Direct investment positions for 2006: country and industry detail.

Ibarra, Marilyn ; Koncz, Jennifer

IN 2006, the historical-cost positions of U.S. direct investment abroad and foreign direct investment in the United States grew 12 percent. This marked a pickup in growth, compared with 2005 growth, of both the U.S. direct investment abroad--or "outward"--position, up from 1 percent, and the foreign direct investment in the United States--or "inward"--position, up from 5 percent (table A and chart 1). (1)

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The stronger growth in the outward direct investment position resulted from a substantial shift in direct investment capital flows from net U.S. disinvestment abroad to net investment. (2) The pickup in growth in the inward direct investment position reflected both larger net direct investment capital flows into the United States and a shift in valuation adjustments from negative to positive.

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

* The 12-percent increase in the outward investment position in 2006, while above the 1-percent increase in 2005, was in line with the average annual growth rate of 13 percent in 1994-2004.

* Reinvested earnings, the largest contributor to the increase, shifted from negative to positive investment. In 2005, reinvested earnings were negative, reflecting one-time tax incentives provided by the American Jobs Creation Act of 2004. These incentives induced U.S. parent companies to repatriate foreign affiliate earnings that had accumulated over multiple years. In 2006, the positive reinvested earnings reflected a return to more normal distribution patterns and strong growth in foreign affiliate earnings.

* Net equity capital investment also contributed to the increase but was the smallest recorded since 1996.

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

* The 12-percent increase in the inward investment position in 2006 was significantly higher than the 5percent increase in 2005 and marked the largest percentage increase since 2000. However, growth in 2006 was in line with the 11-percent average annual growth in 1994-2004.

* In 2006, the largest contributor to the increase was net equity capital investment, much of which was for foreign investors' acquisitions of U.S. businesses. Equity capital investment has historically been the largest contributor to increases in the inward direct investment position. In 2006, net equity capital investment was up 73 percent, marking a turnaround after declining for 5 consecutive years.

* Reinvested earnings, which remained above historical norms for a third consecutive year, contributed to the increase in the inward position. Valuation adjustments and intercompany debt investment made smaller contributions.

This article presents a discussion of the historical-cost direct investment positions by type of capital flow and by country of foreign affiliate for outward direct investment and by type of capital flow and by country of foreign parent for inward direct investment?

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 $2,384.0 billion at the end of 2006 (table A and chart 1). Three host countries--the United Kingdom, Canada, and the Netherlands--accounted for over a third of the total position (table 1.2 and chart 2). Positions in the United Kingdom and Canada were more than twice as large as those in any other country except the Netherlands. The position in the United Kingdom was $364.1 billion, or 15 percent of the total. The position in Canada was $246.5 billion (10 percent), and the position in the Netherlands was $215.7 billion (9 percent).

The position increased $248.5 billion in 2006, a 12-percent increase. The growth was substantially higher than the 1 percent increase in 2005, but was in line with the 13-percent average annual growth in the outward position in 1994-2004.

Changes by component

The $248.5 billion increase in the outward direct investment position resulted from capital flows of $216.6 billion, which accounted for 87 percent of the increase, and valuation adjustments of $31.9 billion, which accounted for 13 percent (table B and chart 3).

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Capital flows

Capital flows increased the outward position $216.6 billion in 2006 after reducing it $27.7 billion in 2005. The 2006 flows were composed of $201.3 billion of reinvested earnings and $30.2 billion of net equity capital investment, which were partly offset by a $15.0 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 $30.2 billion in 2006, down from $43.5 billion in 2005. The net investment resulted from equity capital increases of $76.2 billion, partly offset by equity capital decreases of $46.0 billion. Of the equity capital increases, $37.0 billion, or 49 percent, financed the acquisition or establishment of new foreign affiliates. Capital contributions to existing foreign affiliates accounted for the remaining $39.2 billion, or 51 percent.

Equity capital increases for the acquisition or establishment of new affiliates in 2006 were largest in three European countries: The United Kingdom, the Netherlands, and Luxembourg. In the United Kingdom, the increase was spread among several industries, including depository institutions, holding companies, and primary and fabricated metals manufacturing. In the Netherlands and Luxembourg, the increases were concentrated in holding companies, which may have invested the funds in other countries or industries.

Over a third of the capital contributions to existing foreign affiliates were to affiliates in Europe. Among countries, the largest contributions were to affiliates in the United Kingdom. Among industries, the largest contributions were to affiliates in "finance (except depository institutions) and insurance."

Equity capital decreases in 2006 were primarily due to liquidations or sales of affiliates. In 2005, in contrast, the decreases primarily reflected returns of capital from ongoing affiliates. In 2006, equity capital decreases were largest in "Latin America and Other Western Hemisphere" and in Canada.

Reinvested earnings. In 2006, 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' cumulative retained earnings--turned up, totaling $201.3 billion, compared with -$40.5 billion in 2005. Reinvested earnings accounted for more than 90 percent of capital flows for outward direct investment in 2006 and for more than four-fifths of the increase in the position. In 2005, reinvested earnings were negative for the first time since at least 1950 mainly because of the American Jobs Creation Act of 2004, which allowed U.S. parent companies to repatriate affiliate earnings during a specified period at reduced tax rates. Most companies that took advantage of this act did so in 2005. (4) The positive reinvested earnings in 2006 reflected a return to more normal distribution patterns, as well as strong growth in foreign affiliate earnings.

In 2006, reinvested earnings were highest in Europe, which accounted for 50 percent of the worldwide total. Reinvested earnings were highest in four European countries--the Netherlands, the United Kingdom, Luxembourg, and Switzerland. By industry, reinvested earnings were largest in holding companies.

Earnings grew 18 percent in 2006, continuing a pattern of strong growth that began in 2002. Stronger economic growth in many foreign countries, particularly in Germany and France, boosted earnings growth in 2006. In addition, depreciation of the U.S. dollar, particularly against the euro, contributed to the stronger increase in earnings in terms of U.S. dollars. The largest dollar increases were in Europe, primarily in the United Kingdom, Luxembourg, the Netherlands, and France. Earnings rose sharply in several manufacturing industries, including transportation equipment, computers and electronic products, and machinery; growth was also substantial in professional, scientific, and technical services. The reinvestment ratio--reinvested earnings relative to current-year earnings--shifted from--17 percent in 2005 to 70 percent in 2006.

Intercompany debt investment. U.S. parents' borrowing and lending transactions with their foreign affiliates reduced the net intercompany debt position by $15.0 billion, following a $30.7 billion reduction in 2005. In 2006, U.S. 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 "Latin America and Other Western Hemisphere," largely the "United Kingdom Islands, Caribbean." By industry, most of the reduction was in holding companies and in "finance (except depository institutions) and insurance."

Valuation adjustments

Valuation adjustments were $31.9 billion and accounted for 13 percent of the increase in the outward position in 2006. Currency-translation adjustments, which reflected mainly the appreciation of the euro against the dollar, accounted for $23.3 billion of total valuation adjustments. Other valuation adjustments of $8.6 billion stemmed primarily from capital gains.

Changes by area and by country

In 2006, the outward direct investment position increased in all major geographic areas (table C). Europe accounted for 57 percent of the total dollar increase in the position. Asia and Pacific accounted for 21 percent of the increase, and "Latin America and Other Western Hemisphere" accounted for 15 percent.

Europe. The position increased $140.6 billion, with reinvested earnings accounting for virtually all of the increase. The largest dollar increases in the position were in the Netherlands and the United Kingdom--over $30 billion each. Luxembourg and Ireland each had increases larger than $10 billion. In these four countries, the main source of the increases was reinvested earnings.

In the Netherlands, the increase in the position was mainly concentrated in holding companies. In the United Kingdom, a third of the increase was in "finance (except depository institutions) and insurance" In Luxembourg, increases in holding companies and "finance (except depository institutions) and insurance" were largest. In Ireland, "finance (except depository institutions) and insurance" accounted for more than a third of the total increase.

Latin America and Other Western Hemisphere. The outward position rose $37.4 billion. The largest increases were in the Bahamas, Mexico, and Bermuda. In the Bahamas, holding companies more than accounted for the increase. In Mexico, several manufacturing industries--including transportation equipment, computers and electronic products, and "other manufacturing"--and mining were the largest contributors to the increase. In Bermuda, holding companies accounted for over half of the increase, primarily due to reinvested earnings.

Canada. The $13.0 billion increase in the position was due largely to increases in mining and in several manufacturing industries (particularly computers and electronic products and chemicals). In mining, reinvested earnings and valuation adjustments were the largest contributors to the increase. In computers and electronic products, the increase was entirely attributable to equity capital increases for acquisitions. In chemicals, reinvested earnings was the largest contributor to the increase.

Asia and Pacific. The $51.2 billion increase was the second largest percentage increase--16 percent--of all regions. Within this region, the largest increases in dollar terms were in Japan, Australia, and Singapore. Almost two-thirds of the increase in Japan was attributable to equity capital increases in "finance (except depository institutions) and insurance." In Australia, the largest increases were in holding companies and mining. In Singapore, the largest increase was in holding companies.

Africa. The $2.5 billion increase in the position, though relatively small in dollar terms, represented growth of 11 percent. In this region, the largest dollar increases were in Algeria, Equatorial Guinea, and Egypt. In all three countries, the main source of the increase was reinvested earnings, particularly those of affiliates in oil and gas extraction (classified in mining in tables 1.1 and 1.2).

Middle East. The $3.9 billion increase in the position was the largest percentage increase--17 percent--of any region. The largest dollar increases were in Israel, the United Arab Emirates, and Saudi Arabia. In Israel, acquisitions in manufacturing, financed by equity capital, accounted for most of the increase. In the United Arab Emirates, capital contributions to existing affiliates in mining accounted for most of the increase. In Saudi Arabia, the position grew partly because parents increased their debt position in foreign affiliate holding companies.

Foreign Direct Investment in the United States

The foreign direct investment position in the United States valued at historical cost--the book value of foreign direct investors' equity in, and outstanding loans to, their U.S. affiliates--was $1,789.1 billion at the end of 2006 (table A and chart 1). The United Kingdom remained the largest source country, with a position of $303.2 billion, or 17 percent of the total, followed by Japan with a position of $211.0 billion, or 12 percent (table 2.2 and chart 4). Germany and the Netherlands had the next largest positions--each accounting for 11 percent.

In 2006, the inward direct investment position increased $194.6 billion, or 12 percent, compared with 5-percent growth in 2005. The 2006 increase was in line with average annual growth in 1994-2004.

Changes by component

The $194.6 billion increase in the inward direct investment position resulted from capital flows of $175.4 billion, which accounted for 90 percent of the increase, and valuation adjustments of $19.2 billion, which accounted for the remainder (table D and chart 5).

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Capital flows

Capital flows for inward direct investment rose sharply in 2006 and increased the inward position $175.4 billion, up from $101.0 billion in 2005. This marked the largest net capital flows since 2000, when they peaked at $314.0 billion. In 2006, capital flows were composed of net equity capital investment of $98.0 billion, reinvested earnings of $65.4 billion, and net intercompany debt investment of $12.0 billion.

Equity capital investment. Foreign parent companies' net equity capital investment in their U.S. affiliates was $98.0 billion in 2006, up from $56.6 billion in 2005. In 2006, the net equity investment resulted from equity capital increases of $126.2 billion and partly offsetting equity capital decreases of $28.2 billion. Equity capital increases, which increase the inward direct investment position, were up 42 percent in 2006, largely reflecting a pickup in acquisitions. Equity capital decreases, which decrease the inward position, were down slightly from 2005 and mainly reflected the sale of affiliates to U.S. companies and the conversion of affiliates' debt claims on foreign parents to reductions in those parents' equity interests in their U.S. affiliates.

Acquisitions of U.S. businesses by foreign direct investors fueled equity capital increases in several industries and were widespread by country of foreign parent. (5) The largest equity capital increases were in "finance (except depository institutions) and insurance" and in computers and electronic products manufacturing. Acquisitions in these two industries, as well as in chemicals manufacturing and in machinery manufacturing, were among the largest in 2006. In "finance (except depository institutions) and insurance" Switzerland had the largest equity capital increase, followed by the United Kingdom. In computers and electronic products manufacturing, France accounted for the largest equity capital increase. Overall, France, the United Kingdom, and Germany accounted for the largest increases in equity holdings in U.S. affiliates. Equity capital decreases were largest in "other industries," including utilities.

Reinvested earnings. In 2006, reinvested earnings--the foreign parents' share of affiliates' current-period earnings less affiliates' distributions from current and cumulative retained earnings--totaled $65.4 billion, up 65 percent from 2005. In each year since 2004, earnings that were reinvested in U.S. affiliates have been substantial in dollar terms, as a share of current-period earnings and as a contributor to growth in the inward position. This pattern may suggest a break from past trends in which earnings reinvested in U.S. affiliates have been very small or negative and a shift toward a pattern more like that seen for many years in outward direct investment (with the notable exception of 2005). (6) The pickup in reinvested earnings has been supported by strong growth in affiliate earnings. Earnings growth has reflected both expansion of the base on which earnings accrue and improved profitability as affiliates have matured and gained experience in the U.S. market.

In 2006, reinvested earnings were positive in all major industries (table 2.2). Affiliates in wholesale trade accounted for the largest share of the total, followed by affiliates in "other industries." In "other industries," the largest reinvested earnings were for affiliates in mining. By country, reinvested earnings were largest for affiliates with parents in Japan, Canada, France, and the Netherlands.

Growth in reinvested earnings reflected both higher earnings and a higher reinvestment ratio--the ratio of reinvested earnings to total earnings. The reinvestment ratio increased to 58 percent from 42 percent in 2005. U.S. affiliates' earnings increased 19 percent, to $112.1 billion, which was in line with the 19-percent growth in corporate profits (excluding inventory valuation and capital consumption adjustments) of U.S. domestic industries in 2006. Earnings increased in several industries; growth was particularly strong in "finance (except depository institutions) and insurance" in depository institutions, and in primary and fabricated metals manufacturing. The largest increases in reinvested earnings were in wholesale trade and in "finance (except depository institutions) and insurance." In wholesale trade, the increase reflected a rise in the overall share of earnings reinvested, and in "finance (except depository institutions) and insurance," higher reinvested earnings reflected stronger earnings.

Intercompany debt investment. In 2006, foreign parents' borrowing and lending transactions with their U.S. affiliates boosted their net intercompany debt position in U.S. affiliates $12.0 billion, following a $4.7 billion increase in 2005. In 2006, the increase reflected an increase in U.S. affiliates' outstanding debt to their foreign parents of $21.1 billion, which was partly offset by an increase in the affiliates' debt claims on their foreign parents of $9.1 billion. The largest increase was in chemicals manufacturing, followed by information. Affiliates with parents in Europe--particularly Germany and France--more than accounted for the increase.

Valuation adjustments

Valuation adjustments of $19.2 billion increased the inward direct investment position in 2006. In contrast, valuation adjustments of-$26.9 billion reduced the position in 2005. Valuation adjustments in 2006 consisted of currency translation adjustments of $3.9 billion and "other" valuation adjustments, which include capital gains and losses, of $15.3 billion. Valuation adjustments were largest in "finance (except depository institutions) and insurance" and in chemicals manufacturing.

Changes by area and by country

In 2006, the inward direct investment position increased for all major areas except Africa (table E). Europe, which accounted for 73 percent of the increase, was by far the largest source of the increase in position.

Europe. The position increased $142.4 billion in 2006. The largest component of the increase was net equity capital investment. Increases in the European position were broadly based by country and by industry. France, the Netherlands, and Germany accounted for the largest dollar increases.

France had the largest increase, $38.6 billion, which was spread over several industries, including computers and electronic products manufacturing, chemicals manufacturing, and information. In computers and electronic products manufacturing, the increase largely reflected acquisitions of U.S. businesses. In chemicals manufacturing, the increase reflected valuation adjustments made in connection with corporate reorganizations. In information, the largest contributor to the increase was intercompany debt investment.

For the Netherlands, the $23.9 billion increase was attributable to increases in "finance (except depository institutions) and insurance" in wholesale trade, and in chemicals manufacturing. In "finance (except depository institutions) and insurance," much of the increase reflected corporate reorganizations. In wholesale trade, acquisitions accounted for most of the increase. In chemicals manufacturing, the increase reflected valuation adjustments and reinvested earnings.

For Germany, the $22.2 billion increase was broad-based by industry. The largest increases were in machinery manufacturing, in information, and in "other industries" In machinery manufacturing, acquisitions financed by equity and debt investments accounted for the largest portion of the increase. In information, the largest contributor to the increase was net intercompany debt investment. In "other industries," particularly health services and utilities, the increase largely reflected acquisitions.

Asia and Pacific. The position increased $29.6 billion in 2006, with Japan accounting for three-quarters of the increase. The increase for Japan was broad-based by industry but the largest increases were in computers and electronic products manufacturing, in professional, scientific, and technical services, and in "finance (except depository institutions) and insurance." In computers and electronic products manufacturing, the increase reflected changes in the primary industry classifications of existing affiliates. (7) In both professional, scientific, and technical services and "finance (except depository institutions) and insurance" acquisitions accounted for much of the increases.

Latin America and Other Western Hemisphere. The position increased $9.1 billion, reflecting increases for several countries; Bermuda and Mexico accounted for the largest dollar increases. For Bermuda, the increase was concentrated in information, mainly due to acquisitions. For Mexico, the increase was spread across industries, with the largest increases in primary and fabricated metals manufacturing and in wholesale trade.

Middle East and Africa. The $9.2 billion increase in the position for the Middle East roughly doubled the position for that region and represented the largest increase in percentage terms--110 percent--among all regions. (8) Within the Middle East, Israel had the largest increase, reflecting acquisitions.

The position for Africa decreased $0.5 billion, the only decrease of all the regions.

Canada. The position increased $4.8 billion in 2006, with the largest increases in "finance (except depository institutions) and insurance" and in chemicals manufacturing. In "finance (except depository institutions) and insurance,' both reinvested earnings and acquisitions contributed to the increase. In chemicals manufacturing, reinvested earnings was the largest contributor to the increase.

Revisions

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

The historical-cost outward position for 2004 was revised up $73.6 billion, to $2,124.8 billion, as valuation adjustments were revised up $38.0 billion and capital flows were revised up $35.6 billion. For 2005, the preliminary estimate of the outward position was revised up $65.5 billion, to $2,135.5 billion as a result of a $73.6 billion upward revision to the 2004 position, a $6.9 billion upward revision to 2005 valuation adjustments, and a partly offsetting $15.0 billion upward revision to 2005 net capital flows into the United States.

The inward direct investment position valued at historical cost for 2004 was revised down $0.4 billion, to $1,520.3 billion. The revision for 2004 resulted from a $13.9 billion revision of valuation adjustments from positive to negative adjustments, and a mostly offsetting $13.4 billion upward revision to capital flows. The 2005 inward position was revised down $40.8 billion to $1,594.5 billion. The downward revision to the 2005 position was attributable to a $42.0 billion revision of valuation adjustments, from positive to negative adjustments, and the $0.4 billion downward revision to the 2004 position, which were partially offset by a $1.6 billion upward revision to capital flows.

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, assisted by Xia Ouyang.

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, Y. Louise Ku-Graf, Susan M. LaPorte, and Helen P. Yiu. Computer programming for data estimation and tabulation was provided by Karen E. Poffel, Paula D. Brown, and Robert C. Simon.

Dan Yorgason provided guidance in the preparation of tables and charts used in the analysis of U.S. direct investment abroad.

Tables 1.1-2.2 follow.

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 these estimates 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 and market-value estimates of the position are discussed in "The International Investment Position of the United States at Yearend 2006" in this issue.

Alternative Direct Investment Position Estimates, 2005 and 2006

[Millions of dollars)

Valuation method Position Changes in 2006
 at yearend
 2005 (r) Total Capital
 flows
U.S. direct Investment abroad:
 Historical cost 2,135,492 248,512 216,614
 Current cost 2,535,188 320,431 235,358
 Market value 3,570,252 807,578 235,358

Foreign direct Investment in
 the United States:
 Historical cost 1,594,488 194,599 175,394
 Current cost 1,868,245 231,181 180,580
 Market value 2,806,029 416,450 180,580

 Changes Position
 in 2006 at yearend
 2006 (p)
 Valuation
 adjustments

U.S. direct Investment abroad:
 Historical cost 31,898 2,384,004
 Current cost 85,073 2,855,619
 Market value 572,220 4,377,830

Foreign direct Investment in
 the United States:
 Historical cost 19,205 1,789,087
 Current cost 50,601 2,099,426
 Market value 235,870 3,222,479

(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 30 percent of the U.S. direct investment position abroad in 2006. (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.

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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. A method that would allocate 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 has been developed. Ongoing BEA research is directed at evaluating the feasibility of producing annual estimates as well as focusing on the details of implementation. BEA plans to publish the results of this research when it is more complete.

Data from BEAs 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 2004 (the latest year for which detailed operations estimates are available) illustrates the differences in distribution between the position estimates and the estimates of operations. In that year, manufacturing's share of the outward position--20 percent--was similar to its 18-percent share of the assets, but much lower then its 42-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 to a 9 percent share of assets and 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 2005, the share fell to 29 percent from 34 percent in 2004. This reversal was primarily the result of large earnings distributions (and the resulting negative reinvested earnings) associated with the American Jobs Creation Act of 2004. The largest distributions were, by far, 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, and in the Organisation for Economic Co-operation and Development's Benchmark Definition of Foreign Direct Investment, 3rd 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.

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 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 without current-cost adjustment 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 without current-cost adjustment 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 without current-cost adjustment 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.

Direct investment capital flows without current-cost adjustment differ from direct investment capital flows as entered in BEEs international transactions accounts (ITAs), because they do not include a current-cost adjustment. A current-cost adjustment affects direct investment income and the reinvested earnings component of capital by converting depreciation charges to a current-cost, or replacement-cost, basis; adding charges for depletion of natural resources back to income and reinvested earnings (because these charges are not treated as production costs in the national income and product accounts); and reallocating expenses for mineral exploration and development across periods.

Direct investment capital flows without current-cost adjustment consist of equity capital transactions, intercompany debt transactions, and reinvested earnings without current-cost adjustment. Equity capital investment is the net of equity capital increases and decreases. Equity capital increases consist of 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' claim on the cumulative retained earnings of their affiliates; unlike the measure of reinvested earnings used in the ITAs, these earnings do not include a current-cost adjustment at the aggregate level.

Valuation adjustments to the historical-cost position. Adjustments that are made to account for the differences between changes in the historical-cost position, 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 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 write-down of assets 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 2006 based on BEEs quarterly, annual, and benchmark surveys. This article also presents revised estimates of both outward and inward direct investment for 2004 and 2005. More detailed estimates covering the positions and capital transactions discussed here as well as related income and services transactions for both outward and inward investment will appear in the September SURVEY OF CURRENT BUSINESS.

Detailed estimates of the outward direct investment position and related capital flows, income, and services transactions for 1982-2006 are available from BEEs Web site, as well as estimates of the inward direct investment position and related capital flows, income, and services transactions for 1980-2006. To access these files, which can be downloaded at no charge, go to BEA's Web site at <www.bea.gov> and, under "International," click on "Operations of Multinational Companies." Then, under "U.S. direct investment abroad" or "Foreign direct investment in the U.S.," dick on the link to either "Selected Tables" or "Interactive Tables," which appear next to the "Balance of payments and direct investment position data" stub. The interactive tables are a free service, recently launched by the BEA which allows users to interactively access detailed balance of payments and direct investment position data, as well as data on the operations of multinational companies. For an introductory guide to this service, see Ned G. Howenstine, "Primer: Accessing BEA Direct Investment Data Interactively," SURVEY 86 (May 2006): 61-64. Revised estimates for 2006 and final estimates for 2005 balance of payments and position data will be released next year.

For more information on these products and how to access them, see the International Investment Division Product Guide at <www.bea.govlscblaccount_artides/ international/iidguide.htm >.

(1.) Throughout this article, the terms "outward direct investment" and "outward" are used as shorthand for "U.S. direct investment abroad"; likewise, the terms "inward direct investment" and "inward" are used as shorthand for "foreign direct investment in the United States." These terms, which are widely used internationally, replace the abbreviations "USDIA" and "FDIUS" that appeared in previous articles in this series.

(2.) The measure of direct investment capital flows in this article differs from the measure of these flows 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. For ease of exposition, throughout this article, the term "direct investment capital flows" refers to "direct investment capital flows without current-cost adjustment" and the term "reinvested earnings" refers to "reinvested earnings without current-cost adjustment."

(3.) The estimates of outward direct investment position and related capital flows by country are classified in the country of the affiliates with which the U.S. parent has direct transactions and positions. The estimates of inward direct investment position and related capital flows by country are classified in the 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.) Although not all unusually large distributions were necessarily made in response to the act, it is noteworthy that in 2005, 38 affiliates made distributions of $1 billion or more, compared with only 9 affiliates in 2006 and 2 affiliates in 2004.

(5.) According to preliminary data from BEA's survey of new foreign direct investment, total outlays to acquire or establish U.S. businesses, including those financed by capital inflows from foreign parents, were $161.5 billion in 2006. See Lawrence R. McNeil, "Foreign Direct Investment in the United States: New Investment in 2006," SURVEY OF CURRENT BUSINESS 87 (June 2007): 44-51. These data include only those transactions in which U.S. businesses are newly acquired or established by foreign direct investors, regardless of whether the source of financing is the foreign parent or existing U.S. affiliates. The data on changes to the inward direct investment position differ from these data because changes to the position reflect transactions of both new and existing U.S. affiliates with members of their foreign parent group and valuation adjustments. Additionally, changes in the inward position do not include financing from sources other than the foreign parent group.

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. 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 2006.

(6.) In 1998-2002, inward direct investment reinvested earnings were negative, reflecting distributions to foreign parents in excess of earnings. In 2003, they were a positive $3.7 billion.

(7.) A change in the primary industry classification of an affiliate from one industry to another increases the position in the industry to which an affiliate has been reclassified and decreases the position in the industry in which the affiliate was previously classified, but does not change the overall inward direct investment position.

(8.) Consistent with international standards, the estimates of the inward direct investment position presented 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. When classified on this basis, tabulations of these data may differ from those classified by country of ultimate beneficial owner (UBO), particularly when investments are channeled through affiliates in financial centers in other countries. Because investments from the Middle East are often routed through affiliates in other countries, the positions of these other countries as presented in this article will be relatively higher--and the position of the Middle East will be relatively lower--than those positions on a UBO basis.

According to preliminary estimates for 2005, the inward direct investment position for the Middle East classified by country of UBO, at $20.0 billion, was twice as large as the position for that region classified by country of each member of the foreign parent group, at $10.0 billion. See Jeffrey H. Lowe, "Foreign Direct Investment in the United States: Detail for Historical-Cost Position and Related Capital and Income Flows, 2002-2005" SURVEY 86 (September 2006): 34-86. Revised estimates for 2005 and preliminary estimates for 2006, classified on both bases, will be published in September.

(9.) For the previously published estimates, see Jennifer L. Koncz and Daniel R. Yorgason, "Direct Investment Positions for 2005: Country and Industry Detail" SURVEY 86 (July 2006): 20-35.

Table A. Direct Investment Positions on a Historical-Cost Basis,
1982-2006

 Billions of dollars Percent change from
 preceding year

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

1982 207.8 124.7 ... ...
1983 212.2 137.1 2.1 9.9
1984 218.1 164.6 2.8 20.1
1985 238.4 184.6 9.3 12.2
1986 270.5 220.4 13.5 19.4
1987 326.3 263.4 20.6 19.5
1988 347.2 314.8 6.4 19.5
1989 381.8 368.9 10.0 17.2
1990 430.5 394.9 12.8 7.0
1991 467.8 419.1 8.7 6.1
1992 502.1 423.1 7.3 1.0
1993 564.3 467.4 12.4 10.5
1994 612.9 480.7 (3) (3)
1995 699.0 535.6 14.1 11.4
1996 795.2 598.0 13.8 11.7
1997 871.3 681.8 9.6 14.0
1998 1,000.7 778.4 14.8 14.2
1999 1,216.0 955.7 21.5 22.8
2000 1,316.2 1,256.9 8.2 31.5
2001 1,460.4 1,344.0 10.9 6.9
2002 1,616.5 1,327.2 10.7 -1.3
2003 1,769.6 1,395.2 9.5 5.1
2004 2,124.8 (r) 1,520.3 (r) 20.1 9.0
2005 2,135.5 (r) 1,594.5 (r) 0.5 4.9
2006 2,384.0 (p) 1,789.1 (p) 11.6 12.2

(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]

 2005 2006

Total 10.7 248.5
 Capital flows without current-cost adjustment -27.7 216.6
 Equity capital 43.4 30.2
 Increases 76.8 76.2
 Decreases 33.3 46.0
 Intercompany debt -30.7 -15.0
 Reinvested earnings without current-cost -40.5 201.3
 adjustment

 Valuation adjustments 38.4 31.9
 Currency translation -14.7 23.3
 Other 53.2 8.6

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

 Change (2005-2006)

 Billions of Percent
 dollars

All countries 248.5 12

 Canada 13.0 6

 Europe 140.6 13
 Of which:
 Netherlands 31.1 17
 United Kingdom 30.6 9
 Luxembourg 12.8 18
 Ireland 12.4 17
 Switzerland 9.0 11
 Germany 8.7 10
 Austria 6.4 58
 France 5.8 10
 Italy 4.1 16

 Latin America and Other Western Hemisphere 37.4 10
 Of which:
 Bahamas 10.5 67
 Mexico 9.6 13
 Bermuda 5.0 5

 Africa 2.5 11

 Middle East 3.9 17

 Asia and Pacific 51.2 14
 Of which:
 Japan 12.5 16
 Australia 7.0 6
 Singapore 6.0 11
 Hong Kong 5.5 17
 China 5.2 31
 Korea, Republic of 4.1 23

Table D. Change in the Inward Direct Investment Position on a
Historical-Cost Basis by Component

[Billions of dollars] 2005 2006

Total 74.2 194.6
 Capital flows without current-cost adjustment 101.0 175.4
 Equity capital 56.6 98.0
 Increases 89.0 126.2
 Decreases 32.4 28.2
 Intercompany debt 4.7 12.0
 Reinvested earnings without current-cost
 adjustment 39.8 65.4
 Valuation adjustments -26.9 19.2
 Currency translation -1.9 3.9
 Other -24.9 15.3

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 (2005-2006)

 Billions of Percent
 dollars

All countries 194.6 12
 Canada 4.8 3
 Europe 142.4 13
 Of which:
 France 38.6 32
 Netherlands 23.9 14
 Germany 22.2 12
 Luxembourg 14.2 12
 Ireland 10.0 54
 Spain 7.4 99
 United Kingdom 7.0 2
 Latin America and Other Western Hemisphere 9.1 13
 Of which:
 Bermuda 3.2 (1)
 Mexico 2.3 60
Africa -0.5 -18
Middle East 9.2 110
Asia and Pacific 29.6 13
 Of which:
 Japan 22.3 12
 Australia 3.3 15
 Korea 2.8 49

(1.) The percent change cannot be computed because of a change in sign
attributable to a negative inward position in 2005. A negative direct
investment position may result when affiliates' financial claims on
direct investors exceed those 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.

Table 1.1. U.S. Direct Investment Position Abroad on a
Historical-Cost Basis, 2005

[Millions of dollars]

 Manufac-
 turing

 All Mining Total
 industries

 All countries 2,135,492 115,956 449,202

Canada 233,474 31,781 80,055

Europe 1,109,950 27,775 231,617
 Austria 10,982 1 2,595
 Belgium 48,409 11 12,632
 Czech Republic 2,394 (*) 749
 Denmark 5,655 -129 3,046
 Finland 2,070 0 1,361
 France 60,127 68 24,377

 Germany 90,574 25 21,355
 Greece 1,858 (*) 258
 Hungary 3,299 9 2,451
 Ireland 71,255 (D) 22,587
 Italy 24,845 -48 14,305
 Luxembourg 69,746 163 6,327
 Netherlands 184,614 3,419 31,249

 Norway 8,819 5,149 1,824
 Poland 6,125 4 2,794
 Portugal 2,391 (*) 487
 Russia 8,562 6,294 632
 Spain 46,528 56 13,505
 Sweden 33,219 0 2,780
 Switzerland 81,048 390 7,808
 Turkey 2,010 48 606
 United Kingdom 333,497 6,360 57,367
 Other 11,924 (D) 524

Latin America and Other 365,895 18,710 48,366
 Western Hemisphere

 South America 70,316 9,735 23,158
 Argentina 11,019 297 1,956
 Brazil 29,619 1,963 13,930
 Chile 9,623 1,125 1,573
 Colombia 4,192 1,395 1,261
 Ecuador 730 607 -5
 Peru 4,245 2,463 312
 Venezuela 9,568 1,428 3,947
 Other 1,322 457 183

 Central America 84,125 2,229 22,644
 Costa Rica 1,278 (*) 721
 Honduras 367 0 219
 Mexico 75,106 2,121 21,018
 Panama 5,777 98 51
 Other 1,597 10 634

 Other Western Hemisphere 211,453 6,746 2,564
 Barbados 3,865 4 144
 Bermuda 103,454 36 -166
 Dominican Republic 770 (*) 496
 United Kingdom Islands,
 Caribbean 79,728 2,178 1,433
 Other 23,637 4,528 657

Africa 23,018 12,464 2,487
 Egypt 5,354 4,589 225
 Nigeria 1,195 54 79
 South Africa 3,558 -11 1,703
 Other 12,912 7,833 481

Middle East 22,631 5,501 5,825
 Israel 8,350 (D) 4,666
 Saudi Arabia 3,770 -7 374
 United Arab Emirates 3,324 1,134 233
 Other 7,188 (D) 553

Asia and Pacific 380,523 19,724 80,852
 Australia 115,623 8,468 14,566
 China 17,033 1,830 8,252
 Hong Kong 32,577 0 2,657
 India 6,634 116 1,341
 Indonesia 9,487 6,171 882
 Japan 79,280 2 14,521
 Korea, Republic of 18,188 1 7,816
 Malaysia 10,344 1,727 4,245
 New Zealand 4,897 339 867
 Philippines 6,377 22 2,985
 Singapore 54,500 107 14,325
 Taiwan 14,602 (*) 4,081
 Thailand 6,573 -212 4,049
 Other 4,408 1,155 266

Addenda:
 European Union (25) (1) 998,028 10,294 220,372
 OPEC (2) 37,697 16,473 6,122

 Manufacturing

 Food Chemicals Primary
 and
 fabricated
 metals

 All countries 30,540 116,075 23,441

Canada 2,829 12,482 4,328

Europe 17,791 73,999 12,052
 Austria (D) 103 78
 Belgium 231 6,784 -2
 Czech Republic (D) 275 8
 Denmark 77 30 91
 Finland 10 91 225
 France 986 7,023 3,345

 Germany 278 3,715 2,580
 Greece (D) 171 -3
 Hungary 77 12,210 (D)
 Ireland 351 160 126
 Italy 1,266 3,491 362
 Luxembourg 0 (D) 107
 Netherlands 9,503 10,300 2,620

 Norway 29 119 55
 Poland 125 (D) 258
 Portugal (*) 78 10
 Russia 207 279 0
 Spain 640 7,591 61
 Sweden (D) 315 167
 Switzerland 41 5,093 52
 Turkey (D) 101 1
 United Kingdom 3,149 14,208 1,695
 Other 261 (D) (D)

Latin America and Other 6,161 10,930 3,063
 Western Hemisphere

 South America 2,844 6,031 1,742
 Argentina 936 645 8
 Brazil 1,535 3,734 1,538
 Chile (D) 498 (D)
 Colombia 76 488 (D)
 Ecuador 10 5 -3
 Peru (D) 175 -87
 Venezuela 129 412 80
 Other 67 75 (*)

 Central America 3,256 4,023 805
 Costa Rica 129 89 (D)
 Honduras 9 7 (D)
 Mexico 2,984 3,869 777
 Panama 32 3 (*)
 Other 102 56 (D)

 Other Western Hemisphere 62 876 516
 Barbados 26 8 1
 Bermuda 1 (D) 0
 Dominican Republic 53 (D) (D)
 United Kingdom Islands,
 Caribbean (D) (D) -37
 Other (D) -15 (D)

Africa 242 324 126
 Egypt 3 -44 1
 Nigeria (*) 17 (D)
 South Africa 10 289 88
 Other 228 62 (D)

Middle East 78 1,054 81
 Israel 78 412 0
 Saudi Arabia 0 96 48
 United Arab Emirates 0 (D) 31
 Other (*) (D) 2

Asia and Pacific 3,440 17,285 3,790
 Australia 1,182 4,055 2,575
 China 637 2,133 168
 Hong Kong -11 217 145
 India 38 378 60
 Indonesia 30 298 (D)
 Japan 206 4,083 250
 Korea, Republic of 747 1,433 126
 Malaysia 17 726 45
 New Zealand (D) 84 13
 Philippines 293 362 24
 Singapore 17 1,474 98
 Taiwan 49 891 120
 Thailand -1 1,104 133
 Other (D) 48 (D)

Addenda:
 European Union (25) (1) 17,213 68,373 11,832
 OPEC (2) 159 1,442 195

 Manufacturing

 Machinery Computers Electrical
 and equipment,
 electronic appli-
 products ances,
 and
 components

 All countries 27,330 62,074 13,837

Canada 3,938 6,879 1,928

Europe 16,113 28,282 8,583
 Austria 150 (D) 4
 Belgium 31 83 631
 Czech Republic 118 6 73
 Denmark (D) 1,648 (D)
 Finland (D) 635 39
 France 397 1,989 783

 Germany 1,828 4,435 1,734
 Greece 0 (D) 0
 Hungary -1 165 (D)
 Ireland (D) 5,850 329
 Italy 1,609 3,205 562
 Luxembourg 8 (*) 0
 Netherlands 1,063 -1,264 (D)

 Norway 1,583 -64 32
 Poland 27 13 14
 Portugal (*) 165 2
 Russia -35 (D) 11
 Spain -47 540 571
 Sweden 836 414 19
 Switzerland 799 151 240
 Turkey (*) (*) 0
 United Kingdom 6,323 6,662 541
 Other 5 8 24

Latin America and Other 2,520 -690 1,180
 Western Hemisphere

 South America 1,777 1,193 143
 Argentina 158 82 -96
 Brazil 1,444 1,111 138
 Chile 43 2 3
 Colombia 12 (*) 15
 Ecuador 0 0 0
 Peru (*) 0 (*)
 Venezuela 119 -3 -81
 Other 2 0 0

 Central America (D) -2,104 1,031
 Costa Rica 1 0 74
 Honduras 0 (D) 0
 Mexico (D) -2,206 957
 Panama 0 0 0
 Other 0 (D) (*)

 Other Western Hemisphere (D) 221 7
 Barbados (*) (D) 5
 Bermuda (D) 1 0
 Dominican Republic 0 (D) 0
 United Kingdom Islands,
 Caribbean (*) (D) -1
 Other 1 2 3

Africa 288 -65 42
 Egypt 122 0 9
 Nigeria 0 0 0
 South Africa 164 30 32
 Other 2 -95 1

Middle East 221 3,798 -8
 Israel 98 (D) -30
 Saudi Arabia 35 (D) (D)
 United Arab Emirates (D) (*) (D)
 Other (D) 0 0

Asia and Pacific 4,249 23,871 2,111
 Australia 724 503 257
 China 405 1,107 543
 Hong Kong 171 1,041 198
 India 430 158 -18
 Indonesia 425 -7 (D)
 Japan 399 2,938 779
 Korea, Republic of 130 2,511 (D)
 Malaysia 130 2,864 1
 New Zealand -4 18 (D)
 Philippines 42 1,589 (D)
 Singapore 1,021 8,763 79
 Taiwan 118 1,594 63
 Thailand 255 786 23
 Other 3 7 0

Addenda:
 European Union (25) (1) 13,760 28,174 8,294
 OPEC (2) 660 (D) 116

 Manufacturing

 Trans- Other Wholesale
 portation manu- trade
 equipment facturing

 All countries 48,968 126,937 139,444

Canada 18,150 29,520 13,213

Europe 17,582 57,215 81,675
 Austria 653 217 2,333
 Belgium 917 3,957 4,370
 Czech Republic 421 (D) 2
 Denmark 2 (D) 643
 Finland 89 (D) 444
 France 1,937 7,915 5,932

 Germany 4,365 2,418 17,132
 Greece 0 (D) 872
 Hungary 624 293 200
 Ireland 63 (D) 3,353
 Italy 1,183 2,625 1,574
 Luxembourg 0 (D) (D)
 Netherlands -40 (D) 10,877

 Norway 7 63 196
 Poland 509 (D) 137
 Portugal (D) (D) 710
 Russia 49 (D) 518
 Spain 786 3,362 2,316
 Sweden 69 (D) 452
 Switzerland (D) (D) 14,246
 Turkey 133 (D) 480
 United Kingdom 5,101 19,688 12,370
 Other 29 34 (D)

Latin America and Other 5,264 19,938 15,908
 Western Hemisphere

 South America 967 8,462 2,261
 Argentina -159 382 260
 Brazil 281 4,149 46
 Chile (D) 837 713
 Colombia (D) 352 540
 Ecuador (D) (D) 77
 Peru -1 (D) 86
 Venezuela 599 2,529 290
 Other 24 16 250

 Central America 4,529 (D) 3,863
 Costa Rica 0 407 393
 Honduras (D) (D) 77
 Mexico (D) 9,432 2,467
 Panama -5 21 676
 Other 0 (D) 250

 Other Western Hemisphere -232 (D) 9,783
 Barbados (D) (D) 1,790
 Bermuda (D) 12 2,741
 Dominican Republic 0 357 177
 United Kingdom Islands,
 Caribbean (*) (D) 4,664
 Other 0 (D) 411

Africa 902 627 1,050
 Egypt (D) (D) 57
 Nigeria 0 (D) 163
 South Africa 824 265 486
 Other (D) (D) 344

Middle East 14 586 1,280
 Israel 0 (D) 668
 Saudi Arabia 14 (D) 264
 United Arab Emirates (*) (D) 342
 Other 0 (D) 7

Asia and Pacific 7,056 19,051 26,320
 Australia 1,556 3,714 2,459
 China 1,329 1,929 1,870
 Hong Kong 31 865 5,789
 India -19 313 528
 Indonesia 6 93 121
 Japan 997 4,869 8,058
 Korea, Republic of 650 (D) 1,208
 Malaysia (D) (D) 273
 New Zealand 3 542 449
 Philippines (D) 671 280
 Singapore 1,779 1,093 2,825
 Taiwan 153 1,092 1,854
 Thailand 358 1,392 550
 Other (D) (D) 56

Addenda:
 European Union (25) (1) 16,892 55,834 65,517
 OPEC (2) 620 (D) 1,182

 Informa- Depository Finance
 tion institu- (except
 tions depository
 institu-
 tions) and
 insurance

 All countries 65,439 65,798 452,726

Canada 3,580 4,030 43,052

Europe 44,920 43,138 207,769
 Austria 194 (D) (D)
 Belgium -547 1,028 22,799
 Czech Republic 60 649 (D)
 Denmark 190 0 (D)
 Finland -11 0 10
 France 1,713 1,738 5,228

 Germany 2,630 1,131 11,155
 Greece 4 -83 309
 Hungary 181 (D) 32
 Ireland 1,071 (D) 10,329
 Italy 4,159 -44 1,557
 Luxembourg (D) 652 2,801
 Netherlands 4,637 (D) 40,285

 Norway 298 49 539
 Poland (D) 1,840 595
 Portugal 480 3 223
 Russia 4 (D) 9
 Spain 1,847 1,879 5,455
 Sweden 360 0 (D)
 Switzerland 1,396 9,490 9,593
 Turkey 8 688 (D)
 United Kingdom 15,564 16,553 88,449
 Other 289 (D) 488

Latin America and Other 5,797 1,807 131,561
 Western Hemisphere

 South America 3,415 4,857 9,974
 Argentina 1,091 1,662 1,074
 Brazil 896 568 5,258
 Chile 394 1,323 2,488
 Colombia 80 (D) 329
 Ecuador 2 (D) (D)
 Peru 90 (D) 71
 Venezuela 735 (D) 592
 Other 128 181 (D)

 Central America 1,688 17,776 14,852
 Costa Rica 1 0 21
 Honduras (*) (D) 9
 Mexico (D) 17,344 13,767
 Panama (*) 374 1,041
 Other (D) (D) 15

 Other Western Hemisphere 694 -20,826 106,735
 Barbados (D) 26 1,368
 Bermuda 18 (*) 58,056
 Dominican Republic 4 (D) -8
 United Kingdom Islands,
 Caribbean (D) -15,694 37,692
 Other (D) (D) 9,628

Africa 202 1,068 361
 Egypt (D) (D) (D)
 Nigeria 0 (D) (D)
 South Africa 176 (D) 41
 Other (D) 328 200

Middle East 1,070 277 1,114
 Israel 1,043 -2 225
 Saudi Arabia 15 0 -49
 United Arab Emirates 12 (D) (D)
 Other (*) (D) (D)

Asia and Pacific 9,870 15,478 68,871
 Australia 979 2,347 6,409
 China 771 727 (D)
 Hong Kong 1,572 2,480 6,625
 India 2,004 1,060 668
 Indonesia -63 494 2
 Japan 2,979 453 36,909
 Korea, Republic of 190 3,656 1,980
 Malaysia 31 (D) (D)
 New Zealand 168 (D) 1,066
 Philippines 41 (D) 850
 Singapore 1,099 1,613 4,824
 Taiwan 83 984 7,161
 Thailand 6 578 931
 Other 11 220 4

Addenda:
 European Union (25) (1) 42,927 30,907 197,305
 OPEC (2) 699 (D) 1,382

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

 All countries 48,834 620,765 177,327

Canada 2,603 26,024 29,137

Europe 30,601 342,438 100,017
 Austria 157 2,290 810
 Belgium 3,384 3,521 1,212
 Czech Republic 43 0 (D)
 Denmark 28 582 (D)
 Finland 108 4 153
 France 1,692 11,140 8,240

 Germany 3,941 26,508 6,697
 Greece 35 233 230
 Hungary 58 0 (D)
 Ireland 2,587 5,109 13,328
 Italy 707 491 2,144
 Luxembourg 21 54,753 (D)
 Netherlands 2,098 87,195 (D)

 Norway 273 24 466
 Poland 98 41 (D)
 Portugal 11 -183 662
 Russia 34 2 (D)
 Spain 1,386 19,002 1,082
 Sweden 211 18,248 (D)
 Switzerland 1,739 35,727 660
 Turkey 30 (*) (D)
 United Kingdom 11,908 75,748 49,179
 Other 52 2,005 (D)

Latin America and Other 1,349 122,206 20,191
 Western Hemisphere

 South America 1,142 11,417 4,358
 Argentina 49 5,767 360
 Brazil 187 3,173 1,598
 Chile 37 367 1,604
 Colombia 43 (D) (D)
 Ecuador (D) 2 -19
 Peru 51 (D) 237
 Venezuela 773 1,133 (D)
 Other (D) 1 (D)

 Central America 444 9,889 10,740
 Costa Rica 72 (*) 70
 Honduras 0 3 (D)
 Mexico 382 7,348 (D)
 Panama -11 2,516 1,031
 Other 1 23 (D)

 Other Western Hemisphere -237 100,900 5,093
 Barbados -74 90 (D)
 Bermuda -10 39,775 3,003
 Dominican Republic 1 0 (D)
 United Kingdom Islands,
 Caribbean 56 48,169 (D)
 Other -210 12,866 (D)

Africa 18 4,142 1,227
 Egypt 3 5 (D)
 Nigeria -1 514 117
 South Africa 24 (D) 204
 Other -8 (D) (D)

Middle East 1,726 4,928 910
 Israel 1,315 (D) (D)
 Saudi Arabia 203 2,771 200
 United Arab Emirates 34 (D) 137
 Other 174 (D) (D)

Asia and Pacific 12,538 121,026 25,844
 Australia 2,284 (D) (D)
 China 77 1,307 (D)
 Hong Kong 263 10,537 2,655
 India 549 293 57
 Indonesia 39 804 1,038
 Japan 6,458 1,951 7,950
 Korea, Republic of 962 14 2,361
 Malaysia 194 2,400 (D)
 New Zealand 236 1,110 (D)
 Philippines -72 (D) 1,565
 Singapore 1,260 2,784 602
 Taiwan 102 5,106 230
 Thailand 179 91 402
 Other 6 -37 2,728

Addenda:
 European Union (25) (1) 28,519 304,675 97,512
 OPEC (2) 1,188 7,145 (D)

* 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. Its
members are Algeria, Indonesia, Iran, Iraq, Kuwait, Libya, Nigeria,
Qatar, Saudi Arabia, the United Arab Emirates, and Venezuela.

NOTE. estimates for 2005 are revised.

Table 1.2. U.S. Direct Investment Position Abroad on a
Historical-Cost Basis, 2006

[Millions of dollars]

 Manufac-
 turing

 All Mining Total
 industries

 All countries 2,384,004 136,145 503,495

Canada 246,451 38,023 87,522

Europe 1,250,508 31,387 255,375
 Austria 17,405 (*) 2,909
 Belgium 52,054 9 13,754
 Czech Republic 3,090 (*) 1,111
 Denmark 5,753 -160 3,432
 Finland 2,592 0 1,628
 France 65,933 79 25,788

 Germany 99,253 45 26,155
 Greece 2,073 -1 245
 Hungary 4,014 (D) 2,669
 Ireland 83,615 381 24,649
 Italy 28,936 -31 15,613
 Luxembourg 82,588 163 6,698
 Netherlands 215,715 3,379 33,124

 Norway 10,280 6,240 2,197
 Poland 7,190 (D) 3,640
 Portugal 3,033 (*) 421
 Russia 10,064 6,988 1,047
 Spain 49,413 63 14,278
 Sweden 35,938 0 2,765
 Switzerland 90,085 437 9,643
 Turkey 2,088 14 556
 United Kingdom 364,084 7,578 61,427
 Other 15,311 6,193 1,628

Latin America and Other
Western Hemisphere 403,284 21,925 58,848

 South America 79,146 10,624 27,416
 Argentina 13,086 328 2,441
 Brazil 32,601 2,738 16,324
 Chile 10,243 968 1,598
 Colombia 4,897 1,731 1,526
 Ecuador 461 277 33
 Peru 4,979 3,085 380
 Venezuela 11,556 1,121 4,932
 Other 1,323 375 180

 Central America 93,995 3,531 27,492
 Costa Rica 1,573 (*) 856
 Honduras 517 0 364
 Mexico 84,699 3,449 25,467
 Panama 5,728 72 56
 Other 1,478 10 748

 Other Western Hemisphere 230,143 7,770 3,941
 Barbados 4,756 4 495
 Bermuda 108,462 (D) 353
 Dominican Republic 896 (*) 620
 United Kingdom Islands,
 Caribbean 80,604 2,056 1,727
 Other 35,426 (D) 746

Africa 25,556 14,464 2,900
 Egypt 5,911 5,159 299
 Nigeria 339 -794 96
 South Africa 3,818 103 2,000
 Other 15,489 9,996 505

Middle East 26,487 6,920 7,468
 Israel 9,964 (D) 6,262
 Saudi Arabia 4,346 79 385
 United Arab Emirates 4,547 2,105 (D)
 Other 7,630 (D) (D)

Asia and Pacific 431,718 23,426 91,382
 Australia 122,587 10,618 13,160
 China 22,228 1,521 10,899
 Hong Kong 38,118 0 3,201
 India 8,852 -29 1,725
 Indonesia, 10,585 6,827 800
 Japan, 91,769 4 17,267
 Korea, Republic of 22,280 1 9,684
 Malaysia 12,450 2,255 4,787
 New Zealand 5,721 377 1,090
 Philippines 7,034 26 3,143
 Singapore 60,417 176 15,907
 Taiwan 16,126 (*) 4,455
 Thailand 8,217 85 4,958
 Other 5,334 1,565 305

Addenda:

 European Union (25) (1) 1,123,284 11,485 240,620
 OPEC (2) 43,030 18,518 7,090

 Manufacturing

 Food Chemicals Primary
 and
 fabricated
 metals

 All countries 32,517 129,778 23,220

Canada 3,359 15,074 3,643

Europe 18,869 81,284 13,438
 Austria (D) 112 89
 Belgium 276 7,392 1
 Czech Republic (D) 332 9
 Denmark 75 31 95
 Finland 12 104 229
 France 1,425 7,574 3,727

 Germany 326 3,802 3,547
 Greece (*) 428 -4
 Hungary 108 81 (D)
 Ireland (D) 11,473 138
 Italy 1,222 3,815 370
 Luxembourg 0 (D) (*)
 Netherlands 10,457 11,307 964

 Norway 28 121 86
 Poland 191 591 343
 Portugal (*) 90 10
 Russia 284 (D) (D)
 Spain 635 7,839 76
 Sweden (D) 582 177
 Switzerland 55 5,293 16
 Turkey 67 24 1
 United Kingdom 2,695 15,473 2,299
 Other 350 108 (D)

Latin America and Other
Western Hemisphere 6,046 12,357 3,629

 South America 2,857 6,963 2,281
 Argentina 923 978 4
 Brazil 1,501 4,240 2,031
 Chile 24 459 45
 Colombia (D) 478 186
 Ecuador 12 3 -2
 Peru (D) 205 -84
 Venezuela (D) 519 101
 Other 54 80 (*)

 Central America 3,088 4,401 782
 Costa Rica 204 112 39
 Honduras 12 9 4
 Mexico 2,694 4,204 753
 Panama 34 3 (*)
 Other 143 73 -15

 Other Western Hemisphere 102 993 566
 Barbados 29 8 1
 Bermuda 1 113 0
 Dominican Republic 58 81 (D)
 United Kingdom Islands,
 Caribbean 11 (D) (D)
 Other 3 (D) (D)

Africa 259 231 176
 Egypt 7 -58 2
 Nigeria (*) (D) 35
 South Africa -16 189 115
 Other 268 (D) 25

Middle East 89 1,190 88
 Israel 89 (D) 0
 Saudi Arabia 0 95 56
 United Arab Emirates 0 (D) 30
 Other (*) (D) 2

Asia and Pacific 3,894 19,642 2,245
 Australia 1,133 4,307 757
 China 754 2,591 462
 Hong Kong -22 266 87
 India 48 463 86
 Indonesia, (D) 328 28
 Japan, 164 4,667 174
 Korea, Republic of 906 1,737 174
 Malaysia 38 754 152
 New Zealand (D) 88 14
 Philippines 399 398 26
 Singapore 19 1,613 130
 Taiwan 53 1,011 148
 Thailand 36 1,370 122
 Other (D) 49 10

Addenda:

 European Union (25) (1) 18,175 75,323 12,422
 OPEC (2) 188 1,624 250

 Manufacturing

 Machinery Computers Electrical
 and equipment,
 electronic appli-
 products ances,
 and
 components

 All countries 32,172 76,660 15,765

Canada 4,270 9,897 2,375

Europe 19,634 31,998 9,435
 Austria 232 (D) -7
 Belgium 79 96 (D)
 Czech Republic 176 18 74
 Denmark (D) 1,735 (D)
 Finland (D) 768 74
 France 504 2,354 749

 Germany 2,756 4,441 1,663
 Greece 0 (D) 0
 Hungary 5 91 868
 Ireland 607 6,364 265
 Italy 1,825 3,795 463
 Luxembourg 7 (D) 0
 Netherlands 1,113 1,584 2,796

 Norway 1,972 47 8
 Poland 47 47 4
 Portugal 6 114 (D)
 Russia (D) (D) 12
 Spain -71 488 563
 Sweden 891 532 28
 Switzerland 1,545 387 470
 Turkey (*) (*) 0
 United Kingdom 6,726 7,999 659
 Other 23 24 21

Latin America and Other
Western Hemisphere 2,737 1,277 1,506

 South America 1,886 1,375 (D)
 Argentina 176 93 -109
 Brazil 1,522 1,284 177
 Chile 49 (D) 3
 Colombia 12 (*) 16
 Ecuador 0 0 0
 Peru (*) 0 (*)
 Venezuela 125 (D) (D)
 Other 3 0 0

 Central America (D) (D) 1,167
 Costa Rica 1 (D) 81
 Honduras 0 0 0
 Mexico (D) -828 1,086
 Panama 0 0 0
 Other (*) (D) (*)

 Other Western Hemisphere (D) (D) (D)
 Barbados (*) (D) 5
 Bermuda (D) (D) (D)
 Dominican Republic 0 4 0
 United Kingdom Islands,
 Caribbean (*) 225 0
 Other 1 2 3

Africa 339 -64 36
 Egypt 127 0 9
 Nigeria 0 0 0
 South Africa 209 (D) 26
 Other 3 (D) 1

Middle East 279 5,173 -5
 Israel 143 (D) -27
 Saudi Arabia (D) (D) 19
 United Arab Emirates 81 1 4
 Other (D) 0 0

Asia and Pacific 4,914 28,377 2,417
 Australia 944 569 310
 China 640 1,876 585
 Hong Kong 184 1,513 253
 India 497 295 -18
 Indonesia, (D) -46 (D)
 Japan, 518 3,991 758
 Korea, Republic of 126 2,900 244
 Malaysia 148 3,282 (*)
 New Zealand 7 115 (D)
 Philippines (D) 1,616 -7
 Singapore 1,094 9,595 157
 Taiwan 101 1,647 76
 Thailand 224 967 28
 Other 3 57 0

Addenda:

 European Union (25) (1) 16,130 31,665 8,938
 OPEC (2) 627 -2 138

 Manufacturing

 Trans- Other Whole-sale
 ortation manu- trade
 equipment facturing

 All countries 55,526 137,858 164,290

Canada 18,029 30,874 14,630

Europe 20,104 60,613 97,625
 Austria 803 258 2,462
 Belgium 1,176 (D) 5,650
 Czech Republic 484 (D) 31
 Denmark 2 (D) 571
 Finland 96 D) 761
 France 1,993 7,462 7,711

 Germany 6,597 3,023 20,702
 Greece 0 (D) 1,048
 Hungary 749 (D) 346
 Ireland -19 (D) 5,778
 Italy 1,475 2,648 2,633
 Luxembourg 0 (D) 2,145
 Netherlands -10 4,913 11,678

 Norway 7 60 222
 Poland 709 1,710 189
 Portugal (D) 40 935
 Russia 81 (D) 586
 Spain 724 4,025 2,300
 Sweden -477 (D) 669
 Switzerland 556 1,320 16,627
 Turkey 184 279 524
 United Kingdom 4,729 20,846 13,238
 Other (D) (D) 816

Latin America and Other
Western Hemisphere 7,794 23,502 19,308

 South America 1,860 (D) 2,852
 Argentina -27 404 171
 Brazil 561 5,008 664
 Chile (D) (D) 732
 Colombia (D) 514 574
 Ecuador (D) (D) 103
 Peru -1 (D) 91
 Venezuela 979 2,935 255
 Other 27 15 263

 Central America 6,015 11,889 3,525
 Costa Rica 0 (D) 465
 Honduras (D) (D) (D)
 Mexico (D) 10,745 2,376
 Panama -5 24 353
 Other 0 (D) (D)

 Other Western Hemisphere -82 (D) 12,930
 Barbados -38 (D) 1,834
 Bermuda (D) 13 3,456
 Dominican Republic 0 (D) (D)
 United Kingdom Islands,
 Caribbean (D) (D) 6,926
 Other 0 (D) (D)

Africa 1,195 729 1,137
 Egypt (D) (D) 60
 Nigeria 0 (D) 168
 South Africa 1,151 (D) 526
 Other (D) (D) 383

Middle East 14 639 1,459
 Israel 0 426 658
 Saudi Arabia 14 (D) 303
 United Arab Emirates (*) (D) 494
 Other -0 (D) 4

Asia and Pacific 8,390 21,502 30,132
 Australia 1,476 3,665 2,670
 China 1,721 2,270 2,339
 Hong Kong 42 879 7,873
 India 71 283 901
 Indonesia, -9 (D) 154
 Japan, 1,123 5,872 8,298
 Korea, Republic of 879 2,740 1,338
 Malaysia (D) (D) 171
 New Zealand 3 548 573
 Philippines (D) (D) 288
 Singapore 2,289 1,010 2,345
 Taiwan 138 1,281 2,300
 Thailand 495 1,716 662
 Other (D) (D) 221

Addenda:

 European Union (25) (1) 19,299 58,667 78,850
 OPEC (2) 984 3,281 1,372

 Informs- Depository Finance
 tion institu- (except
 tions depository
 institu-
 tions) and
 insurance

 All countries 74,368 67,550 484,840

Canada 5,029 2,265 42,951

Europe 51,339 50,628 229,436
 Austria -17 (D) (D)
 Belgium -521 1,288 24,079
 Czech Republic 88 974 829
 Denmark 244 0 670
 Finland -22 0 12
 France 1,614 1,898 5,357

 Germany 2,726 1,363 12,654
 Greece 11 -104 369
 Hungary 7 (D) 123
 Ireland 11,351 (D) 14,872
 Italy 5,036 -31 1,723
 Luxembourg (D) 840 5,048
 Netherlands 6,318 (D) 39,697

 Norway 265 58 553
 Poland 394 1,706 741
 Portugal 554 3 273
 Russia 13 (D) 17
 Spain 2,639 1,596 6,351
 Sweden 369 (*) (D)
 Switzerland 1,140 12,423 10,053
 Turkey -20 755 80
 United Kingdom 18,481 19,358 98,652
 Other (D) 1,790 467

Latin America and Other
Western Hemisphere 6,118 -4,422 127,331

 South America 3,192 5,033 9,562
 Argentina 929 472 1,539
 Brazil 729 2,173 4,106
 Chile 308 1,393 2,652
 Colombia 92 (D) 359
 Ecuador 2 (D) (D)
 Peru 90 (D) 103
 Venezuela 880 (D) 688
 Other 161 280 (D)

 Central America 1,796 (D) 16,099
 Costa Rica 1 0 23
 Honduras (*) (D) 10
 Mexico 1,738 (D) 14,986
 Panama (*) 386 1,065
 Other 56 47 14

 Other Western Hemisphere 1,130 (D) 101,670
 Barbados (D) 25 2,273
 Bermuda 344 7 58,782
 Dominican Republic 2 (D) -7
 United Kingdom Islands,
 Caribbean 305 -22,001 31,194
 Other (D) -5,930 9,428

Africa 193 1,047 499
 Egypt 6 (D) 15
 Nigeria 0 (D) (D)
 South Africa 1 (D) 10
 Other 16 377 (D)

Middle East 1,313 378 1,292
 Israel 1,273 15 244
 Saudi Arabia (D) 0 -39
 United Arab Emirates (D) (D) 766
 Other (*) (D) 321

Asia and Pacific 10,377 17,655 83,332
 Australia 942 1,954 7,979
 China 1,016 1,233 1,554
 Hong Kong 1,694 1,687 8,705
 India 2,419 1,426 1,040
 Indonesia, -76 675 2,174
 Japan, 2,329 673 4,799
 Korea, Republic of 230 4,898 2,785
 Malaysia 36 (D) 450
 New Zealand 192 (D) 1,125
 Philippines 46 (D) 964
 Singapore 1,362 2,027 5,128
 Taiwan 170 933 7,828
 Thailand 6 732 837
 Other 11 (D) -79

Addenda:

 European Union (25) (1) 49,597 35,044 218,406
 OPEC (2) 844 1,545 1,810

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

 All countries 57,429 710,336 185,549

Canada 2,906 25,567 27,559

Europe 36,462 392,860 105,395
 Austria 206 8,355 828
 Belgium 3,474 2,663 1,658
 Czech Republic 45 0 12
 Denmark 60 647 290
 Finland 146 15 51
 France 2,106 11,842 9,537

 Germany 4,206 24,802 6,600
 Greece 35 235 235
 Hungary 62 0 (D)
 Ireland 2,909 5,371 (D)
 Italy 758 1,042 2,194
 Luxembourg 18 63,861 (D)
 Netherlands 2,683 114,334 (D)

 Norway 351 22 373
 Poland 117 (D) (D)
 Portugal 18 -2 831
 Russia 46 17 (D)
 Spain 1,796 19,053 1,337
 Sweden 261 20,020 (D)
 Switzerland 2,933 36,133 697
 Turkey 38 (*) 141
 United Kingdom 14,124 81,182 50,046
 Other 70 (D) 780

Latin America and Other
Western Hemisphere 1,038 151,420 21,718

 South America 728 14,808 4,932
 Argentina 56 6,697 453
 Brazil 293 4,167 1,407
 Chile 76 336 2,178
 Colombia 47 195 (D)
 Ecuador -2 3 -26
 Peru 51 (D) 253
 Venezuela 211 (D) 611
 Other -5 1 (D)

 Central America 439 10,725 (D)
 Costa Rica 79 (D) (D)
 Honduras 0 3 46
 Mexico 364 7,968 (D)
 Panama -5 2,667 1,134
 Other 1 (D) 325

 Other Western Hemisphere -129 125,887 (D)
 Barbados -95 -48 (D)
 Bermuda -12 42,345 (D)
 Dominican Republic 1 0 -2
 United Kingdom Islands,
 Caribbean 215 59,674 507
 Other -239 23,916 969

Africa 151 4,345 822
 Egypt 5 1 (D)
 Nigeria -1 391 141
 South Africa 115 548 (D)
 Other 32 3,405 (D)

Middle East 1,542 5,210 905
 Israel 1,156 57 (D)
 Saudi Arabia 319 3,084 (D)
 United Arab Emirates 34 (D) 83
 Other 33 (D) (D)

Asia and Pacific 15,331 130,933 29,149
 Australia 3,030 77,967 4,267
 China 134 2,002 1,530
 Hong Kong 366 11,790 2,802
 India 967 333 70
 Indonesia, 42 843 1,102
 Japan, 7,448 1,990 8,961
 Korea, Republic of 1,212 7 2,126
 Malaysia 207 (D) 1,246
 New Zealand 264 (D) (D)
 Philippines -51 (D) 1,742
 Singapore 1,358 (D) (D)
 Taiwan 120 132 187
 Thailand 229 124 583
 Other 6 (D) (D)

Addenda:

 European Union (25) (1) 33,076 353,475 102,731
 OPEC (2) 622 8,940 2,289

(*) 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,
Make, the Netherlands, Poland, Portugal, Slovakia, Slovenia,
Spain, Sweden, and the United Kingdom.

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

NOTE. Estimates for 2006 are preliminary.

Table 2.1. Foreign Direct Investment Position in the United States
on a Historical-Cost Basis, 2005

[Millions of dollars]

 Manufacturing
 All
 industries Total

 All countries 1,594,488 513,609

Canada 154,180 27,739

Europe 1,128,161 403,849
 Austria 2,416 1,267
 Belgium 10,387 3,328
 Denmark 6,121 4,530
 Finland 5,970 3,574
 France 120,272 42,079

 Germany 180,339 69,156
 Ireland 18,594 8,144
 Italy 8,009 920
 Luxembourg 116,729 26,439
 Netherlands 165,366 67,825

 Norway 5,204 1,457
 Spain 7,504 2,657
 Sweden 22,247 9,828
 Switzerland 131,342 79,502
 United Kingdom 296,277 70,769
 Other 31,385 12,373

Latin America and Other
 Western Hemisphere 70,789 19,761

 South and Central America 22,868 1,022
 Brazil 2,051 -105
 Mexico 3,806 1,184
 Panama 11,109 (D)
 Venezuela 5,304 (D)
 Other 598 24

 Other Western Hemisphere 47,921 18,739
 Bahamas 651 99
 Bermuda -471 1,616
 Netherlands Antilles 5,424 61
 United Kingdom Islands,
 Caribbean 23,932 (D)
 Other 18,385 (D)

Africa 2,734 731
 South Africa 491 -3
 Other 2,243 734

Middle East 8,396 762
 Israel 4,308 768
 Kuwait 562 (D)
 Lebanon -6 1
 Saudi Arabia (D) (D)
 United Arab Emirates (D) -15
 Other 143 1

Asia and Pacific 230,228 60,768
 Australia 22,411 4,381
 China 707 41
 Hong Kong 3,658 1,777
 India 1,497 12
 Japan 188,687 53,746
 Korea, Republic of 5,771 565
 Malaysia 422 5
 New Zealand 690 6
 Singapore 2,183 -955
 Taiwan 3,652 1,165
 Other 550 24

Addenda:
 European Union (25) (1) 981,338 317,948
 OPEC (2) 9,435 334

 Manufacturing

 Food Chemicals

 All countries 20,217 147,999

Canada 2,122 4,586

Europe 15,602 133,946
 Austria 7 (D)
 Belgium -3 2,083
 Denmark (D) (D)
 Finland (D) (D)
 France 1,496 13,961

 Germany 78 25,798
 Ireland 1,048 3,568
 Italy (D) 284
 Luxembourg (D) 1,436
 Netherlands (D) 28,091

 Norway 0 1,493
 Spain (D) (D)
 Sweden 0 572
 Switzerland (D) 30,186
 United Kingdom (D) 22,143
 Other (D) 2,282

Latin America and Other
 Western Hemisphere 1,084 69

 South and Central America 999 67
 Brazil (D) -48
 Mexico (D) 74
 Panama 0 54
 Venezuela 3 -4
 Other 5 -9

 Other Western Hemisphere 86 1
 Bahamas (D) (D)
 Bermuda (D) (D)
 Netherlands Antilles 2 (D)
 United Kingdom Islands,
 Caribbean 100 4
 Other 0 8

Africa -1 (D)
 South Africa -1 -5
 Other (*) (D)

Middle East 8 (D)
 Israel 8 (D)
 Kuwait 0 0
 Lebanon 0 0
 Saudi Arabia 0 10
 United Arab Emirates 0 0
 Other 0 0

Asia and Pacific 1,401 8,268
 Australia 66 (D)
 China -1 -9
 Hong Kong (*) (D)
 India 1 19
 Japan 1,385 6,409
 Korea, Republic of 4 -32
 Malaysia -1 -6
 New Zealand (D) (*)
 Singapore (D) -38
 Taiwan -1 409
 Other (*) -12

Addenda:
 European Union (25) (1) 9,102 100,672
 OPEC (2) 3 -2

 Manufacturing

 Primary and
 fabricated
 metals Machinery

 All countries 26,363 49,550

Canada 4,736 498

Europe 18,329 31,619
 Austria 281 180
 Belgium (D) 688
 Denmark (D) 413
 Finland (D) 393
 France 1,188 (D)

 Germany 3,631 (D)
 Ireland (D) (D)
 Italy -15 177
 Luxembourg 604 (D)
 Netherlands (D) 4,734

 Norway (D) 35
 Spain (D) 6
 Sweden 986 1,350
 Switzerland 2,083 2,992
 United Kingdom 2,248 3,276
 Other (D) (D)

Latin America and Other
 Western Hemisphere 518 (D)

 South and Central America 311 -37
 Brazil (D) -3
 Mexico 703 -24
 Panama (D) 1
 Venezuela -4 -15
 Other (D) 5

 Other Western Hemisphere 207 (D)
 Bahamas (D) 0
 Bermuda (D) (D)
 Netherlands Antilles (D) -1
 United Kingdom Islands,
 Caribbean 7 267
 Other 0 (D)

Africa (D) -2
 South Africa (D) -2
 Other (D) -4

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

Asia and Pacific (D) (D)
 Australia 352 (D)
 China (D) -44
 Hong Kong -2 (D)
 India (D) 3
 Japan 2,133 4,151
 Korea, Republic of 129 -7
 Malaysia -5 -2
 New Zealand (D) 2
 Singapore -1 -25
 Taiwan 2 -1
 Other 1 (*)

Addenda:
 European Union (25) (1) 15,076 27,276
 OPEC (2) -1 -21

 Manufacturing

 Electrical
 Computers and equipment,
 electronic appliances,
 products and components

 All countries 33,250 11,817

Canada 4,964 122

Europe 22,579 8,633
 Austria 3 -3
 Belgium 7 13
 Denmark (D) (*)
 Finland 37 -1
 France 3,937 (D)

 Germany 754 458
 Ireland -15 (*)
 Italy 203 (D)
 Luxembourg (D) (D)
 Netherlands 4,966 218

 Norway 3 1
 Spain 1 (*)
 Sweden (D) (D)
 Switzerland 332 39
 United Kingdom 9,880 (D)
 Other 1,393 (D)

Latin America and Other
 Western Hemisphere -201 (D)

 South and Central America -184 3
 Brazil -103 -2
 Mexico -73 7
 Panama (D) (*)
 Venezuela -2 -2
 Other (D) -1

 Other Western Hemisphere -18 (D)
 Bahamas (*) 0
 Bermuda (D) (D)
 Netherlands Antilles -2 0
 United Kingdom Islands,
 Caribbean (D) (D)
 Other (*) (D)

Africa 2 -1
 South Africa (D) 0
 Other (D) -1

Middle East 392 1
 Israel 398 0
 Kuwait (*) 2
 Lebanon 1 (*)
 Saudi Arabia 0 -1
 United Arab Emirates -7 (*)
 Other 0 0

Asia and Pacific 5,515 (D)
 Australia -9 -7
 China -39 24
 Hong Kong 670 (*)
 India (D) (*)
 Japan 5,381 635
 Korea, Republic of (D) (*)
 Malaysia 35 -1
 New Zealand -9 -1
 Singapore -785 1
 Taiwan 63 (D)
 Other 8 (*)

Addenda:
 European Union (25) (1) 22,241 8,588
 OPEC (2) -10 -1

 Manufacturing

 Transportation Other
 equipment manufacturing

 All countries 74,832 149,582

Canada 2,590 8,120

Europe 47,624 125,517
 Austria (D) (D)
 Belgium (D) 419
 Denmark -1 1,638
 Finland 1 2,310
 France 3,521 13,815

 Germany 23,049 (D)
 Ireland (D) (D)
 Italy 22 17
 Luxembourg 1,483 17,592
 Netherlands 6,822 1,668

 Norway 8 (D)
 Spain 105 723
 Sweden 3,562 1,544
 Switzerland (D) 35,785
 United Kingdom 7,296 22,935
 Other 174 3,650

Latin America and Other
 Western Hemisphere -390 2,955

 South and Central America -436 299
 Brazil 63 -56
 Mexico (D) -41
 Panama (D) -30
 Venezuela 1 (D)
 Other -3 (D)

 Other Western Hemisphere 46 2,656
 Bahamas 0 (D)
 Bermuda 0 582
 Netherlands Antilles -4 (D)
 United Kingdom Islands,
 Caribbean 50 1,727
 Other 0 292

Africa 10 -72
 South Africa 10 -5
 Other 0 -66

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

Asia and Pacific (D) 13,065
 Australia -30 (D)
 China (D) 4
 Hong Kong (*) 159
 India 43 3
 Japan 24,939 8,713
 Korea, Republic of (D) 87
 Malaysia 4 -19
 New Zealand -1 1
 Singapore 8 (D)
 Taiwan -34 (D)
 Other 28 -2

Addenda:
 European Union (25) (1) 45,936 89,057
 OPEC (2) (D) (D)

 Wholesale Retail
 trade trade

 All countries 242,174 30,101

Canada 17,122 6,086

Europe 114,481 16,410
 Austria 279 (D)
 Belgium 1,663 (D)
 Denmark 427 5
 Finland 2,172 (D)
 France 10,393 494

 Germany 11,258 2,160
 Ireland 528 (D)
 Italy 996 1,514
 Luxembourg 980 23
 Netherlands 9,151 (D)

 Norway 562 (*)
 Spain 140 (D)
 Sweden 5,882 (D)
 Switzerland 6,991 389
 United Kingdom 62,615 2,697
 Other 443 (D)

Latin America and Other
 Western Hemisphere 11,251 2,159

 South and Central America 6,525 403
 Brazil (D) (D)
 Mexico 1,365 (D)
 Panama -69 3
 Venezuela (D) (*)
 Other 90 5

 Other Western Hemisphere 4,726 1,755
 Bahamas (D) (D)
 Bermuda -811 0
 Netherlands Antilles 2,205 (D)
 United Kingdom Islands,
 Caribbean 2,768 1,391
 Other (D) -4

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

Middle East (D) (D)
 Israel 427 (D)
 Kuwait -1 0
 Lebanon (D) 0
 Saudi Arabia (D) 0
 United Arab Emirates (D) (*)
 Other (D) 0

Asia and Pacific 95,132 (D)
 Australia 1,818 2
 China 391 2
 Hong Kong 1,002 (D)
 India (D) (*)
 Japan 85,134 5,038
 Korea, Republic of 4,446 (D)
 Malaysia 41 0
 New Zealand (D) 0
 Singapore 425 (D)
 Taiwan 1,121 (D)
 Other 200 (*)

Addenda:
 European Union (25) (1) 106,696 16,021
 OPEC (2) (D) (*)

 Depository
 Information institutions

 All countries 110,639 130,676

Canada 7,836 15,258

Europe 98,418 98,854
 Austria -1 (D)
 Belgium -2 (D)
 Denmark -10 0
 Finland 0 (D)
 France 10,842 16,224

 Germany 34,232 16,586
 Ireland (D) (D)
 Italy (D) 1,261
 Luxembourg 5,299 0
 Netherlands 11,383 (D)

 Norway 269 (D)
 Spain (D) (D)
 Sweden (D) (D)
 Switzerland (D) (D)
 United Kingdom 17,845 (D)
 Other (D) 818

Latin America and Other
 Western Hemisphere 923 3,529

 South and Central America (D) 2,868
 Brazil 18 479
 Mexico (D) 690
 Panama (D) (D)
 Venezuela -5 (D)
 Other 9 628

 Other Western Hemisphere (D) 661
 Bahamas (D) (D)
 Bermuda 858 0
 Netherlands Antilles (D) (D)
 United Kingdom Islands,
 Caribbean (D) 129
 Other (D) (D)

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

Middle East 820 (D)
 Israel 811 1,550
 Kuwait 2 (D)
 Lebanon 0 0
 Saudi Arabia 6 (D)
 United Arab Emirates (*) (D)
 Other 0 (D)

Asia and Pacific (D) (D)
 Australia (D) (D)
 China 70 (D)
 Hong Kong (D) 364
 India 72 190
 Japan 1,919 7,535
 Korea, Republic of (D) 328
 Malaysia 4 (D)
 New Zealand 1 0
 Singapore 20 286
 Taiwan (D) 931
 Other (D) 182

Addenda:
 European Union (25) (1) 83,509 100,619
 OPEC (2) 4 1,267

 Finance (except
 depository Real estate
 institutions) and rental
 and insurance and leasing

 All countries 215,782 38,609

Canada 45,515 2,504

Europe 140,279 18,716
 Austria 1 46
 Belgium 938 (D)
 Denmark (*) 3
 Finland (*) (D)
 France 27,480 397

 Germany 19,057 5,699
 Ireland 693 -23
 Italy (D) 44
 Luxembourg (D) 236
 Netherlands 41,485 2,635

 Norway 0 51
 Spain (D) (D)
 Sweden 407 (D)
 Switzerland 27,032 1,727
 United Kingdom (D) 3,498
 Other 579 1,000

Latin America and Other
 Western Hemisphere 12,036 5,730

 South and Central America (D) 796
 Brazil 46 (D)
 Mexico (D) (D)
 Panama 6 471
 Venezuela 15 11
 Other 15 16

 Other Western Hemisphere (D) 4,934
 Bahamas -3 351
 Bermuda -6,321 (D)
 Netherlands Antilles (D) 807
 United Kingdom Islands,
 Caribbean 4,528 2,722
 Other 3,155 (D)

Africa (D) 266
 South Africa (D) 1
 Other (*) 265

Middle East (D) (D)
 Israel -2 4
 Kuwait (D) (D)
 Lebanon 0 (D)
 Saudi Arabia 2 57
 United Arab Emirates 1 22
 Other 0 47

Asia and Pacific 17,855 (D)
 Australia 1,915 5,390
 China (D) -3
 Hong Kong (D) 160
 India (*) (*)
 Japan 14,330 4,706
 Korea, Republic of 144 58
 Malaysia 0 (D)
 New Zealand 0 (D)
 Singapore (D) (D)
 Taiwan 9 59
 Other (D) 18

Addenda:
 European Union (25) (1) 113,208 16,861
 OPEC (2) 1 (D)

 Professional,
 scientific,
 and technical Other
 services industries

 All countries 52,576 260,320

Canada 1,754 30,365

Europe 48,060 189,093
 Austria (D) 24
 Belgium -984 1,914
 Denmark (D) (D)
 Finland (D) -14
 France 3,119 9,242

 Germany 419 21,772
 Ireland (D) 6,409
 Italy (D) 2,036
 Luxembourg (D) 77,073
 Netherlands 9,241 11,352

 Norway (D) (D)
 Spain (D) 554
 Sweden 57 (D)
 Switzerland 485 6,700
 United Kingdom 27,108 38,651
 Other (D) 7,234

Latin America and Other
 Western Hemisphere -405 15,806

 South and Central America (D) 629
 Brazil -20 89
 Mexico (D) 163
 Panama 3 536
 Venezuela 5 19
 Other -12 -178

 Other Western Hemisphere (D) 15,177
 Bahamas 4 (D)
 Bermuda (D) 3,377
 Netherlands Antilles (D) 2,068
 United Kingdom Islands,
 Caribbean -122 (D)
 Other -15 450

Africa (D) 1,113
 South Africa (D) (D)
 Other (*) (D)

Middle East (D) (D)
 Israel (D) 589
 Kuwait 0 (D)
 Lebanon (*) (*)
 Saudi Arabia 2 -9
 United Arab Emirates 5 (D)
 Other (*) 36

Asia and Pacific 3,061 (D)
 Australia 327 6,898
 China 3 (D)
 Hong Kong -21 116
 India 1,107 (D)
 Japan 1,581 14,697
 Korea, Republic of 2 14,697
 Malaysia (D) 14
 New Zealand (*) 258
 Singapore 9 639
 Taiwan (D) 215
 Other -8 113

Addenda:
 European Union (25) (1) 45,444 181,030
 OPEC (2) 10 (D)

* A nonzero value between--$500,000 and $500,0000.

(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.
Its members are Algeria, Indonesia, Iran, Iraq, Kuwait, Libya,
Nigeria, Qatar, Saudi Arabia, the United Arab Emirates, and
Venezuela.

NOTE. Estimates for 2005 are revised.

Table 2.2. Foreign Direct Investment Position in the United States
on a Historical-Cost Basis, 2006

[Millions of dollars]

 Manufacturing
 All
 industries Total

 All countries 1,789,087 593,759

Canada 158,979 31,315

Europe 1,270,570 454,879
 Austria 2,367 1,360
 Belgium 12,590 2,977
 Denmark 7,209 5,573
 Finland 7,289 3,958
 France 158,830 69,857

 Germany 202,581 77,510
 Ireland 28,551 11,132
 Italy 11,883 986
 Luxembourg 130,925 30,153
 Netherlands 189,293 69,775

 Norway 7,835 1,721
 Spain 14,942 2,663
 Sweden 22,287 10,591
 Switzerland 140,259 78,843
 United Kingdom 303,232 76,805
 Other 30,495 10,976

Latin America and Other
 Western Hemisphere 79,845 23,520

 South and Central America 29,341 3,084
 Brazil 2,122 23
 Mexico 6,075 3,032
 Panama 12,994 -253
 Venezuela 7,246 26
 Other 903 256

 Other Western Hemisphere 50,504 20,436
 Bahamas 664 100
 Bermuda 2,757 2,186
 Netherlands Antilles 6,179 -319
 United Kingdom Islands,
 Caribbean 24,572 (D)
 Other 16,332 (D)

Africa 2,244 -38
 South Africa 652 -31
 Other 1,592 -7

Middle East 17,639 (D)
 Israel (D) (D)
 Kuwait 878 (D)
 Lebanon -7 (*)
 Saudi Arabia (D) (D)
 United Arab Emirates (D) -25
 Other 171 -1

Asia and Pacific 259,810 (D)
 Australia 25,727 5,721
 China 554 (D)
 Hong Kong 3,524 1,714
 India 2,002 119
 Japan 210,996 65,866
 Korea, Republic of 8,609 591
 Malaysia 432 13
 New Zealand 615 -8
 Singapore 2,412 (D)
 Taiwan 4,199 1,664
 Other 740 84

Addenda:
 European Union (25) (1) 1,113,507 369,482
 OPEC (2) 12,391 21

 Manufacturing

 Food Chemicals

 All countries 23,874 183,127

Canada 2,162 (D)

Europe 19,072 156,976
 Austria 7 -24
 Belgium -4 2,938
 Denmark (D) (D)
 Finland (D) (D)
 France 2,024 22,178

 Germany 83 27,954
 Ireland 1,920 (D)
 Italy 50 304
 Luxembourg 685 (D)
 Netherlands (D) 33,422

 Norway 0 1,634
 Spain 6 (D)
 Sweden (*) 327
 Switzerland (D) 26,280
 United Kingdom (D) 20,491
 Other (D) (D)

Latin America and Other
 Western Hemisphere (D) 544

 South and Central America 1,091 -6
 Brazil (D) -58
 Mexico (D) 96
 Panama 0 -14
 Venezuela 1 -3
 Other 3 -27

 Other Western Hemisphere (D) 550
 Bahamas (D) (D)
 Bermuda (D) (D)
 Netherlands Antilles 2 (D)
 United Kingdom Islands,
 Caribbean 100 (D)
 Other 0 (D)

Africa (*) -21
 South Africa 0 -20
 Other (*) -1

Middle East 6 (D)
 Israel 8 (D)
 Kuwait 0 0
 Lebanon 0 0
 Saudi Arabia 0 0
 United Arab Emirates 0 1
 Other 0 0

Asia and Pacific (D) (D)
 Australia 14 (D)
 China -4 103
 Hong Kong -1 (D)
 India (*) 14
 Japan 1,366 7,342
 Korea, Republic of 3 35
 Malaysia -1 -6
 New Zealand (D) (D)
 Singapore (D) -51
 Taiwan -1 (D)
 Other 2 -2

Addenda:
 European Union (25) (1) 9,739 127,467
 OPEC (2) 1 -5

 Manufacturing

 Primary and
 fabricated
 metals Machinery

 All countries 34,238 59,889

Canada 5,811 625

Europe 23,804 39,780
 Austria 297 225
 Belgium (D) 42
 Denmark (D) 498
 Finland (D) 690
 France 1,647 (D)

 Germany 3,094 (D)
 Ireland (D) (D)
 Italy -10 209
 Luxembourg (D) (D)
 Netherlands (D) 4,951

 Norway (D) (D)
 Spain (D) 2
 Sweden 1,197 1,534
 Switzerland 3,003 (D)
 United Kingdom 2,835 2,689
 Other (D) (D)

Latin America and Other
 Western Hemisphere 1,777 (D)

 South and Central America 1,557 -109
 Brazil (D) -37
 Mexico 1,716 -58
 Panama (D) 1
 Venezuela -1 -6
 Other (D) -8

 Other Western Hemisphere 220 (D)
 Bahamas (D) 0
 Bermuda (D) (D)
 Netherlands Antilles (D) 1
 United Kingdom Islands,
 Caribbean (D) (D)
 Other 0 (D)

Africa 50 -16
 South Africa (D) -13
 Other (D) -2

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

Asia and Pacific 2,792 (D)
 Australia 445 (D)
 China 116 -40
 Hong Kong -6 -4
 India (D) (*)
 Japan 2,033 5,035
 Korea, Republic of 186 -7
 Malaysia (D) (D)
 New Zealand (D) 3
 Singapore -1 (*)
 Taiwan 3 (*)
 Other 4 2

Addenda:
 European Union (25) (1) 19,481 35,141
 OPEC (2) 4 -8

 Manufacturing

 Electrical
 Computers and equipment,
 electronic appliances,
 products and components

 All countries 54,713 14,731

Canada 4,974 (D)

Europe 36,027 11,247
 Austria (D) (*)
 Belgium 3 7
 Denmark (D) (D)
 Finland (D) 1
 France (D) 3,512

 Germany 1,063 565
 Ireland (D) (*)
 Italy 205 (D)
 Luxembourg (D) (D)
 Netherlands 3,701 809

 Norway (D) 1
 Spain (D) 3
 Sweden (D) (D)
 Switzerland (D) 39
 United Kingdom 10,782 (D)
 Other (D) (D)

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

 South and Central America -159 -2
 Brazil (D) 2
 Mexico -39 5
 Panama -1 (*)
 Venezuela -2 -5
 Other (D) -4

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

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

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

Asia and Pacific 13,355 (D)
 Australia -7 -3
 China 3 -1
 Hong Kong 660 (*)
 India (D) -1
 Japan 13,007 858
 Korea, Republic of (D) -2
 Malaysia 14 (*)
 New Zealand -9 (*)
 Singapore (D) (D)
 Taiwan 60 (D)
 Other 36 (D)

Addenda:
 European Union (25) (1) 35,361 11,194
 OPEC (2) -2 -3

 Manufacturing

 Transportation Other
 equipment manufacturing

 All countries 69,243 153,946

Canada 745 10,188

Europe 41,979 125,994
 Austria (D) (D)
 Belgium (D) -281
 Denmark -1 2,350
 Finland (*) 2,177
 France 3,322 17,735

 Germany 20,222 (D)
 Ireland (D) (D)
 Italy (D) 113
 Luxembourg (D) (D)
 Netherlands (D) 16,222

 Norway 3 (D)
 Spain 86 860
 Sweden 3,870 (D)
 Switzerland (D) 34,955
 United Kingdom 7,669 29,540
 Other 119 3,175

Latin America and Other
 Western Hemisphere 201 2,612

 South and Central America 88 624
 Brazil 65 -70
 Mexico (D) 347
 Panama (D) -25
 Venezuela -1 43
 Other -2 331

 Other Western Hemisphere 112 1,987
 Bahamas 0 (D)
 Bermuda 0 (D)
 Netherlands Antilles -4 (D)
 United Kingdom Islands,
 Caribbean 116 1,805
 Other 0 (D)

Africa -6 -45
 South Africa (*) (D)
 Other -6 (D)

Middle East (D) 120
 Israel (D) (D)
 Kuwait (D) 0
 Lebanon 0 (*)
 Saudi Arabia 0 (D)
 United Arab Emirates (D) (D)
 Other 0 0

Asia and Pacific (D) 15,078
 Australia -42 (D)
 China (D) -25
 Hong Kong -2 (D)
 India 46 (D)
 Japan 26,452 9,773
 Korea, Republic of (D) 82
 Malaysia 4 31
 New Zealand (D) 4
 Singapore 12 (D)
 Taiwan -64 (D)
 Other 27 (D)

Addenda:
 European Union (25) (1) 40,247 90,852
 OPEC (2) (D) (D)

 Wholesale Retail
 trade trade

 All countries 252,028 32,898

Canada 14,204 51,148

Europe 121,169 20,399
 Austria (D) (D)
 Belgium 1,817 (D)
 Denmark 269 5
 Finland 2,956 (D)
 France 7,788 921

 Germany 12,284 2,450
 Ireland 241 (D)
 Italy 1,174 1,785
 Luxembourg 1,186 0
 Netherlands 15,208 (D)

 Norway (D) (*)
 Spain 143 (D)
 Sweden 7,037 (D)
 Switzerland (D) 399
 United Kingdom 61,287 3,299
 Other 443 (D)

Latin America and Other
 Western Hemisphere 11,732 970

 South and Central America 8,988 (D)
 Brazil (D) (D)
 Mexico 1,790 (D)
 Panama (D) 3
 Venezuela (D) (*)
 Other 169 5

 Other Western Hemisphere 2,744 (D)
 Bahamas (D) (D)
 Bermuda -508 0
 Netherlands Antilles (D) (D)
 United Kingdom Islands,
 Caribbean 1,394 769
 Other (D) -1

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

Middle East (D) (D)
 Israel 458 (D)
 Kuwait -1 0
 Lebanon (D) 0
 Saudi Arabia (D) 0
 United Arab Emirates -2 (*)
 Other (D) 0

Asia and Pacific 99,974 5,837
 Australia 1,974 2
 China 614 1
 Hong Kong 1,090 (D)
 India (D) (*)
 Japan 86,977 5,706
 Korea, Republic of 7,148 (D)
 Malaysia 48 0
 New Zealand (D) 0
 Singapore 158 (D)
 Taiwan 1,138 (D)
 Other 284 (*)

Addenda:
 European Union (25) (1) 111,949 20,000
 OPEC (2) (D) (*)

 Depository
 Information institutions

 All countries 125,963 148,981

Canada 5,365 16,906

Europe 111,841 113,698
 Austria -1 (D)
 Belgium -2 (D)
 Denmark 0 0
 Finland -2 (D)
 France 17,037 20,177

 Germany 38,788 18,975
 Ireland 540 (D)
 Italy (D) 1,383
 Luxembourg 5,765 0
 Netherlands 12,044 (D)

 Norway (D) (D)
 Spain (D) 8,593
 Sweden 290 (D)
 Switzerland (D) (D)
 United Kingdom 19,453 (D)
 Other (D) (D)

Latin America and Other
 Western Hemisphere 4,914 4,118

 South and Central America (D) 3,403
 Brazil 20 519
 Mexico (D) 1,009
 Panama (D) (D)
 Venezuela -7 (D)
 Other 9 657

 Other Western Hemisphere (D) 715
 Bahamas (D) (D)
 Bermuda 4,026 0
 Netherlands Antilles (D) (D)
 United Kingdom Islands,
 Caribbean 1,014 144
 Other (D) (D)

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

Middle East 814 1,684
 Israel 805 1,669
 Kuwait 2 (D)
 Lebanon 0 0
 Saudi Arabia 6 (D)
 United Arab Emirates (*) (D)
 Other 0 (D)

Asia and Pacific (D) (D)
 Australia (D) (D)
 China (*) (D)
 Hong Kong 118 (D)
 India 73 222
 Japan 2,323 8,324
 Korea, Republic of (D) 418
 Malaysia 4 (D)
 New Zealand (*) 0
 Singapore 20 318
 Taiwan (D) 990
 Other (D) 187

Addenda:
 European Union (25) (1) 96,929 118,000
 OPEC (2) 2 1,431

 Finance (except
 depository Real estate
 institutions) and rental
 and insurance and leasing

 All countries 257,677 43,295

Canada 51,775 3,040

Europe 173,087 21,791
 Austria 1 (D)
 Belgium 1,156 (D)
 Denmark (*) 3
 Finland -1 (D)
 France 28,941 396

 Germany 20,425 7,017
 Ireland 3,851 (D)
 Italy (D) 46
 Luxembourg (D) (D)
 Netherlands 54,290 1,866

 Norway 0 49
 Spain 1,285 (D)
 Sweden 245 1,423
 Switzerland 37,454 1,864
 United Kingdom (D) 4,892
 Other 804 98

Latin America and Other
 Western Hemisphere 11,612 5,337

 South and Central America (D) 867
 Brazil (D) (D)
 Mexico 10 (D)
 Panama (D) (D)
 Venezuela (D) 10
 Other 11 19

 Other Western Hemisphere (D) 4,470
 Bahamas -3 (D)
 Bermuda -6,729 (D)
 Netherlands Antilles (D) 997
 United Kingdom Islands,
 Caribbean 5,322 2,816
 Other 369 (D)

Africa (D) 265
 South Africa (D) 1
 Other (*) 264

Middle East (D) 828
 Israel (D) (*)
 Kuwait (D) (D)
 Lebanon 0 (D)
 Saudi Arabia 2 66
 United Arab Emirates 1 22
 Other 0 47

Asia and Pacific 21,074 12,034
 Australia 2,610 5,844
 China (D) -4
 Hong Kong (D) 160
 India (D) 2
 Japan 16,799 5,420
 Korea, Republic of 152 65
 Malaysia 0 (D)
 New Zealand 3 (D)
 Singapore (D) 301
 Taiwan 16 57
 Other (D) 17

Addenda:
 European Union (25) (1) 135,518 19,795
 OPEC (2) (D) 831

 Professional,
 scientific,
 and technical Other
 services industries

 All countries 62,262 272,225

Canada 1,076 29,650

Europe 54,509 199,197
 Austria (D) 5
 Belgium -32 2,283
 Denmark (D) (D)
 Finland (D) (D)
 France 3,747 9,967

 Germany 256 24,876
 Ireland (D) 7,242
 Italy (D) 2,426
 Luxembourg (D) 83,338
 Netherlands 9,548 11,909

 Norway (D) (D)
 Spain (D) 1,533
 Sweden 55 (D)
 Switzerland 520 7,522
 United Kingdom 27,722 32,364
 Other (D) 8,409

Latin America and Other
 Western Hemisphere 109 17,533

 South and Central America 210 494
 Brazil -16 91
 Mexico (D) 56
 Panama 3 558
 Venezuela (D) 1
 Other -11 -213

 Other Western Hemisphere -101 17,039
 Bahamas 3 (D)
 Bermuda (D) 3,492
 Netherlands Antilles (D) (D)
 United Kingdom Islands,
 Caribbean (D) 10,142
 Other -17 501

Africa (D) 1,282
 South Africa (D) (D)
 Other (*) (D)

Middle East (D) 927
 Israel (D) 678
 Kuwait 0 (D)
 Lebanon (*) (*)
 Saudi Arabia 7 -15
 United Arab Emirates (*) (D)
 Other (*) 48

Asia and Pacific 6,447 23,637
 Australia (D) 7,550
 China 70 -307
 Hong Kong (D) 80
 India 1,419 138
 Japan 4,753 14,830
 Korea, Republic of 6 24
 Malaysia 9 257
 New Zealand -1 9
 Singapore 6 624
 Taiwan -46 291
 Other -10 141

Addenda:
 European Union (25) (1) 51,214 190,620
 OPEC (2) -3 (D)

* A nonzero value between--$500,000 and $500,0000.

(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.
Its members are Algeria, Indonesia, Iran, Iraq, Kuwait, Libya,
Nigeria, Qatar, Saudi Arabia, the United Arab Emirates, and
Venezuela.

NOTE. Estimates for 2006 are revised.

Chart 2. Outward Direct Investment Position
by Host Country at Yearend 2006

Other (30.0%)
United Kingdom (15.3%)
Canada (10.3%)
Netherlands (9.0%)
Australia (5.1%)
Bermuda (4.5%)
Germany (4.2%)
Japan (3.8%)
Switzerland (3.8%)
Mexico (3.6%)
Ireland (3.5%)
Luxembourg (3.5%)
United Kingdom Islands, Caribbean (3.4%)

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 2006

Other (16.4%)
United Kingdom (16.9%)
Japan (11.8%)
Germany (11.3%)
Netherlands (10.6%)
Canada (8.9%)
France (8.9%)
Switzerland (7.8%)
Luxembourg (7.3%)

U.S. Bureau of Economic Analysis

Note: Table made from pie chart.