Direct investment positions for 2007: country and industry detail.

Ibarra, Marilyn ; Koncz, Jennifer

THE U.S. direct investment abroad and the foreign direct investment in the United States positions, valued at historical-cost, each grew 14 percent in 2007. This marked a pickup in growth of both positions compared with 2006, when the U.S. direct investment abroad--or "outward"--position rose 10 percent and the foreign direct investment in the United States--or "inward"--position rose 13 percent. (1)

The stronger growth in the outward direct investment position reflected larger net direct investment capital flows from the United States to foreign countries and a shift in valuation adjustments from negative to positive. (2) The pickup in growth in the inward direct investment position reflected both larger net equity capital flows into the United States and a shift from negative to positive valuation adjustments.

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

* The 14 percent increase in the outward investment position in 2007 was significantly higher than the 10 percent increase in 2006 and marked the largest percentage increase since 1999. However, growth in 2007 was in line with the 13 percent average annual growth in 1995-2005.

* The largest contributor to the increase was reinvested earnings, which grew modestly in 2007 because of higher earnings and higher shares of earnings reinvested in several industries. The increase in earnings partly reflected a continued depreciation of the U.S. dollar against major foreign currencies, particularly the euro.

* Equity investments also contributed to the increase in the outward position. Net equity investment, much of which was for acquisitions of foreign businesses by U.S. companies, increased in 2007, a turnaround after declining each year since 2004. The increase in 2007 coincided with a pickup in global merger and acquisition activity, much of which was in Europe.

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

* The inward direct investment position increased 14 percent in 2007, up from 13 percent in 2006. Growth in both 2006 and 2007 exceeded the 12 percent average annual growth in 1995-2005. The 2007 increase was the largest percentage increase since 2000, when the position increased 32 percent.

* Net equity capital investment contributed the most to the increase in position, as acquisitions of U.S. businesses by foreign investors remained strong for the second consecutive year. Historically, equity capital investment has contributed the most to increases in the inward position. In 2007, equity capital investment increased 25 percent, marking a second year of growth in these flows after declines in 2001-2005.

* Reinvested earnings in 2007, as in 2006, were a large component of the increase in the foreign direct investors' position in the United States. Intercompany debt transactions and valuation adjustments also increased the position, though to a lesser extent.

This article presents detail on the direct investment positions valued at historical-cost by type of capital flow. It also presents detail for outward investment by country of foreign affiliate, and for inward investment by country of foreign parent. (3)

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 $2,791.3 billion at the end of 2007 (table A and chart 1). As in previous years, the United Kingdom remained the largest host country, with a position of $398.8 billion, or 14 percent of the total, followed by the Netherlands and Canada (table 1.2 and chart 2). The position in the Netherlands was $370.2 billion (13 percent), and the position in Canada was $257.1 billion (9 percent).

In 2007, the outward direct investment position increased $336.6 billion, or 14 percent, the second largest percentage increase since 1999. The growth was significantly higher than the 10 percent increase in 2006 but was in line with the 13 percent average annual growth in 1995-2005.

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Changes by component

The $336.6 billion increase in the outward direct investment position resulted from capital flows of $313.8 billion, which accounted for 93 percent of the increase, and valuation adjustments of $22.8 billion, which accounted for the remainder (table B and chart 3).

Capital flows

The $313.8 billion in capital flows for outward direct investment consisted of $243.8 billion of reinvested earnings and $88.0 billion of net equity capital investment. These outflows were partly offset by an $18.0 billion reduction in U.S. parents' net intercompany debt claims on their foreign affiliates.

Equity capital investment. U.S. parents' net equity capital investment in their foreign affiliates was $88.0 billion in 2007, up from $32.3 billion in 2006. The net investment resulted from equity capital increases of $152.3 billion, which were partly offset by equity capital decreases of $64.3 billion. Equity capital increases, which increase the outward direct investment position, were up 66 percent in 2007. Of the equity capital increases, $82.4 billion, or 54 percent, financed the acquisition or establishment of new foreign affiliates. Capital contributions to existing foreign affiliates accounted for the remaining $69.9 billion, or 46 percent.

In 2007, equity capital increases for the acquisition or establishment of affiliates were largest in two European countries: the Netherlands and the United Kingdom. In the Netherlands, the increase was concentrated in holding companies, whose holdings include pharmaceutical affiliates in Latin America and Asia, and in oil and gas extraction affiliates in Africa. In the United Kingdom, the increases were mainly in manufacturing (primarily transportation equipment) and "finance (except depository institutions) and insurance." (4)

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Over half of the capital contributions to existing foreign affiliates were to affiliates in Europe, primarily in Sweden, the Netherlands, the United Kingdom, and Luxembourg. Among industries, the largest contributions were to affiliates in holding companies, manufacturing (particularly chemicals), and "finance (except banks) and insurance."

Similar to 2006, equity capital decreases in 2007 were primarily due to liquidations or sales of affiliates rather than to returns of capital from continuing affiliates. In 2007, equity capital decreases were largest in Europe and "Latin America and Other Western Hemisphere."

Reinvested earnings. 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--increased 15 percent in 2007, to $243.8 billion. Reinvested earnings accounted for more than three-fourths of capital flows for outward direct investment in 2007 and for more than 70 percent of the increase in the outward position. The growth in reinvested earnings in 2007 largely reflected growth in foreign affiliate earnings.

In 2007, reinvested earnings were positive in almost all major industries. Affiliates in holding companies accounted for the largest share of the total. By region, reinvested earnings were highest in Europe, which accounted for 57 percent of the worldwide total. The largest reinvested earnings were in four European countries--the Netherlands, the United Kingdom, Ireland, and Luxembourg. The reinvestment ratio--reinvested earnings relative to current-year earnings--grew slightly from 70 percent in 2006 to 71 percent in 2007.

Earnings grew 13 percent in 2007, virtually the same as in 2006. Despite a slowdown in real economic growth in many industrial and developing economies, depreciation of the U.S. dollar against the euro, the Canadian dollar, and the British pound contributed to the strong increase in earnings. By region, the largest dollar increases in earnings were in Europe, primarily in Switzerland, the Netherlands, the United Kingdom, and Luxembourg. By major industry, the largest earnings increases were in holding companies, manufacturing (particularly rubber and glass products), and "finance (except banks) and insurance."

Intercompany debt investment. In 2007, U.S. parents' borrowing and lending transactions with their foreign affiliates reduced their net intercompany debt position in their foreign affiliates $18.0 billion, following a $22.6 billion reduction in 2006. The reduction in 2007 occurred as parents' indebtedness to their foreign affiliates increased more than the foreign affiliates' indebtedness to their U.S. parents. Most of the reduction in the debt position was in foreign affiliates in Europe, particularly in the Netherlands and in Ireland. By industry, holding companies more than accounted for the overall reduction in the debt position.

Valuation adjustments

Valuation adjustments, which are made to account for currency-translation and other valuation changes, totaled $22.8 billion in 2007, compared with -$8.6 billion in 2006. Currency-translation adjustments were $47.1 billion, reflecting the change in the U.S. dollar value of investments in foreign affiliates caused by depreciation of the U.S. dollar, particularly against the euro. These currency-translation adjustments more than offset -$24.3 billion in "other" valuation adjustments. These "other" valuation adjustments largely reflect capital gains and losses as well as differences between affiliates' sale prices, liquidation proceeds, or purchase prices and their book values.

Changes by area and by country

In 2007, the outward direct investment position increased in each of the major geographic areas (table C). Europe, which accounted for 62 percent of the increase, was by far the largest source of the increase in the position. Outside of Europe, the largest increases were in Asia and Pacific and in "Latin America and Other Western Hemisphere."

Europe. The direct investment position in Europe rose $210.0 billion in 2007. The largest component of the increase was reinvested earnings, which accounted for nearly two-thirds of the increase. The largest dollar increase and the largest percent increase were in the Netherlands--$89.6 billion and 32 percent. The United Kingdom, Luxembourg and Ireland each had increases larger than $15.0 billion.

In the Netherlands, holding companies accounted for more than two-thirds of the increase, which reflected reinvested earnings and equity capital increases for acquisitions. In the United Kingdom, the increase was spread over several industries, including manufacturing (particularly transportation equipment), "other industries" (particularly food services and drinking places and rental and leasing services), and holding companies. In transportation equipment manufacturing, the increase was entirely attributable to equity capital increases for acquisitions.

Asia and Pacific. The $48.5 billion increase in the position in Asia and Pacific was spread over several industries, with the largest increases in holding companies, manufacturing (especially computers and electronic products), and information. In holding companies, capital contributions to existing affiliates in Japan accounted for virtually all of the increase.

The largest increases were in Australia, Japan, and Hong Kong. In Australia and Japan, the largest increases were in holding companies. The increase in Hong Kong was broad based by industry, but the largest increases were in wholesale trade, "finance (except banks) and insurance" and professional, scientific, and technical services.

Within this region, the largest percent increases in the position were in India, Thailand, and China. In India, the 48 percent increase primarily reflected acquisitions of affiliates in the information sector. In Thailand, the 37 percent increase was largely attributable to increases in manufacturing (particularly petroleum refining), banking, and mining. In China, the 21 percent increase reflected reinvested earnings in manufacturing, especially in computers and electronic products and chemicals.

Latin America and Other Western Hemisphere. The outward position rose $44.6 billion, with reinvested earnings more than accounting for the increase. Bermuda, Brazil and Mexico had the largest dollar increases. In Bermuda, holding companies more than accounted for the increase, which was mainly due to valuation adjustments. In Brazil, the increase was spread over several industries, the largest of which were manufacturing (particularly transportation equipment and chemicals) and banks. In Mexico, the increase was widespread by industry, with the largest increases in holding companies, manufacturing (particularly chemicals), "finance (except banks) and insurance," and mining.

Canada. The position increased $27.0 billion in 2007, with the largest increase in "finance (except banks) and insurance," followed by smaller increases in manufacturing (particularly beverages and petroleum refining and extraction) and "other industries" (particularly food services and drinking places). In "finance (except banks) and insurance" intercompany debt investment accounted for over half of the overall increase.

Middle East and Africa. The $3.8 billion increase in the position in the Middle East represented the second largest percentage increase--15 percent--of any major region. The largest dollar increases were in Qatar, Israel, and Saudi Arabia. In Africa, the $2.7 billion increase in the position, though relatively small in dollar terms, represented growth of 11 percent. Three countries-Mauritius, Egypt, and South Africa--more than accounted for the increase.

Foreign Direct Investment in the United States

At the end of 2007, 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 $2,093.0 billion (table A and chart 1). The United =Kingdom had the largest position, $410.8 billion, or 20 percent of the total (table 2.2 and chart 4). Japan had the next largest position, $233.1 billion, or 11 percent of the total. Foreign direct investors in Canada, the Netherlands, and Germany each accounted for 10 percent of the total position.

In 2007, the inward direct investment position grew 14 percent, or $249.2 billion, up slightly from 13 percent growth in 2006. The 2007 increase was the largest percentage increase in the position since 2000, when the position increased 32 percent.

Changes by component

The $249.2 billion increase in the inward direct investment position was attributable to capital flows of $232.8 billion, which accounted for 93 percent of the increase, and valuation adjustments of $16.3 billion (table D and chart 5).

Capital flows

Direct investment capital flows were $232.8 billion in 2007, up from $236.7 billion in 2006. Capital flows in 2007 consisted of net equity capital investment of $147.4 billion, reinvested earnings of $63.8 billion, and net intercompany debt investment of $21.6 billion.

Equity capital investment. In 2007, foreign parents' net equity capital investment in their U.S. affiliates was $147.4 billion, up from $117.8 billion in 2006. Net equity investments in 2007 were the highest since 2000, when net equity investment peaked at $259.6 billion. Net equity investment resulted from equity capital increases of $213.2 billion and partly offsetting equity capital decreases of $65.8 billion. Equity capital increases grew 29 percent in 2007, as the pickup in acquisitions and establishments of U.S. businesses by foreign direct investors that

began in 2006 strengthened. (5) There were a number of acquisitions of U.S. businesses with activities complementary to those of the foreign acquirer in 2007 as some foreign firms sought to diversify their product offerings or to expand their presence in the U.S. market. Equity capital decreases, which decrease the inward position, grew 38 percent in 2007, mainly reflecting a step-up in selloffs of U.S. affiliates to U.S. companies and some repatriations of capital by foreign parents.

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Equity capital increases were widespread by industry and by country of foreign parent in 2007. Increases were largest in manufacturing and in "other industries," which together accounted for 59 percent of equity capital investment in U.S. affiliates in 2007. Within manufacturing, equity capital investment was largest in chemicals and mainly reflected acquisitions; investors from the Netherlands and Luxembourg had the largest equity increases. In "other industries," the increases were mainly in utilities, mining, health care, and transportation and were largely attributable to acquisitions. Investors from the United Kingdom and the Netherlands accounted for the largest increases in "other industries." Overall, by country, the largest equity capital increases were by investors from the Netherlands, the United Kingdom, and Canada. Equity capital decreases were largest in banking.

Reinvested earnings. Reinvested earnings--the foreign parents' share of affiliates' current-period earnings less affiliates' distributions to the parents from their current and cumulated retained earnings--were virtually flat in 2007 but remained at a historically high level. Reinvested earnings added $63.8 billion to the inward direct investment position in 2007, continuing the trend that began in 2004 in which earnings reinvested in U.S. affiliates have been a substantial component of capital flows for inward investment.

In 2007, reinvested earnings were largest for affiliates in manufacturing and in wholesale trade, which together accounted for 75 percent of the total. In manufacturing, affiliates in chemicals had the largest reinvested earnings. By country, affiliates with parents in Japan, Canada, and France had the largest reinvested earnings.

Reinvested earnings were virtually unchanged in 2007 despite a $15.8 billion, or 13 percent, decline in affiliates' earnings, to $105.1 billion. This marked the first earnings decrease for U.S. affiliates since 2001 and coincided with the broader slowdown in growth of U.S. corporate profits from 14 percent in 2006 to 4 percent in 2007. (6) U.S. affiliates' earnings were down in several industries in 2007. A shift to losses for banks, which reflected the turmoil in credit markets in the latter part of 2007, accounted for most of the overall decline. The reinvestment ratio--the ratio of reinvested earnings to total earnings--was 61 percent in 2007, up from 53 percent in 2006 The largest increases in reinvested earnings were in wholesale trade and in manufacturing. Affiliates in chemicals more than accounted for the increase in manufacturing. In wholesale trade, the increase occurred despite a decline in earnings and was largely attributable to a dropoff in dividends to foreign parents. In chemicals manufacturing, the increase mainly reflected strong earnings growth in 2007. In contrast, reinvested earnings for banks shifted from positive to negative as a result of a shift to losses in that industry.

Intercompany debt investment. In 2007, foreign direct investors' borrowing and lending transactions with U.S. affiliates increased the inward position $21.6 billion, compared with net debt investments of $55.3 billion in 2006. Net debt investment in 2007 resulted from a $79.4 billion increase in U.S. affiliates' debt obligations to their foreign parents and other members of their foreign parent groups, which was partly offset by a $57.8 billion increase in affiliates' debt claims on foreign parents. Affiliates in "other industries" accounted for the largest portion of the increase in the net intercompany debt position; affiliates classified as holding companies, especially those with subsidiaries in telecommunications, and affiliates in health care contributed most to the increase. By country, Luxembourg and the Netherlands together more than accounted for the overall increase in the net debt investment position.

Valuation adjustments

In 2007, valuation adjustments increased the inward position $16.3 billion after reducing the position $26.9 billion in 2006. Valuation adjustments in 2007 consisted of currency-translation adjustments of $3.9 billion and "other" valuation adjustments, which include capital gains and losses, of $12.4 billion. Valuation adjustments were largest in chemicals manufacturing.

Changes by area and by country

The inward direct investment position increased for each of the major areas except Africa in 2007 (table E). Foreign direct investors in Europe had by far the largest increase, accounting for 64 percent of the overall increase in position. (7)

Europe. The position increased $158.6 billion in 2007. Increases in the position were broadly based by industry and by country; the largest dollar increases were attributable to the Netherlands and Luxembourg, which together accounted for 42 percent of the increase for the region. Increases for France and Switzerland were also sizable.

The position for the Netherlands increased $36.2 billion. The largest increases were in manufacturing, especially chemicals, and in "other industries," particularly in health care and transportation. In chemicals manufacturing, both valuation adjustments made to effect changes in industry classifications and capital flows related to acquisitions of U.S. firms were large components of the increase. (8) The increase in "other industries" was largely attributable to acquisitions.

For Luxembourg, the $30.4 billion increase was largely attributable to increases in the position in "other industries," especially holding companies, and in manufacturing, especially chemicals. In "other industries," increased net debt investment in U.S. affiliates accounted for much of the increase; in chemicals, equity capital increases related to acquisitions were the largest component of the increase.

For France, the position increased $21.5 billion and was largely attributable to manufacturing, which accounted for 73 percent the increase. The increase in manufacturing was due to reinvested earnings and equity capital increases related to acquisitions. For Switzerland, the $21.5 billion increase was attributable to growth in the position in manufacturing; the largest increase was in petroleum.

In percentage terms, several European countries had large increases that were mainly attributable to acquisitions, including Spain, Sweden, and Italy. Belgium also had a large percentage increase, which was attributable to an increase in outstanding loans to U.S. affiliates.

Asia and Pacific. The position increased $49.3 billion in 2007. Japan accounted for 57 percent of the change, increasing its position $28.3 billion. For Japan, the largest increase was in manufacturing, especially computers and electronic products, transportation equipment, and chemicals. The increase in computers and electronic products reflected valuation adjustments to effect changes in affiliates' primary industry classifications and equity and debt investments in existing affiliates. In transportation equipment, much of the increase was attributable to reinvested earnings.

In percentage terms, there was a large increase in the position for Singapore, which was largely attributable to acquisitions and establishments of affiliates. Canada. The position increased $38.0 billion in 2007. The largest increase was in "finance (except banks) and insurance;' followed by manufacturing. In "finance (except banks) and insurance," the largest contributor to the increase was equity capital increases for acquisitions. In manufacturing, acquisitions and establishments of affiliates in petroleum and in paper were large contributors to the increase. The position in computers and electronic products increased as a result of changes in industry classification.

Middle East and Africa. The position for the Middle East increased $3.6 billion, with wholesale trade and "other industries" contributing the most to the change. Africa was the only region that did not increase its direct investment position in 2007; its position decreased $0.7 billion.

Latin America and Other Western Hemisphere. The position increased $0.3 billion in 2007 as increases in the positions of some countries were largely offset by decreases in those of other countries. The largest increase was an $8.0 billion increase for the United Kingdom Islands, Caribbean, where investments to establish new affiliates in real estate and rental and leasing and in "finance (except banks) and insurance" contributed the most to the increase. In contrast, the position for Bermuda decreased $8.9 billion; it was mainly attributable to an increase in outstanding loans made by U.S. affiliates in insurance to their foreign parents.

Revisions

The estimates of direct investment positions presented in this article for 2007 are preliminary. The revised estimates of the outward direct investment position for 2004-2006 and the revised estimates of the inward position for 2005-2006 incorporate new survey data. (9)

The estimates of the historical-cost U.S. direct investment abroad position and related flows for 2004 have been revised to incorporate data collected on BEA's benchmark survey of U.S. direct investment abroad for 2004, which covers the universe of U.S. direct investment abroad. The estimates for the position and related flows for 2005 and 2006 have been revised by extrapolating the 2004 universe based on data collected in BEA's quarterly surveys, which cover U.S.owned businesses abroad above a certain exemption level. Previously, the estimates for 2004-2006 were extrapolated based on the prior benchmark survey, which covered 1999.

The historical-cost outward position for 2004 was revised up $36.1 billion, to $2,160.8 billion, as capital flows were revised up $36.9 billion and valuation adjustments were revised down $0.9 billion. The estimate for the 2005 outward position was revised up $106.2 billion to $2,241.7 billion. This revision was the result of the $36.1 billion upward revision to the 2004 position, a $43.1 billion upward revision to 2005 capital flows, and a $26.9 billion upward revision to 2005 valuation adjustments. The 2006 outward position was revised up $70.7 billion to $2,454.7 billion. The upward revision to the 2006 position was attributable to a $106.2 billion upward revision to the 2005 position, a $5.1 billion upward revision to 2006 capital flows, and a partially offsetting $40.5 billion downward revision to 2006 valuation adjustments.

The estimates of the foreign direct investment position in the United States and the related capital flows have been revised to incorporate data collected on BEA's quarterly surveys of transactions between U.S. affiliates and their foreign parents and annual surveys of financial and operating data on U.S. affiliates.

The historical-cost inward direct investment position for 2005 was revised up $39.6 billion, to $1,634.1 billion. The upward revision was attributable to a $35.9 billion revision to valuation adjustments from negative to positive and a $3.7 billion upward revision to capital flows. The inward position for 2006 was revised up $54.8 billion, to $1,843.9 billion. The revision was the net result of the $39.6 billion upward revision to the 2005 position and a $61.3 billion upward revision to capital flows, which were partly offset by a $46.1 billion downward revision of valuation adjustments from positive to negative.

Tables 1.1-2.2 follow.

Acknowledgments

The estimates of the U.S. direct investment position abroad are 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 estimates of the foreign direct investment position in the United States are based 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 George M. Bogachevsky, Peter J. Fox, Barbara C. Huang, Susan M. LaPorte, and Helen P. Yiu. Computer programming for data estimation and tabulation was provided by Karen E. Poffel and Paula D. Brown.

Alternative Measures of the Direct Investment Positions

The detailed estimates of the positions of U.S. direct investment abroad and of foreign direct investment in the United States by country and industry are prepared only on a historical-cost basis, so they largely reflect the price levels of earlier periods. The estimates are also prepared on current-cost and market-value bases, but only at an aggregate level. The current-cost estimates 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 estimates value the equity portion of direct investment using indexes of stock market prices.

The historical-cost estimates are not ordinarily 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 estimates of the positions tend to be less than the current-cost and market-value estimates of the positions. The current-cost estimates of the position are discussed in "The International Investment Position of the United States at Yearend 2007" in this issue.

Alternative Direct Investment Position Estimates, 2006 and 2007
[Millions of dollars]

 Changes in 2007

 Position at Capital
Valuation method yearend Total flows

U.S. direct investment abroad:
 Historical cost 2,454,674 336,595 313,787
 Current cost 2,935,977 396,851 333,271
 Market value 4,454,635 693,317 333,271

Foreign direct Investment
 in the United States:
 Historical cost 1,843,885 249,164 232,839
 Current cost 2,151,616 271,180 237,542
 Market value 3,293,739 229,861 237,542

 Changes in 2007

 Valuation Position at
Valuation method adjustments yearend (p)

U.S. direct investment abroad:
 Historical cost 22,808 2,791,269
 Current cost 63,580 3,332,828
 Market value 360,046 5,147,952

Foreign direct Investment
 in the United States:
 Historical cost 16,326 2,093,049
 Current cost 33,638 2,422,796
 Market value -7,681 3,523,600

(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 33 percent of the U.S. direct investment position abroad in 2007. (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 estimates of 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)

The Bureau of Economic Analysis (BEA) is conducting research on methodologies for allocating the equity portion of U.S. direct investment abroad to its ultimate destination, thus effectively "looking through" holding companies and other indirect ownership arrangements. The research is evaluating the feasibility of allocating data on positions between U.S. parent companies and their foreign affiliates using company chain-of-ownership information collected on BEA's benchmark surveys of the operations of U.S. parent companies and their foreign affiliates.

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. (4) The estimates of 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 estimates reflect more closely the countries and industries in which the production of goods and services by foreign affiliates actually occurs than do the estimates 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 estimates and the operations estimates. However, other factors also contribute, including indirect ownership through other types of affiliates, the fact that the operations estimates, unlike the position estimates, 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 estimates of the outward direct investment position with the estimates of the assets and the net property, plant, and equipment (PP&E) of foreign affiliates for 2005 (the latest year for which detailed operations estimates are available) illustrates the differences in distribution between the position estimates and the estimates of the operations. In that year, manufacturing's share of the outward position, 19 percent, was similar to its 16 percent share of assets, but much lower than its 41 percent share of the PP&E of foreign affiliates in manufacturing. By country, the share of the direct investment position accounted for by the Netherlands was 10 percent, compared with a 9 percent share of assets and a 3 percent share of PP&E. (5)

For further discussion of the effect of holding companies on the estimates of 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 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 2006, the share, 32 percent, was virtually unchanged from the previous year. In 2004, the share was 35 percent. The lower shares in 2005-2007, compared with the share in 2004, 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 by far were from holding companies.

(3.) Estimates of the outward position and related flows are allocated to the industries and countries of the affiliates with whom 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, 5th 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 estimates used to derive the share of the assets and the share of the PP&E covers majority-owned foreign affiliates.

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Changes in Presentation of Detailed Statistics on Direct Investment

This year, several changes in presentation will be made in the September SURVEY OF CURRENT BUSINESS reports that provide detailed statistics on the historical-cost direct investment position and related capital and income flows for U.S. direct investment abroad and foreign direct investment in the United States.

* Table 9, which had shown country and industry detail for royalties and license fees and other private services, will be dropped. Global (all countries, all industries) totals for these accounts will continue to be shown in tables 2 and 3 and additional detail, including new detail by type of service or intangible asset, will be available in the October SURVEY article on U.S. international services. This change is being made to reflect the recent integration of data collection for affiliated and unaffiliated services transactions on the same survey forms.

* As a result of the elimination of table 9, table numbers for all of the following tables will change; table 10 will become 9, table 11 will become table 10, and so forth.

* A new table will be added to the foreign direct investment in the United States presentation that will show the historical cost direct investment position and income by industry of ultimate beneficial owner. Similar changes will be made to the tables that present detailed statistics of direct investment on BEA's Web site. For additional information, email <internationalaccounts@bea.gov>.

Key Terms

The key terms used in this statistical presentation are described in this box. For a more detailed discussion of these terms and the methodologies used to prepare the estimates, 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 1999 Benchmark Survey. These methodologies are also available on BEA's Web site at <www.bea.gov>.

Direct investment. Investment in which a resident 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 distinguish direct investment from other types of 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). The ownership or control, directly or indirectly, by one U.S. resident of at least 10 percent of the voting securities of an incorporated foreign business enterprise or the equivalent interest in an unincorporated foreign business enterprise.

Foreign direct investment in the United States (inward direct investment). The ownership or control, directly or indirectly, by one foreign resident of at least 10 percent of the voting securities of an incorporated U.S. business enterprise or the equivalent interest in an unincorporated U.S. business enterprise.

Foreign affiliate. A foreign business enterprise in which a single U.S. investor (a U.S. parent) directly or indirectly owns at least 10 percent of the voting securities, or the equivalent.

U.S. affiliate. A U.S. business enterprise in which a single foreign investor (a foreign parent) owns at least 10 percent of the voting securities, or the equivalent.

Ultimate beneficial owner (UBO). For a U.S. affiliate, that person (in the broad legal sense, including a company), proceeding up the affiliate's ownership chain beginning with the foreign parent, that is not owned more than 50 percent by another person. 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.

Foreign parent group. Consists of (1) the foreign parent, (2) any foreign person, proceeding up the foreign parent's ownership chain, that owns more than 50 percent of the person below it, up to and including the 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.

Direct investment position. The value of direct investors' equity in, and net outstanding loans to, their affiliates. The position may be viewed as the direct investors' net financial claims on their affiliates, whether in the form of equity (including reinvested earnings) or debt.

BEA prepares estimates of the positions for outward direct investment and for inward direct investment that are valued on three bases--historical cost, current cost, and market value. See the box "Alternative Measures of the Direct Investment Positions" in this article.

Direct investment capital flows arise from transactions in financial claims (assets) and liabilities between U.S. parents and their foreign affiliates or between U.S. affiliates and their foreign parents. For outward direct investment, capital flows include the funds that U.S. direct investors pay to unaffiliated foreign parties when affiliates are acquired from them and the funds that U.S. investors receive from them when their affiliates are sold. Similarly, inward direct investment capital flows include the funds that foreign direct investors pay to unaffiliated U.S. residents when affiliates are acquired from them and the funds that foreign investors receive from them when their affiliates are sold.

As presented in the international transactions accounts (ITAs), these capital flows include a current-cost adjustment to direct investment reinvested earnings (a component of both direct investment income and direct investment capital flows) 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; 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.

Direct investment capital flows without current-cost adjustment does not include the adjustment to reinvested earnings.

Direct investment capital flows consist of equity capital investment, intercompany debt investment, and reinvested earnings. Equity capital investment is the net of equity capital increases and decreases. Equity capital increases arise from parents' establishments of new affiliates, payments by parents to unaffiliated third parties for the purchase of capital stock or other equity interests when they acquire an existing business, payments made to acquire additional ownership interests in their affiliates, and 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 (and for inward direct investment, other members of the foreign parent groups) 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; unlike the measure of reinvested earnings used in the ITAs, these earnings do not include a current-cost adjustment at the aggregate level.

Historical-cost (book value) position estimates are consistent with U.S. generally accepted accounting principles (GAAP). These estimates are principally derived from the books of the affiliate and generally reflect the acquisition cost of the investment, cumulative reinvested earnings, and cumulative depreciation of fixed assets. However, under U.S. GAAP, the holdings of most financial instruments are valued at current-period prices rather than at cost. The position also includes cumulative capital gains and losses of the affiliate, including translation adjustments.

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 a current-cost and market-value basis, 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 and "other" adjustments. Currency-translation adjustments are made to account for changes in the exchange rates that are used to translate affiliates' foreign-currency-denominated assets and liabilities into U.S. dollars. The effects of currency fluctuations on these adjustments depend on the value and currency composition of affiliates' assets and liabilities. If an affiliate's assets exceed its liabilities denominated in a particular foreign currency, depreciation (appreciation) of the currency against the dollar will result in negative (positive) translation adjustments. In the case of a net liability position in a foreign currency, depreciation (appreciation) of the currency will result in positive (negative) translation adjustments.

"Other" valuation adjustments are made to account for differences between the proceeds from the sale or liquidation of affiliates and their book values; for differences between the purchase prices of affiliates and their book values; for writeoffs resulting from uncompensated or undervalued expropriations of affiliates; and for capital gains and losses (excluding currency-translation adjustments) on transactions, such as the sale of assets (excluding inventories), for an amount that differs from their book value, 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 writedown of assets such as goodwill whose value has been impaired. 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, such as when countries merge or are newly formed. 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.

Data Availability

This article summarizes the preliminary estimates of direct investment positions for 2007 based on BEA's quarterly, annual, and benchmark surveys. This article also presents revised estimates of outward direct investment for 2004-2006 and of inward direct investment for 2005 and 2006. More detailed estimates covering the positions and capital transactions discussed in this article and related income and services transactions, for both outward and inward investment will appear in the September 2008 SURVEY OF CURRENT BUSINESS.

Detailed estimates of the outward direct investment position and related capital flows, income, and services transactions for 1982-2007 are available on BEA's Web site, as are estimates of the inward direct investment position and related capital flows, income, and services transactions for 1980-2007. 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>.

(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 estimates are classified by country of the foreign affiliate with which the U.S. parents has direct transactions and positions. The inward direct investment position and related capital flow estimates 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.) In this article, "banks" refers to "depository institutions," which is the industry title that appears in the tables.

(5.) According to preliminary data from BENs 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 $276.8 billion in 2007, the second highest on record. See Y. Louise Ku-Graf, "Foreign Direct Investment in the United States: New Investment in 2007," SURVEY OF CURRENT BUSINESS 88 (June 2008): 33-40. 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 80 percent of total outlays to acquire or establish U.S. businesses in 2007.

(6.) The measure of corporate profits discussed here is most comparable with the measure of affiliates' earnings because it excludes inventory valuation and capital consumption adjustments (see table 1.12, line 46 of the National Income and Product Accounts).

(7.) The estimates of the inward direct investment position in this article are classified by country of foreign parent or of other members of the foreign parent group having direct transactions and positions with the U.S. affiliate as is consistent with international standards. For particular countries, estimates classified on this basis may be higher or lower than those classified by country of ultimate beneficial owner (UBO), particularly when investments have been channeled through affiliates in financial centers in other countries. For tabulations on both bases through 2006 (preliminary), see Jeffrey H. Lowe, "Foreign Direct Investment in the United States: Detail for Historical-Cost Position and Related Capital and Income Flows, 2004-2006" SURVEY 87 (September 2007): 33-77. Revised estimates for 2006 and preliminary estimates for 2007, on both bases, will be published in September 2008.

(8.) A change in the primary industry classification of an affiliate from one industry to another increases the position in the industry to which the affiliate has been reclassified and decreases the position in the industry in which it was previously classified, leaving the overall position unchanged.

(9.) For the previously published estimates, see Marilyn Ibarra and Jennifer Koncz, "Direct Investment Positions for 2006: Country and Industry Detail," SURVEY 87 (July 2007): 21-36.

Table 1.1. U.S. Direct Investment Position Abroad on a
Historical-Cost Basis, 2006
[Millions of dollars]

 All
 industries Mining

 All countries 2,454,674 129,625

Canada 230,045 33,230

Europe 1,341,116 30,417

 Austria 17,909 1
 Belgium 151,137 13
 Czech Republic 13,424 6
 Denmark 6,979 -163
 Finland 2,499 0
 France 62,003 93

 Germany 96,243 458
 Greece 1,985 -3
 Hungary 3,957 -8
 Ireland 71,065 1,600
 Italy 26,342 22
 Luxembourg 94,554 163
 Netherlands 280,514 2,592

 Norway 10,330 5,565
 Poland 6,464 0
 Portugal 2,864 1
 Russia 10,699 8,071
 Spain 50,759 60
 Sweden 133,057 0
 Switzerland 115,216 (D)
 Turkey 2,576 -4
 United Kingdom 375,348 5,531
 Other 15,192 (D)

Latin America and Other
 Western Hemisphere 427,397 21,533

 South America 79,846 12,611
 Argentina 13,867 2,728
 Brazil 33,090 3,008
 Chile 11,356 851
 Colombia 4,622 1,518
 Ecuador 554 134
 Peru 4,815 2,789
 Venezuela 10,066 1,214
 Other 1,476 369

 Central America 93,480 3,143
 Costa Rica 3,252 (*)
 Honduras 11,001 0
 Mexico 83,219 3,112
 Panama 4,714 52
 Other 12,951 -21

 Other Western Hemisphere 254,070 5,779
 Barbados 4,217 8
 Bermuda 134,613 112
 Dominican Republic 907 0
 United Kingdom Islands,
 Caribbean 90,060 2,379
 Other 24,274 3,279

Africa 25,074 11,625
 Egypt 6,511 5,966
 Nigeria 190 -807
 South Africa 4,118 (D)
 Other 14,255 (D)

Middle East 25,540 5,975
 Israel 19,427 (D)
 Saudi Arabia 4,737 229
 United Arab Emirates 3,621 1,873
 Other 7,755 (D)

Asia and Pacitic 405,502 26,845
 Australia 68,484 12,394
 China 23,405 1,934
 Hong Kong 41,019 (*)
 India 9,226 92
 Indonesia 9,864 6,167
 Japan 92,383 41
 Korea, Republic of 24,609 -1
 Malaysia 12,557 (D)
 New Zealand 15,974 337
 Philippines 7,149 18
 Singapore 78,436 244
 Taiwan 163,741 (*)
 Thailand 10,911 (D)
 Other 5,111 1,181

Addenda:
 European Union (25) (1) 1,188,254 10,330
 OPEC (2) 40,179 13,471

 Manufacturing

 Total Food

 All countries 466,688 30,202

Canada 83,980 3,065

Europe 227,097 18,439

 Austria 3,589 (D)
 Belgium 16,401 266
 Czech Republic 1,239 9
 Denmark 3,649 90
 Finland 1,428 0
 France 22,241 1,720

 Germany 23,805 761
 Greece 202 108
 Hungary 1,994 103
 Ireland 12,567 (D)
 Italy 9,991 781
 Luxembourg 6,945 0
 Netherlands 28,358 (D)

 Norway 2,708 3
 Poland 2,595 259
 Portugal 4,921 -17
 Russia 1,011 349
 Spain 11,518 553
 Sweden 3,105 (D)
 Switzerland 8,575 159
 Turkey 1,116 (D)
 United Kingdom 61,735 5,805
 Other 1,831 271

Latin America and Other
 Western Hemisphere 55,353 5,128

 South America 27,984 2,178
 Argentina 2,531 187
 Brazil 16,914 1,604
 Chile 1,733 32
 Colombia 1,348 116
 Ecuador 130 22
 Peru 406 (D)
 Venezuela 4,711 134
 Other 212 (D)

 Central America 23,367 2,821
 Costa Rica 1,145 209
 Honduras 501 (*)
 Mexico 21,115 2,448
 Panama 90 34
 Other 515 1,301

 Other Western Hemisphere 1,003 129
 Barbados 526 29
 Bermuda 668 0
 Dominican Republic 546 57
 United Kingdom Islands,
 Caribbean 1,332 (D)
 Other 932 (D)

Africa 2,683 163
 Egypt 188 (D)
 Nigeria 115 (D)
 South Africa 1,859 -9
 Other 522 142

Middle East 8,396 115
 Israel 5,820 (D)
 Saudi Arabia (D) 0
 United Arab Emirates 338 (D)
 Other (D) 0

Asia and Pacitic 89,178 3,293
 Australia 14,459 1,098
 China 11,785 498
 Hong Kong 3,002 4
 India 1,965 50
 Indonesia 353 (D)
 Japan 18,012 174
 Korea, Republic of 10,105 781
 Malaysia 4,581 39
 New Zealand 1,079 (D)
 Philippines 2,863 246
 Singapore 11,331 -2
 Taiwan 4,286 87
 Thailand 4,987 87
 Other 368 (D)

Addenda:
 European Union (25) (1) 212,287 17,609
 OPEC (2) 7,797 193

 Manufacturing

 Primary
 and
 fabricated
 Chemicals metals

 All countries 108,567 25,372

Canada 13,807 3,862

Europe 61,443 15,400

 Austria 232 87
 Belgium 9,013 342
 Czech Republic 264 74
 Denmark 54 43
 Finland 133 223
 France 3,384 3,622

 Germany 3,735 2,554
 Greece 96 0
 Hungary 108 (D)
 Ireland 3,494 212
 Italy 2,264 405
 Luxembourg (D) (*)
 Netherlands 9,224 2,756

 Norway 138 296
 Poland (D) 377
 Portugal 80 12
 Russia 340 (D)
 Spain 3,672 160
 Sweden 524 94
 Switzerland 4,598 212
 Turkey 382 1
 United Kingdom 14,906 2,743
 Other 146 (D)

Latin America and Other
 Western Hemisphere 12,685 3,554

 South America 7,743 22,421
 Argentina 1,430 -22
 Brazil 4,443 2,004
 Chile 556 (D)
 Colombia 430 190
 Ecuador 27 -1
 Peru 147 42
 Venezuela 6,391 -1
 Other 72 (D)

 Central America 4,547 738
 Costa Rica 137 55
 Honduras 8 4
 Mexico 4,301 685
 Panama 31 4
 Other 70 -11

 Other Western Hemisphere 394 574
 Barbados 11 9
 Bermuda (D) (*)
 Dominican Republic 92 (D)
 United Kingdom Islands,
 Caribbean 421 -37
 Other (D) (D)

Africa 28 203
 Egypt -160 8
 Nigeria 21 30
 South Africa 133 148
 Other 33 17

Middle East 1,403 46
 Israel (D) 0
 Saudi Arabia 258 24
 United Arab Emirates (D) 22
 Other (D) 0

Asia and Pacitic 19,203 2,307
 Australia 4,551 740
 China 2,873 766
 Hong Kong 149 75
 India 636 (D)
 Indonesia 292 -10
 Japan 4,237 195
 Korea, Republic of 1,771 133
 Malaysia 839 42
 New Zealand 137 26
 Philippines 480 12
 Singapore 1,267 56
 Taiwan 937 75
 Thailand 933 97
 Other 100 (D)

Addenda:
 European Union (25) (1) 55,888 13,959
 OPEC (2) 1,882 65

 Manufacturing

 Computers
 and
 electronic
 Machinery products

 All countries 32,248 58,800

Canada 70,021 5,646

Europe 17,529 225,841

 Austria 265 (D)
 Belgium 211 129
 Czech Republic 116 16
 Denmark (D) 1,182
 Finland 282 572
 France 939 2,288

 Germany 2,660 4,191
 Greece 1 (D)
 Hungary 11 75
 Ireland 295 2,782
 Italy 755 1,069
 Luxembourg (*) 0
 Netherlands 1,296 1,592

 Norway 2,256 -6
 Poland 63 82
 Portugal (D) 16
 Russia (D) 33
 Spain 67 544
 Sweden 204 769
 Switzerland 1,324 529
 Turkey 3 8
 United Kingdom 5,803 5,263
 Other 581 (D)

Latin America and Other
 Western Hemisphere 2,788 241

 South America 1,802 1,185
 Argentina 112 91
 Brazil 15,151 1,077
 Chile 601 11
 Colombia 16 (*)
 Ecuador 1 3
 Peru 4 1
 Venezuela 97 -1
 Other -3 2

 Central America -2,179
 Costa Rica 10,070 (D)
 Honduras (') 0
 Mexico 1,006 -2,345
 Panama 0 (*)
 Other 1 (D)

 Other Western Hemisphere -20 1,235
 Barbados (*) 220
 Bermuda -21 554
 Dominican Republic 0 -6
 United Kingdom Islands,
 Caribbean 1 467
 Other 0 (*)

Africa 296 52
 Egypt 127 5
 Nigeria 1 0
 South Africa 159 46
 Other 9 (*)

Middle East 333 4,533
 Israel 141 4,530
 Saudi Arabia (D) 0
 United Arab Emirates (D) 3
 Other 2 0

Asia and Pacitic 4,300 25,745
 Australia 869 449
 China 586 2,255
 Hong Kong 33 1,318
 India 434 296
 Indonesia 13 8
 Japan 554 3,824
 Korea, Republic of 220 3,112
 Malaysia 67 3,130
 New Zealand 29 117
 Philippines 39 1,498
 Singapore 997 6,896
 Taiwan 147 1,718
 Thailand 312 1,074
 Other 1 50

Addenda:
 European Union (25) (1) 13,948 22,010
 OPEC (2) 309 10

 Manufacturing

 Electricall
 equipment,
 appliances,
 and Transportation
 components equipment

 All countries 17,172 52,888

Canada 2,002 17,462

Europe 10,760 18,194

 Austria (D) 1,325
 Belgium 750 1,089
 Czech Republic 78 613
 Denmark 38 2
 Finland (D) (D)
 France 544 1,463

 Germany 1,809 4,087
 Greece 0 0
 Hungary 920 247
 Ireland 40 (D)
 Italy 319 1,488
 Luxembourg (*) -2
 Netherlands 2,274 -32

 Norway -11 (*)
 Poland (D) 483
 Portugal -6 322
 Russia 15 44
 Spain 1,245 785
 Sweden 94 312
 Switzerland 441 307
 Turkey 1 266
 United Kingdom 1,899 5,282
 Other 21 53

Latin America and Other
 Western Hemisphere 1,413 7,516

 South America 45 2,666
 Argentina -109 338
 Brazil 56 1,073
 Chile (*) (D)
 Colombia 9 217
 Ecuador 0 (D)
 Peru 0 0
 Venezuela 89 894
 Other 0 22

 Central America 1,368 (D)
 Costa Rica 114 0
 Honduras 0 (D)
 Mexico 1,254 4,749
 Panama 0 0
 Other 1 (*) (D)

 Other Western Hemisphere 0 (D)
 Barbados 0 (D)
 Bermuda 0 0
 Dominican Republic 0 0
 United Kingdom Islands,
 Caribbean 0 (D)
 Other 10 0

Africa 187 941
 Egypt 4 (D)
 Nigeria 0 0
 South Africa 183 879
 Other 0 (D)

Middle East 79 -18
 Israel (D) 0
 Saudi Arabia (D) -18
 United Arab Emirates 9 910
 Other 0 110

Asia and Pacitic 2,731 8,794
 Australia 336 1,799
 China 542 1,799
 Hong Kong 267 36
 India 95 116
 Indonesia (D) 28
 Japan 795 2,137
 Korea, Republic of 256 1,058
 Malaysia 4 92
 New Zealand (D) 5
 Philippines -2 -14
 Singapore 307 1,073
 Taiwan 64 107
 Thailand 32 541
 Other 0 102

Addenda:
 European Union (25) (1) 10,315 17,604
 OPEC (2) 147 848

 Manufacturing

 Other Wholesale
 manufacturing trade

 All countries 141,438 158,090

Canada 31,135 16,104

Europe 62,747 91,779

 Austria 160 2,362
 Belgium 4,602 5,399
 Czech Republic 68 147
 Denmark (D) 836
 Finland (D) 648
 France 8,282 7,594

 Germany 4,007 18,504
 Greece (D) 698
 Hungary (D) 309
 Ireland 5,715 1,593
 Italy 2,910 3,045
 Luxembourg (D) 2,077
 Netherlands (D) 8,924

 Norway 33 737
 Poland (D) 291
 Portugal (D) 1,071
 Russia 226 471
 Spain 4,492 2,760
 Sweden (D) 936
 Switzerland 1,005 18,638
 Turkey (D) 561
 United Kingdom 20,034 13,258
 Other (D) 918

Latin America and Other
 Western Hemisphere 22,029 18,335

 South America 10,121 3,058
 Argentina 504 192
 Brazil 5,142 987
 Chile 964 691
 Colombia 369 592
 Ecuador (D) 100
 Peru (D) 115
 Venezuela 2,859 186
 Other 76 196

 Central America (D) 3,530
 Costa Rica (D) 374
 Honduras (D) 101
 Mexico 9,018 2,445
 Panama 22 374
 Other (D) 236

 Other Western Hemisphere (D) 11,747
 Barbados (D) 1,363
 Bermuda (D) 3,910
 Dominican Republic (D) 169
 United Kingdom Islands,
 Caribbean 838 5,923
 Other (D) 381

Africa 814 1,177
 Egypt (D) 94
 Nigeria (D) 30
 South Africa 320 693
 Other (D) 360

Middle East 1,906 701
 Israel (D) 51
 Saudi Arabia (D) 308
 United Arab Emirates (D) 332
 Other (D) 9

Asia and Pacitic 22,806 29,993
 Australia 4,648 29,222,326
 China 2,467
 Hong Kong 1,121 6,114
 India (D) 533
 Indonesia 33 143
 Japan 6,096 8,150
 Korea, Republic of 2,775 1,292
 Malaysia 368 198
 New Zealand (D) 507
 Philippines 605 374
 Singapore 736 4,098
 Taiwan 1,151 1,918
 Thailand 1,910 1,201
 Other (D) 217

Addenda:
 European Union (25) (1) 60,954 70,502
 OPEC (2) 4,344 1,001

 Manufacturing

 Depository
 Information institutions

 All countries 93,355 70,205

Canada 3,728 2,522

Europe 62,757 51,696

 Austria 5 (D)
 Belgium -524 1,293
 Czech Republic (D) 974
 Denmark 184 0
 Finland 139 0
 France 1,065 2,326

 Germany 2,182 2,203
 Greece 10 -126
 Hungary 18 (D)
 Ireland 11,462 (D)
 Italy 2,820 -61
 Luxembourg (D) 715
 Netherlands 6,152 (D)

 Norway 134 (*)
 Poland 378 1,669
 Portugal 73 0
 Russia -9 (D)
 Spain 396 1,569
 Sweden 308 0
 Switzerland 1,384 12,174
 Turkey (D) (D)
 United Kingdom 34,332 16,939
 Other (D) 1,708

Latin America and Other
 Western Hemisphere 6,759 -4,455

 South America 2,922 5,170
 Argentina 809 499
 Brazil 423 2,282
 Chile (D) 1,380
 Colombia 24 (D)
 Ecuador 2 (D)
 Peru 108 (D)
 Venezuela (D) (D)
 Other (D) 233

 Central America 2,569 (D)
 Costa Rica 15 0
 Honduras (*) (D)
 Mexico 2,492 (D)
 Panama -4 (D)
 Other 65 48

 Other Western Hemisphere 1,268 (D)
 Barbados 41 0
 Bermuda 477 45
 Dominican Republic 10 (D)
 United Kingdom Islands,
 Caribbean 309 -21,540
 Other 432 -6,465

Africa 240 1,109
 Egypt (*) (D)
 Nigeria 1 (D)
 South Africa 204 (D)
 Other 35 439

Middle East 1,465 419
 Israel 1,391 15
 Saudi Arabia (D) 0
 United Arab Emirates (D) (D)
 Other -9 (D)

Asia and Pacitic 18,406 18,914
 Australia 9,480 1,924
 China 476 1,265
 Hong Kong 1,227 1,542
 India 2,536 1,426
 Indonesia -77 675
 Japan 2,922 678
 Korea, Republic of 246 6,336
 Malaysia 95 (D)
 New Zealand 222 (D)
 Philippines 29 (D)
 Singapore 1,048 1,894
 Taiwan 182 995
 Thailand 18 718
 Other 1 330

Addenda:
 European Union (25) (1) 61,019 36,694
 OPEC (2) 843 1,558

 Manufacturing

 Finance
 (except Professional,
 depository scientific,
 institutions) and
 and technical
 insurance services

 All countries 497,266 69,118

Canada 32,336 7,680

Europe 242,539 37,515

 Austria (D) 277
 Belgium 21,991 2,664
 Czech Republic (D) 8
 Denmark 436 107
 Finland 25 114
 France 6,066 2,165

 Germany 12,303 3,690
 Greece 692 20
 Hungary 168 146
 Ireland 15,922 3,689
 Italy 3,021 3,133
 Luxembourg 7,921 13
 Netherlands 33,175 2,690

 Norway 207 166
 Poland 899 165
 Portugal 286 10
 Russia 46 63
 Spain 6,232 1,863
 Sweden (D) 351
 Switzerland 11,081 1,354
 Turkey (D) 39
 United Kingdom 113,268 14,681
 Other 684 107

Latin America and Other
 Western Hemisphere 136,193 1,665

 South America 9,571 935
 Argentina 1,566 8
 Brazil 4,286 347
 Chile 2,678 133
 Colombia 436 44
 Ecuador 39 2
 Peru 116 27
 Venezuela 379 351
 Other 71 22

 Central America 14,288 531
 Costa Rica (D) 90
 Honduras 12 (*)
 Mexico 13,892 465
 Panama 343 -30
 Other (D) 6

 Other Western Hemisphere 112,334 199
 Barbados 1,991 5
 Bermuda 71,949 166
 Dominican Republic (D) 1
 United Kingdom Islands,
 Caribbean 29,327 90
 Other (D) -62

Africa 1,114 305
 Egypt 19 1
 Nigeria (D) 1
 South Africa 84 265
 Other (D) 37

Middle East 209 1,301
 Israel 58 891
 Saudi Arabia (D) 337
 United Arab Emirates 9 43
 Other (D) 30

Asia and Pacitic 84,874 20,652
 Australia 8,282 3,627
 China 1,632 1,164
 Hong Kong 8,388 2,735
 India 708 1,361
 Indonesia 642 20
 Japan 44,028 7,702
 Korea, Republic of 4,036 1,264
 Malaysia 557 216
 New Zealand 1,325 320
 Philippines (D) 6
 Singapore (D) 1,431
 Taiwan 7,955 602
 Thailand 818 204
 Other (D) (*)

Addenda:
 European Union (25) (1) 230,630 35,869
 OPEC (2) 1,148 776

 Manufacturing

 Holding
 companies Other
 (nonbank) industries

 All countries 794,586 175,741

Canada 20,816 29,648

Europe 501,534 95,782

 Austria 8,407 682
 Belgium 1,366 2,532
 Czech Republic -1 -40
 Denmark 1,579 350
 Finland 15 130
 France 11,497 8,956

 Germany 28,976 4,121
 Greece 244 248
 Hungary 3 (D)
 Ireland 3,374 (D)
 Italy 28,991 1,473
 Luxembourg 74,344 (D)
 Netherlands 192,390 (D)

 Norway 262 549
 Poland (D) (D)
 Portugal (D) (D)
 Russia 37 (D)
 Spain 24,060 2,303
 Sweden 15,705 (D)
 Switzerland 58,241 (D)
 Turkey (*) 143
 United Kingdom 75,456 40,146
 Other 2,539 937

Latin America and Other
 Western Hemisphere 171,436 20,577

 South America 12,734 4,861
 Argentina 5,010 523
 Brazil 4,088 755
 Chile 1,072 (D)
 Colombia 60 (D)
 Ecuador (D) 19
 Peru (D) 450
 Venezuela 1,770 422
 Other 8 (D)

 Central America 17,774 (D)
 Costa Rica (D) (D)
 Honduras 3 (D)
 Mexico 13,859 (D)
 Panama (D) (D)
 Other -1 (D)

 Other Western Hemisphere 140,929 (D)
 Barbados 136 147
 Bermuda 53,591 3,694
 Dominican Republic (*) 45
 United Kingdom Islands,
 Caribbean 71,308 933
 Other 15,894 (D)

Africa 6,203 617
 Egypt 3 (D)
 Nigeria 384 126
 South Africa (D) 219
 Other (D) (D)

Middle East 6,355 720
 Israel 932 (D)
 Saudi Arabia 3,389 (D)
 United Arab Emirates (D) 189
 Other (D) 283

Asia and Pacitic 88,242 28,398
 Australia 10,159 5,237
 China 1,499 1,324
 Hong Kong 16,639 1,371
 India 361 245
 Indonesia 846 1,094
 Japan 2,193 8,693
 Korea, Republic of 155 1,175
 Malaysia 2,791 1,228
 New Zealand (D) (D)
 Philippines (D) 2,006
 Singapore (D) 1,213
 Taiwan 125 312
 Thailand 127 (D)
 Other -76 (D)

Addenda:
 European Union (25) (1) 440,731 90,192
 OPEC (2) 11,594 1,991

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

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

(1.) The European Union (25) comprises Austria, Belgium, Cyprus, the
Czech Republic, Denmark, Estonia, Finland, France. Germany, Greece,
Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the
Netherlands, Poland, Portugal, Slovakia, Slovenia, Spain, Sweden,
and the United Kingdom.

(2.) OPEC is the Organization of Petroleum Exporting Countries. In
2006, its members were Algeria, Indonesia, Iran, Iraq, Kuwait, Libya,
Nigeria, Qatar, Saudi Arabia, the United Arab Emirates, and Venezuela.

NOTE. Estimates for 2006 are revised.

Table 1.2. U.S. Direct Investment Position Abroad on a Historical-Cost
Basis, 2007
[Millions of dollars)

 Manu-
 facturing
 All
 industries Mining Total

 All countries 2,791,269 147,319 531,315
Canada 257,058 32,700 93,516

Europe 1,551,165 37,380 257,397

 Austria 20,490 1 4,021
 Belgium 54,464 14 17,538
 Czech Republic 3,782 7 1,515
 Denmark 7,903 -163 3,551
 Finland 2,683 0 1,439
 France 68,454 96 25,099

 Germany 107,351 513 25,593
 Greece 1,829 -4 -78
 Hungary 4,886 (D) 1,975
 Ireland 87,023 (D) 19,180
 Italy 28,408 34 11,451
 Luxembourg 113,611 163 7,585
 Netherlands 370,160 3,351 27,404

 Norway 11,650 7,500 1,857
 Poland 8,278 0 3,878
 Portugal 3,702 1 541
 Russia 12,986 9,536 1,633
 Spain 55,894 69 13,196
 Sweden 36,372 0 4,063
 Switzerland 127,709 160 11,273
 Turkey 4,905 -3 1,382
 United Kingdom 398,836 6,558 70,083
 Other 19,788 (D) 3,219

Latin America and Other
 Western Hemisphere 471,953 27,319 63,810

 South America 93,373 15,835 33,445
 Argentina 14,868 2,917 2,514
 Brazil 41,552 2,611 22,111
 Chile 12,632 1,459 2,135
 Colombia 5,603 2,106 1,648
 Ecuador 673 228 142
 Peru 6,811 4,662 465
 Venezuela 9,974 1,401 4,222
 Other 1,259 451 208

 Central America 104,533 4,492 25,283
 Costa Rica 3,508 (*) 1,211
 Honduras 968 0 445
 Mexico 91,663 4,463 22,802
 Panama 6,243 50 132
 Other 2,152 -21 692

 Other Western Hemisphere 274,047 6,992 5,082
 Barbados 2,909 8 594
 Bermuda 148,633 (D) 982
 Dominican Republic 933 0 598
 United Kingdom Islands,
 Caribbean 90,803 3,018 1,783
 Other 30,769 (D) 1,124

Africa 27,764 12,587 3,187
 Egypt 7,513 (D) 256
 Nigeria -828 -1,875 94
 South Africa 4,839 (D) 2,120
 Other 16,241 (D) 717

Middle East 29,370 6,966 10,727
 Israel 10,119 171 6,394
 Saudi Arabia 5,345 402 466
 United Arab Emirates 3,846 1,900 (D)
 Other 10,061 4,494 (D)

Asia and Pacific 453,959 30,366 102,677
 Australia 79,027 13,544 13,883
 China 28,298 2,129 15,007
 Hong Kong 47,431 (*) 3,680
 India 13,633 219 2,918
 Indonesia 10,049 7,056 353
 Japan 101,607 5 19,273
 Korea, Republic of 27,151 -1 10,930
 Malaysia 15,699 (D) 5,933
 New Zealand 5,385 332 1,344
 Philippines 6,684 22 3,387
 Singapore 82,623 402 13,748
 Taiwan 16,374 (*) 4,974
 Thailand 14,983 (D) 6,798
 Other 5,015 640 448

Addenda:
 European Union (27) (1) 1,376,926 12,010 239,409
 OPEC (2) 43,778 15,379 8,979

 Manufacturing

 Primary
 Chemicals and
 fabricated fabricated
 Food metals metals

 All countries 33,766 117,963 28,685
Canada 4,145 13,280 5,342

Europe 20,604 69,326 15,533

 Austria 1 (D) 129
 Belgium 498 9,151 348
 Czech Republic 4 -28 90
 Denmark 30 13 47
 Finland 0 (D) 32
 France 3,060 3,138 3,659

 Germany 1,739 4,706 2,620
 Greece 22 73 0
 Hungary 140 (D) (D)
 Ireland 34 6,202 237
 Italy 1,111 2,514 515
 Luxembourg 0 (D) (*)
 Netherlands (D) 8,015 1,625

 Norway (D) 156 344
 Poland 484 1,148 474
 Portugal -15 126 12
 Russia 442 520 (D)
 Spain 706 4,206 191
 Sweden (D) 973 193
 Switzerland 147 5,975 224
 Turkey 2 4,691 2
 United Kingdom 5,834 16,777 3,258
 Other 380 217 1,184

Latin America and Other
 Western Hemisphere 4,792 14,842 4,372

 South America 2,025 9,011 2,913
 Argentina 207 1,087 5
 Brazil 1,223 5,817 2,595
 Chile 34 666 29
 Colombia 140 484 216
 Ecuador 281 20 (*)
 Peru (D) 142 (D)
 Venezuela 296 723 14
 Other (D) 74 (D)

 Central America 2,631 5,459 716
 Costa Rica 164 71 79
 Honduras -1 10 5
 Mexico 2 5,222 639
 Panama 34 70 4
 Other 117 85 -11

 Other Western Hemisphere 136 372 743
 Barbados 31 11 9
 Bermuda 0 (D) (*)
 Dominican Republic 64 127 (D)
 United Kingdom Islands,
 Caribbean 11 43 -37
 Other 30 (D) (D)

Africa 225 105 222
 Egypt 26 -170 (D)
 Nigeria 19 25 (D)
 South Africa 10 217 179
 Other 170 33 24

Middle East 131 1,756 66
 Israel 122 589 0
 Saudi Arabia 0 311 (D)
 United Arab Emirates 11 (D) (D)
 Other -2 (D) 0

Asia and Pacific 3,870 18,653 31,501
 Australia 1,173 2,992 1,118
 China 645 3,263 995
 Hong Kong 7 565 121
 India 54 1,014 132
 Indonesia -4 248 -5
 Japan 211 3,975 181
 Korea, Republic of 898 1,532 133
 Malaysia 37 889 54
 New Zealand (D) 164 31
 Philippines 303 661 11
 Singapore 63 1,348 88
 Taiwan (D) 714 95
 Thailand 75 1,169 172
 Other (D) 118 22

Addenda:
 European Union (27) (1) 19,905 62,186 13,967
 OPEC (2) 333 2,137 86

 Manufacturing

 Electrical
 Computers equipment,
 and appliances,
 electronic and
 Machinery products components

 All countries 37,063 69,912 18,429
Canada 7,773 5,712 2,346

Europe 19,482 26,375 12,171

 Austria 291 (D) (D)
 Belgium 236 45 1,011
 Czech Republic 168 44 119
 Denmark 685 1,229 53
 Finland (D) 586 (D)
 France 1,694 2,203 555

 Germany 3,301 5,074 1,457
 Greece 1 14 0
 Hungary 9 50 (D)
 Ireland 340 5,330 46
 Italy 576 1,328 245
 Luxembourg -1 (D) (D)
 Netherlands 1,404 1,415 3,863

 Norway 1,549 (D) -8
 Poland 87 111 (D)
 Portugal (D) 17 -13
 Russia -26 51 4
 Spain 10 380 1,182
 Sweden 226 741 123
 Switzerland 2,126 716 489
 Turkey 3 81 1
 United Kingdom 6,273 5,241 1,792
 Other 115 222 20

Latin America and Other
 Western Hemisphere 3,234 1,542 1,343

 South America 2,065 1,930 149
 Argentina 149 81 -122
 Brazil 1,726 1,833 157
 Chile 66 11 (*)
 Colombia 16 (*) 9
 Ecuador 1 3 0
 Peru 4 1 0
 Venezuela 106 -1 105
 Other -3 2 0

 Central America (D) -2,164 1,194
 Costa Rica 0 240 121
 Honduras (*) 0 0
 Mexico (D) (D) 1,072
 Panama 0 (*) 0
 Other 1 (D) (*)

 Other Western Hemisphere (D) 1,776 0
 Barbados (*) (D) 0
 Bermuda (D) 778 0
 Dominican Republic 0 -13 0
 United Kingdom Islands,
 Caribbean 1 (D) 0
 Other 0 (*) 0

Africa 284 68 -2
 Egypt 128 5 5
 Nigeria 1 0 0
 South Africa 145 63 -6
 Other 9 (*) 0

Middle East 409 5,031 88
 Israel 145 5,028 (D)
 Saudi Arabia 30 0 (D)
 United Arab Emirates 232 3 9
 Other 2 0 0

Asia and Pacific 5,880 31,183 2,483
 Australia 969 564 190
 China 1,067 3,616 603
 Hong Kong 120 1,360 310
 India 726 315 170
 Indonesia 15 8 (D)
 Japan 676 4,686 347
 Korea, Republic of 277 3,108 333
 Malaysia 73 4,451 3
 New Zealand (D) 107 (D)
 Philippines 46 1,619 2
 Singapore 1,330 8,211 357
 Taiwan (D) 1,725 73
 Thailand 395 1,311 50
 Other 1 102 0

Addenda:
 European Union (27) (1) 15,766 25,741 11,684
 OPEC (2) 393 10 173

 Manufacturing

 Trans- Other
 portation manu- Wholesale
 equipment facturing trade

 All countries 65,053 160,444 183,038
Canada 20,474 34,444 18,241

Europe 23,743 70,163 109,995

 Austria 1,295 181 2,436
 Belgium 1 5,112 5,222
 Czech Republic 753 365 166
 Denmark 2 1,491 1,065
 Finland (D) 147 825
 France 1,828 8,963 5,868

 Germany 2 4,349 21,385
 Greece 0 -189 823
 Hungary 178 272 124
 Ireland 11 6,981 1,370
 Italy 1,648 3,515 2,649
 Luxembourg (D) 3,014 3,076
 Netherlands -8 (D) 17,619

 Norway (*) -60 760
 Poland 590 (D) 313
 Portugal 314 (D) 1,330
 Russia 103 (D) 701
 Spain 1,335 5,184 3,582
 Sweden 174 (D) 1,048
 Switzerland 248 1,348 22
 Turkey 313 585 651
 United Kingdom 11,210 19,697 15,660
 Other 139 941 1,156

Latin America and Other
 Western Hemisphere 10,008 23,677 19,794

 South America 4,935 10,416 3,850
 Argentina 511 596 217
 Brazil 2,676 6,085 1,632
 Chile (D) (D) 904
 Colombia (D) (D) 536
 Ecuador (D) (D) 11
 Peru 0 217 29
 Venezuela 1,268 1,712 237
 Other 24 60 180

 Central America (D) 11,272 4,057
 Costa Rica 0 537 503
 Honduras (D) (D) 112
 Mexico 4,985 9,898 2,761
 Panama 0 23 405
 Other (D) (D) 276

 Other Western Hemisphere (D) 1,988 11,887
 Barbados (*) (D) 952
 Bermuda 0 21 2,561
 Dominican Republic 0 (D) 155
 United Kingdom Islands,
 Caribbean (D) (D) (D)
 Other 0 (D) (D)

Africa 1,169 11,171 1,087
 Egypt (D) (D) 74
 Nigeria 0 (D) (D)
 South Africa 1,112 400 772
 Other (D) (D) (D)

Middle East -18 3,264 816
 Israel 0 (D) (D)
 Saudi Arabia -18 72 (D)
 United Arab Emirates 0 91 390
 Other 0 (D) 8

Asia and Pacific 9,677 27,779 33,105
 Australia 1,711 5,166 3,702
 China 2,055 2,764 3,136
 Hong Kong 36 1,162 7,475
 India 157 349 530
 Indonesia -47 (D) 1,153
 Japan 2,251 6,945 8,552
 Korea, Republic of 1,298 3,352 1,638
 Malaysia 42 383 188
 New Zealand 5 (D) 470
 Philippines 2 742 426
 Singapore 1,397 953 3,369
 Taiwan 93 (D) 2,095
 Thailand 575 3,052 1,075
 Other 102 (D) 295

Addenda:
 European Union (27) (1) 23,040 67,121 84,992
 OPEC (2) 12,031 4,644 1,251

 Finance
 (except
 depository
 institu-
 Depository tions)
 institu- and
 Information tions insurance

 All countries 111,866 91,768 531,933
Canada 4,819 3,130 45,296

Europe 73,170 70,728 255,598

 Austria -1 (D) (D)
 Belgium 177 1,652 22,877
 Czech Republic 160 1,397 627
 Denmark 352 0 760
 Finland 145 0 25
 France 1,357 2,219 6,299

 Germany 2,758 2,614 13,538
 Greece 32 -119 659
 Hungary 52 (D) 73
 Ireland 16,501 (D) 9,886
 Italy 3,792 -42 3,561
 Luxembourg 1,802 942 15,612
 Netherlands 6,694 17,414 37,077

 Norway 179 (*) 284
 Poland 493 1,771 1,035
 Portugal 54 0 420
 Russia 36 808 139
 Spain 589 1,771 7,145
 Sweden 346 0 (D)
 Switzerland 1,267 13 12,229
 Turkey 78 3 99
 United Kingdom 36,155 15,221 114,764
 Other 154 2,178 774

Latin America and Other
 Western Hemisphere 7,400 -6,701 139,345

 South America 2,873 6,613 10,646
 Argentina 950 498 1,699
 Brazil 525 3,600 5,208
 Chile 751 1,456 2,770
 Colombia 62 (D) 5,701
 Ecuador 2 (D) 40
 Peru 153 (D) 130
 Venezuela 179 (D) 358
 Other 251 133 -130

 Central America 2,987 20,672 15,826
 Costa Rica 16 0 (D)
 Honduras (*) 22 12
 Mexico 2,962 (D) 15,420
 Panama -6 (D) 351
 Other 15 (D) (D)

 Other Western Hemisphere 1,541 -33,986 112,873
 Barbados -39 0 1,073
 Bermuda 518 (D) 76,741
 Dominican Republic 20 (D) (D)
 United Kingdom Islands,
 Caribbean 579 -27,114 24,721
 Other 462 -7,011 (D)

Africa 286 1,541 1,885
 Egypt -2 (D) 23
 Nigeria 1 (D) (D)
 South Africa 256 404 120
 Other 31 578 (D)

Middle East 1,513 547 333
 Israel 1,407 (D) 95
 Saudi Arabia 90 0 (D)
 United Arab Emirates 27 (D) 28
 Other -11 82 (D)

Asia and Pacific 24,678 22,523 89,476
 Australia 10,239 2,062 11,246
 China 645 1,169 794
 Hong Kong 1,197 2,270 9,514
 India 4,132 20,131 1,263
 Indonesia -57 5,341 585
 Japan 4,554 648 45,874
 Korea, Republic of 721 6,954 4,221
 Malaysia 105 (D) 652
 New Zealand 293 (D) 1,337
 Philippines 38 558 (D)
 Singapore 2,535 2,219 4,663
 Taiwan 259 968 7,301
 Thailand 16 1,800 1,185
 Other 1 (D) (D)

Addenda:
 European Union (27) (1) 71,509 52,001 242,347
 OPEC (2) 258 1,631 1,118

 Profes-
 sional,
 scientific,
 and Holding
 technical companies Other
 services (nonbank) industries

 All countries 63,791 927,578 202,661
Canada 4,389 21,798 33,169

Europe 37,949 593,837 115,110

 Austria 283 10,718 733
 Belgium 2,479 2 2,753
 Czech Republic 27 2 -118
 Denmark 137 1,896 306
 Finland 87 -3 165
 France 2,342 12,470 12,703

 Germany 4,649 30,128 6,173
 Greece 14 240 261
 Hungary 233 (D) 517
 Ireland 5 6,831 21,833
 Italy 1,020 3,076 2,866
 Luxembourg -24 83,595 861
 Netherlands 3,023 254,500 3,078

 Norway 84 330 656
 Poland 141 (D) (D)
 Portugal 39 (D) (D)
 Russia 93 (D) (D)
 Spain 2,132 24,880 2,530
 Sweden 447 19,835 (D)
 Switzerland 1,631 59,720 5,803
 Turkey 29 (*) 167
 United Kingdom 13,707 80,656 46,032
 Other 111 3,132 (D)

Latin America and Other
 Western Hemisphere 2,445 196,942 21,599

 South America 1,327 14,516 4,268
 Argentina 12 5,567 495
 Brazil 674 4,676 517
 Chile 129 939 2,087
 Colombia 31 13 (D)
 Ecuador 2 (D) 18
 Peru 74 (D) 498
 Venezuela 373 2,624 (D)
 Other 32 8 127

 Central America 564 20,273 10,378
 Costa Rica 125 (D) (D)
 Honduras (*) 2 373
 Mexico 458 16,157 (D)
 Panama -25 (D) 1,255
 Other 6 4 (D)

 Other Western Hemisphere 554 162,153 6,953
 Barbados 7 157 157
 Bermuda 200 62,770 4,627
 Dominican Republic 1 (*) 27
 United Kingdom Islands,
 Caribbean 422 78,416 (D)
 Other -76 20,810 (D)

Africa 327 6,249 615
 Egypt 1 -2 (D)
 Nigeria -1 374 97
 South Africa 250 (D) 228
 Other 77 (D) (D)

Middle East 1,315 6,625 527
 Israel 931 826 (D)
 Saudi Arabia 345 3,727 51
 United Arab Emirates 52 (D) 104
 Other -13 (D) (D)

Asia and Pacific 17,365 102,128 31,641
 Australia 3,822 14,244 3,285
 China 1,287 1,815 2,317
 Hong Kong 3,832 17,648 1,815
 India 1,821 401 336
 Indonesia -11 391 1,046
 Japan 1,654 11,494 9,553
 Korea, Republic of 1,265 140 1,282
 Malaysia 240 (D) 1,725
 New Zealand 351 (D) 848
 Philippines 68 (D) 502
 Singapore 2,579 51,690 1,418
 Taiwan 229 156 392
 Thailand 230 125 D)
 Other (*) -83 (D)

Addenda:
 European Union (27) (1) 36,103 531,241 107,315
 OPEC (2) 772 12,578 1,813

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

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

(1.) The European Union (27) comprises Austria, Belgium, Cyprus, the
Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece,
Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the
Netherlands, Poland, Portugal, Slovakia, Slovenia, Spain, Sweden,
the United Kingdom and the two countries-Bulgaria and Romania-that
joined in 2007.

(2.) OPEC is the Organization of Petroleum Exporting Countries. In
2007, its members were Angola (which joined at the beginning of the
year), Algeria, Indonesia, Iran, Iraq, Kuwait, Libya, Nigeria,
Qatar, Saudi Arabia, the United Arab Emirates, and Venezuela.
Ecuador rejoined OPEC in November 2007, but is not included as a
member in this annual tabulation.

Note. Estimates for 2007 are preliminary.

Table 2.1. Foreign Direct Investment Position in the United States
on a Historical-Cost Basis, 2006
[Millions of dollars]

 Manufacturing
 All
 industries Total Food

 All countries 1,843,885 581,101 49,159

Canada 175,198 30,236 2,205

Europe 1,324,355 470,668 44,190

 Austria 2,453 1,329 7
 Belgium 11,248 3,410 87
 Denmark 7,348 5,676 (D)
 Finland 7,315 4,412 (D)
 France 147,046 63,847 2,012

 Germany 204,708 68,353 64
 Ireland 28,553 11,300 1,922
 Italy 9,175 10,321 -49
 Luxembourg 103,944 56,208 685
 Netherlands 173,265 67,475 (D)
 Norway 10,736 911 0

 Spain 14,442 257,711 (*)
 Sweden 18,499 12,745 (*)
 Switzerland 134,193 72,564 (D)
 United Kingdom 406,337 83,816 (D)
 Other 45,095 15,014 (D)

Latin America and Other
 Western Hemisphere 62,685 8,530 (D)

 South and Central America 24,563 2,958 1,210
 Brazil 1,014 102 (D)
 Mexico 5,332 2,895 (D)
 Panama 12,182 -369 0
 Venezuela 5,391 27 (*)
 Other 645 304 88

 Other Western Hemisphere 38,122 5,572 (D)
 Bahamas 529 100 (D)
 Bermuda 8,367 3,659 (D)
 Netherlands Antilles 5,021 185 2
 United Kingdom Islands, 24,790 (D) 39
 Caribbean
 Other -585 (D) 10

Africa 1,814 -26 -1
 South Africa 639 -20 0
 Other 1,175 -6 -1

Middle East 9,342 (D) 8
 Israel (D) (D) 8
 Kuwait 878 (D) 0
 Lebanon -7 (*) 0
 Saudi Arabia (D) (D) 0
 United Arab Emirates (D) -15 0
 Other 255 125 0

Asia and Pacific 270,490 (D) (D)
 Australia 39,730 6,184 15
 China 973 (D) -9
 Hong Kong 3,181 1,433 -2
 India 1,435 195 (*)
 Japan 204,833 58,473 1,515
 Korea, Republic of 9,101 586 3
 Malaysia 436 20 (*)
 New Zealand 575 -4 (D)
 Singapore 5,368 (D) (D)
 Taiwan 4,126 1,444 -1
 Other 731 57 3

Addenda:
European Union (25) (1) 1,163,805 392,275 35,604
OPEC (2) 702,941 280,346 32,355

 Manufacturing

 Primary
 and
 fabricated
 Chemicals metals Machinery

 All countries 148,595 34,543 40,472

Canada (D) 6,164 577

Europe 131,664 23,254 37,787

 Austria -23 261 231
 Belgium 2,094 (D) 420
 Denmark (D) (D) 579
 Finland (D) (D) 1,234
 France 16,608 1,458 (D)

 Germany 28,048 1,804 (D)
 Ireland (D) (D) (D)
 Italy 299 57 189
 Luxembourg (D) (D) (D)
 Netherlands 6,529 (D) 5,938
 Norway 1,415 (D) (D)

 Spain (D) (D) (*)
 Sweden 4,126 1,411 1,472
 Switzerland 20,461 2,969 (D)
 United Kingdom 29,871 3,132 1,685
 Other (D) (D) (D)

Latin America and Other
 Western Hemisphere 1,494 1,664 (D)

 South and Central America -2 1,439 -135
 Brazil -52 (D) -41
 Mexico 83 1,564 -47
 Panama -18 (D) 1
 Venezuela -2 -1 -24
 Other -12 (D) -24

 Other Western Hemisphere 1,496 226 (D)
 Bahamas (D) (D) 0
 Bermuda (D) (D) (D)
 Netherlands Antilles (D) (D) 1
 United Kingdom Islands, (D) (D) (D)
 Caribbean
 Other (D) 0 (D)

Africa -20 50 -2
 South Africa -20 (D) -2
 Other (*) (D) -1

Middle East (D) 6 (D)
 Israel (D) (D) 0
 Kuwait 0 0 0
 Lebanon 0 0 0
 Saudi Arabia 13 (D) (D)
 United Arab Emirates 1 0 (D)
 Other 0 0 0

Asia and Pacific (D) 3,405 (D)
 Australia (D) 913 (D)
 China -108 4 -30
 Hong Kong (D) -6 -4
 India 15 (D) -2
 Japan 7,348 2,278 3,568
 Korea, Republic of 37 183 -4
 Malaysia -6 (D) (D)
 New Zealand (D) (D) 5
 Singapore -48 -1 4
 Taiwan (D) 3 1
 Other -3 4 -4

Addenda:
European Union (25) (1) 108,193 19,059 35,050
OPEC (2) 71,848 14,352 31,289

 Manufacturing

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

 All countries 44,430 26,428 69,289

Canada 247 (D) 3,304

Europe 34,769 23,048 37,029

 Austria (D) (*) (D)
 Belgium 4 7 (D)
 Denmark (D) (D) -1
 Finland (D) 14 (*)
 France (D) 3,462 3,123

 Germany 1,032 11,674 17,304
 Ireland (D) (') (D)
 Italy 215 (D) (D)
 Luxembourg (D) (D) (D)
 Netherlands 3,527 792 (D)
 Norway (D) 1 3

 Spain (D) 3 85
 Sweden (D) (D) 3,872
 Switzerland (D) 1,674 (D)
 United Kingdom 9,547 (D) 5,907
 Other (D) (D) 119

Latin America and Other
 Western Hemisphere (D) (D) 116

 South and Central America -90 -32 3
 Brazil (D) 4 64
 Mexico -36 -41 (D)
 Panama (*) (*) (D)
 Venezuela -2 10 -1
 Other (D) -5 -6

 Other Western Hemisphere (D) (D) 113
 Bahamas (*) 0 0
 Bermuda (D) (D) 0
 Netherlands Antilles -2 (*) -4
 United Kingdom Islands, (D) (D) 117
 Caribbean
 Other (*) (D) 0

Africa 0 (*) -6
 South Africa (D) (*) (*)
 Other (D) C) -6

Middle East (D) -1 (D)
 Israel (D) (*) (D)
 Kuwait (*) 2 (D)
 Lebanon 0 (*) 0
 Saudi Arabia 0 -3 0
 United Arab Emirates -12 (*) (D)
 Other 0 0 0

Asia and Pacific 8,648 (D) (D)
 Australia -7 -2 41
 China -11 2 (D)
 Hong Kong 589 (') -2
 India (D) (") 58
 Japan 5,338 1,053 28,950
 Korea, Republic of (D) -1 (D)
 Malaysia 15 (') 4
 New Zealand -9 (') (D)
 Singapore (D) (D) 13
 Taiwan 102 (D) -63
 Other 41 (D) 27

Addenda:
European Union (25) (1) 34,543 21,360 35,059
OPEC (2) 23,580 16,730 25,163

 Manu-
 facturing

 Other
 manu- Wholesale Retail
 facturing trade trade

 All countries 168,184 256,873 32,421

Canada 11,817 10,082 4,611

Europe 138,927 123,283 22,259

 Austria (D) (D) (D)
 Belgium 413 1,819 (D)
 Denmark 2,573 312 5
 Finland 2,149 2,537 (D)
 France 17,496 9,128 712

 Germany (D) 14,924 2,313
 Ireland (D) 254 (D)
 Italy -48 1,114 1,391
 Luxembourg (D) 2,435 4
 Netherlands 14,812 14,742 (D)
 Norway (D) (D) (*)

 Spain 833 129 (D)
 Sweden (D) 2,704 (D)
 Switzerland 35,328 (D) 5,498
 United Kingdom 30,018 60,497 2,856
 Other 6,708 945 (D)

Latin America and Other
 Western Hemisphere 2,866 8,603 1,105

 South and Central America 567 5,939 (D)
 Brazil -65 (D) (D)
 Mexico 342 1,439 (D)
 Panama -25 (D) 3
 Venezuela 46 (D) (*)
 Other 270 198 4

 Other Western Hemisphere 2,300 2,663 (D)
 Bahamas (D) (D) (D)
 Bermuda (D) -181 0
 Netherlands Antilles (D) (D) (D)
 United Kingdom Islands, 1,677 2,225 1,300
 Caribbean
 Other (D) (D) -5

Africa -48 (D) (D)
 South Africa (D) (D) (*)
 Other (D) (D) (D)

Middle East 245 (D) (D)
 Israel (D) 483 (D)
 Kuwait 0 -1 0
 Lebanon (*) (D) 0
 Saudi Arabia (D) (D) 0
 United Arab Emirates (D) (*) (*)
 Other 125 (D) 0

Asia and Pacific 14,376 110,122 4,403
 Australia (D) 1,466 2
 China -9 836 1
 Hong Kong (D) 1,121 (D)
 India (D) (D) 0
 Japan 8,422 96,776 4,215
 Korea, Republic of 81 7,705 (D)
 Malaysia 34 43 84
 New Zealand 4 (D) 0
 Singapore (D) 142 (D)
 Taiwan (D) 1,263 (D)
 Other (D) 285 (')

Addenda:
European Union (25) (1) 103,409 111,765 16,761
OPEC (2) 65,029 47,544 13,046

 Finance
 (except
 depository
 institu-
 Information Depository tions)
 institu- and
 tions insurance

 All countries 135,119 147,992 258,657

Canada 3,706 16,787 57,031

Europe 126,279 112,951 164,554

 Austria -1 (D) 1
 Belgium -1 (D) 1,186
 Denmark 0 0 (*)
 Finland -2 (D) -1
 France 9,283 20,053 29,032

 Germany 47,583 18,894 26,199
 Ireland 1,988 (D) 2,904
 Italy (D) 1,382 (D)
 Luxembourg 9,900 0 (D)
 Netherlands 14,191 (D) 44,342
 Norway (D) (D) 0

 Spain (D) 8,552 832
 Sweden 288 (D) 85
 Switzerland (D) (D) 31,782
 United Kingdom 20,387 (D) (D)
 Other (D) (D) 1,152

Latin America and Other
 Western Hemisphere 1,856 4,084 17,282

 South and Central America (D) 3,369 (D)
 Brazil 17 486 (D)
 Mexico (D) 1,008 69
 Panama (D) (D) (D)
 Venezuela -7 (D) (D)
 Other -3 657 13

 Other Western Hemisphere (D) 715 (D)
 Bahamas (D) (D) -37
 Bermuda 823 0 438
 Netherlands Antilles (D) (D) (D)
 United Kingdom Islands, 1,156 144 5,395
 Caribbean
 Other (D) (D) -447

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

Middle East 453 1,683 (D)
 Israel 486 1,669 (D)
 Kuwait 2 (D) (D)
 Lebanon 0 0 0
 Saudi Arabia 6 (D) 2
 United Arab Emirates (*) (D) 1
 Other -42 (D) 0

Asia and Pacific (D) (D) 19,573
 Australia (D) (D) 3,184
 China (*) (D) (D)
 Hong Kong 4 (D) (D)
 India 79 222 (D)
 Japan 2,198 8,263 14,611
 Korea, Republic of (D) 391 152
 Malaysia 4 (D) 0
 New Zealand (*) 0 3
 Singapore 16 318 (D)
 Taiwan (D) 990 16
 Other (D) 187 (D)

Addenda:
European Union (25) (1) 108,261 117,254 132,657
OPEC (2) 83,077 60,244 111,826

 Profes-
 Real sional,
 estate scientific,
 and and
 rental technical Other
 leasing services industries

 All countries 44,122 54,432 333,168

Canada 2,382 855 49,510

Europe 22,527 48,098 233,737

 Austria (D) (D) 19
 Belgium (D) -1,205 2,464
 Denmark 3 (D) (D)
 Finland (D) (D) (D)
 France 408 2,449 12,134

 Germany 7,600 239 18,604
 Ireland (D) (D) 6,600
 Italy 47 (D) 2,715
 Luxembourg (D) (D) 22,371
 Netherlands 2,869 6,313 10,543
 Norway 49 (D) (D)

 Spain (D) (D) 1,576
 Sweden 897 59 (D)
 Switzerland 1,937 634 7,037
 United Kingdom 5,239 29,030 127,705
 Other 82 (D) 14,974

Latin America and Other
 Western Hemisphere 5,841 -295 15,678

 South and Central America 580 -40 187
 Brazil (D) -21 61
 Mexico (D) (D) -7
 Panama (D) 3 657
 Venezuela 10 (D) 14
 Other 19 -10 -538

 Other Western Hemisphere 5,262 -256 15,491
 Bahamas (D) 5 (D)
 Bermuda (D) (D) 2,909
 Netherlands Antilles 1,383 (D) (D)
 United Kingdom Islands, 2,751 (D) 9,526
 Caribbean
 Other (D) -13 227

Africa 266 (D) 841
 South Africa 1 (D) (D)
 Other 264 (*) (D)

Middle East 836 (D) 752
 Israel 8 (D) 549
 Kuwait (D) 0 (D)
 Lebanon (D) 0 (*)
 Saudi Arabia 66 7 -22
 United Arab Emirates 22 1 (D)
 Other 47 (*) 47

Asia and Pacific 12,270 5,704 32,651
 Australia 5,665 (D) 21,215
 China -4 76 83
 Hong Kong 160 (D) 89
 India 2 793 150
 Japan 5,705 4,720 9,873
 Korea, Republic of 65 6 27
 Malaysia (D) 9 261
 New Zealand (D) -1 9
 Singapore 467 -52 547
 Taiwan 106 -45 244
 Other 17 -10 153

Addenda:
European Union (25) (1) 20,465 44,103 220,264
OPEC (2) 14,322 14,940 77,597

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

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

(1.) The European Union (25) comprises Austria, Belgium, Cyprus, the
Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece,
Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the
Netherlands, Poland, Portugal, Slovakia, Slovenia, Spain, Sweden,
and the United Kingdom.

(2.) OPEC is the Organization of Petroleum Exporting Countries. In
2006, its members were Algeria, Indonesia, Iran, Iraq, Kuwait, Libya,
Nigeria, Qatar, Saudi Arabia, the United Arab Emirates, and Venezuela.

NOTE. Estimates for 2006 are revised.

Table 2.2. Foreign Direct Investment Position in the United States
on a Historical-Cost Basis, 2007
[Millions of dollars]

 Manufacturing
 All
 industries Total Food

 All countries 2,093,049 709,545 25,891

Canada 213,224 43,118 3,106

Europe 1,482,978 557,115 19,516

 Austria 2,512 1,711 6
 Belgium 19,520 9,369 56
 Denmark 4,120 3,124 (D)
 Finland 5,998 3,986 (D)
 France 168,576 79,636 2,387

 Germany 202,648 61,901 (D)
 Ireland 33,557 15,742 2,322
 Italy 15,482 2,766 -39
 Luxembourg 134,310 61,886 717
 Netherlands 209,449 94,998 1,158

 Norway 7,952 -853 1
 Spain 27,606 3,357 (D)
 Sweden 31,857 12,878 (*)
 Switzerland 155,696 98,672 (D)
 United Kingdom 410,787 92,682 2,500
 Other 52,908 15,262 175

Latin America and Other
 Western Hemisphere 62,955 9,694 1,357

 South and Central America 26,467 3,434 1,248
 Brazil 1,356 90 (D)
 Mexico 5,954 3,339 (D)
 Panama 12,903 123 0
 Venezuela 6,059 94 (*)
 Other 195 -212 (D)

 Other Western Hemisphere 36,488 6,260 110
 Bahamas 603 (D) (D)
 Bermuda -519 4,150 (D)
 Netherlands Antilles 5,806 -202 2
 United Kingdom Islands,
 Caribbean 32,807 3,384 (D)
 Other -2,210 (D) (D)

Africa 1,124 -450 -1
 South Africa 189 (D) -1
 Other 935 (D) (*)

Middle East 12,937 2,028 8
 Israel 5,307 1,933 8
 Kuwait 812 2 0
 Lebanon (D) (*) 0
 Saudi Arabia (D) 8 0
 United Arab Emirates 862 -35 0
 Other 574 120 0

Asia and Pacific 319,832 98,040 1,905
 Australia 49,100 4,656 23
 China 1,091 -79 -1
 Hong Kong 3,209 1,530 -1
 India 2,957 136 -1
 Japan 233,148 79,951 1,439
 Korea, Republic of 13,057 (D) 3
 Malaysia 355 32 -1
 New Zealand 1,481 (D) (D)
 Singapore 10,217 (D) (D)
 Taiwan 4,368 1,523 -1
 Other 848 70 2

Addenda:
European Union (27) (1) 1,301,813 455,232 10,084
OPEC (2) 13,589 47 (*)

 Manufacturing

 Primary
 Chemicals and Machinery
 fabricated
 metals

 All countries 217,662 48,475 76,439

Canada 5,820 7,976 -130

Europe 197,269 33,755 67,978

 Austria (D) 425 269
 Belgium (D) (D) 30
 Denmark 1,591 (D) 647
 Finland 608 (D) 1,353
 France 21,163 1,451 (D)

 Germany 25,003 4,833 12,243
 Ireland 4,745 (D) 4
 Italy 382 128 213
 Luxembourg 23,638 7,087 21,990
 Netherlands 44,666 (D) (D)

 Norway 699 379 (D)
 Spain 256 (D) -3
 Sweden (D) 1,779 (D)
 Switzerland 31,552 2,145 1,172
 United Kingdom 31,860 6,580 2,799
 Other 576 726 (D)

Latin America and Other
 Western Hemisphere 2,287 (D) -1,037

 South and Central America 149 1,246 56
 Brazil -79 95 -25
 Mexico 128 1,301 104
 Panama (D) (D) 1
 Venezuela -29 -2 -26
 Other (D) (D) 3

 Other Western Hemisphere 2,138 (D) -1,093
 Bahamas (D) (D) 0
 Bermuda (D) 166 (D)
 Netherlands Antilles (D) (D) 1
 United Kingdom Islands,
 Caribbean (D) (D) (D)
 Other 8 (*) -1,306

Africa -11 (D) (D)
 South Africa -9 1 (D)
 Other -1 (D) (*)

Middle East 1,244 (D) -5
 Israel 1,249 6 (*)
 Kuwait 0 0 (*)
 Lebanon 0 0 0
 Saudi Arabia -2 (D) -5
 United Arab Emirates -4 (D) (*)
 Other 0 0 0

Asia and Pacific 11,053 4,725 0
 Australia (D) (D) (D)
 China 89 126 1
 Hong Kong (D) -1 -5
 India 42 (D) (D)
 Japan 9,589 2,527 4,098
 Korea, Republic of 19 (D) -2
 Malaysia -15 (D) (D)
 New Zealand (D) 8 7
 Singapore -66 5 (D)
 Taiwan 35 3 -2
 Other -15 -1 -10

Addenda:
European Union (27) (1) 165,073 30,655 65,459
OPEC (2) -44 -15 -35

 Manufacturing

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

 All countries 69,476 21,530 65,325

Canada 4,758 -305 3,886

Europe 41,048 17,923 30,440

 Austria 4 (D) 14
 Belgium (*) 19 -1
 Denmark (D) (D) -4
 Finland 51 (D) 4
 France 18,062 (D) 3,185

 Germany 1,115 628 11,041
 Ireland -1 (*) (D)
 Italy 156 171 -5
 Luxembourg 305 1,759 (D)
 Netherlands 2,344 (D) 3,075

 Norway 407 0 5
 Spain (D) 3 45
 Sweden (D) (D) 4,214
 Switzerland 402 (D) (D)
 United Kingdom 14,850 881 5,959
 Other (D) (D) 44

Latin America and Other
 Western Hemisphere 893 (D) -29

 South and Central America -295 9 -105
 Brazil (D) -3 62
 Mexico -85 23 (D)
 Panama (D) (*) (D)
 Venezuela -2 (D) -3
 Other (D) (D) -11

 Other Western Hemisphere 1,187 (D) 76
 Bahamas (*) 0 0
 Bermuda (D) (D) 0
 Netherlands Antilles -2 0 -4
 United Kingdom Islands,
 Caribbean (D) (D) 79
 Other -1 (D) 0

Africa (D) (*) -29
 South Africa 0 (*) -23
 Other (D) (D) -6

Middle East (D) 2 4
 Israel 535 0 9
 Kuwait (*) 2 0
 Lebanon 0 0 0
 Saudi Arabia 0 0 0
 United Arab Emirates (*) 0 -4
 Other (D) 0 0

Asia and Pacific 22,244 (D) 31,051
 Australia -40 -1 -32
 China -7 -12 -173
 Hong Kong 734 -3 (D)
 India (D) -2 57
 Japan 21,165 1,326 31,205
 Korea, Republic of (D) -2 (D)
 Malaysia 61 (*) 6
 New Zealand -9 (*) -6
 Singapore 31 19 10
 Taiwan 75 (D) -69
 Other 54 -16 38

Addenda:
European Union (27) (1) 40,231 17,857 29,061
OPEC (2) -2 -7 1

 Manu-
 facturing

 Other
 manu- Wholesale Retail
 facturing trade trade

 All countries 184,747 278,353 41,591

Canada 18,008 10,177 7,797

Europe 149,186 139,133 26,505

 Austria 892 (D) (D)
 Belgium -565 1,881 (D)
 Denmark (D) 333 5
 Finland 1,626 (D) (D)
 France 19,955 8,999 932

 Germany (D) 10,772 3,995
 Ireland 8,598 174 (D)
 Italy 1,761 1,511 2,371
 Luxembourg (D) 1,296 (D)
 Netherlands 17,951 21,444 (D)

 Norway (D) 2,817 (*)
 Spain 952 132 (D)
 Sweden 719 7,442 (D)
 Switzerland (D) 7,865 (D)
 United Kingdom 27,252 72,240 2,641
 Other 8,215 395 (D)

Latin America and Other
 Western Hemisphere 1,790 8,687 1,480

 South and Central America 1,125 6,836 32
 Brazil -55 (D) (D)
 Mexico 725 1,283 (D)
 Panama (D) -5 3
 Venezuela (D) (D) (*)
 Other 249 304 6

 Other Western Hemisphere 665 1,851 1,449
 Bahamas 8 45 (*)
 Bermuda 99 186 0
 Netherlands Antilles -234 239 (D)
 United Kingdom Islands,
 Caribbean 688 1,120 (D)
 Other 102 260 -5

Africa -21 592 (D)
 South Africa (D (D) (*)
 Other (D (D) (D)

Middle East 226 5,908 (D)
 Israel 127 336 (D)
 Kuwait 0 (D) 0
 Lebanon (*) (*) 0
 Saudi Arabia (D) (D) 0
 United Arab Emirates (D) -7 (*)
 Other (D) (D) 0

Asia and Pacific 15,559 113,857 5,735
 Australia 4,402 2,349 (D)
 China -101 847 1
 Hong Kong 194 1,059 (D)
 India 47 10 0
 Japan 8,602 97,827 5,699
 Korea, Republic of 93 9,371 (D)
 Malaysia 2 64 0
 New Zealand (D) 506 0
 Singapore -19 94 (D)
 Taiwan (D) 1,321 (D)
 Other 18 409 (*)

Addenda:
European Union (27) (1) 96,812 128,228 22,472
OPEC (2) 149 10,351 (*)

 Finance
 (except
 depository
 Depository institu-
 institu- tions) and
 Information tions insurance

 All countries 146,428 141,033 263,993

Canada 7,081 22,022 71,218

Europe 133,039 100,392 160,130

 Austria -6 (D) (D)
 Belgium 2 (D) 1,248
 Denmark 1 0 (D)
 Finland (*) (D) 1
 France 11,802 17,709 29,144

 Germany 48,585 16,406 34,148
 Ireland (D) (D) 2,691
 Italy 25 649 (D)
 Luxembourg 7,048 0 6,884
 Netherlands 16,815 (D) 36,766

 Norway 312 5 1
 Spain (D) 17,915 1,093
 Sweden 847 -254 264
 Switzerland 12,064 (D) 29,388
 United Kingdom 22,264 49,118 16,023
 Other 10,805 647 1,224

Latin America and Other
 Western Hemisphere 2,536 4,243 7,479

 South and Central America 196 3,470 (D)
 Brazil 18 491 (D)
 Mexico 199 1,108 72
 Panama (D) (D) (D)
 Venezuela (D) (D) -1
 Other -3 701 9

 Other Western Hemisphere 2,340 772 (D)
 Bahamas (D) (D) -3
 Bermuda 1,341 0 -10,715
 Netherlands Antilles (D) (D) (*)
 United Kingdom Islands,
 Caribbean 1,292 156 7,742
 Other (D) (D) (D)

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

Middle East (D) 1,305 (D)
 Israel (D) (D) (D)
 Kuwait 2 (D) (D)
 Lebanon 0 0 0
 Saudi Arabia 6 (D) 2
 United Arab Emirates (*) (D) 1
 Other (D) (D) 0

Asia and Pacific (D) (D) 24,916
 Australia 1,023 1,762 4,605
 China (*) (D) (D)
 Hong Kong (D) 413 (D)
 India 101 368 (*)
 Japan 1,821 8,273 17,753
 Korea, Republic of (D) 416 161
 Malaysia 2 (D) (*)
 New Zealand 0 0 1
 Singapore 14 351 (D)
 Taiwan (D) 1,099 19
 Other 3 193 28

Addenda:
European Union (27) (1) 116,492 106,756 130,465
OPEC (2) -3 1,383 -9

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

 All countries 55,277 62,956 393,873

Canada 2,744 1,690 47,378

Europe 25,797 53,500 287,368

 Austria 74 (D) 19
 Belgium 230 -42 3,231
 Denmark 3 (D) (D)
 Finland (D) (D) 79
 France 434 6,663 13,257

 Germany 8,110 197 18,533
 Ireland (D) -36 7,058
 Italy 52 (D) (D)
 Luxembourg 282 (D) 49,297
 Netherlands 3,484 6,742 20,213

 Norway 50 1,054 4,567
 Spain 41 (D) (D)
 Sweden (D) 54 (D)
 Switzerland (D) 474 8,130
 United Kingdom 5,267 28,616 121,936
 Other (D) (D) 19,251

Latin America and Other
 Western Hemisphere 9,720 307 18,811

 South and Central America (D) -55 -87
 Brazil 47 -33 29
 Mexico (D) -10 -81
 Panama (D) 3 587
 Venezuela 10 -8 -1
 Other 20 -8 -621

 Other Western Hemisphere (D) 362 18,898
 Bahamas 366 5 (D)
 Bermuda (D) 343 (D)
 Netherlands Antilles 941 (D) 4,423
 United Kingdom Islands,
 Caribbean 6,258 47 12
 Other 252 (D) 238

Africa 264 -2 484
 South Africa 1 -2 76
 Other 264 (*) 408

Middle East 640 109 2,090
 Israel (D) 109 675
 Kuwait (D) 0 (D)
 Lebanon (D) 0 (D)
 Saudi Arabia (D) (*) -27
 United Arab Emirates (D) 0 (D)
 Other 47 (*) (D)

Asia and Pacific 16,113 7,353 37,742
 Australia 9,190 (D) 25,047
 China -5 73 111
 Hong Kong 148 (D) 53
 India -1 2,071 271
 Japan 6,073 4,685 11,066
 Korea, Republic of 70 -1 24
 Malaysia (D) 10 255
 New Zealand (D) -1 8
 Singapore 474 87 463
 Taiwan 58 -45 304
 Other 18 -10 139

Addenda:
European Union (27) (1) 21,717 49,538 270,912
OPEC (2) (D) -9 (D)

* A nonzero value between $500,000 and $500,000.

D Suppressed to avoid disclosure of data of individual companies.

(1.) The European Union (27) comprises Austria, Belgium, Cyprus,
the Czech Republic, Denmark, Estonia, Finland, France, Germany,
Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg,
Malta, the Netherlands, Poland, Portugal, Solvakia, Slovenia,
Spain, Sweden, the United Kingdom and the two countries-Bulgaria
and Romania-that joined in 2007.

(2.) OPEC is the Organization of Petroleum Exporting Countries. In
2007, its members were Angola (which joined at the beginning of the
year), Algeria, Indonesia, Iran, Iraq, Kuwait, Libya, Nigeria,
Qatar, Saudi Arabia, the United Arab Emirates, and Venezuela.
Ecuador rejoined OPEC in November 2007, but is not included as a
member in this annual tabulation.

NOTE. Estimates for 2007 are preliminary.

Table A. Direct Investment Positions on a Historical-Cost Basis,
1982-2007

 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 73.0 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 (r) 1,520.3 22.1 9.0
2005 2,241.7 (r) 1,634.1 (r) 3.7 7.5
2006 2,454.7 (r) 1,843.9 (r) 9.5 12.8
2007 2,791.3 (p) 2,093.0 (p) 13.7 13.5

(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]

 2006 2007

Total 213.0 336.6
 Capital flows without current-cost
 adjustment 221.7 313.8
 Equity capital 32.3 88.0
 Increases 91.7 152.3
 Decreases 59.4 64.3
 Intercompany debt -22.6 -18.0
 Reinvested earnings without
 current-cost adjustment 212.0 243.8
 Valuation adjustments -8.6 22.8
 Currency translation 24.1 47.1
 Other -32.8 24.3

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

 Change (2006-2007)

 Billions
 of dollars Percent

All countries 336.6 14
 Canada 27.0 12
 Europe 210.0 16
 Of which:
 Netherlands 89.6 32
 United Kingdom 23.5 6
 Luxembourg 19.1 20
 Ireland 16.0 22
 Switzerland 12.5 11
 Germany 11.1 12
 France 6.5 10
 Spain 5.1 10
 Latin America and Other Western
 Hemisphere 44.6 10
 Of which:
 Bermuda 14.0 10
 Brazil 8.5 26
 Mexico 8.4 10
 Netherlands Antilles 4.3 47
 Africa 2.7 11
 Middle East 3.8 15
 Asia and Pacific 48.5 12
 Of which:
 Australia 10.5 15
 Japan 9.2 10
 Hong Kong 6.4 16
 China 4.9 21
 India 4.4 48
 Singapore 4.2 5
 Thailand 4.1 37

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

 2006 2007

Total 209.8 249.2
 Capital flows without current-cost
 adjustment 236.7 232.8
 Equity capital 117.8 147.4
 Increases 165.5 213.2
 Decreases 47.8 65.8
 Intercompany debt 55.3 21.6
 Reinvested earnings without
 current-cost adjustment 63.6 63.8
 Valuation adjustments -26.9 16.3
 Currency translation 3.3 3.9
 Other -30.3 12.4

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 (2006-2007)

 Billions of
 dollars Percent

All countries 249.2 14
 Canada 38.0 22
 Europe 158.6 12
 Of which:
 Netherlands 36.2 21
 Luxembourg 30.4 29
 France 21.5 15
 Switzerland 21.5 16
 Sweden 13.4 72
 Spain 13.2 91
 Belgium 8.3 74
 Italy 6.3 69
 Ireland 5.0 18
 United Kingdom 4.5 1
 Germany -2.1 -1
 Latin America and Other Western
 Hemisphere 0.3 (*)
 Of which:
 United Kingdom Islands,
 Caribbean 8.0 32
 Bermuda -8.9 (*)
 Africa -0.7 -38
 Middle East 3.6 38
 Asia and Pacific 49.3 18
 Of which:
 Japan 28.3 14
 Australia 9.4 24
 Singapore 4.9 90

* Less than 0.5 percent.

(1.) The percent change cannot be computed because of a change in
sign attributable to a negative inward position in 2007. A negative
direct investment position may result when affiliates' financial
claims on direct investors exceed direct investors' claims on their
affiliates. Typically, a negative position will result from debt
transactions in which affiliates act as net lenders to their foreign
parents.

Chart 2. Outward Direct Investment Position
by Host Country at Yearend 2007

United Kingdom (14.3%)
Netherlands (13.3%)
Canada (9.2%)
Bermuda (5.3%)
Switzerland (4.6%)
Luxembourg (4.1%)
Germany (3.8%)
Japan (3.6%)
Mexico (3.3%)
United Kingdom Islands,
Caribbean (3.3%)
Ireland (3.1%)
Singapore (3.0%)
Australia (2.8%)
France (2.5%)
Other (23.9%)

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 2007

United Kingdom (19.6%)
Japan (11.1%)
Canada (10.2%)
Netherlands (10.0%)
Germany (9.7%)
France (8.1%)
Switzerland (7.4%)
Luxembourg (6.4%)
Other (17.4%)

US. Bureau of Economic Analysis

Note: Table made from pie chart.