Foreign direct investment in the United States: new investment in 2003.

Anderson, Thomas W.

IN 2003, outlays by foreign direct investors to acquire or to establish U.S. businesses rose 11 percent to $60.3 billion, the first increase since 2000; outlays were $54.5 billion in 2002 (table 1 and chart 1). (1) Despite the increase, outlays for 2003 were still far less than in 1998-2001, when new investment outlays ranged from $147.1 billion to $335.6 billion.

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The lower levels of outlays since 2001 reflect a variety of factors. Market conditions in some industries in which foreign direct investors were active in previous years, such as telecommunications and manufacturing, have been weak since 2001. In addition, worldwide merger and acquisition activity has slowed sharply. (2)

Outlays in 2003 were boosted by substantial spending in financial industries; foreign banks, whose expansion opportunities are sometimes limited by regulations in their home markets, sought to gain access to the large U.S. banking and consumer credit markets. As in other recent years, large investments of more than $5 billion accounted for a sizable share of total outlays (table 2).

In 2003, outlays in manufacturing decreased substantially for the third consecutive year; in 1998-2000 these outlays accounted for a large share of spending for new investment. Outlays in information also declined, especially in telecommunications, which continues to suffer from overcapacity due to aggressive capital spending in recent years.

Outlays from the United Kingdom and Germany increased, while outlays from France and several other European countries fell substantially. Outlays from Japan, which is slowly recovering from a long period of weak economic conditions, declined for the third consecutive year. Outlays from Australia increased substantially.

Spending in 2003

In 2003, as in previous years, outlays to acquire existing U.S. businesses--at $52.6 billion--accounted for most of the total outlays. Outlays to establish new businesses totaled $7.7 billion. As in most previous years, outlays made by, or through, existing U.S. affiliates--at $33.3 billion--exceeded outlays made by the foreign direct investors--at $27.0 billion. Of the $33.3 billion that was spent by the U.S. affiliates, $25.2 billion came from their foreign parents, who also funded all of their own outlays. Thus, $52.2 billion, or 87 percent, of total outlays were funded by foreign parents. In 2002, 68 percent of outlays were funded by foreign parents. These foreign-parent funds are part of overall capital inflows for foreign direct investment in the United States, as recorded in the financial account of the U.S. international transactions accounts. (3)

By industry, the largest outlays--at $21.6 billion--were in "finance (except depository institutions) and insurance" (table 3). Outlays in depository institutions, at $5.4 billion, were also relatively large, rebounding from outlays of $0.6 billion in 2002. Outlays in information were $10.0 billion, which were mostly investments in broadcasting, down from $14.2 billion in 2002. Investment in manufacturing also continued to decline, falling to $9.5 billion in 2003 from $16.4 billion in 2002 and from $143.3 billion in 2000. In manufacturing, the largest outlays were in food, at $2.7 billion, and in computers and electronic products, at $2.3 billion. Outlays in real estate fell to $2.6 billion in 2003 from $5.3 billion in 2002.

By country of ultimate beneficial owner (UBO), the largest outlays were by investors from the United Kingdom, which increased to $22.5 billion in 2003 from $12.2 billion in 2002 (table 4 and chart 2). Outlays of $9.0 billion by investors from Germany were also higher than those in 2002, but outlays by investors from several other European countries--such as France ($1.1 billion), the Netherlands ($0.7 billion), and Switzerland ($0.5 billion)--were far lower in 2003 than in 2002. These decreases may have reflected both sluggish economic conditions in these countries and the attraction of Eastern Europe as an alternative investment destination in anticipation of the entry of several countries in the area into the European Union in 2004. Outlays by investors from Japan, which continued to recover slowly from weak economic conditions, decreased for the third consecutive year, to $1.5 billion. Outlays by investors from Australia increased substantially, to $11.3 billion; these outlays were especially strong in information and in finance. Outlays by investors from Canada rose to $6.9 billion in 2003 from $4.3 billion in 2002.

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Operating data of acquired or established U.S. businesses

Newly acquired or established businesses employed 160,900 people in 2003, down from 218,500 in 2002 (table 5). The largest shares of employment were accounted for by "finance (except depository institutions) and insurance," with 34,000, by manufacturing, with 33,100 employees, and by retail trade, with 27,500 employees.

The assets of newly acquired or established businesses totaled $232.6 billion in 2003, up from $105.5 billion in 2002. Assets in "finance (except depository institutions) and insurance" were $122.4 billion, accounting for more than half of the total.

Net income for newly acquired or established businesses was $1.7 billion, up slightly from 2002. Total sales by these businesses were $54.1 billion in 2003, down from $55.7 billion in 2002.

Technical Note

The estimates of new foreign direct investment, which cover U.S. business enterprises that were acquired or established by foreign direct investors during the year, are based on data reported in surveys conducted by the Bureau of Economic Analysis (BEA) and, for the preliminary estimates for 2003, from BEA estimates for reports not yet received.

For the survey, a U.S. business enterprise is categorized as "established" if the foreign parent or its existing U.S. affiliate creates a new legal entity that is organized and that is operated as a new U.S. business enterprise or that directly purchases U.S. real estate. (4) A U.S. business enterprise is categorized as "acquired" (1) if a foreign parent or its U.S. affiliate obtains a voting interest of 10 percent or more in the equity of an existing U.S. business enterprise and continues to operate the enterprise as a separate legal entity; (2) if a foreign parent or its affiliate purchases a business segment or an operating unit of an existing U.S. business and organizes it as a new separate legal entity; or (3) if an existing U.S. affiliate purchases a U.S. business, a segment of a U.S. business, or an operating unit of a U.S. business and merges it into its own operations.

The estimates of new foreign direct investment do not cover the acquisition of additional equity in an existing U.S. affiliate, the acquisition of an existing U.S. affiliate by one foreign investor from another, or the expansion in the operations of an existing U.S. affiliate when no separate legal entity is created. Selloffs or other disinvestments are not netted against the new investments. (For more information, see the box "Data on Foreign Direct Investment in the United States.")

A U.S. business that is acquired or established by a foreign direct investor or by an existing U.S. affiliate of a foreign investor and that has total assets of more than $3 million or owns 200 or more acres of U.S. land is required to file a full report with BEA. In addition, a U.S. business enterprise that is acquired by an existing U.S. affiliate of a foreign investor and merged into the operations of the affiliate must file a full report if the total cost of the acquisition exceeds $3 million or if the acquired enterprise owned 200 or more acres of U.S. land. To reduce the reporting burden, smaller U.S. businesses--those that have total assets of $3 million or less and that own fewer than 200 acres of U.S. land--are permitted to file shorter, partial reports. (5)

BEA prepares estimates of the data items that are not collected on the partial reports and combines the estimates with the data it collects on the partial reports and the full reports. Because the businesses that file partial reports are so small, their estimated and reported values generally have a negligible impact on the published aggregates. For example, in 2002, the total assets of U.S. businesses that filed partial reports were $265 million, less than 1 percent of the total assets of all new investments.

Although the values for the partial reports are generally negligible, the number of partial reports is significant. For example, in 2002, BEA received 853 partial reports and 559 full reports. Furthermore, the number of businesses that are subject to partial reporting may be higher than the actual number of partial reports that BEA receives, because not all of the smaller U.S. businesses acquired or established by foreigners file reports. BEA makes every effort to contact all U.S. businesses that may have been newly acquired or established by foreigners, but it must concentrate its limited resources on ensuring compliance with reporting requirements by larger businesses.

Of the 559 full reports filed in 2002, 375 reported investments to acquire an existing U.S. business, and 184 reported investments to establish a new U.S. business. For 2003, BEA estimates that 408 businesses will have filed full reports by the time the revised estimates are published next year. (6)

The number of full reports by size of outlay is shown in the table below. For 2003, the numbers for the three largest classes represent the number of reports actually received. The number for investments of less than $100 million includes an estimate of the number of late reports that will be received before the revised estimates are published.

 2001 2002 (r) 2003 (p)

Total 821 559 408
$5 billion or more 4 1 2
$2 billion-$4.999 billion 10 3 2
$100 million-$1.999 billion 148 79 49
Less than $100 million 659 476 355

(p) Preliminary.

(r) Revised.

The number of new investments for 1998-2003 is not comparable with the number of new investments for 1980-97, because in 1998, the dollar threshold for filing full reports was raised from $1 million in total assets to $3 million. The incomparability affects only the total number and the number in the smallest size class. In addition, before 1998, the values for new investments did not include estimated values for partial reports. Because these estimated values would have been negligible, the previously published values for 1980-97 are reasonably comparable with those for 1998 forward.

Table 1. Investment Outlays by Type of Investment and Investor,
1992-2003

[Millions of dollars]

 1992 1993 1994 1995

Total outlays 15,333 26,229 45,626 57,195
By type of Investment:
 U.S. businesses acquired 10,616 21,761 38,753 47,179
 U.S. businesses established 4,718 4,468 6,873 10,016
By type of investor:
 Foreign direct investors 4,058 6,720 13,628 11,927
 U.S. affiliates 11,275 19,509 31,999 45,268

 1996 1997 1998 1999

Total outlays 79,929 69,708 215,256 274,956
By type of Investment:
 U.S. businesses acquired 68,733 60,733 182,357 265,127
 U.S. businesses established 11,196 8,974 32,899 9,829
By type of investor:
 Foreign direct investors 32,230 13,899 120,828 120,878
 U.S. affiliates 47,699 55,809 94,428 154,078

 2000 2001 2002 (r) 2003 (p)

Total outlays 335,629 147,109 54,519 60,320
By type of Investment:
 U.S. businesses acquired 322,703 138,091 43,442 52,580
 U.S. businesses established 12,926 9,017 11,077 7,741
By type of investor:
 Foreign direct investors 105,151 23,134 13,650 26,974
 U.S. affiliates 230,478 123,975 40,869 33,347

(p) Preliminary.

(r) Revised.

Table 2. Distribution of Investment Outlays by Size, 1992-2003

[Percent]

 1992 1993 1994 1995 1996

Total outlays 100 100 100 100 100
 $5 billion or more 0 0 0 (D) 0
 $2 billion-$4.999 billion 0 (D) 27 18 29
 $100 million-$1.999 billion 42 51 51 48 55
 Less than $100 million 58 (D) 22 (D) 16

 1997 1998 1999 2000 2001

Total outlays 100 100 100 100 100
 $5 billion or more 0 55 55 48 30
 $2 billion-$4.999 billion 12 11 16 20 22
 $100 million-$1.999 billion 67 27 24 27 40
 Less than $100 million 21 7 5 5 9

 2002 (r) 2003 (p)

Total outlays 100 100
 $5 billion or more (D) (D)
 $2 billion-$4.999 billion 18 (D)
 $100 million-$1.999 billion 45 38
 Less than $100 million (D) 8

(p) Preliminary.

(r) Revised.

D Suppressed to avoid disclosure of data of individual companies.

Table 3. Investment Outlays by Industry of U.S. Business
Enterprise, 2000-2003

[Millions of dollars]

 2002 2003
 2000 2001 (r) (p)

 All industries 335,629 147,109 54,519 60,320
Manufacturing 143,285 37,592 16,446 9,538
 Food (D) (D) (D) 2,699
 Beverages and tobacco
 products 3,722 582 (D) (D)
 Petroleum and coal products (D) (D) (D) 235
 Chemicals 15,016 4,636 1,232 1,213
 Plastics and rubber products 3,154 622 891 519
 Nonmetallic mineral products 6,324 425 1,228 364
 Primary metals 379 692 514 (D)
 Fabricated metal products 638 758 94 (D)
 Machinery 1,213 (D) 586 83
 Computers and electronic
 products 42,600 10,052 590 2,328
 Electrical equipment,
 appliances, and components 8,084 (D) 948 155
 Transportation equipment 3,230 470 750 146
 Other 6,529 5,214 2,170 1,559
Wholesale trade 8,561 3,982 871 623
Retail trade 1,672 1,913 551 964
Information 67,932 27,599 14,161 10,015
 Publishing industries 10,135 9,545 (D) 1,488
 Motion pictures and sound
 recording industries (D) 1,179 (D) 121
 Broadcasting and
 telecommunications (D) 15,529 2,196 7,593
 Information services and
 data processing services 12,228 1,345 (D) 813
Depository Institutions 2,636 5,709 613 5,416
Finance (except depository
 institutions) and insurance 44,420 40,780 4,344 21,622
Real estate and rental and
 leasing 4,526 3,572 5,266 2,607
Professional, scientific, and
 technical services 32,332 7,044 4,012 1,397
Other Industries 30,264 18,917 8,234 8,139

(p) Preliminary.

(r) Revised.

D Suppressed to avoid disclosure of data of individual companies.

Table 4. Investment Outlays by Country of Ultimate
Beneficial Owner, 2000-2003

[Millions of dollars]

 2000 2001 2002 (r) 2003 (p)

 All countries 335,629 147,109 54,519 60,320
Canada 28,346 16,646 4,333 6,858
Europe 249,167 78,328 39,644 39,076
 France 26,149 5,772 15,196 1,135
 Germany 18,452 12,733 3,067 9,034
 Netherlands 47,686 14,879 3,476 712
 Switzerland 22,789 16,468 2,656 534
 United Kingdom 110,208 17,095 12,188 22,492
 Other Europe 23,883 11,381 3,061 5,169
Latin America and Other
 Western Hemisphere 15,400 15,274 3,487 644
 South and Central America 5,334 431 373 172
 Other Western Hemisphere 10,066 14,843 3,114 472
Africa (D) (D) (D) (D)
Middle East 947 (D) (D) 198
Asia and Pacific 40,282 11,383 5,131 13,518
 Australia (D) 4,869 1,565 11,313
 Japan 26,044 5,345 3,275 1,487
 Other Asia and Pacific (D) 1,169 291 718
United States (1) (D) (D) 804 (D)

(p) Preliminary.

(r) Revised.

D Suppressed to avoid disclosure of data of individual companies.

(1.) The United States is shown as the country of ultimate beneficial
owner for businesses newly acquired or established by foreign investors
that are, in turn, ultimately owned by persons located in the United
States (see the box "Key Terms").

NOTE. For investments in which more than one investor participated,
each investor and each investor's outlays are classified by country of
each ultimate beneficial owner.

Table 5. Selected Operating Data of U.S. Business Enterprises Acquired
or Established, by Industry of U.S. Business Enterprise, 2002-2003

 2002 (r)

 Millions of dollars

 Thousands Hectares
 Total Net of of
 assets Sales income employees land (1)

 All Industries 105,516 55,680 1,675 216.5 106,567
Manufacturing 24,237 21,809 213 73.4 10,886
Wholesale trade 1,240 2,284 (D) 3.7 58
Retail trade 646 1,276 (D) 10.7 119
Information 15,656 6,746 319 25.5 1,127
Depository
 institutions 4,503 265 33 0.9 (D)
Finance (except
 depository
 institutions) and
 insurance 12,369 1,606 85 5.2 (D)
Real estate and
 rental and leasing 12,366 2,723 262 2.3 6,649
Professional,
 scientific, and
 technical services 1,274 847 -59 4.5 (D)
Other industries 33,225 18,126 737 92.3 87,640

 2003 (p)

 Millions of dollars

 Thousands Hectares
 Total Net of of
 assets Sales income employees land (1)

 All Industries 232,643 54,114 1,709 160.9 45,016
Manufacturing 11,402 8,801 58 33.1 1,145
Wholesale trade 721 2,863 9 3.4 (D)
Retail trade 1,558 6,516 (D) 27.5 (D)
Information 22,954 12,015 -773 14.6 518
Depository
 institutions 48,641 3,130 (D) 12.3 223
Finance (except
 depository
 institutions) and
 insurance 122,426 12,102 (D) 34.0 38
Real estate and
 rental and leasing 3,309 461 34 1.1 4,327
Professional,
 scientific, and
 technical services 1,525 876 -162 3.9 30
Other industries 20,106 7,348 268 31.0 38,211

(p) Preliminary.

(r) Revised.

D Suppressed to avoid disclosure of data of individual companies.

(1.) One hectare equals 2.471 acres. Thus, for all industries, acres of
land owned in 2002 were 263,327, and in 2003 they were 111,235.

NOTE. For newly acquired businesses, the data cover the most recent
financial reporting year preceding acquisition. For newly established
businesses, the data are projections for the first full year of
operations.

Table 6. Investment Outlays by Type of Investment and Investor, by
Industry of U.S. Business Enterprise, 2002-2003

[Millions of dollars]

 2002 (r)

 By type of
 investment

 U.S. U.S.
 busi- busi-
 nesses nesses
 acqui- estab-
 Total red lished

 All industries 54,519 43,442 11,077
Manufacturing 16,446 15,489 957
 Food (D) (D) (D)
 Beverages and tobacco (D) (D) (D)
 Textiles, apparel, and leather products 68 (D) (D)
 Wood products (D) (D) 0
 Paper (D) (D) 0
 Printing and related support activities (D) (D) (D)
 Petroleum and coal products (D) (D) 0
 Chemicals 1,232 1,206 26
 Basic chemicals (D) (D) (D)
 Resins and synthetic rubber, fibers,
 and filaments 55 (D) (D)
 Pharmaceuticals and medicines (D) (D) 0
 Soap, cleaning compounds, and toilet
 preparations 171 (D) (D)
 Other 493 (D) (D)
 Plastics and rubber products 891 (D) (D)
 Nonmetallic mineral products 1,228 (D) (D)
 Primary and fabricated metals 609 571 38
 Primary metals 514 (D) (D)
 Fabricated metal products 94 (D) (D)
 Machinery 586 544 42
 Agriculture, construction, and mining
 machinery (D) (D) (D)
 Industrial machinery (D) (D) (D)
 Other 432 (D) (D)
 Computers and electronic products 590 (D) (D)
 Computer and peripheral equipment (D) (D) (D)
 Communications equipment 249 (D) (D)
 Audio and video equipment 0 0 0
 Semiconductors and other electronic
 components (D) (D) (D)
 Navigational, measuring, and other
 instruments 275 (D) (D)
 Magnetic and optical media 0 0 0
 Electrical equipment, appliances, and
 components 948 (D) (D)
 Transportation equipment 750 (D) (D)
 Motor vehicles, bodies and trailers,
 and parts 537 (D) (D)
 Other 213 (D) (D)
 Furniture and related products (D) (D) 0
 Miscellaneous manufacturing 845 (D) (D)
Wholesale trade 871 817 54
 Motor vehicles and motor vehicle parts
 and supplies (D) (D) (D)
 Professional and commercial equipment
 and supplies 92 (D) (D)
 Electrical goods (D) (D) (D)
 Other durable goods 343 300 43
 Petroleum and petroleum products (D) (D) 0
 Other nondurable goods 426 (D) (D)
Retail trade 551 (D) (D)
 Food and beverage stores 50 (D) (D)
 Other 502 (D) (D)
Information 14,181 (D) (D)
 Publishing industries (D) 988 (D)
 Motion pictures and sound recording
 industries (D) (D) (D)
 Broadcasting and telecommunications 2,196 (D) (D)
 Broadcasting, cable networks, and
 program distribution (D) (D) (D)
 Telecommunications (D) (D) (D)
 Information services and data
 processing services (D) (D) (D)
Depository institutions 613 (D) (D)
Finance, (except depository Institutions)
 and insurance 4,344 3,217 1,127
 Finance, except depository institutions 3,246 (D) (D)
 Insurance carriers and related
 activities 1,098 (D) (D)
Real estate and rental and leasing 5,266 1,214 4,051
 Real estate 4,999 958 4,041
 Rental and leasing (except real estate) 267 256 10
Professional, scientific, and technical
 services 4,012 (D) (D)
 Architectural, engineering, and related
 services (D) (D) (D)
 Computer systems design and related
 services (D) 189 (D)
 Management, scientific, and technical
 consulting 36 (D) (D)
 Other (D) (D) (D)
Other industries 8,234 6,979 1,256
 Agriculture, forestry, fishing, and
 hunting 30 (D) (D)
 Mining 380 (D) (D)
 Utilities 3,746 (D) (D)
 Construction 173 171 2
 Transportation and warehousing 1,305 (D) (D)
 Management of nonbank companies and
 enterprises (D) 0 (D)
 Administration, support, and waste
 management 1,115 (D) (D)
 Health care and social assistance (D) (D) (D)
 Accommodation and food services 246 214 32
 Accommodation (D) (D) (D)
 Food services and drinking places (D) (D) (D)
 Miscellaneous services 442 (D) (D)

 2002 (r)

 By type of investor

 Foreign
 direct U.S.
 investors affiliates

 All industries 13,650 40,869
Manufacturing 6,330 10,116
 Food (D) (D)
 Beverages and tobacco (D) (D)
 Textiles, apparel, and leather products (D) (D)
 Wood products 0 (D)
 Paper (D) (D)
 Printing and related support activities (D) (D)
 Petroleum and coal products 0 (D)
 Chemicals 189 1,044
 Basic chemicals (D) (D)
 Resins and synthetic rubber, fibers,
 and filaments (D) (D)
 Pharmaceuticals and medicines (D) (D)
 Soap, cleaning compounds, and toilet
 preparations (D) (D)
 Other (D) (D)
 Plastics and rubber products (D) (D)
 Nonmetallic mineral products (D) (D)
 Primary and fabricated metals (D) (D)
 Primary metals (D) (D)
 Fabricated metal products (D) (D)
 Machinery 63 523
 Agriculture, construction, and mining
 machinery 0 (D)
 Industrial machinery (D) (D)
 Other (D) (D)
 Computers and electronic products 196 395
 Computer and peripheral equipment (D) (D)
 Communications equipment (D) (D)
 Audio and video equipment 0 0
 Semiconductors and other electronic
 components (D) (D)
 Navigational, measuring, and other
 instruments (D) (D)
 Magnetic and optical media 0 0
 Electrical equipment, appliances, and
 components (D) (D)
 Transportation equipment (D) (D)
 Motor vehicles, bodies and trailers,
 and parts (D) (D)
 Other (D) (D)
 Furniture and related products 0 (D)
 Miscellaneous manufacturing 384 460
Wholesale trade (D) (D)
 Motor vehicles and motor vehicle parts
 and supplies (D) (D)
 Professional and commercial equipment
 and supplies (D) (D)
 Electrical goods (D) (D)
 Other durable goods 158 185
 Petroleum and petroleum products 0 (D)
 Other nondurable goods (D) (D)
Retail trade (D) (D)
 Food and beverage stores (D) (D)
 Other (D) (D)
Information 172 14,009
 Publishing industries (D) 981
 Motion pictures and sound recording
 industries (D) (D)
 Broadcasting and telecommunications (D) (D)
 Broadcasting, cable networks, and
 program distribution (D) (D)
 Telecommunications (D) (D)
 Information services and data
 processing services (D) 393
Depository institutions 0 613
Finance, (except depository Institutions)
 and insurance 684 3,661
 Finance, except depository institutions 684 2,562
 Insurance carriers and related
 activities (*) 1,098
Real estate and rental and leasing 856 4,410
 Real estate (D) (D)
 Rental and leasing (except real estate) (D) (D)
Professional, scientific, and technical
 services (D) (D)
 Architectural, engineering, and related
 services (D) 204
 Computer systems design and related
 services 118 (D)
 Management, scientific, and technical
 consulting (D) (D)
 Other (D) (O)
Other industries 1,726 6,508
 Agriculture, forestry, fishing, and
 hunting (D) (D)
 Mining 5 376
 Utilities (D) (D)
 Construction (D) (D)
 Transportation and warehousing (D) (D)
 Management of nonbank companies and
 enterprises (D) (D)
 Administration, support, and waste
 management (D) (D)
 Health care and social assistance (D) 7
 Accommodation and food services (D) (D)
 Accommodation (D) (D)
 Food services and drinking places (D) (D)
 Miscellaneous services (D) (D)

 2003 (p)

 By type of
 investment

 U.S. U.S.
 busi- busi-
 nesses nesses
 acqui- estab-
 Total red lished

 All industries 60,320 52,580 7,741
Manufacturing 9,538 8,615 924
 Food 2,699 2,699 0
 Beverages and tobacco (D) (D) 0
 Textiles, apparel, and leather products (D) 0 (D)
 Wood products 0 0 0
 Paper (D) (D) 0
 Printing and related support activities (D) (D) 0
 Petroleum and coal products 235 235 0
 Chemicals 1,213 1,213 0
 Basic chemicals (D) (D) 0
 Resins and synthetic rubber, fibers,
 and filaments 261 261 0
 Pharmaceuticals and medicines 722 722 0
 Soap, cleaning compounds, and toilet
 preparations 0 0 0
 Other (D) (D) 0
 Plastics and rubber products 519 (D) (D)
 Nonmetallic mineral products 364 (D) (D)
 Primary and fabricated metals 179 179 0
 Primary metals (D) (D) 0
 Fabricated metal products (D) (D) 0
 Machinery 83 83 0
 Agriculture, construction, and mining
 machinery 0 0 0
 Industrial machinery 0 0 0
 Other 83 83 0
 Computers and electronic products 2,328 1,507 821
 Computer and peripheral equipment (D) (D) 0
 Communications equipment (D) (D) 0
 Audio and video equipment 0 0 0
 Semiconductors and other electronic
 components (D) 0 (D)
 Navigational, measuring, and other
 instruments 0 0 0
 Magnetic and optical media 1,311 (D) (D)
 Electrical equipment, appliances, and
 components 155 155 0
 Transportation equipment 146 146 0
 Motor vehicles, bodies and trailers,
 and parts (D) (D) 0
 Other (D) (D) 0
 Furniture and related products 0 0 0
 Miscellaneous manufacturing 139 (D) (D)
Wholesale trade 623 (D) (D)
 Motor vehicles and motor vehicle parts
 and supplies (D) 0 (D)
 Professional and commercial equipment
 and supplies (D) (D) 0
 Electrical goods (D) (D) (D)
 Other durable goods 549 543 6
 Petroleum and petroleum products 0 0 0
 Other nondurable goods 59 59 0
Retail trade 964 964 0
 Food and beverage stores (D) (D) 0
 Other (D) (D) 0
Information 10,015 9,967 48
 Publishing industries 1,488 1,485 4
 Motion pictures and sound recording
 industries 121 (D) (D)
 Broadcasting and telecommunications 7,593 (D) (D)
 Broadcasting, cable networks, and
 program distribution 7,593 (D) (D)
 Telecommunications 0 0 0
 Information services and data
 processing services 813 (D) (D)
Depository institutions 5,416 3,913 1,503
Finance, (except depository Institutions)
 and insurance 21,622 18,455 3,167
 Finance, except depository institutions 21,238 18,070 3,167
 Insurance carriers and related
 activities 384 384 0
Real estate and rental and leasing 2,607 (D) (D)
 Real estate (D) (D) (D)
 Rental and leasing (except real estate) (D) (D) 0
Professional, scientific, and technical
 services 1,397 (D) (D)
 Architectural, engineering, and related
 services 110 110 0
 Computer systems design and related
 services 631 631 0
 Management, scientific, and technical
 consulting 0 0 0
 Other 656 (D) (D)
Other industries 8,139 8,017 122
 Agriculture, forestry, fishing, and
 hunting (D) (D) 0
 Mining 612 (D) (D)
 Utilities 5,783 5,783 0
 Construction 409 (D) (D)
 Transportation and warehousing 1,261 (D) (D)
 Management of nonbank companies and
 enterprises (D) 0 (D)
 Administration, support, and waste
 management (D) (D) (D)
 Health care and social assistance 0 0 0
 Accommodation and food services (D) 0 (D)
 Accommodation (D) 0 (D)
 Food services and drinking places 0 0 0
 Miscellaneous services (D) (D) 0

 2003 (p)

 By type of investor

 Foreign
 direct U.S.
 investors affiliates

 All industries 26,974 33,347
Manufacturing 1,182 8,357
 Food (D) (D)
 Beverages and tobacco 0 (D)
 Textiles, apparel, and leather products (D) 0
 Wood products 0 0
 Paper 0 (D)
 Printing and related support activities 0 (D)
 Petroleum and coal products 0 235
 Chemicals 337 876
 Basic chemicals 0 (D)
 Resins and synthetic rubber, fibers,
 and filaments 0 261
 Pharmaceuticals and medicines (D) (D)
 Soap, cleaning compounds, and toilet
 preparations 0 0
 Other (D) (D)
 Plastics and rubber products (D) (D)
 Nonmetallic mineral products (D) (D)
 Primary and fabricated metals 0 179
 Primary metals 0 (D)
 Fabricated metal products 0 (D)
 Machinery 0 83
 Agriculture, construction, and mining
 machinery 0 0
 Industrial machinery 0 0
 Other 0 83
 Computers and electronic products 249 2,079
 Computer and peripheral equipment (D) (D)
 Communications equipment (D) (D)
 Audio and video equipment 0 0
 Semiconductors and other electronic
 components 0 (D)
 Navigational, measuring, and other
 instruments 0 0
 Magnetic and optical media (D) (D)
 Electrical equipment, appliances, and
 components (D) (D)
 Transportation equipment 5 141
 Motor vehicles, bodies and trailers,
 and parts 5 (D)
 Other 0 (D)
 Furniture and related products 0 0
 Miscellaneous manufacturing (D) (D)
Wholesale trade (D) (D)
 Motor vehicles and motor vehicle parts
 and supplies (D) 0
 Professional and commercial equipment
 and supplies 0 (D)
 Electrical goods 0 (D)
 Other durable goods 38 511
 Petroleum and petroleum products 0 0
 Other nondurable goods (D) (D)
Retail trade (D) (D)
 Food and beverage stores 0 (D)
 Other (D) (D)
Information 30 9,985
 Publishing industries 4 1,485
 Motion pictures and sound recording
 industries (D) (D)
 Broadcasting and telecommunications (D) (D)
 Broadcasting, cable networks, and
 program distribution (D) (D)
 Telecommunications 0 0
 Information services and data
 processing services 0 813
Depository institutions 4,010 1,405
Finance, (except depository Institutions)
 and insurance 19,791 1,831
 Finance, except depository institutions 19,791 1,447
 Insurance carriers and related
 activities 0 384
Real estate and rental and leasing 1,014 1,594
 Real estate (D) (D)
 Rental and leasing (except real estate) (D) (D)
Professional, scientific, and technical
 services 419 977
 Architectural, engineering, and related
 services 0 110
 Computer systems design and related
 services 231 399
 Management, scientific, and technical
 consulting 0 0
 Other 188 468
Other industries 465 7,673
 Agriculture, forestry, fishing, and
 hunting 0 (D)
 Mining (D) (D)
 Utilities 0 5,783
 Construction (D) (D)
 Transportation and warehousing 0 1,261
 Management of nonbank companies and
 enterprises (D) (D)
 Administration, support, and waste
 management 0 (D)
 Health care and social assistance 0 0
 Accommodation and food services (D) (D)
 Accommodation (D) (D)
 Food services and drinking places 0 0
 Miscellaneous services 0 (D)

(p) Preliminary.

(r) Revised.

* Less than $500,000.

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

Table 7.1. Investment Outlays, Country of Ultimate Beneficial Owner by
Industry of U.S. Business Enterprise, 2002

[Millions of dollars]

 Manufacturing

 Of which:

 All Chemi-
 industries Total Food cals

 (1) (2) (3) (4)

 All countries 54,519 16,446 (D) 1,232
Canada 4,333 709 58 (D)
Europe 39,644 11,356 (D) 1,116
 Austria (D) (D) 0 0
 Belgium (D) 69 0 (D)
 Denmark (D) (D) 0 (D)
 Finland 619 537 0 (D)
 France 15,196 683 0 (D)
 Germany 3,067 510 0 (D)
 Ireland 660 (D) (D) 0
 Italy 237 (D) 0 0
 Liechtenstein 0 0 0 0
 Luxembourg 0 0 0 0
 Netherlands 3,476 (D) 0 (D)
 Norway 176 (D) 0 (D)
 Spain 289 (D) 0 (D)
 Sweden 304 253 0 0
 Switzerland 2,656 2,408 (D) (D)
 United Kingdom 12,188 4,385 0 (D)
 Other 167 0 0 0
Latin America and Other
 Western Hemisphere 3,487 (D) 0 0
 South and Central America 373 (D) 0 0
 Brazil (D) 0 0 0
 Mexico (D) (D) 0 0
 Panama (D) 0 0 0
 Venezuela (D) 0 0 0
 Other (D) (D) 0 0
 Other Western Hemisphere 3,114 (D) 0 0
 Bahamas (D) 0 0 0
 Bermuda 1,560 (D) 0 0
 Netherlands Antilles 0 0 0 0
 United Kingdom Islands,
 Caribbean 1,553 (D) 0 0
 Other (D) 0 0 0
Africa (D) (D) 0 0
 South Africa (D) (D) 0 0
 Other (D) 0 0 0
Middle East (D) (D) 0 0
 Israel (D) 0 0 0
 Kuwait (D) (D) 0 0
 Lebanon (D) 0 0 0
 Saudi Arabia 78 0 0 0
 United Arab Emirates (D) 0 0 0
 Other 425 (D) 0 0
Asia and Pacific 5,131 2,283 (D) (D)
 Australia 1,565 (D) 0 0
 China (D) (D) 0 0
 Hong Kong (D) (D) 0 0
 Indonesia 0 0 0 0
 Japan 3,275 1,589 (D) (D)
 Korea, Republic of 58 9 0 0
 Malaysia 0 0 0 0
 New Zealand 0 0 0 0
 Philippines (D) 0 0 0
 Singapore (D) (D) 0 0
 Taiwan 80 28 0 0
 Other (D) (D) 0 0
United States (1) 804 (D) 0 0
Addenda:
 European Union (15) (2) 36,778 8,934 (D) 907
 OPEC (3) 136 (D) 0 0

 Manufacturing

 Of which:

 Elec-
 trical
 equip-
 ment,
 Primary Compu- appli-
 and ters and ances,
 fabri- elec- and
 cated Machin- tronic compo-
 metals ery products nents

 (5) (6) (7) (8)

 All countries 609 586 590 948
Canada (D) (D) (D) 0
Europe 555 503 478 67
 Austria 0 0 (D) 0
 Belgium 0 0 0 (D)
 Denmark 0 0 0 0
 Finland (D) (D) (D) 0
 France (D) (D) (D) 0
 Germany (D) 8 (D) (D)
 Ireland 0 0 0 0
 Italy 4 (D) 0 0
 Liechtenstein 0 0 0 0
 Luxembourg 0 0 0 0
 Netherlands 0 0 (D) 0
 Norway 0 (D) 0 0
 Spain 0 0 0 0
 Sweden (D) (D) 0 0
 Switzerland (D) (D) (D) 0
 United Kingdom (D) (D) (D) (D)
 Other 0 0 0 0
Latin America and Other
 Western Hemisphere 0 0 (D) (D)
 South and Central America 0 0 0 0
 Brazil 0 0 0 0
 Mexico 0 0 0 0
 Panama 0 0 0 0
 Venezuela 0 0 0 0
 Other 0 0 0 0
 Other Western Hemisphere 0 0 (D) (D)
 Bahamas 0 0 0 0
 Bermuda 0 0 (D) (D)
 Netherlands Antilles 0 0 0 0
 United Kingdom Islands,
 Caribbean 0 0 0 0
 Other 0 0 0 0
Africa (D) 0 0 0
 South Africa (D) 0 0 0
 Other 0 0 0 0
Middle East 0 0 0 0
 Israel 0 0 0 0
 Kuwait 0 0 0 0
 Lebanon 0 0 0 0
 Saudi Arabia 0 0 0 0
 United Arab Emirates 0 0 0 0
 Other 0 0 0 0
Asia and Pacific 25 32 (D) (D)
 Australia 0 (D) (D) 0
 China 0 (D) 0 0
 Hong Kong 0 0 (D) 0
 Indonesia 0 0 0 0
 Japan 8 (D) (D) (D)
 Korea, Republic of (D) 0 0 0
 Malaysia 0 0 0 0
 New Zealand 0 0 0 0
 Philippines 0 0 0 0
 Singapore 0 0 0 0
 Taiwan (D) (D) (D) (D)
 Other 0 0 0 0
United States (1) 0 (D) 0 0
Addenda:
 European Union (15) (2) 497 429 469 67
 OPEC (3) 0 0 0 0

 Manufacturing

 Of which:

 Trans-
 portation Whole-
 equip- sale Retail Inform-
 ment trade trade ation

 (9) (10) (11) (12)

 All countries 750 871 551 14,181
Canada 426 38 (D) 32
Europe (D) 552 (D) 12,977
 Austria 0 (D) 0 (D)
 Belgium 0 (D) 0 0
 Denmark 0 (D) 0 0
 Finland 0 0 0 0
 France (D) 96 (D) (D)
 Germany (D) (D) (D) (D)
 Ireland 0 (D) 0 (D)
 Italy 0 (D) (D) 0
 Liechtenstein 0 0 0 0
 Luxembourg 0 0 0 0
 Netherlands 0 (D) (D) (D)
 Norway 0 (D) 0 (D)
 Spain 0 (D) 0 (D)
 Sweden (D) (D) 0 (D)
 Switzerland 0 (D) 0 (D)
 United Kingdom 56 189 (D) 2,158
 Other 0 (D) 0 (D)
Latin America and Other
 Western Hemisphere 0 (D) (D) (D)
 South and Central America 0 (D) (D) (D)
 Brazil 0 (D) 0 0
 Mexico 0 (D) (D) (D)
 Panama 0 (D) 0 0
 Venezuela 0 (D) (D) (D)
 Other 0 (D) (D) 0
 Other Western Hemisphere 0 (D) 0 (D)
 Bahamas 0 0 0 0
 Bermuda 0 0 0 (D)
 Netherlands Antilles 0 0 0 0
 United Kingdom Islands,
 Caribbean 0 (D) 0 (D)
 Other 0 (D) 0 0
Africa 0 (D) 0 (D)
 South Africa 0 (D) 0 (D)
 Other 0 0 0 0
Middle East (D) (D) (D) (D)
 Israel 0 0 0 0
 Kuwait (D) 0 0 0
 Lebanon 0 0 0 0
 Saudi Arabia 0 (D) 0 0
 United Arab Emirates 0 0 (D) 0
 Other 0 (D) 0 (D)
Asia and Pacific 151 147 (D) (D)
 Australia 0 (D) 0 (D)
 China 0 (D) 0 (D)
 Hong Kong 0 (D) 0 (D)
 Indonesia 0 0 0 0
 Japan 72 61 (D) (D)
 Korea, Republic of (D) (D) 0 0
 Malaysia 0 0 0 0
 New Zealand 0 0 0 0
 Philippines 0 0 0 0
 Singapore (D) 0 0 0
 Taiwan 0 (D) (D) (D)
 Other (D) (D) 0 (D)
United States (1) 0 0 0 (D)
Addenda:
 European Union (15) (2) 142 542 (D) 12,795
 OPEC (3) (D) (D) (D) (D)

 Manufacturing

 Of which:

 Finance,
 (except
 deposi- Real
 tory insti- estate
 Deposi- tutions) and
 tory and rental
 institu- insur- and
 tions ance leasing

 (13) (14) (15)

 All countries 613 4,344 5,266
Canada (D) 1,040 1,306
Europe (D) 23,390 2,402
 Austria 0 0 0
 Belgium 0 (D) (D)
 Denmark 0 0 (D)
 Finland 0 0 0
 France 0 (D) (D)
 Germany 0 (D) 1,402
 Ireland 0 (D) 0
 Italy 0 0 0
 Liechtenstein 0 0 0
 Luxembourg 0 0 0
 Netherlands 0 543 632
 Norway 0 0 0
 Spain 0 (D) 0
 Sweden 0 (D) (D)
 Switzerland 0 (D) (D)
 United Kingdom (D) 694 326
 Other (D) 0 (D)
Latin America and Other
 Western Hemisphere 0 423 (D)
 South and Central America 0 4 (D)
 Brazil 0 (D) 0
 Mexico 0 (D) (D)
 Panama 0 0 0
 Venezuela 0 (D) 0
 Other 0 0 (D)
 Other Western Hemisphere 0 419 (D)
 Bahamas 0 0 (D)
 Bermuda 0 (D) (D)
 Netherlands Antilles 0 0 0
 United Kingdom Islands,
 Caribbean 0 (D) (D)
 Other 0 0 (D)
Africa 0 0 (D)
 South Africa 0 0 0
 Other 0 0 (D)
Middle East 0 0 (D)
 Israel 0 0 (D)
 Kuwait 0 0 0
 Lebanon 0 0 (D)
 Saudi Arabia 0 0 (D)
 United Arab Emirates 0 0 (D)
 Other 0 0 0
Asia and Pacific (D) (D) 476
 Australia 0 (D) (D)
 China 0 0 0
 Hong Kong 0 (D) 0
 Indonesia 0 0 0
 Japan (D) (D) (D)
 Korea, Republic of 0 0 0
 Malaysia 0 0 0
 New Zealand 0 0 0
 Philippines 0 0 0
 Singapore 0 (D) 0
 Taiwan 0 (D) 0
 Other 0 0 0
United States (1) 0 (D) (D)
Addenda:
 European Union (15) (2) (D) 2,160 2,400
 OPEC (3) 0 (D) 104

 Manufacturing

 Of which:

 Profes-
 sional,
 scientific,
 and
 technical Other
 services industries

 (16) (17)

 All countries 4,012 8,234
Canada 59 545
Europe 3,897 5,674
 Austria 0 (D)
 Belgium (D) 0
 Denmark (D) (D)
 Finland (D) (D)
 France (D) 136
 Germany 6 482
 Ireland 0 (D)
 Italy (D) (D)
 Liechtenstein 0 0
 Luxembourg 0 0
 Netherlands (D) 128
 Norway (D) 0
 Spain 0 (D)
 Sweden (D) (D)
 Switzerland (D) 29
 United Kingdom 139 3,999
 Other (D) (D)
Latin America and Other
 Western Hemisphere (D) 203
 South and Central America (D) (D)
 Brazil 0 (D)
 Mexico (D) (D)
 Panama (D) (D)
 Venezuela (D) 0
 Other (D) (D)
 Other Western Hemisphere (D) (D)
 Bahamas 0 (D)
 Bermuda (D) 32
 Netherlands Antilles 0 0
 United Kingdom Islands,
 Caribbean (D) (D)
 Other 0 (D)
Africa 0 (D)
 South Africa 0 (D)
 Other 0 0
Middle East (D) (D)
 Israel (D) (D)
 Kuwait 0 0
 Lebanon 0 (D)
 Saudi Arabia 0 0
 United Arab Emirates 0 (D)
 Other 0 0
Asia and Pacific (D) 1,350
 Australia (D) (D)
 China (D) 0
 Hong Kong 0 (D)
 Indonesia 0 0
 Japan 15 1,237
 Korea, Republic of (D) (D)
 Malaysia 0 0
 New Zealand 0 0
 Philippines 0 (D)
 Singapore (D) (D)
 Taiwan 0 0
 Other (D) 0
United States (1) (D) (D)
Addenda:
 European Union (15) (2) 3,855 5,645
 OPEC (3) (D) (D)

(*) Less than $500,000.

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

(1.) The United States is shown as the country of ultimate beneficial
owner for businesses newly acquired or established by foreign
investors that are, in turn, ultimately owned by persons located in
the United States (see the box "Key Terms").

(2.) The European Union (15) comprises Austria, Belgium, Denmark,
Finland, France, Germany, Greece, Ireland, Italy,Luxembourg, the
Netherlands, Portugal, Spain, Sweden, and the United Kingdom.

(3.) 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. Data for 2002 are revised. For investments in which more than
one investor participated, each investor and each investors outlays
are classified by the country of each individual ultimate beneficial
owner.

Table 7.2. Investment Outlays, Country of Ultimate Beneficial Owner
by Industry of U.S. Business Enterprise, 2003

[Millions of dollars]

 Manufacturing

 Of which:

 All Chemi-
 industries Total Food cals

 (1) (2) (3) (4)

 All countries 60,320 9,538 2,699 1,213
Canada 6,858 3,111 (D) 0
Europe 39,076 5,389 (D) (D)
 Austria (D) 0 0 0
 Belgium 348 273 0 (D)
 Denmark 530 (D) 0 (D)
 Finland (D) (D) 0 0
 France 1,135 187 0 0
 Germany 9,034 601 0 200
 Ireland 3,300 542 (D) (D)
 Italy (D) 0 0 0
 Liechtenstein 0 0 0 0
 Luxembourg 0 0 0 0
 Netherlands 712 (D) (D) 0
 Norway 0 0 0 0
 Spain 0 0 0 0
 Sweden 475 183 0 0
 Switzerland 534 (D) 0 (D)
 United Kingdom 22,492 2,549 (D) (D)
 Other (D) 0 0 0
Latin America and Other
 Western Hemisphere 644 (D) 0 0
 South and Central America 172 (D) 0 0
 Brazil 0 0 0 0
 Mexico 158 0 0 0
 Panama (D) (D) 0 0
 Venezuela (D) 0 0 0
 Other (D) 0 0 0
 Other Western Hemisphere 472 (D) 0 0
 Bahamas 0 0 0 0
 Bermuda 116 0 0 0
 Netherlands Antilles 0 0 0 0
 United Kingdom Islands,
 Caribbean 356 (D) 0 0
 Other 0 0 0 0
Africa (D) 0 0 0
 South Africa (D) 0 0 0
 Other 0 0 0 0
Middle East 198 0 0 0
 Israel 0 0 0 0
 Kuwait 0 0 0 0
 Lebanon 0 0 0 0
 Saudi Arabia (D) 0 0 0
 United Arab Emirates (D) 0 0 0
 Other 0 0 0 0
Asia and Pacific 13,518 1,004 0 (D)
 Australia 11,313 0 0 0
 China 0 0 0 0
 Hong Kong 616 (D) 0 0
 Indonesia 0 0 0 0
 Japan 1,487 875 0 (D)
 Korea, Republic of (D) 0 0 0
 Malaysia 0 0 0 0
 New Zealand 0 0 0 0
 Philippines 0 0 0 0
 Singapore (D) 0 0 0
 Taiwan (D) (D) 0 0
 Other 47 0 0 0
United States (1) (D) (D) 0 0
Addenda:
 European Union (15) (2) 38,131 5,096 2,689 900
 OPEC (3) 198 0 0 0

 Manufacturing

 Of which:

 Elec-
 trical
 equip-
 ment,
 Primary Compu- appli-
 and ters and ances,
 fabri- elec- and
 cated Machin- tronic compo-
 metals ery products nents

 (5) (8) (7) (8)

 All countries 179 83 2,328 155
Canada (D) 0 1,295 0
Europe (D) (D) 206 (D)
 Austria 0 0 0 0
 Belgium (D) 0 0 (D)
 Denmark 0 0 0 0
 Finland 0 0 (D) 0
 France 0 0 (D) (D)
 Germany 0 0 0 0
 Ireland 0 0 0 0
 Italy 0 0 0 0
 Liechtenstein 0 0 0 0
 Luxembourg 0 0 0 0
 Netherlands 0 0 0 0
 Norway 0 0 0 0
 Spain 0 0 0 0
 Sweden (D) 0 0 0
 Switzerland 0 0 0 0
 United Kingdom (D) (D) (D) (D)
 Other 0 0 0 0
Latin America and Other
 Western Hemisphere 0 0 0 0
 South and Central America 0 0 0 0
 Brazil 0 0 0 0
 Mexico 0 0 0 0
 Panama 0 0 0 0
 Venezuela 0 0 0 0
 Other 0 0 0 0
 Other Western Hemisphere 0 0 0 0
 Bahamas 0 0 0 0
 Bermuda 0 0 0 0
 Netherlands Antilles 0 0 0 0
 United Kingdom Islands,
 Caribbean 0 0 0 0
 Other 0 0 0 0
Africa 0 0 0 0
 South Africa 0 0 0 0
 Other 0 0 0 0
Middle East 0 0 0 0
 Israel 0 0 0 0
 Kuwait 0 0 0 0
 Lebanon 0 0 0 0
 Saudi Arabia 0 0 0 0
 United Arab Emirates 0 0 0 0
 Other 0 0 0 0
Asia and Pacific 0 0 829 (D)
 Australia 0 0 0 0
 China 0 0 0 0
 Hong Kong 0 0 0 (D)
 Indonesia 0 0 0 0
 Japan 0 0 (D) 0
 Korea, Republic of 0 0 0 0
 Malaysia 0 0 0 0
 New Zealand 0 0 0 0
 Philippines 0 0 0 0
 Singapore 0 0 0 0
 Taiwan 0 0 (D) 0
 Other 0 0 0 0
United States (1) 0 (D) 0 0
Addenda:
 European Union (15) (2) 173 (D) 205 34
 OPEC (3) 0 0 0 0

 Manufacturing

 Of which:

 Trans-
 portation Whole-
 equip- sale Retail Inform-
 ment trade trade ation

 (9) (10) (11) (12)

 All countries 146 623 964 10,015
Canada 94 (D) 918 (D)
Europe (D) (D) (D) 1,573
 Austria 0 (D) 0 0
 Belgium (D) (D) 0 0
 Denmark 0 0 0 0
 Finland 0 0 0 0
 France (D) (D) 0 (D)
 Germany 0 (D) 0 (D)
 Ireland 0 0 0 0
 Italy 0 0 0 0
 Liechtenstein 0 0 0 0
 Luxembourg 0 0 0 0
 Netherlands 0 0 0 (D)
 Norway 0 0 0 0
 Spain 0 0 0 0
 Sweden 0 (D) 0 0
 Switzerland 0 0 (D) 162
 United Kingdom (D) (D) 0 408
 Other 0 0 0 0
Latin America and Other
 Western Hemisphere 0 42 (D) (D)
 South and Central America 0 (D) (D) 0
 Brazil 0 0 0 0
 Mexico 0 0 (D) 0
 Panama 0 0 0 0
 Venezuela 0 0 0 0
 Other 0 (D) 0 0
 Other Western Hemisphere 0 (D) 0 (D)
 Bahamas 0 0 0 0
 Bermuda 0 (D) 0 0
 Netherlands Antilles 0 0 0 0
 United Kingdom Islands,
 Caribbean 0 (D) 0 (D)
 Other 0 0 0 0
Africa 0 (D) 0 0
 South Africa 0 (D) 0 0
 Other 0 0 0 0
Middle East 0 0 0 0
 Israel 0 0 0 0
 Kuwait 0 0 0 0
 Lebanon 0 0 0 0
 Saudi Arabia 0 0 0 0
 United Arab Emirates 0 0 0 0
 Other 0 0 0 0
Asia and Pacific 0 163 0 7,732
 Australia 0 (D) 0 7,574
 China 0 0 0 0
 Hong Kong 0 0 0 0
 Indonesia 0 0 0 0
 Japan 0 (D) 0 (D)
 Korea, Republic of 0 (D) 0 0
 Malaysia 0 0 0 0
 New Zealand 0 0 0 0
 Philippines 0 0 0 0
 Singapore 0 0 0 (D)
 Taiwan 0 0 0 0
 Other 0 (D) 0 0
United States (1) (D) 0 0 0
Addenda:
 European Union (15) (2) (D) 403 0 1,411
 OPEC (3) 0 0 0 0

 Manufacturing

 Of which:

 Finance,
 (except
 deposi- Real
 tory insti- estate
 Deposi- tutions) and
 tory and rental
 institu- insur- and
 tions ance leasing

 (13) (14) (15)

 All countries 5,416 21,622 2,607
Canada (D) (D) (D)
Europe 4,924 17,614 684
 Austria 0 0 0
 Belgium 0 (D) 0
 Denmark 0 0 0
 Finland 0 0 0
 France 0 0 0
 Germany (D) (D) 504
 Ireland (D) 0 0
 Italy 0 0 0
 Liechtenstein 0 0 0
 Luxembourg 0 0 0
 Netherlands 0 112 (D)
 Norway 0 0 0
 Spain 0 0 0
 Sweden 0 0 (D)
 Switzerland 0 (D) 0
 United Kingdom (D) 17,447 (D)
 Other 0 0 0
Latin America and Other
 Western Hemisphere (D) (D) 316
 South and Central America (D) (D) (D)
 Brazil 0 0 0
 Mexico (D) 0 (D)
 Panama 0 0 0
 Venezuela 0 (D) 0
 Other 0 0 0
 Other Western Hemisphere 0 (D) (D)
 Bahamas 0 0 0
 Bermuda 0 (D) 0
 Netherlands Antilles 0 0 0
 United Kingdom Islands,
 Caribbean 0 0 (D)
 Other 0 0 0
Africa 0 0 0
 South Africa 0 0 0
 Other 0 0 0
Middle East 0 0 (D)
 Israel 0 0 0
 Kuwait 0 0 0
 Lebanon 0 0 0
 Saudi Arabia 0 0 (D)
 United Arab Emirates 0 0 0
 Other 0 0 0
Asia and Pacific (D) 2,808 1,385
 Australia 0 (D) (D)
 China 0 0 0
 Hong Kong 0 0 (D)
 Indonesia 0 0 0
 Japan (D) (D) 0
 Korea, Republic of 0 0 0
 Malaysia 0 0 0
 New Zealand 0 0 0
 Philippines 0 0 0
 Singapore 0 0 0
 Taiwan 0 0 0
 Other 0 0 0
United States (1) 0 0 0
Addenda:
 European Union (15) (2) 4,924 17,593 684
 OPEC (3) 0 (D) (D)

 Manufacturing

 Of which:

 Profes-
 sional,
 scientific,
 and
 technical Other
 services industries

 (16) (17)

 All countries 1,397 8,139
Canada (D) 536
Europe 932 7,547
 Austria 0 0
 Belgium (D) 0
 Denmark (D) 0
 Finland 0 0
 France 0 0
 Germany 0 6,455
 Ireland 0 (D)
 Italy 0 (D)
 Liechtenstein 0 0
 Luxembourg 0 0
 Netherlands (D) 0
 Norway 0 0
 Spain 0 0
 Sweden 0 (D)
 Switzerland 0 (D)
 United Kingdom 588 217
 Other 0 (D)
Latin America and Other
 Western Hemisphere (D) 0
 South and Central America 0 0
 Brazil 0 0
 Mexico 0 0
 Panama 0 0
 Venezuela 0 0
 Other 0 0
 Other Western Hemisphere (D) 0
 Bahamas 0 0
 Bermuda 0 0
 Netherlands Antilles 0 0
 United Kingdom Islands,
 Caribbean (D) 0
 Other 0 0
Africa 0 0
 South Africa 0 0
 Other 0 0
Middle East 0 (D)
 Israel 0 0
 Kuwait 0 0
 Lebanon 0 0
 Saudi Arabia 0 (D)
 United Arab Emirates 0 (D)
 Other 0 0
Asia and Pacific 291 (D)
 Australia 0 (D)
 China 0 0
 Hong Kong 0 0
 Indonesia 0 0
 Japan 255 0
 Korea, Republic of 0 0
 Malaysia 0 0
 New Zealand 0 0
 Philippines 0 0
 Singapore (D) 0
 Taiwan 0 0
 Other (D) 0
United States (1) 0 0
Addenda:
 European Union (15) (2) 932 7,088
 OPEC (3) 0 (D)

(*) Less than $500,000.

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

(1.) The United States is shown as the country of ultimate beneficial
owner for businesses newly acquired or established by foreign
investors that are, in turn, ultimately owned by persons located in
the United States (see the box "Key Terms").

(2.) The European Union (15) comprises Austria, Belgium, Denmark,
Finland, France, Germany, Greece, Ireland, Italy,Luxembourg, the
Netherlands, Portugal, Spain, Sweden, and the United Kingdom.

(3.) 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. Data for 2002 are revised. For investments in which more than
one investor participated, each investor and each investors outlays
are classified by the country of each individual ultimate beneficial
owner.

Data on Foreign Direct Investment in the United States

In addition to the data on new foreign direct investments presented in this article, BEA collects and publishes two other broad sets of data on foreign direct investment in the United States: Financial and operating data of U.S. affiliates and balance-of-payments and direct-investment-position data.

Financial and operating data of U.S. affiliates are published at both the enterprise level and the establishment level. Detailed enterprise-level financial and operating data were most recently published in "U.S. Affiliates of Foreign Companies: Operations in 2001" in the August 2003 SURVEY OF CURRENT BUSINESS; the article includes a description of the three types of data. Summary estimates for 2002 are presented in the April 16, 2004, news release "Summary Estimates for Multinational Companies: Employment, Sales, and Capital Expenditures for 2002." Financial and operating data at the establishment level are available for selected years as a result of a project that links BEA's enterprise data for U.S. affiliates with the establishment data for all U.S. companies from the Bureau of the Census. The most recent data are published in Foreign Direct Investment in the United States: Establishment Data for 1997 (Washington DC: U.S. Government Printing Office, March 2003).

The balance-of-payments and direct-investment-position data were published in "The International Investment Position of the United States at Yearend 2002" and "Direct Investment Positions for 2002: Country and Industry Detail" in the July 2003 SURVEY; "Foreign Direct Investment in the United States: Detail for Historical Cost Position and Related Capital and Income Flows, 2002" in the September 2003 issue; and "U.S. International Transactions, 2003," in the April 2004 issue. Revised and updated balance-of-payments direct-investment-position data will be published in the July and September 2004 issues.

Availability of New Investment Data

Summary estimates of the outlays by foreign direct investors to acquire or to establish businesses in the United States are presented in this article. More detailed estimates by industry and by country for 1980-2003 are available on BEA's Web site at <www.bea.gov>. Click on "Direct Investment" and under "Foreign Direct Investment in the United States," click on "Financial and Operating Data" for "U.S. Business Enterprises Acquired or Established by Foreign Companies."

Key Terms

Foreign direct investment in the United States is ownership or control, directly or indirectly, by one foreign person of 10 percent or more of the voting securities of an incorporated U.S. business enterprise or an equivalent interest in an unincorporated U.S. business enterprise.

A U.S. affiliate is a U.S. business in which there is foreign direct investment.

A person is any individual, corporation, branch, partnership, associated group, association, estate, trust, or other organization, and any government (including any corporation, institution, or other entity or instrumentality of a government).

A foreign person is a person that resides outside the 50 States, the District of Columbia, the Commonwealth of Puerto Rico, and all U.S. territories and possessions.

The ultimate beneficial owner (UBO) is that person, proceeding up a U.S. affiliate's ownership chain, beginning with and including the foreign parent, that is not owned more than 50 percent by another person. The foreign parent is the first foreign person in the affiliate's ownership chain. Unlike the foreign parent, the UBO of an affiliate may be located in the United States. The UBO of each U.S. affiliate is identified to ascertain the person that ultimately owns or controls the U.S. affiliate and that therefore ultimately derives the benefits from ownership or control.

(1.) The estimates for 2003 are preliminary. The estimate of total outlays for 2002 has been revised up 4 percent from the preliminary estimate published last year; see Thomas W. Anderson, "Foreign Direct Investment in the United States: New Investment in 2002," SURVEY OF CURRENT BUSINESS 83 (June 2003): 55-62. For information on the coverage of the estimates, see the "Technical Note."

(2.) According to information from Thomson Financial Securities Data, the worldwide value of completed mergers and acquisitions in 2003 was less than half of the value in 2001.

(3.) Capital inflows also include funds provided to existing U.S. affiliates. For preliminary estimates of capital inflows for 2003, see Christopher L. Bach, "U.S. International Transactions, 2003," SURVEY 84 (April 2004): 59-103; revised estimates will be published in the July SURVEY.

(4.) The number of new U.S. businesses established is not the same as the number of "greenfield" investments, which typically refers to the construction of new plants or other business facilities. First, direct purchases of U.S. real estate--which often involve purchases of existing office buildings, hotels, retail stores, shopping centers, or other property--are included in the "established" measure but are not considered "greenfield" investments. Second, new plants that are built by existing U.S. affiliates are considered "greenfield" investments, but they are included in these data--as "established" businesses--only if they are set up as separate legal entities.

(5.) Survey forms for both the full reports (BE-13) and the partial reports (BE-13, supplement C) are available on BEA's Web site at <www.bea.gov/ bea/surveys/fdiusurv.htm>.

(6.) Each year, BEA receives survey reports after the preliminary estimates are published. To make the preliminary estimates as accurate as possible, BEA augments the reported data with estimates for late reports. An estimate is made for each of the data items covered by the survey, and these estimates cover both full and partial reports. BEA also estimates the number of full reports, but it does not estimate the number of partial reports, because this number fluctuates considerably from year to year.

The data presented in this article are from BEA's survey of new foreign direct investment in the United States that was conducted under the supervision of Dorrett E. Williams, with contributions by Constance T. Deve, Edward J. Kozerka, Ronald L. McNeil, and Joseph N. Poist. Karen E. Poffel and Neeta B. Kapoor programmed the tables.