Foreign direct investment in the United States: new investment in 2001.

Anderson, Thomas W.

IN 2001, outlays by foreign direct investors to acquire or establish U.S. businesses decreased substantially, reflecting the slowdown in the U.S. economy and in the world economy. Outlays decreased 60 percent to $132.9 billion in 2001 from an exceptionally high level of $335.6 billion in 2000. (1) The decrease, the first since 1997, was part of a sharp drop in overall merger and acquisition activity worldwide. (2) Despite the decline, outlays were still higher than in any year prior to 1998 (chart 1 and table 1).

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The sharp decrease in outlays in 2001 followed 3 years of unprecedented levels of spending for new investments, largely reflecting the strength of the U.S. economy and the world economy. In 1998-2000, outlays in each year were at least triple those in any year prior to 1998 and large--$2 billion or more--investments accounted for at least two-thirds of total outlays in each year. These large investments were concentrated in industries in which large businesses are prevalent, such as petroleum, motor vehicles, food manufacturing, telecommunications, and financial services. By country of ultimate beneficial owner (UBO), investors from the United Kingdom predominated (chart 2).

[GRAPHIC OMITTED]

In 2001, the share of total outlays that was accounted for by very large transactions decreased substantially. However investments of $2 billion or more still accounted for just over one half of total outlays (table 2).

In 2001, outlays fell in all major industry groups and from almost all major source countries. The decreases were particularly sharp in several high-tech industries, most notably in telecommunications and in the manufacturing of related equipment. In 1998--2000, outlays in these industries had been especially strong, primarily reflecting a worldwide wave of business consolidations that had occurred partly in response to rapid technological change and, in telecommunications, in response to deregulation. In 2001, these industries were especially affected by the economic slowdowns in the United States and in Europe. Business conditions in telecommunications were particularly weak, as substantial spending to build fiber optic cable networks and other infrastructure over several years resulted in excess capacity and aggressive price competition.

Despite the drop in total new investment spending, outlays in "finance (except depository institutions) and insurance," though down somewhat from 2000, remained particularly strong by historical standards. These outlays reflected a number of large acquisitions of life insurance companies, as foreign investors were attracted by the large and expanding U.S. life insurance market.

Investment outlays in 2001

In 2001, as in 1999-2000, outlays to acquire U.S. businesses--at $127.9 billion--accounted for nearly all 96 percent of total outlays. Outlays to establish U.S. businesses--at $5.0 billion--were at the lowest level since 1993. In 2001, as in 1999-2000, most of the outlays were made by existing U.S. affiliates ($111.0 billion) rather than by the foreign direct investors themselves ($22.0 billion).

By industry, outlays were largest in "finance (except depository institutions) and insurance" ($37.9 billion) and manufacturing ($35.6 billion) (table 3). As noted earlier, outlays in finance and insurance were bolstered by several large acquisitions in insurance. Within manufacturing, outlays were largest in food ($11.0 billion) and in computers and electronic products ($10.2 billion). Outlays were also substantial in information ($26.0 billion), mainly in broadcasting and telecommunications and in publishing. Outlays in professional, scientific and technical services were $6.5 billion.

By country of UBO, the largest outlays were by Canadian investors ($16.9 billion), followed by British investors ($16.6 billion) (table 4). Outlays by British investors, which have accounted for a substantial portion of foreign investors' new investment spending in high-tech industries in recent years, plunged from $110.2 billion in 2000. Outlays by British investors in 2001 were substantially lower than in the 3 previous years, when they were boosted by a few especially large investments. Among other European countries, outlays by investors from Switzerland were $15.0 billion, and outlays by investors from the Netherlands were $13.2 billion. In the Asian and Pacific area, Australia, the only major source country to increase its spending in 2001, was the largest investor, at $5.0 billion. Outlays by Japanese investors totaled $3.8 billion, down sharply from $26.0 billion in 2000, when one large transaction accounted for most of the total.

Outlays for new investments may be financed either with funds supplied by foreign direct investors or by funds from their existing U.S. affiliates. In 2001, outlays funded by foreign investors decreased to $70.7 billion from $214.3 billion in 2000. These outlays are part of overall capital inflows for foreign direct investment in the United States (FDIUS) as recorded in the financial account of the U.S. international transactions accounts (ITA's). (3) Outlays financed by existing U.S. affiliates with funds from U.S. sources, including from their own retained earnings, or from foreign sources other than their foreign parents decreased to $62.3 billion from $121.1 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 in 2001 totaled $338.9 billion, down from $482.0 billion in 2000 (table 5). Among industry groups, finance and insurance, with assets of $160.8 billion, accounted for the largest share of total assets.

Newly acquired or established businesses employed 341,000 people in 2001. Manufacturing, with 81,000 employees, accounted for the largest share of employment. Within manufacturing, employment was largest in computers and electronic products, with 27,000 employees. Professional, scientific and technical services employed 54,000 people, and information 39,000.

Net income for newly acquired or established businesses totaled $1.1 billion in 2001, down from $6.3 billion in 2000. Total sales for these businesses were $96.7 billion, down from $160.7 billion.

Technical Note

The estimates of new foreign direct investments cover U.S. business enterprises that were acquired or established by foreign direct investors during the year and that filed full or partial reports on the survey that the Bureau of Economic Analysis (BEA) used to collect the data. 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 a foreign parent or its existing U.S. affiliate obtains a voting equity interest of 10 percent or more in an existing U.S. business enterprise and continues to operate it as a separate legal entity or 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. A U.S. business is also categorized as "acquired" 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.

These estimates 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.")

U.S. businesses that are acquired or established by foreign direct investors and that have total assets of more than $3 million or own 200 or more acres of U.S. land are required to file full reports with BEA. To reduce the reporting burden, smaller U.S. businesses--those having total assets of $3 million or less and owning less than 200 acres of U.S. land--are permitted to file shorter, partial reports. (5)

From the partial reports that it receives, BEA estimates the items that are collected only on the full reports and adds these estimates and the reported data from the partial reports to the data from the full reports. Because the businesses that file partial reports are so small, their estimated and reported values have a negligible impact on the published aggregates. For example, in 2000, the total assets of U.S. businesses that filed partial reports were $490 million, less than 1 percent of the total assets for all investments.

Although the values for partial reports are negligible, the number of partial reports is significant. For example, in 2000, BEA received 1,270 partial reports and 982 full reports. Furthermore, the number of businesses that are subject to partial reporting may be much higher than the 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 982 full reports filed in 2000, 720 were for investments to acquire an existing U.S. business, and 262 were to establish a new U.S. business. For 2001, BEA estimates that 805 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 2001, 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.

 1999 2000 (r) 2001 (p)

Total full reports 823 982 805

 By size of outlays:
 $5 billion or more 9 12 3
 $2 billion-$4.999 billion 14 22 10
 $100 million-$1.999 billion 157 206 109
 Less than $100 million 643 742 682

(p) Preliminary.

(r) Revised.

The number of new investments for 1998-2001 is not comparable with the number of new investments for 1980-97, because the criterion for filing full reports was raised from $1 million to $3 million in 1998. The incomparability affects only the total number of investments and the number in the smallest size class. In addition, prior to 1998, the values of 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 comparable with those for 1998 forward.

Tables 6 and 7 follow.

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 government).

A foreign person is a person who 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 benefit from ownership or control.

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, Amy R. Sweeney, and Erica Carson-Brown. Karen E. Poffel and Neeta B. Kapoor programmed the tables.

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 1980-2001 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 investment in the United States (FDIUS) presented in this article, BEA collects and publishes two other broad sets of data on FDIUS: Financial and operating data of U.S. affiliates, and balance-of-payments and direct-investment position data.

The financial and operating data were most recently published in "U.S. Affiliates of Foreign Companies: Operations in 1999" in the August 2001 issue of the SURVEY OF CURRENT BUSINESS; the article includes a description of the three types of FDIUS data. Data on affiliate operations at the establishment level are available for selected years as a result of a special project that linked the Bureau's enterprise data for U.S. affiliates with the establishment data for all U.S. companies from the Bureau of the Census. Establishment data for 1997 will be published this summer.

The balance-of-payments and direct-investment-position data were published in "The International Investment Position of the United States at Yearend 2000" and "Direct Investment Positions for 2000: Country and Industry Detail" in the July 2001 issue of the SURVEY; in "Foreign Direct Investment in the United States: Detail for Historical-Cost Position and Related Capital and Income Flows, 2000" in the September 2001 issue; and in "U.S. International Transactions, Fourth Quarter and Year 2001" in the April 2002 issue.

Revised and updated balance-of-payments data and direct-investment-position data will be published in the July and September 2002 issues.

Table 1. Investment Outlays by Type of Investment and Investor,
 1992-2001
 [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 (r) 2001 (p)

Total outlays 335,629 132,943

By type of investment
 U.S. businesses acquired 322,703 127,946
 U.S. businesses established 12,926 4,996

By type of investor:
 Foreign direct investors 105,151 21,961
 U.S. affiliates 230,478 110,982

(p) Preliminary.

(r) Revised.
 Table 2. Distribution of Investment Outlays by Size, 1992-2001
 [Percent]

 1992 1993 1994 1995 1996 1997

Total outlays 100 100 100 100 100 100
 $5 billion or more 0 0 0 (D) 0 0
 $2 billion-$4.999
 billion 0 (D) 27 18 29 12
 $100 million-$1.999
 billion 42 51 51 48 55 67
 Less than $100
 million 58 (D) 22 (D) 16 21

 1998 1999 2000 2001
 (r) (p)

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

(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, 1998-2001
[Millions of dollars]

 1998 1999 2000 (r) 2001 (p)

 All industries 215,256 274,956 335,629 132,943

Manufacturing 149,243 73,122 143,285 35,579
 Food 1,286 859 (D) 10,960
 Beverages and tobacco pro-
 ducts 442 1,417 3,722 592
 Petroleum and coal products 67,658 158 (D) 0
 Chemicals 3,627 5,703 15,016 3,257
 Plastics and rubber pro-
 ducts 1,434 3,638 3,154 861
 Nonmetallic mineral pro-
 ducts 900 3,175 6,324 355
 Primary metals 2,454 2,542 379 186
 Fabricated metal products 532 1,388 638 615
 Machinery 5,220 13,941 1,213 1,439
 Computers and electronic
 products 17,861 30,601 42,600 10,191
 Electrical equipment,
 appliances, and components 136 4,247 8,084 2,205
 Transportation equipment 37,177 2,786 3,230 146
 Other 10,516 2,667 6,529 4,772

Wholesale trade 3,321 (D) 8,561 3,214

Retail trade 1,153 3,458 1,672 1,289

Information 13,399 90,855 67,932 25,960
 Publishing industries 9,856 (D) 10,135 10,327
 Motion pictures and sound
 recording industries 36 (D) (D) 428
 Broadcasting and teleco-
 mmunications 2,841 78,202 (D) 14,187
 Information services and
 data processing services 667 (D) 12,228 1,018

Depository institutions 1,563 (D) 2,636 6,161
Finance (except depository
 institutions) and insurance 21,057 46,380 44,420 37,886

Real estate and rental and
 leasing 6,299 5,206 4,526 4,309

Professional, scientific,
 and technical services 4,289 9,366 32,332 6,493

Other industries 14,932 32,680 30,264 12,052

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

(p) Preliminary.

(r) Revised.
Table 4. Investment Outlays by Country of Ultimate Beneficial
Owner, 1998-2001 (1)
[Millions of dollars]

 1998 1999 2000 (r) 2001 (p)

 All countries 215,256 274,956 335,629 132,943

Canada 22,635 9,271 28,346 16,928

Europe 170,173 196,288 249,167 72,134
 France 14,493 23,750 26,149 4,995
 Germany 39,873 21,514 18,452 12,845
 Netherlands 19,009 22,265 47,686 13,238
 Switzerland 4,525 7,512 22,789 15,037
 United Kingdom 84,995 109,226 110,208 16,557
 Other Europe 7,278 12,021 23,883 9,462

Latin America and Other Wes-
 tern Hemisphere 11,354 33,046 15,400 (D)
 South and Central America 920 1,622 5,334 (D)
 Other Western Hemisphere 10,433 31,424 10,066 8,623

Africa 212 (D) (D) (D)

Middle East 2,810 848 947 (D)

Asia and Pacific 7,329 15,100 40,282 9,477
 Australia (D) (D) (D) 5,035
 Japan 4,862 11,696 26,044 3,797
 Other Asia and Pacific (D) (D) (D) 645

United States (2) 743 (D) (D) (D)

(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 Enterprises, 2000-2001

 2000 (r)

 Millions of dollars Number of
 Thousand hectares
 Total Net of of land
 assets Sales income employees owned (1)

 All industries 482,021 160,729 6,281 770.0 315,459

Manufacturing 147,355 60,254 3,713 194.5 200,740
Wholesale trade 8,299 14,476 371 31.1 1,357
Retail trade 11,099 15,054 -353 104.6 (D)
Information 48,306 13,752 -1,108 52.9 1,344
Depository
 institutions 11,894 (D) (D) G (D)
Finance (except
 depository
 institutions)
 and insurance 179,555 19,610 2,413 41.3 152
Real estate and
 rental and leasing 7,116 (D) (D) G 10,099
Professional,
 scientific, and
 technical services 29,364 10,242 467 72.3 442
Other industries 39,034 25,380 502 268.6 100,996

 2001 (p)

 Millions of dollars Number of
 Thousand hectares
 Total Net of of land
 assets Sales income employees owned (1)

All industries 338,850 96,686 1,129 341.4 101,979

Manufacturing 38,934 28,654 532 81.0 19,724
Wholesale trade 4,851 12,700 122 30.9 395
Retail trade 1,465 3,364 8 26.2 202
Information 32,748 6,409 -712 38.6 144
Depository
 institutions 69,338 4,406 309 8.8 109
Finance (except
 depository
 institutions)
 and insurance 160,768 21,996 1,746 32.7 (D)
Real estate and
 rental and leasing 4,555 408 52 0.1 50,671
Professional,
 scientific, and
 technical services 14,340 10,068 -453 54.4 (D)
Other industries 11,851 8,680 -475 68.7 29,881

(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, the
acres of land owned in 2000 and 2001 were 779,499 and 251,990,
respectively.

NOTES. 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.

Size ranges are given in employment cells that are suppressed. The
size ranges are: A--1 to 499; F--500 to 999; G--1,000 to 2,499;
H--2,500 to 4,999; I--5,000 to 9,999; J--10,000 to 24,999; K--25,000
to 49,999; L--50,000 to 99,999; M--100,000 or more.
Table 6. Investment Outlays by Type of Investment and Investor,
by Industry of U.S. Business Enterprise, 2000-2001
[Millions of dollars]

 2000 (r)

 By type of
 investment

 US US
 businesses businesses
 Total acquired established

 All Industries 335,629 322,703 12,926

Manufacturing 143,285 140,702 2,583
 Food (D) (D) 6
 Beverages and tobacco 3,722 3,720 2
 Textiles, apparel, and
 leather products 153 153 (*)
 Wood products (D) (D) (*)
 Paper (D) (D) 2
 Printing and related
 support activities (D) (D) 0
 Petroleum and coal
 products (D) (D) 1
 Chemicals 15,016 (D) (D)
 Basic chemicals 2,219 (D) (D)
 Resins and synthetic
 rubber, fibers and
 filaments 513 512 1
 Pharmaceuticals and
 medicines 7,209 7,209 (*)
 Soap, cleaning
 compounds, and
 toilet preparation 912 (D) (D)
 Other 4,163 4,163 (*)
 Plastics and rubber
 products 3,154 (D) (D)
 Nonmetallic mineral
 products 6,324 (D) (D)
 Primary and fabricated
 metals 1,017 866 151
 Primary metals 379 (D) (D)
 Fabricated metal
 products 638 (D) (D)
 Machinery 1,213 1,207 6
 Agriculture,
 construction, and
 mining machinery 332 331 1
 Industrial machinery 132 128 5
 Other 749 749 (*)
 Computers and
 electronic products 42,600 42,086 515
 Computer and
 peripheral
 equipment (D) (D) (D)
 Communications
 equipment (D) (D) 48
 Audio and video
 equipment (D) (D) (*)
 Semiconductors and
 other electronic
 components 19,605 (D) (D)
 Navigational,
 measuring, and
 other instruments 2,791 2,789 2
 Magnetic and optical
 media 5 (*) 4
 Electrical equipment,
 appliances, and
 components 8,084 (D) (D)
 Transportation
 equipment 3,230 2,614 616
 Motor vehicles,
 bodies and trailers,
 and parts (D) (D) (D)
 Other (D) (D) (D)
 Furniture and related
 products (D) (D) (*)
 Miscellaneous
 manufacturing 1,256 1,255 1
Wholesale trade 8,561 8,362 199
 Motor vehicles and
 motor vehicle parts
 and supplies (*) (*) 0
 Professional and
 commercial equipment
 and supplies (D) 357 (D)
 Electrical goods (D) 484 (D)
 Other durable goods (D) (D) (D)
 Petroleum and
 petroleum products (D) (D) (D)
 Other nondurable goods 6,864 (D) (D)
Retail trade 1,672 1,366 306
 Food and beverage
 stores (D) (D) 0
 Other (D) (D) 306
Information 67,932 67,032 900
 Publishing industries 10,135 9,939 196
 Motion pictures and
 sound recording
 industries (D) (D) (*)
 Broadcasting and
 telecommunications (D) (D) 651
 Broadcasting, cable
 networks, and
 program
 distribution 2 (*) 2
 Telecommunications (D) (D) 649
 Information services
 and data processing
 services 12,228 12,175 53
Depository institutions 2,636 (D) (D)
Finance, (except
 depository
 institutions) and
 insurance 44,420 43,483 937
 Finance, except
 depository
 institutions 27,049 26,138 911
 Insurance carriers and
 related activities 17,371 17,345 26
Real estate and rental
 and leasing 4,526 1,799 2,728
 Real estate 4,266 (D) (D)
 Rental and leasing
 (except real estate) 260 (D) (D)
Professional,
 scientific, and
 technical services 32,332 (D) (D)
 Architectural,
 engineering, and
 related services (D) (D) 10
 Computer systems
 design and related
 services (D) (D) (D)
 Management,
 scientific, and
 technical consulting 15,137 (D) (D)
 Other 9,284 (D) (D)
Other Industries 30,264 27,697 2,567
 Agriculture, forestry,
 fishing, and hunting (D) (D) 1
 Mining 6,951 (D) (D)
 Utilities 10,878 (D) (D)
 Construction 1,282 1,273 9
 Transportation and
 warehousing 2,508 2,486 22
 Management of nonbank
 companies and
 enterprises 1,478 (D) (D)
 Administration,
 support, and waste
 management 4,903 4,896 7
 Health care and social
 assistance 0 0 0
 Accommodation and food
 services (D) 981 (D)
 Accommodation 860 799 61
 Food services and
 drinking places (D) 182 (D)
 Miscellaneous services 1,125 (D) (D)

 2000 (r)

 By type of
 investor

 Foreign
 direct U.S.
 investors affiliates

 All Industries 105,151 230,478

Manufacturing 34,690 108,596
 Food (D) (D)
 Beverages and tobacco (D) (D)
 Textiles, apparel, and
 leather products (*) 153
 Wood products (D) 8
 Paper (D) 161
 Printing and related
 support activities (D) 0
 Petroleum and coal
 products 1 (D)
 Chemicals 1,063 13,953
 Basic chemicals 1 2,217
 Resins and synthetic
 rubber, fibers and
 filaments (*) 513
 Pharmaceuticals and
 medicines (D) (D)
 Soap, cleaning
 compounds, and
 toilet preparation (D) (D)
 Other (D) (D)
 Plastics and rubber
 products (D) (D)
 Nonmetallic mineral
 products (*) 6,324
 Primary and fabricated
 metals 162 855
 Primary metals (D) (D)
 Fabricated metal
 products (D) (D)
 Machinery 894 320
 Agriculture,
 construction, and
 mining machinery (D) (D)
 Industrial machinery (D) (D)
 Other 588 161
 Computers and
 electronic products 19,579 23,021
 Computer and
 peripheral
 equipment (D) (D)
 Communications
 equipment 1,151 (D)
 Audio and video
 equipment (D) (D)
 Semiconductors and
 other electronic
 components 16,899 2,705
 Navigational,
 measuring, and
 other instruments (D) (D)
 Magnetic and optical
 media 2 2
 Electrical equipment,
 appliances, and
 components (D) (D)
 Transportation
 equipment 56 3,174
 Motor vehicles,
 bodies and trailers,
 and parts 56 (D)
 Other (*) (D)
 Furniture and related
 products (*) (D)
 Miscellaneous
 manufacturing (D) (D)
Wholesale trade (D) (D)
 Motor vehicles and
 motor vehicle parts
 and supplies 0 (*)
 Professional and
 commercial equipment
 and supplies (D) 314
 Electrical goods (D) 496
 Other durable goods (D) (D)
 Petroleum and
 petroleum products (D) 0
 Other nondurable goods (D) (D)
Retail trade 799 873
 Food and beverage
 stores 0 (D)
 Other 799 (D)
Information 11,703 56,229
 Publishing industries 3,102 7,033
 Motion pictures and
 sound recording
 industries (D) 71
 Broadcasting and
 telecommunications 730 (D)
 Broadcasting, cable
 networks, and
 program
 distribution 2 (*)
 Telecommunications 728 (D)
 Information services
 and data processing
 services (D) (D)
Depository institutions (D) (D)
Finance, (except
 depository
 institutions) and
 insurance 19,641 24,779
 Finance, except
 depository
 institutions (D) (D)
 Insurance carriers and
 related activities (D) (D)
Real estate and rental
 and leasing 518 4,009
 Real estate 516 3,751
 Rental and leasing
 (except real estate) 2 258
Professional,
 scientific, and
 technical services 21,008 11,324
 Architectural,
 engineering, and
 related services (D) (D)
 Computer systems
 design and related
 services (D) 4,370
 Management,
 scientific, and
 technical consulting (D) (D)
 Other (D) (D)
Other Industries 13,399 16,865
 Agriculture, forestry,
 fishing, and hunting 1 (D)
 Mining (D) (D)
 Utilities (D) (D)
 Construction (D) (D)
 Transportation and
 warehousing (D) (D)
 Management of nonbank
 companies and
 enterprises (D) (D)
 Administration,
 support, and waste
 management 1,999 2,904
 Health care and social
 assistance 0 0
 Accommodation and food
 services (D) (D)
 Accommodation (D) (D)
 Food services and
 drinking places (D) (D)
 Miscellaneous services 19 1,106

 2001 (p)

 By type of
 investment

 US US
 businesses businesses
 Total acquired established

 All Industries 132,943 127,946 4,996

Manufacturing 35,579 35,200 379
 Food 10,960 10,960 0
 Beverages and tobacco 592 592 0
 Textiles, apparel, and
 leather products (D) (D) 0
 Wood products (D) (D) 0
 Paper 3,124 3,124 (*)
 Printing and related
 support activities (D) (D) 0
 Petroleum and coal
 products 0 0 0
 Chemicals 3,257 3,254 4
 Basic chemicals 0 0 0
 Resins and synthetic
 rubber, fibers and
 filaments (D) (D) 0
 Pharmaceuticals and
 medicines 1,568 1,568 0
 Soap, cleaning
 compounds, and
 toilet preparation (D) (D) 0
 Other (D) (D) 4
 Plastics and rubber
 products 861 855 6
 Nonmetallic mineral
 products 355 (D) (D)
 Primary and fabricated
 metals 802 (D) (D)
 Primary metals 186 (D) (D)
 Fabricated metal
 products 615 611 4
 Machinery 1,439 1,439 0
 Agriculture,
 construction, and
 mining machinery 0 0 0
 Industrial machinery (D) (D) 0
 Other (D) (D) 0
 Computers and
 electronic products 10,191 9,964 226
 Computer and
 peripheral
 equipment 745 745 0
 Communications
 equipment 6,131 (D) (D)
 Audio and video
 equipment 0 0 0
 Semiconductors and
 other electronic
 components 497 (D) (D)
 Navigational,
 measuring, and
 other instruments 2,817 (D) (D)
 Magnetic and optical
 media 0 0 0
 Electrical equipment,
 appliances, and
 components 2,205 2,205 0
 Transportation
 equipment 146 (D) (D)
 Motor vehicles,
 bodies and trailers,
 and parts (D) (D) (D)
 Other (D) (D) 0
 Furniture and related
 products (D) (D) 0
 Miscellaneous
 manufacturing 1,024 1,024 0
Wholesale trade 3,214 (D) (D)
 Motor vehicles and
 motor vehicle parts
 and supplies 3 3 0
 Professional and
 commercial equipment
 and supplies 459 459 (*)
 Electrical goods (D) (D) 0
 Other durable goods 510 (D) (D)
 Petroleum and
 petroleum products (D) 0 (D)
 Other nondurable goods 2,111 (D) (D)
Retail trade 1,289 (D) (D)
 Food and beverage
 stores 561 (D) (D)
 Other 728 (D) (D)
Information 25,960 25,928 31
 Publishing industries 10,327 (D) (D)
 Motion pictures and
 sound recording
 industries 428 425 3
 Broadcasting and
 telecommunications 14,187 (D) (D)
 Broadcasting, cable
 networks, and
 program
 distribution (D) (D) 0
 Telecommunications (D) (D) (D)
 Information services
 and data processing
 services 1,018 (D) (D)
Depository institutions 6,161 6,091 70
Finance, (except
 depository
 institutions) and
 insurance 37,886 37,459 427
 Finance, except
 depository
 institutions 6,579 6,152 427
 Insurance carriers and
 related activities 31,307 31,307 (*)
Real estate and rental
 and leasing 4,309 579 3,730
 Real estate (D) (D) 3,730
 Rental and leasing
 (except real estate) (D) (D) 0
Professional,
 scientific, and
 technical services 6,493 6,382 110
 Architectural,
 engineering, and
 related services 47 47 0
 Computer systems
 design and related
 services 1,607 1,543 64
 Management,
 scientific, and
 technical consulting 937 929 8
 Other 3,902 3,862 39
Other Industries 12,052 11,911 141
 Agriculture, forestry,
 fishing, and hunting 83 (D) (D)
 Mining 5,615 (D) (D)
 Utilities 351 (D) (D)
 Construction 308 308 0
 Transportation and
 warehousing 2,223 2,223 0
 Management of nonbank
 companies and
 enterprises 41 0 41
 Administration,
 support, and waste
 management 1,769 (D) (D)
 Health care and social
 assistance (D) (D) 0
 Accommodation and food
 services (D) (D) (D)
 Accommodation (D) (D) (D)
 Food services and
 drinking places (D) (D) 0
 Miscellaneous services 389 (D) (D)

 2001 (p)

 By type of
 investor

 Foreign
 direct U.S.
 investors affiliates

 All Industries 21,961 110,982

Manufacturing 3,248 32,331
 Food (D) (D)
 Beverages and tobacco 0 592
 Textiles, apparel, and
 leather products 0 (D)
 Wood products 0 (D)
 Paper (*) 3,124
 Printing and related
 support activities 0 (D)
 Petroleum and coal
 products 0 0
 Chemicals 122 3,135
 Basic chemicals 0 0
 Resins and synthetic
 rubber, fibers and
 filaments 0 (D)
 Pharmaceuticals and
 medicines 122 1,446
 Soap, cleaning
 compounds, and
 toilet preparation 0 (D)
 Other 0 (D)
 Plastics and rubber
 products 194 667
 Nonmetallic mineral
 products (D) (D)
 Primary and fabricated
 metals 360 442
 Primary metals (D) (D)
 Fabricated metal
 products (D) (D)
 Machinery (D) (D)
 Agriculture,
 construction, and
 mining machinery 0 0
 Industrial machinery (D) (D)
 Other 0 (D)
 Computers and
 electronic products 801 9,390
 Computer and
 peripheral
 equipment (D) (D)
 Communications
 equipment 328 5,804
 Audio and video
 equipment 0 0
 Semiconductors and
 other electronic
 components (D) (D)
 Navigational,
 measuring, and
 other instruments 200 2,617
 Magnetic and optical
 media 0 0
 Electrical equipment,
 appliances, and
 components 3 2,202
 Transportation
 equipment (*) 146
 Motor vehicles,
 bodies and trailers,
 and parts (*) (D)
 Other 0 (D)
 Furniture and related
 products (D) (D)
 Miscellaneous
 manufacturing 258 766
Wholesale trade 435 2,780
 Motor vehicles and
 motor vehicle parts
 and supplies 0 3
 Professional and
 commercial equipment
 and supplies (*) 459
 Electrical goods 0 (D)
 Other durable goods (D) (D)
 Petroleum and
 petroleum products 0 (D)
 Other nondurable goods (D) (D)
Retail trade (D) (D)
 Food and beverage
 stores 0 561
 Other (D) (D)
Information 12,220 13,740
 Publishing industries 2,017 8,310
 Motion pictures and
 sound recording
 industries (D) (D)
 Broadcasting and
 telecommunications (D) (D)
 Broadcasting, cable
 networks, and
 program
 distribution 0 (D)
 Telecommunications (D) (D)
 Information services
 and data processing
 services 97 921
Depository institutions (D) (D)
Finance, (except
 depository
 institutions) and
 insurance 1,018 36,868
 Finance, except
 depository
 institutions 1,018 5,561
 Insurance carriers and
 related activities 0 31,307
Real estate and rental
 and leasing 253 4,056
 Real estate 253 (D)
 Rental and leasing
 (except real estate) 0 (D)
Professional,
 scientific, and
 technical services 1,013 5,480
 Architectural,
 engineering, and
 related services (*) 47
 Computer systems
 design and related
 services (D) (D)
 Management,
 scientific, and
 technical consulting (D) (D)
 Other 320 3,582
Other Industries 839 11,213
 Agriculture, forestry,
 fishing, and hunting (D) (D)
 Mining (D) (D)
 Utilities (D) (D)
 Construction 0 308
 Transportation and
 warehousing (D) (D)
 Management of nonbank
 companies and
 enterprises 41 (*)
 Administration,
 support, and waste
 management 141 1,628
 Health care and social
 assistance 0 (D)
 Accommodation and food
 services (D) (D)
 Accommodation (D) (D)
 Food services and
 drinking places 0 (D)
 Miscellaneous services (D) (D)

* 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, 2000
[Millions of dollars]

 Manufacturing

 Of which:

 All Total Food Chemi-
 indus- cals
 tries

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

 All countries 335,629 143,285 (D) 15,016

Canada 28,346 18,560 (D) (D)

Europe 249,167 86,576 (D) 11,015
 Austria 78 (D) 1 0
 Belgium 4,229 (D) (D) (D)
 Denmark (D) (D) 0 (D)
 Finland (D) (D) 0 0
 France 26,149 3,340 14 808

 Germany 18,452 6,443 0 4,997
 Ireland (D) 871 (D) (D)
 Italy 1,906 382 (D) 0
 Liechtenstein 5 0 0 0
 Luxembourg (D) (D) 0 (D)
 Netherlands 47,686 27,507 (D) 2,944

 Norway (D) (D) 0 (*)
 Spain (D) 1 0 1
 Sweden 1,791 386 0 4
 Switzerland 22,789 3,230 (D) (D)
 United Kingdom 110,208 37,060 (D) 98
 Other 420 (D) 0 0

Latin America and Other
 Western Hemisphere 15,400 (D) 7 (D)

 South and Central America 5,334 (D) (*) 0
 Brazil 2 0 0 0
 Mexico 5,241 (D) (*) 0
 Panama 0 0 0 0
 Venezuela (D) (*) 0 0
 Other (D) (*) 0 0

 Other Western Hemisphere 10,066 (D) 7 (D)
 Bahamas (D) 0 0 0
 Bermuda 8,500 (D) (*) (D)
 Netherlands Antilles (D) 0 0 0
 United Kingdom Islands,
 Caribbean 1,056 (D) 7 0
 Other (*) (*) 0 0

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

Middle East 947 (D) 0 0
 Israel 539 (D) 0 0
 Kuwait 3 2 0 0
 Lebanon 0 0 0 0
 Saudi Arabia (D) 0 0 0
 United Arab Emirates (D) 0 0 0
 Other (D) (D) 0 0

Asia and Pacific 40,282 28,282 (D) 433
 Australia (D) (D) (*) 0
 China (D) (D) 0 0
 Hong Kong (D) (D) 0 0
 Indonesia 0 0 0 0
 Japan 26,044 (D) 1 432
 Korea, Republic of 13 (*) 0 0
 Malaysia (D) (*) 0 0
 New Zealand (D) (D) (D) 0
 Philippines 3 (*) 0 0
 Singapore (D) (D) 0 (*)
 Taiwan 213 (D) 0 0
 Other 7 0 0 0

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

Addenda:
 European Union (15) (2) 226,148 83,186 (D) 10,261
 OPEC (3) 255 2 0 0

 Manufacturing

 Of which:

 Primary Machin- Com- Electri-
 and fab- ery puter cal
 ricated and equip-
 metals elec- ment,
 tronic appli-
 products ances,
 and
 compo-
 nents

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

 All countries 1,017 1,213 42,600 8,084

Canada 118 4 12,752 (D)

Europe 873 903 5,372 (D)
 Austria (D) 1 0 0
 Belgium (D) 5 (D) 0
 Denmark 0 0 (D) 0
 Finland 0 0 (D) 0
 France (D) (D) (D) (D)

 Germany (D) (D) (D) (D)
 Ireland 0 0 0 0
 Italy 0 (D) (D) 0
 Liechtenstein 0 0 0 0
 Luxembourg 0 0 0 0
 Netherlands 98 (*) (D) (D)

 Norway (D) 0 0 0
 Spain 0 0 0 0
 Sweden (D) (D) (D) 0
 Switzerland 0 49 1,222 (D)
 United Kingdom 543 (D) 577 (D)
 Other 0 0 (D) 0

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

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

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

Asia and Pacific (D) (D) (D) 11
 Australia 0 0 0 0
 China 0 (D) 0 0
 Hong Kong 0 0 (D) (D)
 Indonesia 0 0 0 0
 Japan (D) 16 (D) (D)
 Korea, Republic of 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 (D) 0
 Other 0 0 0 0

United States (1) (*) 0 0 0

Addenda:
 European Union (15) (2) 815 854 4,150 (D)
 OPEC (3) 0 0 0 2

 Manufacturing

 Of which:

 Trans- Whole Retail Informa-
 porta- sale trade tion
 tion trade
 equip-
 ment

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

 All countries 3,230 8,561 1,672 67,932

Canada (D) 255 (D) 3,975

Europe 3,128 (D) 642 54,353
 Austria 0 (D) 0 (*)
 Belgium (D) 44 0 (D)
 Denmark 0 0 0 3
 Finland 0 1 0 (*)
 France (D) (D) (D) 140

 Germany (D) 245 (D) 1,406
 Ireland 0 (D) 0 (D)
 Italy (*) (D) (D) 0
 Liechtenstein 0 0 0 0
 Luxembourg 0 0 0 0
 Netherlands (D) 4,665 (D) (D)

 Norway 0 0 0 0
 Spain 0 2 0 (D)
 Sweden 0 (D) (D) 193
 Switzerland 1 50 0 (D)
 United Kingdom 2,816 609 (D) (D)
 Other 0 (*) (D) 1

Latin America and Other
 Western Hemisphere (D) 3 739 (D)

 South and Central America (D) 3 (D) (*)
 Brazil 0 0 0 (*)
 Mexico (D) 3 (D) (*)
 Panama 0 0 0 0
 Venezuela 0 0 0 0
 Other 0 0 (*) (*)

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

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

Middle East 0 0 (*) (D)
 Israel 0 0 (*) (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 0

Asia and Pacific 52 (D) 201 7,476
 Australia 0 (D) 0 (D)
 China 0 1 0 0
 Hong Kong 0 (D) 0 (D)
 Indonesia 0 0 0 0
 Japan 52 138 201 1,031
 Korea, Republic of 0 (D) 0 0
 Malaysia (*) 0 0 0
 New Zealand 0 0 0 0
 Philippines 0 (*) 0 0
 Singapore 0 1 0 0
 Taiwan 0 1 0 3
 Other 0 0 0 4

United States (1) 0 0 0 2

Addenda:
 European Union (15) (2) 3,127 7,794 (D) 49,906
 OPEC (3) 0 0 0 0

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

 (13) (14) (15)

 All countries 2,636 44,420 4,526

Canada (D) 1,541 118

Europe (D) 40,210 3,372
 Austria 0 0 13
 Belgium 0 (D) 1
 Denmark 0 0 0
 Finland 0 0 0
 France 0 (D) 1

 Germany 0 (D) 1,470
 Ireland 0 0 0
 Italy (D) (D) (D)
 Liechtenstein 0 0 0
 Luxembourg 0 0 0
 Netherlands 0 (D) (D)

 Norway 0 (*) 1
 Spain 0 (*) 3
 Sweden 0 (*) 14
 Switzerland 0 (D) (D)
 United Kingdom (D) 2,682 216
 Other 0 (*) 11

Latin America and Other
 Western Hemisphere 0 (D) 598

 South and Central America 0 (D) (D)
 Brazil 0 0 2
 Mexico 0 (D) (D)
 Panama 0 0 0
 Venezuela 0 0 (D)
 Other 0 0 (D)

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

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

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

Asia and Pacific (D) (D) 266
 Australia 0 (*) (*)
 China 0 0 (*)
 Hong Kong 0 0 (D)
 Indonesia 0 0 0
 Japan (D) (D) 234
 Korea, Republic of 0 (D) (*)
 Malaysia 0 0 (*)
 New Zealand 0 0 0
 Philippines 0 0 3
 Singapore 0 0 (*)
 Taiwan 0 (*) (D)
 Other 0 (*) (D)

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

Addenda:
 European Union (15) (2) (D) 26,251 3,225
 OPEC (3) 0 0 242

 Profes- Other
 sional, indus-
 scien- tries
 tific,
 and
 techni-
 cal ser-
 vices

 (16) (17)

 All countries 32,332 30,264

Canada 950 2,887

Europe 30,092 24,567
 Austria 0 1
 Belgium 2 (D)
 Denmark 0 (*)
 Finland (D) (*)
 France 15,709 1,446

 Germany (D) 2,060
 Ireland (D) (D)
 Italy (*) (D)
 Liechtenstein 0 5
 Luxembourg 0 0
 Netherlands (D) 2,846

 Norway 0 (*)
 Spain (D) (D)
 Sweden (D) 786
 Switzerland 15 (D)
 United Kingdom 10,718 15,268
 Other (*) (D)

Latin America and Other
 Western Hemisphere (D) 1,434

 South and Central America (*) 1,414
 Brazil 0 0
 Mexico (*) 1,414
 Panama 0 0
 Venezuela (*) (*)
 Other (*) (*)

 Other Western Hemisphere (D) 20
 Bahamas 0 (D)
 Bermuda (*) 0
 Netherlands Antilles (D) 0
 United Kingdom Islands,
 Caribbean (*) (D)
 Other 0 0

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

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

Asia and Pacific 996 1,354
 Australia 0 (D)
 China (*) 0
 Hong Kong 2 12
 Indonesia 0 0
 Japan 983 699
 Korea, Republic of (*) 0
 Malaysia 0 (D)
 New Zealand (D) 0
 Philippines 0 (*)
 Singapore (*) 6
 Taiwan 3 (D)
 Other (D) 0

United States (1) 3 (D)

Addenda:
 European Union (15) (2) 30,076 23,609
 OPEC (3) (*) 11

(*) 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 2000 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 Total Food Chemi-
 indus- cals
 tries

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

 All countries 132,943 35,579 10,960 3,257

Canada 16,928 4,421 (D) (D)

Europe 72,134 23,653 10,891 3,013
 Austria (D) (D) 0 0
 Belgium 159 (D) 0 (D)
 Denmark 88 20 0 (D)
 Finland 281 (D) 0 0
 France 4,995 740 169 (D)
 Germany 12,845 2,620 (D) 255

 Ireland 967 326 164 0
 Italy 721 56 0 0
 Liechtenstein 0 0 0 0
 Luxembourg (D) (D) (D) 0
 Netherlands 13,238 3,254 0 (D)

 Norway (D) 0 0 0
 Spain (D) 0 0 0
 Sweden (D) (D) 0 0
 Switzerland 15,037 12,378 (D) (D)
 United Kingdom 16,557 2,365 0 (D)
 Other (D) (D) 0 0

Latin America and Other
 Western Hemisphere (D) 4,326 (D) 0

 South and Central America (D) (D) 0 0
 Brazil (D) (D) 0 0
 Mexico (D) 325 0 0
 Panama 0 0 0 0
 Venezuela (D) 0 0 0
 Other 0 0 0 0

 Other Western Hemisphere 8,623 (D) (D) 0
 Bahamas 0 0 0 0
 Bermuda 5,385 (D) (D) 0
 Netherlands Antilles 5 0 0 0
 United Kingdom Islands,
 Caribbean 3,234 (D) 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 (D) (D) 0 0
 Kuwait 0 0 0 0
 Lebanon 0 0 0 0
 Saudi Arabia (D) 0 0 0
 United Arab Emirates 0 0 0 0
 Other 0 0 0 0

Asia and Pacific 9,477 (D) 0 (D)
 Australia 5,035 375 0 0
 China (D) (D) 0 0
 Hong Kong (D) 0 0 0
 Indonesia 0 0 0 0
 Japan 3,797 2,469 0 (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 (D) 0 0 0
 Taiwan (D) 0 0 0
 Other 99 0 0 0

United States (1) (D) 0 0 0

Addenda:
 European Union (15) (2) 56,083 11,275 412 1,750
 OPEC (3) 107 0 0 0

 Manufacturing

 Of which:

 Primary Machin- Com- Electri-
 and fab- ery puter cal
 ricated and equip-
 metals elec- ment,
 tronic appli-
 products ances,
 and
 compo-
 nents

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

 All countries 802 1,439 10,191 2,205

Canada 5 0 1,426 (D)

Europe 505 (D) 5,091 (D)
 Austria 0 0 (D) 0
 Belgium (D) 0 0 0
 Denmark 0 (D) 0 0
 Finland (D) (D) (D) 0
 France (D) 0 460 (D)
 Germany 4 2 2,228 0

 Ireland (D) 0 0 0
 Italy (D) 0 (D) 0
 Liechtenstein 0 0 0 0
 Luxembourg 0 0 0 0
 Netherlands 0 (D) (D) 3

 Norway 0 0 0 0
 Spain 0 0 0 0
 Sweden 0 0 (D) 0
 Switzerland 0 0 (D) 0
 United Kingdom 282 5 191 0
 Other 0 0 0 0

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

 South and Central America (D) 0 0 0
 Brazil 0 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 0 (D) 0
 Bahamas 0 0 0 0
 Bermuda 0 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 0 (D) 0
 Israel 0 0 (D) 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) (D) (D) (D)
 Australia 0 0 0 0
 China 0 0 0 0
 Hong Kong 0 0 0 0
 Indonesia 0 0 0 0
 Japan (D) (D) (D) (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 0 0
 Taiwan 0 0 0 0
 Other 0 0 0 0

United States (1) 0 0 0 0

Addenda:
 European Union (15) (2) 505 (D) 5,068 33
 OPEC (3) 0 0 0 0
 Manufac-
 turing

 Of Which:

 Trans- Whole- Retail Informa-
 porta- sale trade tion
 tion trade
 equip-
 ment

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

 All countries 146 3,214 1,289 25,960

Canada (D) (D) 0 489

Europe (D) 3,013 1,060 20,796
 Austria 0 0 0 0
 Belgium 0 (*) 0 0
 Denmark 0 (D) 0 0
 Finland 0 0 0 (D)
 France 0 535 (D) 2,384
 Germany 0 (D) 0 5,653

 Ireland 0 0 0 435
 Italy 0 (D) (D) 0
 Liechtenstein 0 0 0 0
 Luxembourg 0 0 0 (D)
 Netherlands 0 (D) (D) (D)

 Norway 0 0 0 0
 Spain 0 0 0 0
 Sweden 0 0 0 0
 Switzerland 0 0 5 0
 United Kingdom (D) 339 (D) 7,141
 Other 0 0 0 0

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

 South and Central America 0 (D) 0 0
 Brazil 0 0 0 0
 Mexico 0 (D) 0 0
 Panama 0 0 0 0
 Venezuela 0 (D) 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 5
 South Africa (*) 0 0 0
 Other 0 0 0 5

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

Asia and Pacific (D) 154 (D) (D)
 Australia 0 0 0 (D)
 China 0 3 0 0
 Hong Kong 0 0 0 0
 Indonesia 0 0 0 0
 Japan (D) (D) (D) 65
 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 3 0
 Taiwan 0 (D) 0 (D)
 Other 0 0 0 (D)

United States (1) 0 0 0 0

Addenda:
 European Union (15) (2) (D) 3,013 1,055 20,796
 OPEC (3) 0 (D) 0 0

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

 (13) (14) (15)

 All countries 6,161 37,886 4,309

Canada (D) 4,165 418

Europe 3,463 8,436 3,181
 Austria 0 0 0
 Belgium 0 0 (D)
 Denmark 0 0 0
 Finland 0 0 0
 France (D) 0 (D)
 Germany 0 1,120 2,551

 Ireland 0 0 0
 Italy 0 (D) 0
 Liechtenstein 0 0 0
 Luxembourg 0 0 0
 Netherlands (D) 3,121 114

 Norway 0 0 0
 Spain 0 0 0
 Sweden 0 0 0
 Switzerland 0 (D) 0
 United Kingdom (D) 929 (D)
 Other 0 (D) 0

Latin America and Other
 Western Hemisphere 0 (D) 552

 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) 552
 Bahamas 0 0 0
 Bermuda 0 0 147
 Netherlands Antilles 0 0 0
 United Kingdom Islands,
 Caribbean 0 (D) 404
 Other 0 0 0

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

Middle East (D) 0 (D)
 Israel (D) 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) 638 (D)
 Australia 0 0 (D)
 China 0 0 0
 Hong Kong (D) 0 0
 Indonesia 0 0 0
 Japan 0 638 (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 (D) 0

Addenda:
 European Union (15) (2) 3,463 5,194 3,181
 OPEC (3) 0 0 76

 Profes- Other
 sional, indus-
 scien- tries
 tific,
 and
 techni-
 cal ser-
 vices

 (16) (17)

 All countries 6,493 12,052

Canada 464 4,350

Europe 5,598 2,933
 Austria 0 0
 Belgium 0 0
 Denmark 0 (D)
 Finland 0 0
 France 521 181
 Germany 338 (D)

 Ireland (D) (D)
 Italy (D) 0
 Liechtenstein 0 0
 Luxembourg 0 0
 Netherlands (D) 142

 Norway 0 (D)
 Spain (D) (D)
 Sweden 0 0
 Switzerland (D) (D)
 United Kingdom 1,662 1,553
 Other 0 0

Latin America and Other
 Western Hemisphere 5 4,105

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

 Other Western Hemisphere 5 4,105
 Bahamas 0 0
 Bermuda (*) (D)
 Netherlands Antilles 5 0
 United Kingdom Islands,
 Caribbean 0 (D)
 Other 0 0

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

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

Asia and Pacific 426 568
 Australia 2 (D)
 China 0 1
 Hong Kong 0 (D)
 Indonesia 0 0
 Japan (D) (D)
 Korea, Republic of 0 0
 Malaysia 0 0
 New Zealand 0 0
 Philippines 0 0
 Singapore 0 (D)
 Taiwan 0 0
 Other (D) 0

United States (1) (*) (D)

Addenda:
 European Union (15) (2) 5,588 2,517
 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 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 2001 are preliminary. The estimate of total outlays for 2000 has been revised up 5 percent from the preliminary estimate published last year; see Ned G. Howenstine, "Foreign Direct Investment in the United States: New Investment in 2000" SURVEY OF CURRENT BUSINESS 81 (June 2001): 27-34. For information on the coverage of the estimates, see the "Technical Note" on page 31.

(2.) According to information from Thomson Financial Securities Data, the worldwide dollar volume of announced merger and acquisition activity decreased nearly 50 percent in 2001.

(3.) Capital inflows for FDIUS also include foreign parents' funding of their existing U.S. affiliates. In 2001, capital inflows decreased to $157.9 billion from $287.7 billion in 2000. Of the components of total capital inflows for direct investment--equity capital, reinvested earnings, and intercompany debt--changes in equity capital flows tend to most closely reflect the changes in new foreign investment; in 2001 equity capital inflows decreased $103.5 billion, to $113.2 billion. Because some large transactions in 2001 were structured as exchanges of stock, the equity capital inflows for FDIUS were partly offset in the ITA's by outflows that reflected increases in the U.S. holdings of foreign securities. The preliminary estimates of these flows were published in Christopher L. Bach, "U.S. International Transactions, Fourth Quarter and Year 2001," SURVEY 82 (April 2002): 56, 63, and 68-73. 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 commercial 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 the "established" measure only if the new plants are set up as separate legal entities.

(5.) Copies of the full reports (BE-13) and the partial report (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 significantly from year to year.