1
 Spain 87 19,971 (D)
 Sweden 612 (D) 248
 Switzerland (D) (D) 31,522
 United Kingdom 21,033 47,882 26,420
 Other 8,907 321 (D)
Latin America and Other
 Western Hemisphere 664 4,115 -19,829
 South and Central America -119 3,315 298
 Brazil 20 514 14
 Mexico -119 1,115 77
 Panama -6 (D) 198
 Venezuela -8 (D) 1
 Other -6 688 7
 Other Western Hemisphere 783 800 -20,126
 Bahamas (D) (D) -3
 Bermuda (D) 0 -11,965
 Netherlands Antilles (D) (D) 1
 United Kingdom Islands,
 Caribbean 931 161 (D)
 Other (D) (D) (D)

Africa 8 (D) (D)
 South Africa (D) 0 (D)
 Other (D) (D) (*)

Middle East 952 (D) (D)
 Israel 995 250 (D)
 Kuwait 2 (D) (D)
 Lebanon 0 0 0
 Saudi Arabia 6 (D) 2
 United Arab Emirates (D) (D) 1
 Other (D) (D) 0

Asia and Pacific 2,499 (D) 28,501
 Australia (D) 3,055 4,922
 China (D) (D) 16
 Hong Kong (D) 456 4
 India 56 357 -1
 Japan 1,814 10,344 21,690
 Korea, Republic of (D) 212 152
 Malaysia 3 (D) (*)
 New Zealand (D) 0 1
 Singapore 8 382 (D)
 Taiwan 59 884 (D)
 Other (*) 201 (D)

Addenda:
 European Union (27) (2) 126,081 79,536 146,033
 OPEC (3) 11 1,258 (D)

 Pro-
 Real fessional,
 estate scientific, Other
 and rental and industries
 and technical
 leasing services

 All countries 51,995 62,118 486,813

Canada 4,128 2,248 58,750

Europe (1) 19,956 49,379 348,958
 Austria 83 (D) 97
 Belgium (D) 343 4
 Denmark 5 D) (D)
 Finland (D) (D) 317
 France 385 5,562 18,977
 Germany 6,302 850 36,384
 Ireland 91 (D) 7,136
 Italy (D) (D) 6,351
 Luxembourg (D) (D) 49,101
 Netherlands 3,287 6,980 30,097
 Norway 115 1,193 (D)
 Spain 121 239 11,399
 Sweden (D) (D) 1,228
 Switzerland 2,351 687 9,324
 United Kingdom 5,153 28,805 140,462
 Other 470 (D) 32,267
Latin America and Other
 Western Hemisphere 10,261 1,766 16,664
 South and Central America 475 -83 89
 Brazil 48 -34 -133
 Mexico (D) -31 1
 Panama (D) 4 261
 Venezuela 11 -5 -6
 Other 27 -16 -36
 Other Western Hemisphere 9,785 1,849 16,576
 Bahamas (D) 5 -805
 Bermuda (D) 1,411 4,677
 Netherlands Antilles 884 (*) 5,139
 United Kingdom Islands,
 Caribbean 8,235 429 7,347
 Other 246 5 219

Africa (D) (D) 878
 South Africa -2 -3 (D)
 Other (D) (D) (D)

Middle East (D) (D) 4,354
 Israel 147 76 1,257
 Kuwait (D) 0 (D)
 Lebanon (D) -1 (D)
 Saudi Arabia 30 (*) (D)
 United Arab Emirates 170 (D) 2,613
 Other (D) (*) 338

Asia and Pacific 17,084 8,660 57,208
 Australia (D) 593 41,094
 China -2 (D) 99
 Hong Kong 143 (D) 108
 India -4 2,902 1,066
 Japan 6,918 4,957 12,509
 Korea, Republic of 78 -4 (D)
 Malaysia (D) 2 258
 New Zealand (D) -2 18
 Singapore (D) 36 1,153
 Taiwan 10 -37 269
 Other (D) -10 (D)

Addenda:
 European Union (27) (2) 17,409 45,148 336,004
 OPEC (3) 255 (D) 2,960

(*) A nonzero value between-$500,000 and $500,000.

(D) Suppressed to avoid disclosure of data of individual companies.

(1.) In 2008, the "Euro area" includes Austria, Belgium, Cyprus,
Finland, France, Germany, Greece, Ireland, Italy, Luxembourg,
Malta, the Netherlands, Portugal, Slovenia, and Spain. For 2008,
the "Euro area" direct investment position in the United States was
$872,104 million.

(2.) The European Union (27) comprises Austria, Belgium, Bulgaria,
Cyprus, the Czech Republic, Denmark, Estonia, Finland, France,
Germany, Greece, Hungary Ireland, Italy, Latvia, Lithuania,
Luxembourg, Malta, the Netherlands, Poland, Portugal, Romania,
Slovakia, Slovenia, pain, Sweden, the United Kingdom.

(3.) OPEC is the Organization of Petroleum Exporting Countries. In
2008, its members were Algeria, Angola, Ecuador, Indonesia, Iran,
Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, the United Arab
Emirates, and Venezuela.

NOTE. Estimates for 2008 are preliminary.

Chart 2. Outward Direct Investment Position by
Country of Foreign Affiliate at Yearend 2008

Other (27.0%)
Netherlands (14.0%)
United Kingdom (13.3%)
Canada (7.2%)
Bermuda (5.2%)
Luxembourg (5.2%)
Ireland (4.6%)
United Kingdom Islands, Caribbean (4.4%)
Switzerland (3.9%)
Singapore (3.4%)
Mexico (3.0%)
Australia (2.8%
Japan (2.5%)

U.S. Bureau of Economic Analysis

Note: Table made from pie chart.

Chart 4. Inward Direct Investment Position by
Country of Each Member of the Foreign Parent
Group at Yearend 2008

United Kingdom (19.9%)
Japan (11.4%)
Netherlands (11.4%)
Canada (9.7%)
Germany (9.3%)
Switzerland (7.3%)
France (7.2%)
Luxembourg (5.0%)
Other (18.9%)

U.S. Bureau of Economic Analysis

Note: Table made from pie chart.