Foreign direct investment in the United States: new investment in 2002.

Anderson, Thomas W.

IN 2002, outlays by foreign direct investors to acquire or establish U.S. businesses fell by more than half for the second consecutive year. Total outlays were $52.6 billion, down 64 percent from $147.1 billion in 2001; outlays were 84 percent below the record $335.6 billion in 2000, which was the final year of a 3-year period of exceptionally high outlays (chart 1 and table 1). (1) As a result of these declines, spending for new investments in 2002 was at the lowest level since 1994.

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The decline in outlays in 2002 reflected continuing weakness in the U.S. economy and in many foreign economies and a falloff in merger and acquisition activity worldwide. (2) New investment may also have been dampened by uncertainty about the value of potential targets for acquisition and their future earnings prospects. Continued sharp declines and volatility in U.S. stock market prices made it more difficult for acquiring firms and potential sellers to agree on acquisition prices, and a few highly publicized cases of questionable accounting practices may have increased uncertainty about earnings quality and company valuations. In addition, very large--$5 billion or more--investments were less prevalent than in recent years and accounted for less than a fourth of total outlays (table 2).

In 2002, outlays fell in all major industry sectors, particularly in finance and insurance, manufacturing, and information. The decline was especially severe in finance and insurance, which had maintained high levels of outlays in 2001 even as spending declined in other sectors. The decline was also widespread across investing countries. In Germany, the United Kingdom, the Netherlands, and Japan, which historically have been major sources of investment outlays, weak economic conditions slowed the flow of direct investment into the United States. Among major source countries, only France had an increase in investment outlays (chart 2).

[GRAPHIC OMITTED]

Spending in 2002

In 2002, as in previous years, outlays to acquire existing U.S. businesses--at $42.8 billion--accounted for most of the total outlays. Outlays to establish new U.S. businesses totaled $9.8 billion. Again, as in most previous years, the majority of outlays were made by or through existing U.S. affiliates ($38.0 billion) rather than by the foreign direct investors themselves ($14.5 billion). Of the $38.0 billion in outlays made by or through existing U.S. affiliates, most of the funds ($22.8 billion) were provided by the foreign direct investors, who also funded all of their own outlays. As a result, the share of total outlays funded by foreign direct investors was 71 percent, up from 54 percent in 2001. The funds supplied by foreign direct investors 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, outlays were largest in manufacturing ($17.3 billion) and information ($14.2 billion) (table 3). Within manufacturing, outlays were largest in beverages and tobacco products ($4.1 billion), followed by food ($2.3 billion). Reflecting weak business conditions, outlays in computers and electronic products were only $0.5 billion, down from $10.1 billion in 2001 and $42.6 billion in 2000. Within the information sector, outlays increased substantially in motion pictures and sound recording. In contrast, outlays in broadcasting and telecommunications declined sharply, from $15.5 billion in 2001 to $2.4 billion 2002, amid concerns over the industry's high debt and excess capacity. Outlays in the finance (except depository institutions) and insurance industry declined to only $3.2 billion; the decline followed three consecutive years in which investments, driven by acquisitions of U.S. insurance companies, exceeded $40 billion. Outlays in real estate and rental and leasing were $4.6 billion, up from $3.6 billion in 2001, reflecting the continued strength of the U.S. housing and property markets.

By country of ultimate beneficial owner, France and the United Kingdom had the largest outlays in 2002, together accounting for over half of the total (table 4). Outlays by investors from France increased to $15.6 billion from $5.8 billion in 2001, largely as a result of investments in information and in professional, scientific, and technical services. Outlays by investors from the United Kingdom, whose spending had been the largest of any investing country for several years, fell to $13.0 billion from $17.1 billion in 2001; in 2002, outlays were largest in utilities and manufacturing. Outlays by investors from many other European countries, including the Netherlands ($3.2 billion), Switzerland ($2.8 billion), and Germany ($2.2 billion), were far lower in 2002 than in 2001, partly because of weak economic conditions in those countries. Outlays by investors from Canada fell to $3.5 billion from $16.6 billion. In the Asia and Pacific region, Japan ($3.4 billion) was the largest source of investment outlays, followed by Australia ($1.7 billion).

Operating data of acquired or established U.S. businesses

The assets of U.S. businesses that were newly acquired or established by foreign investors totaled $94.8 billion in 2002, down from $382.3 billion in 2001 (table 5). Among industry groups, manufacturing, with assets of $22.3 billion, accounted for the largest share of total assets.

Newly acquired or established businesses employed 182,000 people in 2002, down from 410,000 in 2001. Manufacturing, with 74,000 employees, accounted for the largest share of employment in 2002. The next largest shares of employment were in administration, support, and waste management (included in "other industries"), with 34,000 employees, and information, with 25,000.

Net income for newly acquired or established businesses was negative $2.5 billion in 2002, compared with positive net income of $1.0 billion in 2001. Total sales by these businesses were $49.1 billion, down from $108.9 billion.

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 from the survey reports used by the Bureau of Economic Analysis (BEA) to collect the information and--for the preliminary estimates for 2002--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 begins operating 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" if (1) 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 it as a separate legal entity; (2) 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) 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 where no separate legal entity is created. Selloffs or other disinvestments are not netted against the new investments. (For information about related BEA data, 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 having total assets of $3 million or less and owning fewer than 200 acres of U.S. land--are permitted to file shorter, partial reports. (5)

BEA prepares estimates for the data items that are not collected on the partial reports and combines them 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 2001, the total assets of U.S. businesses that filed partial reports were $360 million, less than 1 percent of the total assets for all new investments.

Although the values for the partial reports are generally negligible, the number of partial reports is significant. For example, in 2001, BEA received 1,000 partial reports and 821 full reports. Furthermore, the number of businesses that are subject to partial reporting may be higher than the actual number of partial reports BEA actually 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 821 full reports filed in 2001, 571 were for investments to acquire an existing U.S. business, and 250 were for investments to establish a new U.S. business. For 2002, BEA estimates that 512 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 2002, among the four size classes shown, 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.

The number of new investments for 1998-2002 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, prior to 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.

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.

Availability of New Investment Data

Summary estimates of the outlays by foreign direct investors to acquire or establish businesses in the United States are presented in this article. More detailed estimates by industry and by country for 1980-2002 are available on BEA's Web site at www.bea.gov. Click on "Balance of payments and related data," and look under "Direct Investment, Foreign Direct Investment in the United States, Financial and Operating Data" for "U.S. Business Enterprises Acquired or Established by Foreign Direct Investors."

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 (FDIUS): 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 and establishment level. Enterprise-level financial and operating data were most recently published in "U.S. Affiliates of Foreign Companies: Operations in 2000" in the August 2002 issue of the SURVEY OF CURRENT BUSINESS; the article includes a description of the three types of FDIUS data. Financial and operating data at the establishment level are available for selected years as a result of a special 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 2001" and "Direct Investment Positions for 2001: Country and Industry Detail" in the July 2002 issue of the SURVEY; "Foreign Direct Investment in the United States: Detail for Historical Cost Position and Related Capital and Income Flows, 2001" in the September 2002 issue; and "U.S. International Transactions, Fourth Quarter and Year 2002," in the April 2003 issue. Revised and updated balance-of-payments and direct-investment-position data will be published in the July and September 2003 issues.

Table 1. Investment Outlays by Type of Investment and Investor,
1992-2002

[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 (r) 2002 (p)

Total outlays 335,629 147,109 52,558

By type of Investment:
 U.S. businesses acquired 322,703 138,091 42,773
 U.S. businesses established 12,926 9,017 9,785

By type of Investor:
 Foreign direct investors 105,151 23,134 14,512
 U.S. affiliates 230,478 123,975 38,045

(p) Preliminary.

(r) Revised.

Table 2. Distribution of Investment Outlays by Size, 1992-2002

[Percent]

 1992 1993 1994 1995

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

 1996 1997 1998 1999

Total outlays 100 100 100 100
 $5 billion or more 0 0 55 55
 $2 billion-$4.999 billion 29 12 11 16
 $100 million-$1.999 billion 55 67 27 24
 Less than $100 million 16 21 7 5

 2001 2002
 2000 (r) (p)

Total outlays 100 100 100
 $5 billion or more 48 30 (D)
 $2 billion-$4.999 billion 20 22 19
 $100 million-$1.999 billion 27 40 45
 Less than $100 million 5 9 (D)

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

(p) Preliminary.

(r) Revised.

Table 3. Investment Outlays by Industry of U.S. Business
Enterprise, 1999-2002

[Millions of dollars]
 2001 2002
 1999 2000 (r) (p)

 All Industries 274,956 335,629 147,109 52,558

Manufacturing 73,122 143,285 37,592 17,259
 Food 859 (D) (D) 2,278
 Beverages and tobacco products 1,417 3,722 582 4,050
 Petroleum and coal products 158 (D) (D) 2,043
 Chemicals 5,703 15,016 4,636 1,211
 Plastics and rubber products 3,638 3,154 622 992
 Nonmetallic mineral products 3,175 6,324 425 1,257
 Primary metals 2,542 379 692 564
 Fabricated metal products 1,388 638 758 47
 Machinery 13,941 1,213 (D) 526
 Computers and electronic
 products 30,601 42,600 10,052 488
 Electrical equipment,
 appliances, and components 4,247 8,084 (D) 1,013
 Transportation equipment 2,786 3,230 470 668
 Other 2,667 6,529 5,214 2,122

Wholesale trade (D) 8,561 3,982 381

Retail trade 3,458 1,672 1,913 433

Information 90,855 67,932 27,599 14,235
 Publishing industries (D) 10,135 9,545 (D)
 Motion pictures and sound
 recording industries (D) (D) 1,179 (D)
 Broadcasting and
 telecommunications 78,202 (D) 15,529 2,374
 Information services and data
 processing services (D) 12,228 1,345 (D)
Depository Institutions (D) 2,636 5,709 705
Finance (except depository
 institutions) and insurance 46,380 44,420 40,780 3,241
Real estate and rental and
 leasing 5,206 4,526 3,572 4,573
Professional, scientific, and
 technical services 9,366 32,332 7,044 4,424
Other industries 32,680 30,264 18,917 7,306

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

(p) Preliminary.

(r) Revised.

Table 4. Investment Outlays by Country of Ultimate Beneficial Owner,
1999-2002 (1)

[Millions of dollars]

 2001 2002
 1999 2000 (r) (p)

 All countries 274,956 335,629 147,109 52,558

Canada 9,271 28,346 16,646 3,533
Europe 196,288 249,167 78,328 39,374
 France 23,750 26,149 5,772 15,566
 Germany 21,514 18,452 12,733 2,194
 Netherlands 22,265 47,686 14,879 3,181
 Switzerland 7,512 22,789 16,468 2,756
 United Kingdom 109,226 110,208 17,095 12,956
 Other Europe 12,021 23,883 11,381 2,721
Latin America and Other Western
 Hemisphere 33,046 15,400 15,274 3,021
 South and Central America 1,622 5,334 431 407
 Other Western Hemisphere 31,424 10,066 14,843 2,613
Africa (D) (D) (D) 565
Middle East 848 947 (D) 283
Asia and Pacific 15,100 40,282 11,383 5,352
 Australia (D) (D) 4,869 1,654
 Japan 11,696 26,044 5,345 3,429
 Other Asia and Pacific (D) (D) 1,169 269
United States (2) (D) (D) (D) 430

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

(p) Preliminary.

(r) Revised.

(1.) 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.

(2.) 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").

Table 5. Selected Operating Data of U.S. Business
Enterprises Acquired or Established, by Industry
of U.S. Business Enterprise, 2001-2002

 2001 (r)

 Millions of dollars

 Thousands
 Total Net of
 assets Sales income employees

 All industries 382,308 108,909 951 410.0

Manufacturing 55,269 35,986 760 125.4
Wholesale trade 6,507 13,129 100 31.9
Retail trade 2,407 4,491 16 31.1
Information 42,581 8,758 -863 44.7
Depository institutions 66,645 4,217 309 8.2
Finance (except depository
 institutions) and insurance 168,202 22,136 1,854 34.1
Real estate and rental and
 leasing 4,224 418 38 0.5
Professional, scientific, and
 technical services 15,678 10,485 -497 58.3
Other industries 20,795 9,290 -765 75.7

 2001 (r) 2002 (p)

 Millions of
 dollars

 Number of
 hectares of Total Sales
 land owned (1) assets

 All industries 103,539 94,839 49,086

Manufacturing 24,031 22,325 22,666
Wholesale trade 243 420 1,476
Retail trade 507 435 657
Information 142 15,687 6,677
Depository institutions 101 4,488 290
Finance (except depository
 institutions) and insurance (D) 10,959 1,334
Real estate and rental and
 leasing (D) 12,747 2,768
Professional, scientific, and
 technical services (D) 1,141 420
Other industries 33,017 26,637 12,797

 2002 (p)

 Millions
 of
 dollars

 Thousands Number of
 Net of hectares of
 income employees land owned (1)

 All industries -2,548 182.2 105,075

Manufacturing -3,655 73.6 11,149
Wholesale trade 23 1.4 33
Retail trade 4 9.0 32
Information 325 25.3 (D)
Depository institutions 21 1.0 (D)
Finance (except depository
 institutions) and insurance 143 4.4 3
Real estate and rental and
 leasing 180 0.8 8,639
Professional, scientific, and
 technical services -54 3.0 0
Other industries 464 63.7 84,071

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

(p) Preliminary

(r) Revised.

(1.) One hectare equals 2.471 acres. Thus, for all industries,
acres of land owned in 2001 and 2002 were
255,845 and 259,640, respectively.

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

 2000 2001 (r) 2002 (p)

Total 982 821 512
 $5 billion or more 12 4 1
 $2 billion-$4.999 billion 22 10 3
 $100 million-$1.999 billion 206 148 61
 Less than $100 million 742 659 447

p Preliminary.

r Revised.

Table 6. Investment Outlays by Type of Investment and Investor,
by Industry of U.S. Business Enterprise, 2001-2002

[Millions of dollars]

 2001 (r)

 By type of
 investment

 U.S. U.S.
 busi- busi-
 Total nesses nesses
 ac- estab-
 quired lished

 All industries 147,109 138,091 9,017

Manufacturing 37,592 36,894 699
 Food (D) (D) (D)
 Beverages and tobacco 582 (D) (D)
 Textiles, apparel, and leather products (D) (D) 0
 Wood products (D) (D) 0
 Paper 3,099 3,099 (*)
 Printing and related support activities 349 349 (*)
 Petroleum and coal products (D) (D) (*)
 Chemicals 4,636 (D) (D)
 Basic chemicals (D) (D) (D)
 Resins and synthetic rubber, fibers
 and filaments (D) (D) (*)
 Pharmaceuticals and medicines 2,456 2,455 1
 Soap, cleaning compounds, and toilet
 preparations (D) (D) 0
 Other 55 51 4
 Plastics and rubber products 622 612 11
 Nonmetallic mineral products 425 (D) (D)
 Primary and fabricated metals 1,450 (D) (D)
 Primary metals 692 (D) (D)
 Fabricated metal products 758 747 11
 Machinery (D) (D) (D)
 Agriculture, construction, and mining
 machinery (D) (*) (D)
 Industrial machinery (D) (D) (*)
 Other 92 (D) (D)
 Computers and electronic products 10,052 (D) (D)
 Computer and peripheral equipment (D) (D) 0
 Communications equipment 5,922 (D) (D)
 Audio and video equipment (*) (*) (*)
 Semiconductors and other electronic
 components (D) (D) (D)
 Navigational, measuring, and other
 instruments 2,663 (D) (D)
 Magnetic and optical media 3 3 0
 Electrical equipment, appliances, and
 components (D) (D) (*)
 Transportation equipment 470 262 208
 Motor vehicles, bodies and trailers,
 and parts (D) (D) 208
 Other (D) (D) 0
 Furniture and related products 15 7 8
 Miscellaneous manufacturing 1,256 1,256 (*)

Wholesale trade 3,982 3,674 308
 Motor vehicles and motor vehicle parts
 and supplies (D) 3 (D)
 Professional and commercial equipment
 and supplies 1,055 1,053 1
 Electrical goods 116 111 5
 Other durable goods 479 (D) (D)
 Petroleum and petroleum products (D) (*) (D)
 Other nondurable goods 2,306 (D) (D)

Retail trade 1,913 (D) (D)
 Food and beverage stores (D) (D) 20
 Other (D) (D) (D)

Information 27,599 26,545 1,054
 Publishing industries 9,545 9,532 14
 Motion pictures and sound recording
 industries 1,179 1,176 3
 Broadcasting and telecommunications 15,529 (D) (D)
 Broadcasting, cable networks, and
 program distribution (D) (D) (D)
 Telecommunications (D) (D) (D)
 Information services and data
 processing services 1,345 (D) (D)

Depository institutions 5,709 (D) (D)

Finance, (except depository institutions)
 and insurance 40,780 37,572 3,208
 Finance, except depository institutions 8,741 (D) (D)
 Insurance carriers and related
 activities 32,039 (D) (D)

Real estate and rental and leasing 3,572 (D) (D)
 Real estate (D) (D) (D)
 Rental and leasing (except real estate) (D) (D) 6

Professional, scientific, and technical
 services 7,044 6,779 265
 Architectural, engineering, and related
 services 68 63 4
 Computer systems design and related
 services 2,037 1,974 63
 Management, scientific, and technical
 consulting 884 874 10
 Other 4,055 3,867 188

Other industries 18,917 18,539 378
 Agriculture, forestry, fishing, and
 hunting 82 (D) (D)
 Mining 11,819 (D) (D)
 Utilities 492 (D) (D)
 Construction 469 (D) (D)
 Transportation and warehousing 2,171 2,097 74
 Management of nonbank companies and
 enterprises 41 0 41
 Administration, support, and waste
 management 1,896 1,855 41
 Health care and social assistance 602 602 (*)
 Accommodation and food services 845 787 58
 Accommodation (D) (D) (D)
 Food services and drinking places (D) (D) (D)
 Miscellaneous services 501 478 23

 2002
 2001 (r) (p)

 By type of
 investor

 Foreign U.S.
 direct affi- Total
 inves- liates
 tors

 All industries 23,134 123,975 52,558

Manufacturing 3,330 34,263 17,259
 Food 69 (D) 2,278
 Beverages and tobacco 1 581 4,050
 Textiles, apparel, and leather products 0 (D) 0
 Wood products 0 (D) 0
 Paper (*) 3,099 1,310
 Printing and related support activities (D) (D) 66
 Petroleum and coal products (*) (D) 2,043
 Chemicals 163 4,474 1,211
 Basic chemicals (D) (D) (D)
 Resins and synthetic rubber, fibers
 and filaments (D) (D) (D)
 Pharmaceuticals and medicines 141 2,316 571
 Soap, cleaning compounds, and toilet
 preparations 0 (D) 74
 Other (D) (D) 498
 Plastics and rubber products 184 439 992
 Nonmetallic mineral products (D) (D) 1,257
 Primary and fabricated metals 341 1,109 611
 Primary metals (D) (D) 564
 Fabricated metal products (D) (D) 47
 Machinery (D) 153 526
 Agriculture, construction, and mining
 machinery 2 (D) (D)
 Industrial machinery (D) (D) (D)
 Other (*) 92 354
 Computers and electronic products 751 9,301 488
 Computer and peripheral equipment (D) (D) 0
 Communications equipment 308 5,615 278
 Audio and video equipment (*) (*) 0
 Semiconductors and other electronic
 components (D) 279 49
 Navigational, measuring, and other
 instruments (D) (D) 160
 Magnetic and optical media 0 3 0
 Electrical equipment, appliances, and
 components 3 (D) 1,013
 Transportation equipment 132 337 668
 Motor vehicles, bodies and trailers,
 and parts (D) (D) 457
 Other (D) (D) 211
 Furniture and related products (*) 15 0
 Miscellaneous manufacturing 252 1,004 747

Wholesale trade 953 3,029 381
 Motor vehicles and motor vehicle parts
 and supplies 1 (D) 0
 Professional and commercial equipment
 and supplies (D) (D) (D)
 Electrical goods 5 111 (D)
 Other durable goods 286 193 186
 Petroleum and petroleum products 0 (D) 0
 Other nondurable goods (D) (D) 112

Retail trade (D) (D) 433
 Food and beverage stores 7 (D) (D)
 Other (D) (D) (D)

Information 11,134 16,466 14,235
 Publishing industries 1,472 8,074 (D)
 Motion pictures and sound recording
 industries (D) (D) (D)
 Broadcasting and telecommunications (D) (D) 2,374
 Broadcasting, cable networks, and
 program distribution (*) (D) 0
 Telecommunications (D) (D) 2,374
 Information services and data
 processing services 257 1,089 (D)

Depository institutions (D) (D) 705

Finance, (except depository institutions)
 and insurance 2,029 38,751 3,241
 Finance, except depository institutions (D) (D) 3,135
 Insurance carriers and related
 activities (D) (D) 106

Real estate and rental and leasing 269 3,303 4,573
 Real estate 268 (D) (D)
 Rental and leasing (except real estate) 1 (D) (D)

Professional, scientific, and technical
 services 1,578 5,466 4,424
 Architectural, engineering, and related
 services (*) 68 135
 Computer systems design and related
 services 1,051 986 191
 Management, scientific, and technical
 consulting 67 817 28
 Other 460 3,595 4,069

Other industries 827 18,091 7,306
 Agriculture, forestry, fishing, and
 hunting (D) (D) (D)
 Mining (D) (D) 358
 Utilities (D) (D) 4,039
 Construction (*) 468 9
 Transportation and warehousing (D) (D) 422
 Management of nonbank companies and
 enterprises 41 (*) 761
 Administration, support, and waste
 management 158 1,738 1,165
 Health care and social assistance (*) 602 98
 Accommodation and food services (D) (D) (D)
 Accommodation (D) (D) (D)
 Food services and drinking places (*) (D) 0
 Miscellaneous services (D) (D) 400

 2002 (p)

 By type of
 investment

 U.S. U.S.
 busi- busi-
 nesses nesses
 ac- estab-
 quired lished

 All industries 42,773 9,785

Manufacturing 16,356 903
 Food (D) (D)
 Beverages and tobacco 4,050 0
 Textiles, apparel, and leather products 0 0
 Wood products 0 0
 Paper 1,310 0
 Printing and related support activities 66 0
 Petroleum and coal products 2,043 0
 Chemicals (D) (D)
 Basic chemicals (D) 0
 Resins and synthetic rubber, fibers
 and filaments (D) (D)
 Pharmaceuticals and medicines 571 0
 Soap, cleaning compounds, and toilet
 preparations 74 0
 Other 498 0
 Plastics and rubber products (D) (D)
 Nonmetallic mineral products 1,257 0
 Primary and fabricated metals (D) (D)
 Primary metals (D) (D)
 Fabricated metal products (D) (D)
 Machinery 487 40
 Agriculture, construction, and mining
 machinery (D) (D)
 Industrial machinery (D) 0
 Other (D) (D)
 Computers and electronic products (D) (D)
 Computer and peripheral equipment 0 0
 Communications equipment 278 0
 Audio and video equipment 0 0
 Semiconductors and other electronic
 components (D) (D)
 Navigational, measuring, and other
 instruments 160 0
 Magnetic and optical media 0 0
 Electrical equipment, appliances, and
 components 246 767
 Transportation equipment 666 2
 Motor vehicles, bodies and trailers,
 and parts 455 2
 Other 211 0
 Furniture and related products 0 0
 Miscellaneous manufacturing (D) (D)

Wholesale trade 339 43
 Motor vehicles and motor vehicle parts
 and supplies 0 0
 Professional and commercial equipment
 and supplies (D) 0
 Electrical goods (D) 0
 Other durable goods (D) (D)
 Petroleum and petroleum products 0 0
 Other nondurable goods (D) (D)

Retail trade 433 0
 Food and beverage stores (D) 0
 Other (D) 0

Information 14,159 76
 Publishing industries (D) (D)
 Motion pictures and sound recording
 industries (D) 0
 Broadcasting and telecommunications (D) (D)
 Broadcasting, cable networks, and
 program distribution 0 0
 Telecommunications (D) (D)
 Information services and data
 processing services 355 (D)

Depository institutions 705 0

Finance, (except depository institutions)
 and insurance 2,544 697
 Finance, except depository institutions 2,438 697
 Insurance carriers and related
 activities 106 (*)

Real estate and rental and leasing 1,230 3,344
 Real estate (D) (D)
 Rental and leasing (except real estate) (D) (D)

Professional, scientific, and technical
 services 510 3,914
 Architectural, engineering, and related
 services 135 0
 Computer systems design and related
 services 191 0
 Management, scientific, and technical
 consulting 28 0
 Other 155 3,914

Other industries 6,497 809
 Agriculture, forestry, fishing, and
 hunting 0 (D)
 Mining 358 0
 Utilities 4,039 0
 Construction 9 0
 Transportation and warehousing 417 5
 Management of nonbank companies and
 enterprises 0 761
 Administration, support, and waste
 management 1,165 0
 Health care and social assistance 98 0
 Accommodation and food services (D) (D)
 Accommodation (D) (D)
 Food services and drinking places 0 0
 Miscellaneous services (D) (D)

 2002 (p)

 By type of
 investor

 Foreign U.S.
 direct affi-
 inves- liates
 tors

 All industries 14,512 38,045

Manufacturing 6,890 10,369
 Food (D) (D)
 Beverages and tobacco 3,956 94
 Textiles, apparel, and leather products 0 0
 Wood products 0 0
 Paper 0 1,310
 Printing and related support activities 0 66
 Petroleum and coal products 0 2,043
 Chemicals 179 1,032
 Basic chemicals (D) 5
 Resins and synthetic rubber, fibers
 and filaments (D) (D)
 Pharmaceuticals and medicines (D) (D)
 Soap, cleaning compounds, and toilet
 preparations 0 74
 Other 155 342
 Plastics and rubber products 400 592
 Nonmetallic mineral products 243 1,014
 Primary and fabricated metals 474 137
 Primary metals (D) (D)
 Fabricated metal products (D) (D)
 Machinery (D) (D)
 Agriculture, construction, and mining
 machinery 0 (D)
 Industrial machinery 0 (D)
 Other (D) (D)
 Computers and electronic products 221 267
 Computer and peripheral equipment 0 0
 Communications equipment (D) (D)
 Audio and video equipment 0 0
 Semiconductors and other electronic
 components (D) (D)
 Navigational, measuring, and other
 instruments 0 160
 Magnetic and optical media 0 0
 Electrical equipment, appliances, and
 components 767 246
 Transportation equipment 346 321
 Motor vehicles, bodies and trailers,
 and parts 346 111
 Other 0 211
 Furniture and related products 0 0
 Miscellaneous manufacturing 237 511

Wholesale trade 39 342
 Motor vehicles and motor vehicle parts
 and supplies 0 0
 Professional and commercial equipment
 and supplies 0 (D)
 Electrical goods 0 (D)
 Other durable goods (D) (D)
 Petroleum and petroleum products 0 0
 Other nondurable goods (D) (D)

Retail trade 0 433
 Food and beverage stores 0 (D)
 Other 0 (D)

Information 181 14,054
 Publishing industries (D) (D)
 Motion pictures and sound recording
 industries 0 (D)
 Broadcasting and telecommunications 153 2,220
 Broadcasting, cable networks, and
 program distribution 0 0
 Telecommunications 153 2,220
 Information services and data
 processing services (D) (D)

Depository institutions 0 705

Finance, (except depository institutions)
 and insurance 675 2,566
 Finance, except depository institutions 675 2,460
 Insurance carriers and related
 activities (*) 106

Real estate and rental and leasing 1,152 3,421
 Real estate 1,152 (D)
 Rental and leasing (except real estate) 0 (D)

Professional, scientific, and technical
 services 4,060 364
 Architectural, engineering, and related
 services 0 135
 Computer systems design and related
 services (D) (D)
 Management, scientific, and technical
 consulting (D) (D)
 Other 3,922 147

Other industries 1,515 5,791
 Agriculture, forestry, fishing, and
 hunting 0 (D)
 Mining (*) 358
 Utilities 208 3,831
 Construction 0 9
 Transportation and warehousing 192 230
 Management of nonbank companies and
 enterprises 761 0
 Administration, support, and waste
 management 0 1,165
 Health care and social assistance (D) (D)
 Accommodation and food services (D) (D)
 Accommodation (D) (D)
 Food services and drinking places 0 0
 Miscellaneous services 226 175

* Less than $500,000.

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

(p) Preliminary.

(r) Revised.

Table 7.1. Investment Outlays, Country of Ultimate Beneficial
Owner by Industry of U.S. Business Enterprise, 2001

[Millions of dollars]

 Manufacturing

 Of which:

 All Chemi-
 industries Total Food cals

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

 All countries 147,109 37,592 (D) 4,636

Canada 16,646 4,334 (D) (D)

Europe 78,328 25,801 (D) 4,369
 Austria (D) (D) 0 0
 Belgium 737 725 0 (D)
 Denmark 134 67 0 (D)
 Finland 433 354 0 0
 France 5,772 776 (D) (D)

 Germany 12,733 2,680 (D) 264
 Ireland 1,042 397 (D) 0
 Italy 791 160 0 0
 Liechtenstein 0 0 0 0
 Luxembourg (D) (D) (D) 0
 Netherlands 14,879 3,601 (*) (D)

 Norway (D) (D) 0 (D)
 Spain (D) 0 0 0
 Sweden 2,155 1,602 0 0
 Switzerland 16,468 12,235 (D) (D)
 United Kingdom 17,095 2,432 (*) (D)
 Other (D) (D) 0 0

Latin America and Other
 Western Hemisphere 15,274 4,128 (D) 0

 South and Central
 America 431 (D) (*) 0
 Brazil (D) (D) 0 0
 Mexico 347 (D) (*) 0
 Panama 0 0 0 0
 Venezuela (D) 0 0 0
 Other (*) 0 0 0

 Other Western
 Hemisphere 14,843 (D) (D) 0
 Bahamas 1 (*) 0 0
 Bermuda (D) (D) (D) 0
 Netherlands Antilles 5 0 0 0
 United Kingdom
 Islands, Caribbean (D) 161 0 0
 Other 0 0 0 0

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

Middle East (D) (D) 0 0
 Israel 555 (D) 0 0
 Kuwait (D) 0 0 0
 Lebanon (D) (D) 0 0
 Saudi Arabia 86 0 0 0
 United Arab Emirates 25 0 0 0
 Other (*) 0 0 0

Asia and Pacific 11,383 (D) (D) (D)
 Australia 4869 376 0 (D)
 China (D) (*) 0 0
 Hong Kong 361 0 0 0
 Indonesia 0 0 0 0
 Japan 5,345 2,575 (D) 204
 Korea, Republic of 1 0 0 0
 Malaysia 3 0 0 0
 New Zealand (*) 0 0 0
 Philippines (*) 0 0 0
 Singapore 375 (D) 0 0
 Taiwan (D) (*) 0 0
 Other 247 (*) 0 0

United States (1) (D) 0 0 0

Addenda:
 European Union
 (15) (2) 60,259 12,916 382 2,550
 OPEC (3) 139 0 0 0

 Manufacturing

 Of which:

 Electri-
 Primary Computer cal
 and and equipment
 fabri- Machi- elec- appli-
 cated nery tronic ances,
 mate- products and com-
 rials ponents

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

 All countries 1,450 (D) 10,052 (D)

Canada 6 (*) (D) (D)

Europe 1,157 (D) 5,167 48
 Austria 0 0 (D) 0
 Belgium (D) 0 0 (D)
 Denmark 0 (D) 0 (D)
 Finland (D) 15 (D) 0
 France (D) (D) 470 38

 Germany 18 (D) 2,065 0
 Ireland (D) 0 0 0
 Italy (D) (*) (D) 0
 Liechtenstein 0 0 0 0
 Luxembourg 0 0 0 0
 Netherlands 0 (D) (D) 3

 Norway (*) 0 0 0
 Spain 0 0 0 0
 Sweden 0 (D) (D) 0
 Switzerland (D) (*) (D) 0
 United Kingdom 381 5 202 0
 Other 0 0 0 0

Latin America and Other
 Western Hemisphere (D) (*) (D) 0

 South and Central
 America (D) 0 0 0
 Brazil (D) 0 0 0
 Mexico (D) 0 0 0
 Panama 0 0 0 0
 Venezuela 0 0 0 0
 Other 0 0 0 0

 Other Western
 Hemisphere 0 (*) (D) 0
 Bahamas 0 0 0 0
 Bermuda 0 (*) (D) 0
 Netherlands Antilles 0 0 0 0
 United Kingdom
 Islands, Caribbean 0 0 4 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 (D) (D) 0
 Israel 0 0 (D) 0
 Kuwait 0 0 0 0
 Lebanon 0 (D) 0 0
 Saudi Arabia 0 0 0 0
 United Arab Emirates 0 0 0 0
 Other 0 0 0 0

Asia and Pacific (D) (D) (D) (D)
 Australia 1 0 0 0
 China 0 0 (*) 0
 Hong Kong 0 0 0 0
 Indonesia 0 0 0 0
 Japan (D) (D) 49 (D)
 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 (D) 0
 Taiwan 0 0 (*) 0
 Other 0 0 0 0

United States (1) 0 0 0 0

Addenda:
 European Union
 (15) (2) 642 (D) 5,143 48
 OPEC (3) 0 0 0 0

 Manu-
 factu-
 ring

 Of
 which:

 Trans-
 porta- Whole-
 tion sale Retail Infor-
 equip- trade trade mation
 ment

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

 All countries 470 3,982 1,913 27,599

Canada (D) 31 (D) 503

Europe (D) 2,861 (D) 22,217
 Austria 0 0 0 (*)
 Belgium 0 (*) 0 0
 Denmark 0 (D) 3 0
 Finland 0 1 0 (D)
 France 0 (D) (D) 2,986

 Germany (D) 113 25 (D)
 Ireland 0 0 0 (D)
 Italy 0 (D) (D) (*)
 Liechtenstein 0 0 0 0
 Luxembourg 0 0 0 (D)
 Netherlands 0 2,036 (D) (D)

 Norway 0 0 0 (*)
 Spain 0 0 0 (*)
 Sweden 0 1 (*) (D)
 Switzerland 0 (D) 5 (*)
 United Kingdom (D) 355 (D) 7,053
 Other 0 (*) 0 0

Latin America and Other
 Western Hemisphere (D) 63 (D) (D)

 South and Central
 America 0 63 (D) 1
 Brazil 0 (*) 0 0
 Mexico 0 (D) (D) 1
 Panama 0 0 0 0
 Venezuela 0 (D) 0 (*)
 Other 0 (*) 0 (*)

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

Africa (*) (*) 0 5
 South Africa (*) 0 0 0
 Other 0 (*) 0 5

Middle East 0 3 (D) (D)
 Israel 0 3 (D) (D)
 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

Asia and Pacific 57 1,025 (D) (D)
 Australia 0 (D) 0 (D)
 China 0 (D) (*) (*)
 Hong Kong 0 (D) (D) (*)
 Indonesia 0 0 0 0
 Japan 57 764 (D) 382
 Korea, Republic of 0 (*) 0 1
 Malaysia 0 (*) 0 0
 New Zealand 0 0 0 0
 Philippines 0 (*) 0 0
 Singapore 0 0 4 (D)
 Taiwan 0 (D) (*) (D)
 Other 0 (*) (*) (D)

United States (1) 0 0 (D) (*)

Addenda:
 European Union
 (15) (2) (D) (D) 1,338 22,217
 OPEC (3) 0 (D) 0 (*)

 Finance,
 (except Real
 Depo- deposi- estate
 sitory tory and
 insti- institu- rental
 tutions tions) and
 and in- leasing
 surance

 (13) (14) (15)

 All countries 5,709 40,780 3,572

Canada (D) 4,084 369

Europe (D) 11,030 2,523
 Austria 0 0 (*)
 Belgium 0 2 10
 Denmark 0 0 0
 Finland 0 0 (D)
 France (D) (D) (D)

 Germany 0 (D) 1,659
 Ireland 0 0 0
 Italy 0 0 0
 Liechtenstein 0 0 0
 Luxembourg 0 0 (*)
 Netherlands (D) 2,967 159

 Norway 0 0 0
 Spain 0 0 1
 Sweden 0 (D) 6
 Switzerland 0 3,647 62
 United Kingdom (D) 1,339 163
 Other 0 (D) (*)

Latin America and Other
 Western Hemisphere 0 54 (D)

 South and Central
 America 0 (*) (D)
 Brazil 0 0 0
 Mexico 0 (*) (D)
 Panama 0 0 0
 Venezuela 0 0 0
 Other 0 (*) 0

 Other Western
 Hemisphere 0 54 (D)
 Bahamas 0 (*) 0
 Bermuda 0 7 (D)
 Netherlands Antilles 0 0 0
 United Kingdom
 Islands, Caribbean 0 46 (D)
 Other 0 0 0

Africa (D) (D) 1
 South Africa 0 (D) 1
 Other (D) 0 (*)

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

Asia and Pacific (D) 977 220
 Australia 0 0 (D)
 China 0 (*) 1
 Hong Kong (D) (*) 1
 Indonesia 0 0 0
 Japan 0 977 160
 Korea, Republic of 0 0 0
 Malaysia 0 0 3
 New Zealand 0 0 0
 Philippines 0 0 0
 Singapore 0 0 0
 Taiwan 0 0 0
 Other 0 0 (D)

United States (1) 0 (D) 4

Addenda:
 European Union
 (15) (2) (D) 6,501 2,460
 OPEC (3) 0 0 107

 Profes-
 sional
 scienti- Other
 fic, and indus-
 tech- tries
 nical
 services

 (16) (17)

 All countries 7,044 18,917

Canada 613 4,188

Europe 5,849 3,499
 Austria 0 (D)
 Belgium 0 0
 Denmark 0 (D)
 Finland 0 0
 France 590 223

 Germany 729 (D)
 Ireland (D) (D)
 Italy (D) (D)
 Liechtenstein 0 0
 Luxembourg 0 0
 Netherlands (D) 290

 Norway 0 (D)
 Spain (D) (D)
 Sweden 7 (*)
 Switzerland (D) (D)
 United Kingdom 1,666 1,721
 Other (*) 0

Latin America and Other
 Western Hemisphere (D) 10,510

 South and Central
 America (*) (*)
 Brazil 0 (*)
 Mexico (*) (*)
 Panama 0 0
 Venezuela 0 0
 Other (*) (*)

 Other Western
 Hemisphere (D) 10,510
 Bahamas (*) 0
 Bermuda (*) (D)
 Netherlands Antilles 5 0
 United Kingdom
 Islands, Caribbean (D) (D)
 Other 0 0

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

Middle East (D) 71
 Israel 8 (D)
 Kuwait 0 0
 Lebanon (D) (D)
 Saudi Arabia 0 (D)
 United Arab Emirates 0 (D)
 Other 0 0

Asia and Pacific 564 561
 Australia 3 (D)
 China 1 1
 Hong Kong (*) (D)
 Indonesia 0 0
 Japan 366 (D)
 Korea, Republic of (*) (*)
 Malaysia 0 0
 New Zealand (*) (*)
 Philippines 0 0
 Singapore 2 (D)
 Taiwan (*) 1
 Other 190 1

United States (1) (*) (D)

Addenda:
 European Union
 (15) (2) 5,838 2,943
 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 2001 are revised. For investments in which more than
one investor participated, each investor and each investor's 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, 2001

[Millions of dollars]

 Manufacturing

 Of which:

 All Chemi-
 industries Total Food cals

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

 All countries 52,558 17,259 2,278 1,211

Canada 3,533 676 (D) (D)

Europe 39,374 11,955 (D) (D)
 Austria 0 0 0 0
 Belgium (D) (D) 0 (D)
 Denmark 591 (D) 0 (D)
 Finland 697 611 0 (D)
 France 15,566 724 0 (D)

 Germany 2,194 491 0 (D)
 Ireland 638 209 86 0
 Italy (D) (D) 0 0
 Liechtenstein 0 0 0 0
 Luxembourg 0 0 0 0
 Netherlands 3,181 2,098 0 31

 Norway 169 (D) 0 (D)
 Spain 168 (D) 0 (D)
 Sweden 243 243 0 0
 Switzerland 2,756 (D) (D) 231
 United Kingdom 12,956 4,697 0 (D)
 Other 129 0 0 0

Latin America and Other
 Western Hemisphere 3,021 1,202 0 0

 South and Central
 America 407 (D) 0 0
 Brazil 0 0 0 0
 Mexico (D) (D) 0 0
 Panama (D) 0 0 0
 Venezuela 0 0 0 0
 Other 0 0 0 0

 Other Western
 Hemisphere 2,613 (D) 0 0
 Bahamas 0 0 0 0
 Bermuda (D) (D) 0 0
 Netherlands Antilles 0 0 0 0
 United Kingdom
 Islands, Caribbean (D) 0 0 0
 Other (D) 0 0 0

Africa 565 (D) 0 0
 South Africa 565 (D) 0 0
 Other 0 0 0 0

Middle East 283 (D) 0 0
 Israel 0 0 0 0
 Kuwait (D) (D) 0 0
 Lebanon 0 0 0 0
 Saudi Arabia (D) 0 0 0
 United Arab Emirates (D) 0 0 0
 Other 180 0 0 0

Asia and Pacific 5,352 2,419 0 (D)
 Australia 1,654 627 0 0
 China (D) (D) 0 0
 Hong Kong (*) 0 0 0
 Indonesia 0 0 0 0
 Japan 3,429 1,666 0 (D)
 Korea, Republic of 48 8 0 0
 Malaysia 0 0 0 0
 New Zealand 0 0 0 0
 Philippines 0 0 0 0
 Singapore 131 (D) 0 0
 Taiwan 75 (D) 0 0
 Other (D) (D) 0 0

United States (1) 430 (D) 0 0

Addenda:
 European Union
 (15) (2) 36,399 9,298 86 847
 OPEC (3) 103 (D) 0 0

 Manufacturing

 Of which:

 Electri-
 Primary Computer cal
 and and equipment
 fabri- Machi- elec- appli-
 cated nery tronic ances,
 mate- products and com-
 rials ponents

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

 All countries 611 526 488 1,013

Canada (D) (D) 109 0

Europe 579 443 353 0
 Austria 0 0 0 0
 Belgium 0 0 0 0
 Denmark 0 0 0 0
 Finland (D) (D) (D) 0
 France 455 (D) (D) 0

 Germany 0 (D) 0 0
 Ireland 0 0 0 0
 Italy 4 (D) 0 0
 Liechtenstein 0 0 0 0
 Luxembourg 0 0 0 0
 Netherlands 0 0 0 0

 Norway 0 (D) 0 0
 Spain 0 0 0 0
 Sweden 0 (D) 0 0
 Switzerland (D) (D) 0 0
 United Kingdom (D) (D) 0 0
 Other 0 0 0 0

Latin America and Other
 Western Hemisphere 0 0 0 (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 0 (D)
 Bahamas 0 0 0 0
 Bermuda 0 0 0 (D)
 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 (D) 32 26 (D)
 Australia 0 0 0 0
 China 0 (D) 0 0
 Hong Kong 0 0 0 0
 Indonesia 0 0 0 0
 Japan 1 (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) 3 (D) 0
 Other 0 0 0 0

United States (1) 0 (D) 0 0

Addenda:
 European Union
 (15) (2) 522 361 (D) 0
 OPEC (3) 0 0 0 0

 Manu-
 factu-
 ring

 Of
 which:

 Trans-
 porta- Whole-
 tion sale Retail Infor-
 equip- trade trade mation
 ment

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

 All countries 668 381 433 14,235

Canada 444 (D) 369 (D)

Europe 102 (D) (D) 13,150
 Austria 0 0 0 0
 Belgium 0 0 0 0
 Denmark 0 (D) 0 0
 Finland 0 0 0 0
 France (D) 27 0 (D)

 Germany (D) 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 75

 Norway 0 0 0 (D)
 Spain 0 0 0 0
 Sweden 0 0 0 0
 Switzerland 0 0 0 0
 United Kingdom (D) 210 (D) 2,414
 Other 0 0 0 (D)

Latin America and Other
 Western Hemisphere 0 0 0 (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 0 (D)
 Bahamas 0 0 0 0
 Bermuda 0 0 0 0
 Netherlands Antilles 0 0 0 0
 United Kingdom
 Islands, Caribbean 0 0 0 (D)
 Other 0 0 0 0

Africa 0 0 0 0
 South Africa 0 0 0 0
 Other 0 0 0 0

Middle East (D) 0 0 180
 Israel 0 0 0 0
 Kuwait (D) 0 0 0
 Lebanon 0 0 0 0
 Saudi Arabia 0 0 0 0
 United Arab Emirates 0 0 0 0
 Other 0 0 0 180

Asia and Pacific (D) 127 (D) 187
 Australia 0 0 0 0
 China 0 0 0 0
 Hong Kong 0 0 0 (*)
 Indonesia 0 0 0 0
 Japan (D) 47 (D) 187
 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) 0 0
 Other (D) 0 0 0

United States (1) 0 0 0 (D)

Addenda:
 European Union
 (15) (2) 102 (D) (D) 13,002
 OPEC (3) (D) 0 0 0

 Finance,
 (except Real
 Depo- deposi- estate
 sitory tory and
 insti- institu- rental
 tutions tions) and
 and in- leasing
 surance

 (13) (14) (15)

 All countries 705 3,241 4,573

Canada (D) (D) 1,413

Europe 393 2,307 1,871
 Austria 0 0 0
 Belgium 0 0 0
 Denmark 0 0 0
 Finland 0 0 0
 France 0 (D) (D)

 Germany 0 734 914
 Ireland 0 (D) 0
 Italy 0 0 0
 Liechtenstein 0 0 0
 Luxembourg 0 0 0
 Netherlands 0 357 536

 Norway 0 0 0
 Spain 0 0 0
 Sweden 0 0 0
 Switzerland 0 (D) 0
 United Kingdom (D) 788 384
 Other (D) 0 (D)

Latin America and Other
 Western Hemisphere 0 (D) (D)

 South and Central
 America 0 0 0
 Brazil 0 0 0
 Mexico 0 0 0
 Panama 0 0 0
 Venezuela 0 0 0
 Other 0 0 0

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

Asia and Pacific (D) 576 406
 Australia 0 (D) (D)
 China 0 0 0
 Hong Kong 0 0 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 0 0
 Taiwan 0 0 0
 Other 0 0 0

United States (1) 0 0 0

Addenda:
 European Union
 (15) (2) 393 2,197 1,854
 OPEC (3) 0 0 (D)

 Profes-
 sional
 scienti- Other
 fic, and indus-
 tech- tries
 nical
 services

 (16) (17)

 All countries 4,424 7,306

Canada 57 486

Europe 4,240 5,157
 Austria 0 0
 Belgium 0 0
 Denmark 0 569
 Finland (D) (D)
 France 4,103 (D)

 Germany (D) (D)
 Ireland 0 (D)
 Italy 0 (D)
 Liechtenstein 0 0
 Luxembourg 0 0
 Netherlands 0 116

 Norway (D) 0
 Spain 0 (D)
 Sweden 0 0
 Switzerland 0 4
 United Kingdom (D) 4,038
 Other 0 0

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

 South and Central
 America (D) (D)
 Brazil 0 0
 Mexico 0 (*)
 Panama (D) (D)
 Venezuela 0 0
 Other 0 0

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

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

Middle East 0 0
 Israel 0 0
 Kuwait 0 0
 Lebanon 0 0
 Saudi Arabia 0 0
 United Arab Emirates 0 0
 Other 0 0

Asia and Pacific (D) 1,467
 Australia 0 (D)
 China 0 0
 Hong Kong 0 0
 Indonesia 0 0
 Japan (D) (D)
 Korea, Republic of (D) 0
 Malaysia 0 0
 New Zealand 0 0
 Philippines 0 0
 Singapore (D) (D)
 Taiwan 0 0
 Other (D) 0

United States (1) 0 0

Addenda:
 European Union
 (15) (2) 4,200 5,152
 OPEC (3) 0 0

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

(1.) The estimates for 2002 are preliminary. The estimate of total outlays for 2001 has been revised up 11 percent from the preliminary estimate published last year; see Thomas W. Anderson, "Foreign Direct Investment in the United States: New Investment in 2001," SURVEY OF CURRENT BUSINESS 82 (June 2002): 28-35. For information on the coverage of the estimates, see the "Technical Note" on page 58 of this issue.

(2.) According to information from Thomson Financial Securities Data, the worldwide dollar volume of announced merger and acquisition activity decreased 28 percent in 2002.

(3.) Capital inflows, unlike the data on investment outlays reported in this article, include funding of existing as well as new U.S. affiliates. The preliminary estimates for these flows were published in Christopher L. Bach, "U.S. International Transactions, Fourth Quarter and Year 2002," SURVEY 83: (April 2003) 18-60. Revised estimates will be published in the July SURVEY.

(4.) The number of new U.S. businesses established is not equivalent to 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 the full reports (BE-13) and the partial reports (BE-13, supplement C) are on BEA's Web site at <www.bea.gov/ bea/surveys.htm>.

(6.) Each year, BEA continues to receive 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.

NOTE. The data presented in this article were drawn 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, Erica Carson-Brown, and Joseph N. Poist. Karen E. Poffel and Neeta B. Kapoor programmed the tables.