Foreign Direct Investment in the United States New Investment in 2000.

Howenstine, Ned G.

OUTLAYS by foreign direct investors to acquire or establish businesses in the United States increased 17 percent to $320.9 billion in 2000. Outlays had increased 28 percent to $275.0 billion in 1999 after more than tripling to $215.3 billion in 1998 (table 1 and chart 1).(1) In 2000, investors made sizable outlays to acquire high-tech businesses in several industries identified with the "new economy," including telecommunications, information services, and communications and computer equipment manufacturing. Outlays were also substantial in a number of other industries--including petroleum manufacturing; food manufacturing; mining; utilities; and investment banking, consulting, insurance, financial management and advertising services.

[Graph 1 OMITTED]

Table 1.--Investment Outlays by Type of
Investment and Investor, 1992-2000

[Millions of dollars]

 1992 1993 1994 1995 1996

Total outlays 15,333 26,229 45,626 57,195 79,929

By type of investment:
 U.S. businesses acquired 10,616 21,761 38,753 47,179 68,733
 U.S. businesses
 established 4,717 4,468 6,873 10,016 11,196

By type of investor:
 Foreign direct investors 4,058 6,720 13,628 11,927 32,230
 U.S. affiliates 11,275 19,509 31,999 45,268 47,699

 1997 1998 1999(r) 2000(p)

Total outlays 69,708 215,256 274,956 320,858

By type of investment:
 U.S. businesses acquired 60,733 182,357 265,127 316,461
 U.S. businesses
 established 8,974 32,899 9,829 4,396

By type of investor:
 Foreign direct investors 13,899 120,828 120,878 102,935
 U.S. affiliates 55,809 94,428 154,078 217,923

(p) Preliminary.

(r) Revised.

Spending in 1998-2000

The unprecedented levels of new investment spending in the last 3 years contributed to soaring worldwide merger and acquisition activity and co-incided with the strong growth of the U.S. economy.(2) During this period, foreign direct investors' spending was boosted by large investments to a much greater extent than in earlier years. In 1998-2000, investments of $2 billion or more accounted for over 65 percent of total outlays; in the previous 6 years, large investments had never accounted for more than 30 percent of total outlays (table 2). In the last 3 years, new investments tended to be in industries in which large companies predominate--such as petroleum, motor vehicle, and food manufacturing, telecommunications, and financial services. In both the telecommunications and the financial services industries, deregulation and rapid technological change during the latter half of the 1990s increased incentives for business consolidations.

Table 2.--Distribution of Investment Outlays by Size, 1992-2000

[Percent]

 1992 1993 1994 1995 1996

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

 1997 1998 1999(r) 2000(p)

Total outlays 100 100 100 100
 $5 billion or more 0 55 55 48
 $2 billion-$4.999 billion 12 11 16 20
 $100 million-$1.999 billion 67 27 24 28
 Less than $100 million 21 7 5 4

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

(p) Preliminary.

(r) Revised.

The industry distribution of investment outlays varied from year to year, but nearly half of the total spending in 1998-2000 was in manufacturing; within manufacturing, spending was especially strong in petroleum and coal products and in computers and electronic products. Among non-manufacturing industries, spending was largest in information, particularly broadcasting and telecommunications, and in finance (except depository institutions) and insurance.

By country of ultimate beneficial owner (UBO), investors from Europe accounted for 75 percent of total outlays; their share had averaged 64 percent in 1995-97. Outside Europe, spending was evenly divided among investors from Canada, Latin America and Other Western Hemisphere, and Asia and Pacific. Spending by British investors was more than three times as large as that by investors in the country with the next largest outlays (the Netherlands), and British investors accounted for over a third of total outlays.

Spending in 2000

Outlays to acquire existing U.S. companies rather than to establish new U.S. companies accounted for $316.5 billion, or 99 percent, of total outlays in 2000 (table 1). Over two-thirds of total outlays were made by existing U.S. affiliates ($217.9 billion) rather than by foreign direct investors themselves ($102.9 billion); however, some of the outlays by these affiliates were financed with funds provided by their foreign parents (outlays by source of funding is discussed later in the article).

Several of the largest acquisitions made by foreign direct investors involved exchanges of stock. In these exchanges, the shareholders in the acquired U.S. companies received stock in the foreign parent companies as partial or total payment for the acquisitions.

By industry, outlays increased sharply in manufacturing (from $73.1 billion to $144.9 billion) and in professional, scientific, and technical services (from $9.4 billion to $32.0 billion)(table 3).(3) Within manufacturing, the largest increases were in food, petroleum, and computers and electronic products. In professional, scientific, and technical services, the largest increases were in management, scientific, and technical consulting and in "other," particularly advertising and related services. Outlays decreased in information, but at $62.2 billion, they remained substantial. Within information, outlays were largest in broadcasting and telecommunications and in information and data processing services.

Table 3.--Investment Outlays by Industry of U.S. Business
Enterprise, 1998-2000

[Millions of dollars]

 1998 1999(r) 2000(p)

 All industries 215,256 274,956 320,858

Manufacturing 149,243 73,122 144,871
 Food 1,286 859 (D)
 Beverages and tobacco products 442 1,417 4,121
 Petroleum and coal products 67,658 158 (D)
 Chemicals 3,627 5,703 14,060
 Plastics and rubber products 1,434 3,682 2,540
 Nonmetallic mineral products 900 3,175 6,539
 Primary metals 2,454 2,542 321
 Fabricated metal products 532 1,388 467
 Machinery 5,220 13,941 1,048
 Computers and electronic products 17,861 30,601 43,945
 Electrical equipment, appliances, and
 components 136 4,247 8,287
 Transportation equipment 37,177 2,786 2,700
 Other 10,516 2,667 6,643
Wholesale trade 3,321 (D) 7,486
Retail trade 1,153 3,458 (D)
Information 13,399 90,855 62,198
 Publishing industries 9,856 (D) 9,387
 Motion pictures and sound recording 36 (D) (D)
 industries
 Broadcasting and telecommunications 2,841 0 (D)
 Information services and data
 processing services 667 (D) 15,502
Depository institutions 1,563 (D) (D)
Finance (except depository institutions)
 and insurance 21,057 46,380 44,117
Real estate and rental and leasing 6,299 5,206 3,197
Professional, scientific, and technical
 services 4,289 9,366 31,999
Other industries 14,932 32,680 23,283

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

(p) Preliminary.

(r) Revised.

By country of UBO, outlays by investors in Canada, Europe, and Asia and Pacific increased (table 4). In Europe, most of the increase was accounted for by investors from the Netherlands, Switzerland, and "other Europe," particularly Spain, Finland, and Belgium. Spending by British investors, at $107.7 billion, was much larger than that by investors from any other country and was more than twice the $47.9 billion in outlays by investors from the Netherlands, who ranked second (chart 2). In Asia and Pacific, about three-fourths of the increase in outlays was accounted for by investors from Japan; investors from Singapore also contributed to the increase. Outlays by Japanese investors increased to $25.3 billion from $11.7 billion; a single acquisition by a minority-owned U.S. affiliate of a Japanese UBO accounted for a significant portion of the total.

[Graph 2 OMITTED]

Table 4.--Investment Outlays by Country of Ultimate
Beneficial Owner, 1998-2000(1)

[Millions of dollars]

 1998 1999(r) 2000(p)

 All countries 215,256 274,956 320,858

Canada 22,635 9,271 27,536
Europe 170,173 196,288 244,705
 France 14,493 23,750 26,508
 Germany 39,873 21,514 16,887
 Netherlands 19,009 22,265 47,909
 Switzerland 4,525 7,512 22,485
 United Kingdom 84,995 109,226 107,666
 Other Europe 7,278 12,021 23,250
Latin America and Other 11,354 33,046 13,072
 Western Hemisphere
 South and Central America 920 1,622 (D)
 Other Western Hemisphere 10,433 31,424 (D)
Africa 212 (D) (D)
Middle East 2,810 848
Asia and Pacific 7,329 15,100 33,278
 Australia (D) (D) (D)
 Japan 4,862 11,696 25,343
 Other Asia and Pacific (D) (D) (D)
United States(2) 743 (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").

Outlays financed by funds supplied by new or existing foreign parents rather than by existing U.S. affiliates decreased slightly to $207.2 billion in 2000 from $219.5 billion in 1999. 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.(4) Outlays financed by existing U.S. affiliates with funds from U.S. sources, including their own retained earnings, or from foreign sources other than their foreign parents increased to $113.6 billion from $55.4 billion.

U.S. businesses that were newly acquired or established by foreign investors in 2000 had total assets of $446.8 billion, compared with $454.0 billion for those acquired or established in 1999 (table 5). They employed 646,000 people, up from 603,000. In 2000, the largest shares of employment were accounted for by businesses in manufacturing (particularly computers and electronic products, food, and petroleum and coal products), in "other industries" (particularly employment services and investigation and security services), in professional, scientific, and technical services (particularly advertising and related services), and in retail trade.

Table 5.--Selected Operating Data of U.S. Businesses Acquired or
Established, by Industry of U.S. Business Enterprise, 1999-2000

 1999(r)

 Millions of dollars

 Thou- Number
 sands of
 Total Sales Net of hectares
 assets income emplo- of land
 yees owned(1)

 All industries 454,012 124,253 895 602.7 582,642

Manufacturing 73,715 42,219 -912 210.4 92,156
Wholesale trade 4,098 11,886 -229 45.2 1,089
Retail trade 5,807 10,099 -23 55.5 (D)
Information 40,257 12,276 221 47.2 50
Depository
 institutions 111,205 (D) 20 J 235
Finance (except
 depository
 institutions)
 and insurance 164,780 13,448 2,309 29.5 1,239
Real estate and
 rental and
 leasing 6,604 (D) 67 I 4,401
Professional,
 scientific,
 and technical
 services 3,273 2,196 -194 15.4 (D)
Other industries 44,272 20,310 -362 179.5 482,066

 2000(p)

 Millions of dollars

 Thou- Number
 sands of
 Total Sales Net of hectares
 assets income emplo- of land
 yees owned(1)

 All Industries 446,838 142,315 7,454 645.5 310,301

Manufacturing 143,857 57,515 3,724 173.2 207,939
Wholesale trade 6,163 12,579 239 27.2 570
Retail trade 6,831 8,508 -62 69.5 (D)
Information 41,235 13,063 -345 47.7 1,392
Depository
 institutions 11,506 (D) (D) G (D)
Finance (except
 depository
 institutions)
 and insurance 175,930 19,337 2,307 41.9 116
Real estate and
 rental and
 leasing 4,741 (D) (D) G 4,506
Professional,
 scientific,
 and technical
 services 30,351 9,738 628 70.8 (D)
Other industries 26,224 19,967 790 210.9 95,088

(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
number of acres of land owned in 1999 and 2000 were 1,439,708 and
766,754, 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.

U.S. businesses that were newly acquired or established had a record net income of $7.5 billion, substantially higher than the previous record of $4.6 billion in 1998. In 2000, newly acquired businesses in manufacturing and in finance (except depository institutions) and insurance accounted for most of the total.

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 directly purchases U.S. real estate.(5) 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 existing U.S. affiliates. 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 that own 200 or more acres of U.S. land are required to file full reports with BEA. In order to reduce 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--may file shorter, partial reports.(6)

For the partial reports it receives, BEA estimates the items that are only on the full report 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 1999, the total assets of U.S. businesses that filed partial reports were $426.5 million, less than 0.1 percent of the $454.0 billion of total assets for all investments.

Although the values for partial reports are negligible, their numbers are significant. For example, BEA received 1,156 partial reports in 1999, compared with 823 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 received, because not all of the smaller U.S. businesses acquired or established by foreigners in 1999 filed 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 823 full reports filed in 1999, 565 were for investments to acquire U.S. businesses, and 258 were for investments to establish new U.S. businesses. For 2000, BEA estimates that 890 businesses will have fried full reports by the time the revised estimates are published next year.(7)

The number of full reports by size of outlay is shown in the table below. For 2000, as is usually the case for the preliminary estimates, reports covering virtually all of the largest investments have already been filed. Accordingly, 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.

 1998 1999(r) 2000(p)

 Total 927 823 890

$5 billion or more 6 9 11
$2 billion-$4.999 billion 8 14 10
$100 million-$1.999 billion 154 157 197
Less than $100 million 759 643 672

The number of new investments for 1998-2000 is not comparable with the number of new investments for 1980-97, because the criterion for filing full reports was raised from $1 million in total assets in 1980-97 to $3 million in 1998. 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.

Tables 6 and 7 follow.

Table 6.--Investment Outlays by Type of Investment and Investor,
by Industry of U.S. Business Enterprise, 1999-2000

[Millions of dollars]

 1999(r)

 By type of investment

 U.S. U.S.
 Total businesses businesses
 acquired established

 All industries 274,956 265,127 9,829

Manufacturing 73,122 72,447 675

 Food 859 (D) (D)
 Beverages and tobacco 1,417 1,416 1
 Textiles, apparel, and leather
 products 291 (D) (D)
 Wood products (D) (D) (D)
 Paper 162 162 (*)
 Printing and related support
 activities 1,691 1,691 (*)
 Petroleum and coal products 158 158 0

 Chemicals 5,703 (D) (D)
 Basic chemicals (D) (D) 2
 Resins and synthetic rubber,
 fibers and filaments 571 (D) (D)
 Pharmaceuticals and
 medicines 104 104 0
 Soap, cleaning compounds,
 and toilet preparations 6 (*) 6
 Other (D) (D) 0

 Plastics and rubber products 3,638 (D) (D)
 Nonmetallic mineral products 3,175 3,170 5
 Primary and fabricated metals 3,929 3,874 55
 Primary metals 2,542 (D) (D)
 Fabricated metal products 1,388 (D) (D)

 Machinery 13,941 13,930 11
 Agriculture, construction,
 and mining machinery (D) (D) 9
 Industrial machinery 105 104 1
 Other (D) (D) 1

 Computers and electronic
 products 30,601 30,595 6
 Computer and peripheral
 equipment (D) (D) (*)
 Communications equipment 7,563 7,560 3
 Audio and video equipment (D) (D) 2
 Semiconductors and other
 electronic components 20,793 20,792 (*)
 Navigational, measuring, and
 other instruments 1,873 1,872 1
 Magnetic and optical media 53 53 0

 Electrical equipment,
 appliances, and
 components 4,247 4,245 3
 Transportation equipment 2,786 (D) (D)
 Motor vehicles, bodies and
 trailers, and parts 2,256 (D) (D)
 Other 530 526 3
 Furniture and related products (D) (D) 8
 Miscellaneous manufacturing 433 (D) (D)

Wholesale trade (D) 2,726 (D)
 Motor vehicles and motor
 vehicle parts and
 supplies (D) (D) 0
 Professional and commercial
 equipment and supplies 642 642 (*)
 Electrical goods 156 (D) (D)
 Other durable goods 357 348 9
 Petroleum and petroleum
 products (D) 0 (D)
 Other nondurable goods 1,656 1,588 68

Retail trade 3,458 3,448 10
 Food and beverage stores 0 0 0
 Other 3,458 3,448 10

Information 90,855 90,159 696
 Publishing industries (D) (D) (D)
 Motion pictures and sound
 recording industries (D) (D) (D)
 Broadcasting and
 telecommunications 78,202 (D) (D)
 Broadcasting, cable
 networks, and program
 distribution (D) (D) 0
 Telecommunications (D) (D) (D)
 Information services and data
 processing services (D) (D) (D)

Depository institutions (D) (D) (D)

Finance (except depository
 institutions) and
 insurance 46,380 43,180 3,200
 Finance, except depository
 institutions 6,073 2,877 3,195
 Insurance carriers and related
 activities 40,307 40,303 4

Real estate and rental and
 leasing 5,206 (D) (D)
 Real estate (D) (D) (D)
 Rental and leasing (except
 real estate) (D) (D) (D)

Professional, scientific, and
 technical services 9,366 9,166 199
 Architectural, engineering,
 and related services (D) (D) (D)
 Computer systems design and
 related services 6,558 6,493 65
 Management, scientific, and
 technical consulting (D) (D) (D)
 Other 1,049 927 122

Other industries 32,680 31,395 1,285
 Agriculture, forestry,
 fishing, and hunting 403 299 105
 Mining 2,957 2,327 630
 Utilities (D) (D) 40
 Construction (D) (D) (D)
 Transportation and warehousing 4,526 4,511 15
 Management of nonbank
 companies and
 enterprises 3,087 2,997 90
 Administration, support, and
 waste management 2,652 (D) (D)
 Health care and social
 assistance 0 0 0
 Accommodation and food
 services 2,473 2,469 3
 Accommodation (D) (D) 3
 Food services and drinking
 places (D) (D) 0
 Miscellaneous services 328 (D) (D)

 1999(r) 2000(p)

 By type of investor

 Foreign U.S.
 direct affiliates Total
 investors

 All industries 120,878 154,078 320,858

Manufacturing 10,809 62,313 144,871

 Food 2 858 (D)
 Beverages and tobacco (D) (D) 4,121
 Textiles, apparel, and leather
 products (D) (D) (D)
 Wood products (*) (D) (D)
 Paper (*) 162 (D)
 Printing and related support
 activities (D) (D) (D)
 Petroleum and coal products 0 158 (D)

 Chemicals 721 4,982 14,060
 Basic chemicals 2 (D) 1,947
 Resins and synthetic rubber,
 fibers and filaments (D) (D) (D)
 Pharmaceuticals and
 medicines (D) (D) 7,445
 Soap, cleaning compounds,
 and toilet preparations (*) 6 (D)
 Other 99 3,398

 Plastics and rubber products (D) (D) 2,540
 Nonmetallic mineral products (D) (D) 6,539
 Primary and fabricated metals 1,900 2,029 788
 Primary metals 1,880 662 321
 Fabricated metal products 20 1,367 467

 Machinery 128 13,813 1,048
 Agriculture, construction,
 and mining machinery (D) (D) (D)
 Industrial machinery (D) (D) (D)
 Other (D) (D) 674

 Computers and electronic
 products 4,473 26,128 43,945
 Computer and peripheral
 equipment 3 (D) (D)
 Communications equipment (D) (D) 19,827
 Audio and video equipment 2 (D) (D)
 Semiconductors and other
 electronic components (D) (D) 20,163
 Navigational, measuring, and
 other instruments 1,183 690 2,889
 Magnetic and optical media (D) (D) 2

 Electrical equipment,
 appliances, and
 components (D) (D) 8,287
 Transportation equipment (D) (D) 2,700
 Motor vehicles, bodies and
 trailers, and parts (D) (D) (D)
 Other 3 527 (D)
 Furniture and related products (D) 11 (D)
 Miscellaneous manufacturing (D) (D) 1,412

Wholesale trade (D) (D) 7,486
 Motor vehicles and motor
 vehicle parts and
 supplies 0 (D) 0
 Professional and commercial
 equipment and supplies (D) (D) 177
 Electrical goods 31 125 393
 Other durable goods 49 309 427
 Petroleum and petroleum
 products 0 (D) 0
 Other nondurable goods (D) (D) 6,488

Retail trade 210 3,249 (D)
 Food and beverage stores 0 0 0
 Other 210 3,249 (D)

Information 77,671 13,184 62,198
 Publishing industries (D) 7,668 9,387
 Motion pictures and sound
 recording industries (D) 45 (D)
 Broadcasting and
 telecommunications (D) (D) (D)
 Broadcasting, cable
 networks, and program
 distribution 0 (D) 0
 Telecommunications (D) (D) (D)
 Information services and data
 processing services 112 (D) 12,502

Depository institutions (D) (D) (D)

Finance (except depository
 institutions) and
 insurance 8,381 37,999 44,117
 Finance, except depository
 institutions 3,459 2,614 26,942
 Insurance carriers and related
 activities 4,922 35,385 17,175

Real estate and rental and
 leasing 1,308 3,899 3,197
 Real estate (D) (D) (D)
 Rental and leasing (except
 real estate) (D) (D) (D)

Professional, scientific, and
 technical services 2,049 7,317 31,999
 Architectural, engineering,
 and related services (D) 121 (D)
 Computer systems design and
 related services 488 6,070 (D)
 Management, scientific, and
 technical consulting (D) (D) 15,507
 Other (D) (D) 9,168

Other industries 19,903 12,777 23,283
 Agriculture, forestry,
 fishing, and hunting 95 308 (D)
 Mining 1,472 1,484 7,046
 Utilities (D) (D) 7,907
 Construction (D) 1,478 (D)
 Transportation and warehousing (D) (D) 2,266
 Management of nonbank
 companies and
 enterprises (D) (D) (D)
 Administration, support, and
 waste management (D) (D) 4,048
 Health care and social
 assistance 0 0 0
 Accommodation and food
 services (D) (D) 700
 Accommodation 23 (D) (D)
 Food services and drinking
 places (D) (D) (D)
 Miscellaneous services 26 301 637

 2000(p)

 By type of investment

 U.S. U.S.
 businesses businesses
 acquired established

 All industries 316,461 4,396

Manufacturing 143,115 1,756

 Food (D) (D)
 Beverages and tobacco 4,121 0
 Textiles, apparel, and leather
 products (D) 0
 Wood products (D) 0
 Paper (D) 0
 Printing and related support
 activities (D) 0
 Petroleum and coal products (D) 0

 Chemicals (D) (D)
 Basic chemicals (D) (D)
 Resins and synthetic rubber,
 fibers and filaments (D) 0
 Pharmaceuticals and
 medicines 7,445 0
 Soap, cleaning compounds,
 and toilet preparations (D) 0
 Other 3,398 0

 Plastics and rubber products 2,540 0
 Nonmetallic mineral products 6,539 0
 Primary and fabricated metals 687 100
 Primary metals 321 0
 Fabricated metal products 366 100

 Machinery 1,043 5
 Agriculture, construction,
 and mining machinery (D) 0
 Industrial machinery (D) 5
 Other 674 0

 Computers and electronic
 products (D) (D)
 Computer and peripheral
 equipment (D) (D)
 Communications equipment 19,827 0
 Audio and video equipment (D) 0
 Semiconductors and other
 electronic components (D) (D)
 Navigational, measuring, and
 other instruments 2,889 0
 Magnetic and optical media 0 2

 Electrical equipment,
 appliances, and
 components 8,287 0
 Transportation equipment 2,650 51
 Motor vehicles, bodies and
 trailers, and parts (D) (D)
 Other (D) (D)
 Furniture and related products (D) 0
 Miscellaneous manufacturing 1,412 0

Wholesale trade 7,326 159
 Motor vehicles and motor
 vehicle parts and
 supplies 0 0
 Professional and commercial
 equipment and supplies (D) (D)
 Electrical goods (D) (D)
 Other durable goods (D) (D)
 Petroleum and petroleum
 products 0 0
 Other nondurable goods 6,486 2

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

Information 61,548 650
 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 12,502 (*)

Depository institutions (D) (D)

Finance (except depository
 institutions) and
 insurance 44,000 118
 Finance, except depository
 institutions 26,827 114
 Insurance carriers and related
 activities 17,172 3

Real estate and rental and
 leasing (D) (D)
 Real estate (D) (D)
 Rental and leasing (except
 real estate) (D) (D)

Professional, scientific, and
 technical services (D) (D)
 Architectural, engineering,
 and related services (D) 0
 Computer systems design and
 related services 7,113 (D)
 Management, scientific, and
 technical consulting (D) (D)
 Other 9,168 0

Other industries 23,238 45
 Agriculture, forestry,
 fishing, and hunting (D) (*)
 Mining 7,046 0
 Utilities 7,907 0
 Construction (D) 0
 Transportation and warehousing (D) (D)
 Management of nonbank
 companies and
 enterprises 0 (D)
 Administration, support, and
 waste management 4,048 (*)
 Health care and social
 assistance 0 0
 Accommodation and food
 services (D) (D)
 Accommodation (D) (D)
 Food services and drinking
 places (D) 0
 Miscellaneous services 637 0

 2000(p)

 By type of investor

 Foreign U.S.
 direct affiliates
 investors

 All industries 102,935 217,923

Manufacturing 36,344 108,527

 Food 3 (D)
 Beverages and tobacco (D) (D)
 Textiles, apparel, and leather
 products 0 (D)
 Wood products (D) (D)
 Paper (D) 7
 Printing and related support
 activities (D) 0
 Petroleum and coal products 0 (D)

 Chemicals 465 13,595
 Basic chemicals 0 1,947
 Resins and synthetic rubber,
 fibers and filaments 0 (D)
 Pharmaceuticals and
 medicines (D) (D)
 Soap, cleaning compounds,
 and toilet preparations (D) (D)
 Other 168 3,231

 Plastics and rubber products (D) (D)
 Nonmetallic mineral products 0 6,539
 Primary and fabricated metals 164 623
 Primary metals (D) (D)
 Fabricated metal products (D) (D)

 Machinery (D) (D)
 Agriculture, construction,
 and mining machinery (D) 0
 Industrial machinery (D) 0
 Other (D) (D)

 Computers and electronic
 products 20,292 23,653
 Computer and peripheral
 equipment (D) (D)
 Communications equipment (D) (D)
 Audio and video equipment (D) (D)
 Semiconductors and other
 electronic components 17,533 2,631
 Navigational, measuring, and
 other instruments (D) (D)
 Magnetic and optical media 0 2

 Electrical equipment,
 appliances, and
 components (D) (D)
 Transportation equipment (D) (D)
 Motor vehicles, bodies and
 trailers, and parts (D) (D)
 Other 0 (D)
 Furniture and related products 0 (D)
 Miscellaneous manufacturing (D) (D)

Wholesale trade (D) (D)
 Motor vehicles and motor
 vehicle parts and
 supplies 0 0
 Professional and commercial
 equipment and supplies (D) (D)
 Electrical goods 9 385
 Other durable goods (D) (D)
 Petroleum and petroleum
 products 0 0
 Other nondurable goods (D) (D)

Retail trade 509 (D)
 Food and beverage stores 0 0
 Other 509 (D)

Information 11,663 50,535
 Publishing industries 2,854 6,533
 Motion pictures and sound
 recording industries (D) (D)
 Broadcasting and
 telecommunications 754 (D)
 Broadcasting, cable
 networks, and program
 distribution 0 0
 Telecommunications 754 (D)
 Information services and data
 processing services (D) (D)

Depository institutions (D) (D)

Finance (except depository
 institutions) and
 insurance 19,780 24,337
 Finance, except depository
 institutions (D) (D)
 Insurance carriers and related
 activities (D) (D)

Real estate and rental and
 leasing 56 3,141
 Real estate 55 (D)
 Rental and leasing (except
 real estate) 2 (D)

Professional, scientific, and
 technical services 18,919 13,080
 Architectural, engineering,
 and related services (D) (D)
 Computer systems design and
 related services (D) (D)
 Management, scientific, and
 technical consulting 14,629 877
 Other 1,033 8,135

Other industries 12,616 10,666
 Agriculture, forestry,
 fishing, and hunting (*) (D)
 Mining (D) (D)
 Utilities 4,117 3,790
 Construction 0 (D)
 Transportation and warehousing (D) (D)
 Management of nonbank
 companies and
 enterprises (D) 0
 Administration, support, and
 waste management 2,021 2,027
 Health care and social
 assistance 0 0
 Accommodation and food
 services (D) (D)
 Accommodation 0 (D)
 Food services and drinking
 places (D) (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, 1999

[Millions of dollars]
 Manufacturing

 Of which:

 Primary
 and
 All Total Food Chemi- fabri-
 industries cals cated
 metals

 (1) (2) (3) (4) (5)

 All countries 274,956 73,122 859 5,703 3,929

Canada 9,271 3,515 (D) (D) (D)

Europe 196,288 46,973 759 5,131 1,716
 Austria (D) (D) 0 0 1
 Belgium 1,107 (D) 0 0 0
 Denmark (D) (D) (D) 0 0
 Finland 330 (D) 0 0 0
 France 23,750 17,479 (*) (D) (D)

 Germany 21,514 5,758 (D) 382 (D)
 Ireland (D) (D) 0 0 (D)
 Italy 6,430 (D) 0 (*) (D)
 Liechtenstein (*) 0 0 0 0
 Luxembourg 15 1 0 0 0
 Netherlands 22,265 1,360 (D) 1 (D)

 Norway 15 2 0 0 0
 Spain 575 (D) 0 0 0
 Sweden 1,909 (D) 0 (D) 0
 Switzerland 7,512 273 (D) 0 (D)
 United Kingdom 109,226 14,460 (D) 516 1,177
 Other 110 (D) 0 5 0

Latin America and
 Other Western
 Hemisphere 33,046 (D) (D) 1 1,534

 South and Central
 America 1,622 (D) (D) (*) (D)
 Brazil (D) (D) 0 0 (D)
 Mexico (D) (D) (D) (*) (D)
 Panama 0 0 0 0 0
 Venezuela 0 0 0 0 0
 Other (D) 0 0 0 0

 Other Western
 Hemisphere 31,424 (D) (*) 1 (D)
 Bahamas 12 (*) 0 0 (*)
 Bermuda (D) (D) 0 1 (D)
 Netherlands
 Antilles (D) 0 0 0 0
 United Kingdom
 Islands,
 Caribbean 5,571 (D) (*) 0 0
 Other (D) (D) 0 0 0

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

Middle East 848 (D) (*) (D) 2
 Israel (D) (D) (*) (*) 0
 Kuwait (D) 0 0 0 0
 Lebanon (D) 0 0 0 0
 Saudi Arabia 116 2 0 0 2
 United Arab Emirates (D) 0 0 0 0
 Other 471 (D) 0 (D) 0

Asia and Pacific 15,100 4,586 55 246 (D)
 Australia (D) (D) 0 (*) 0
 China (D) (D) 0 0 0
 Hong Kong 297 9 0 0 0
 Indonesia 0 0 0 0 0
 Japan 11,696 4,534 55 246 (D)
 Korea, Republic of 9 7 0 0 (*)
 Malaysia 3 (*) 0 (*) 0
 New Zealand (*) 0 0 0 0
 Philippines (*) (*) 0 0 0
 Singapore 150 11 0 0 2
 Taiwan 118 5 0 0 0
 Other (D) (*) 0 0 (*)

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

Addenda:
 European Union(15)(2) 188,751 46,689 629 5,131 1,641
 OPEC(3) 215 2 0 0 2

 Manufacturing

 Of which:

 Electrical Trans-
 Computers equipment, porta-
 Machinery and appliances, tion
 electronic and equip-
 products components ment

 (6) (7) (8) (9)

 All countries 13,941 30,601 4,247 2,786

Canada 43 881 (*) 652

Europe 13,876 14,173 607 2,026
 Austria 0 0 0 0
 Belgium (*) (D) 0 3
 Denmark (D) (D) 0 0
 Finland 0 (D) (*) 0
 France (D) (D) (D) (D)

 Germany 198 (D) (D) (D)
 Ireland 0 0 0 0
 Italy (D) 0 0 (*)
 Liechtenstein 0 0 0 0
 Luxembourg 0 0 (*) 0
 Netherlands (*) (D) 0 0

 Norway 0 0 0 0
 Spain 1 (*) 0 0
 Sweden 0 (D) (D) (*)
 Switzerland (D) 3 (D) 0
 United Kingdom 838 7,800 341 1,836
 Other 0 0 (*) 0

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

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

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

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

Middle East 1 (*) 0 0
 Israel 1 (*) 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 21 (D) (D) 108
 Australia 1 0 0 0
 China (*) (*) 0 (D)
 Hong Kong 0 0 0 0
 Indonesia 0 0 0 0
 Japan 20 (D) (*) 90
 Korea, Republic of 0 0 0 0
 Malaysia 0 0 0 0
 New Zealand 0 0 0 0
 Philippines (*) 0 0 0
 Singapore 0 (*) 0 0
 Taiwan 1 2 (D) (D)
 Other (*) 0 0 0

United States(1) 0 0 0 0

Addenda:
 European Union(15)(2) 13,858 14,170 579 2,026
 OPEC(3) 0 0 0 0

 Whole-
 sale Retail Information Depository
 trade trade institutions

 (10) (11) (12) (13)

 All countries (D) 3,458 90,855 (D)

Canada 147 (D) (D) 0

Europe 2,252 (D) 78,288 (D)
 Austria 1 0 0 0
 Belgium (*) 0 0 0
 Denmark (*) 0 0 0
 Finland 0 0 (D) 0
 France (D) (D) (D) (D)

 Germany 56 9 (D) (D)
 Ireland (*) 0 0 0
 Italy (D) 0 0 0
 Liechtenstein 0 0 0 0
 Luxembourg 0 (D) 0 0
 Netherlands 1,406 (D) (D) 0

 Norway (D) 0 0 0
 Spain (D) 0 0 (D)
 Sweden 0 0 0 0
 Switzerland 50 (D) (D) 0
 United Kingdom 189 (D) 69,781 (D)
 Other 0 (*) 0 0

Latin America and
 Other Western
 Hemisphere 21 (D) (D) (D)

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

 Other Western
 Hemisphere 17 (*) (D) 0
 Bahamas (*) 0 0 0
 Bermuda (D) 0 (D) 0
 Netherlands
 Antilles (D) 0 0 0
 United Kingdom
 Islands,
 Caribbean 1 (*) 5 0
 Other (*) 0 0 0

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

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

Asia and Pacific 314 230 3,414 (D)
 Australia (*) 0 (D) 0
 China (*) 0 (*) 0
 Hong Kong (D) 3 1 0
 Indonesia 0 0 0 0
 Japan 113 224 (D) 0
 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 0
 Taiwan (D) 3 4 (D)
 Other (*) 0 (D) 0

United States(1) (*) 0 0 0

Addenda:
 European Union(15)(2) 2,201 (D) 74,088 (D)
 OPEC(3) (*) 3 0 0

 Finance
 (except Real Professional
 depository estate scientific, Other
 institu- and and indus-
 tions) rental technical tries
 and and services
 insurance leasing

 (14) (15) (16) (17)

 All countries 46,380 5,206 9,366 32,680

Canada (D) 757 (D) 2,082

Europe 19,995 3,535 3,718 27,406
 Austria (*) 5 2 0
 Belgium (D) (*) (D) (*)
 Denmark 0 (*) 1 0
 Finland (D) (*) 0 2
 France 212 6 (D) 4,273

 Germany (D) 1,941 252 3,548
 Ireland (D) 1 (*) 90
 Italy (*) (*) 0 (D)
 Liechtenstein 0 0 0 (*)
 Luxembourg 0 0 0 (D)
 Netherlands (D) 207 26 9

 Norway 0 (*) 0 (D)
 Spain 0 0 0 (*)
 Sweden 0 (D) (D) (D)
 Switzerland 1,295 (D) (D) 1,172
 United Kingdom 3,639 (D) 2,247 16,256
 Other (D) (*) 0 (D)

Latin America and
 Other Western
 Hemisphere 5,060 (D) 5 1,287

 South and Central
 America (*) 19 (*) (D)
 Brazil (*) 0 0 (*)
 Mexico (*) 19 (*) (D)
 Panama 0 0 0 0
 Venezuela 0 0 0 0
 Other 0 (*) (*) 0

 Other Western
 Hemisphere 5,059 (D) 5 (D)
 Bahamas 0 (D) 0 (D)
 Bermuda (D) (*) 0 (D)
 Netherlands
 Antilles (*) 0 5 (D)
 United Kingdom
 Islands,
 Caribbean (D) (D) (*) (D)
 Other 0 0 0 0

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

Middle East 0 211 (*) (D)
 Israel 0 2 (*) (*)
 Kuwait 0 (D) 0 0
 Lebanon 0 0 0 (D)
 Saudi Arabia 0 111 0 0
 United Arab Emirates 0 (D) 0 1
 Other 0 0 0 (D)

Asia and Pacific 661 198 (D) 210
 Australia (*) 8 (*) (D)
 China (*) 0 0 0
 Hong Kong 0 (D) (*) (D)
 Indonesia 0 0 0 0
 Japan 661 81 (D) 170
 Korea, Republic of 0 (*) 0 1
 Malaysia 0 0 3 (*)
 New Zealand 0 (*) 0 0
 Philippines 0 0 0 0
 Singapore (*) (D) (D) 0
 Taiwan (*) 2 (D) (*)
 Other 0 0 (D) (*)

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

Addenda:
 European Union(15)(2) 18,700 3,517 3,284 26,222
 OPEC(3) 0 210 0 1

(*) 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 1999 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, 2000

[Millions of dollars]

 Manufacturing

 Of which:

 Pri-
 mary
 All Chemi- and
 industries Total Food cals fabri-
 cated
 metals

 (1) (2) (3) (4) (5)

 All countries 320,858 144,871 (D) 14,060 788

Canada 27,536 18,753 0 (D) (D)

Europe 244,705 87,000 (D) 10,235 (D)
 Austria 73 (D) 0 0 (D)
 Belgium 4,459 (D) (D) (D) 4
 Denmark (D) (D) 0 0 0
 Finland (D) (D) 0 0 0
 France 26,508 3,253 (D) 832 0

 Germany 16,887 6,234 0 4,887 (D)
 Ireland (D) 868 (D) (D) 0
 Italy 1,882 (D) (D) 0 0
 Liechtenstein 0 0 0 0 0
 Luxembourg (D) (D) 0 (D) 0
 Netherlands 47,909 28,292 (D) 2,835 100

 Norway (D) (D) 0 0 (D)
 Spain (D) 0 0 0 0
 Sweden 1,322 620 0 0 (D)
 Switzerland 22,485 3,239 (D) (D) 0
 United Kingdom 107,666 37,258 (D) (D) 406
 Other 424 (D) 0 0 0

Latin America and Other
 Western
 Hemisphere 13,072 (D) 0 (D) 0

 South and Central
 America (D) (D) 0 0 0
 Brazil 2 0 0 0 0
 Mexico (D) (D) 0 0 0
 Panama 0 0 0 0 0
 Venezuela 71 0 0 0 0
 Other (*) 0 0 0 0

 Other Western
 Hemisphere (D) (D) 0 (D) 0
 Bahamas (D) 0 0 0 0
 Bermuda 8,783 (D) 0 (D) 0
 Netherlands
 Antilles 0 0 0 0 0
 United Kingdom
 Islands,
 Caribbean 1,101 0 0 0 0
 Other 0 0 0 0 0

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

 Middle East (D) (D) 0 0 0
 Israel 555 (D) 0 0 0
 Kuwait 2 2 0 0 0
 Lebanon 0 0 0 0 0
 Saudi Arabia (D) 0 0 0 0
 United Arab
 Emirates (D) 0 0 0 0
 Other (D) (D) 0 0 0

 Asia and Pacific 33,278 29,014 0 (D) 0
 Australia (D) (D) 0 0 0
 China (D) (D) 0 0 0
 Hong Kong 522 (D) 0 0 0
 Indonesia 0 0 0 0 0
 Japan 25,343 (D) 0 (D) 0
 Korea, Republic of 0 0 0 0 0
 Malaysia 0 0 0 0 0
 New Zealand 0 0 0 0 0
 Philippines 0 0 0 0 0
 Singapore (D) (D) 0 0 0
 Taiwan 209 (D) 0 0 0
 Other 0 0 0 0 0

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

Addenda:
 European Union(15)(2) 222,002 83,595 (D) 9,452 631
 OPEC(3) 90 (D) 0 0 0

 Manufacturing

 Of which:

 Electrical Trans-
 Computers equipment porta-
 Machinery and appliances, tion
 electronic and equip-
 products components ment

 (6) (7) (8) (9)

 All countries 1,048 43,945 8,287 2,700

Canada (*) 13,236 (D) (D)

Europe (D) 5,329 (D) 2,645
 Austria 0 0 0 0
 Belgium 5 (D) 0 0
 Denmark 0 (D) 0 0
 Finland 0 (D) 0 0
 France (D) (D) (D) 0

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

 Norway 0 0 0 0
 Spain 0 0 0 0
 Sweden (D) (D) 0 0
 Switzerland (D) 1,201 (D) 0
 United Kingdom 489 563 (D) (D)
 Other 0 (D) 0 0

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

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

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

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

 Middle East 0 (D) 2 0
 Israel 0 (D) 0 0
 Kuwait 0 0 2 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) 0 (D)
 Australia 0 0 0 0
 China (D) 0 0 0
 Hong Kong 0 (D) 0 0
 Indonesia 0 0 0 0
 Japan 3 (D) 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 0 (D) 0 0
 Taiwan 0 (D) 0 0
 Other 0 0 0 0

United States(1) 0 0 0 0

Addenda:
 European Union(15)(2) 819 4,128 (D) 2,645
 OPEC(3) 0 0 2 0

 Whole-
 sale Retail Information Depository
 trade trade institutions

 (10) (11) (12) (13)

 All countries 7,486 (D) 62,198 (D)

Canada 83 (D) 3,758 (D)

Europe 6,983 (D) 55,506 (D)
 Austria 0 0 0 0
 Belgium 44 0 (D) 0
 Denmark 0 0 0 0
 Finland 0 0 0 0
 France 0 (D) (D) 0

 Germany 5 (D) 1,005 0
 Ireland (D) 0 (D) 0
 Italy 0 (D) 0 (D)
 Liechtenstein 0 0 0 0
 Luxembourg 0 0 0 0
 Netherlands (D) (D) 720 0

 Norway 0 0 0 0
 Spain 0 0 (D) 0
 Sweden (D) 0 (D) 0
 Switzerland (D) 0 (D) 0
 United Kingdom 515 (D) 42,900 (D)
 Other 0 (D) 0 0

Latin America and Other
 Western
 Hemisphere 0 506 (D) 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 0 0 0
 Other 0 0 0 0

 Other Western
 Hemisphere 0 (D) (D) 0
 Bahamas 0 0 0 0
 Bermuda 0 0 (D) 0
 Netherlands
 Antilles 0 0 0 0
 United Kingdom
 Islands,
 Caribbean 0 (D) (D) 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 420 (D) 985 (D)
 Australia (D) 0 0 0
 China 0 0 0 0
 Hong Kong (D) 0 0 0
 Indonesia 0 0 0 0
 Japan (D) (D) 985 (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) 6,972 (D) 50,890 (D)
 OPEC(3) 0 0 0 0

 Finance
 (except Real Professional
 depository estate scientific, Other
 institu- and and indus-
 tions) rental technical tries
 and and services
 insurance leasing

 (14) (15) (16) (17)

 All countries 44,117 3,197 31,999 23,283

Canada 1,299 86 1,064 2,447

Europe 40,688 2,249 30,177 20,144
 Austria 0 (D) 0 0
 Belgium (D) 0 2 (D)
 Denmark 0 0 0 0
 Finland 0 0 (D) 0
 France (D) 0 16,090 1,422

 Germany 3,777 711 (D) 1,942
 Ireland 0 0 0 (D)
 Italy (D) 0 0 (D)
 Liechtenstein 0 0 0 0
 Luxembourg 0 0 0 0
 Netherlands (D) (D) 0 2,043

 Norway 0 0 0 0
 Spain 0 0 0 (D)
 Sweden 0 0 (D) (D)
 Switzerland (D) (D) 15 (D)
 United Kingdom 2,719 24 10,490 12,157
 Other 0 (*) 0 (D)

Latin America and Other
 Western
 Hemisphere (D) 635 0 9

 South and Central
 America 0 73 0 0
 Brazil 0 2 0 0
 Mexico 0 0 0 0
 Panama 0 0 0 0
 Venezuela 0 71 0 0
 Other 0 (*) 0 0

 Other Western
 Hemisphere (D) 562 0 9
 Bahamas 0 0 0 (D)
 Bermuda (D) 0 0 0
 Netherlands
 Antilles 0 0 0 0
 United Kingdom
 Islands,
 Caribbean 0 562 0 (D)
 Other 0 0 0 0

 Africa (D) 5 (D) 0
 South Africa (D) 5 (D) 0
 Other 0 0 0 0

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

 Asia and Pacific (D) 206 (D) 663
 Australia 0 0 0 (D)
 China 0 0 0 0
 Hong Kong 0 (*) 0 (D)
 Indonesia 0 0 0 0
 Japan (D) 206 (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 5
 Taiwan 0 0 3 (D)
 Other 0 0 0 0

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

Addenda:
 European Union(15)(2) 27,012 2,240 30,162 19,224
 OPEC(3) 0 78 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 2000 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.

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 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 benefits from ownership or control.

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.

The financial and operating data were most recently published in "U.S. Affiliates of Foreign Companies: Operations in 1998" in the August 2000 SURVEY OF CURRENT BUSINESS; that article includes a detailed description of the three types of FDIUS data.

The balance-of-payments data and the direct-investment-position data were published in "The International Investment Position of the United States at Yearend 1999" and "Direct Investment Positions for 1999: Country and Industry Detail" in the July 2000 issue; "Foreign Direct Investment in the United States: Detail for Historical Cost Position and Related Capital and Income Flows, 1999" in the September 2000 issue; and "U.S. International Transactions, Fourth Quarter and Year 2000," in the April 2001 issue.

Revised and updated balance-of-payments data and direct-investment-position data will be published in the July and September 2001 issues of the SURVEY.

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.

Detailed estimates on the number of investments and investors for 1999 and on investment outlays and selected operating data for the newly acquired or established businesses for 1999 and 2000 will be available on BEA's Web site at <www.bea.doc.gov> by early July; these estimates will also be available on diskette.

Detailed estimates beginning with 1980 are currently available on BEA's Web site and on diskettes. To order the diskettes, call the BEA Order Desk at 1-800-704-0415 (outside the United States, call 202-606-9666).

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, and Amy R. Sweeney. Karen E. Poffel programmed the tables.

(1.) The 2000 estimates are preliminary. The 1999 estimate of total outlays has been revised down 3 percent from the preliminary estimate that was published in Ned G. Howenstine and Rosaria Troia, "Foreign Direct Investment in the United States: New Investment in 1999," SURVEY OF CURRENT BUSINESS 80 (June 2000): 55-63. For information on the coverage of the estimates, see the "Technical Note" on page 28.

(2.) Information on total worldwide merger and acquisition activity is available from Thompson Financial Securities Data.

In addition to new investment in the United States, the worldwide boom in mergers and acquisitions reflected the strong growth in U.S. direct investment abroad in 1998-2000; see Christopher L. Bach, "U.S. International Transactions, Fourth Quarter and Year 2000," SURVEY 81 (April 2001): 21-68.

(3.) The estimates for 1998-2000 are classified by industry according to a system that is based on the 1997 North American Industry Classification System; see the box "New Industry Classifications" in Howenstine and Troia, "Foreign Direct Investment," 59.

(4.) In addition to outlays from foreign parents to acquire or establish U.S. affiliates, capital inflows for FDIUS include foreign parents' financing of their existing U.S. affiliates. In 2000, capital inflows increased to $316.5 billion from $275.5 billion in 1999. Of the components of total capital inflows for direct investment--equity capital, reinvested earnings, and intercompany debt--changes in equity capital inflows tend to most closely reflect the changes in new foreign investment; in 2000, equity capital inflows increased $9.0 billion, to $221.1 billion. Because some of the largest investments in 2000 were structured as exchanges of stock, the equity capital inflows for FDIUS were partly offset in the U.S. international transactions accounts by outflows that reflected increases in the U.S. holdings of foreign securities. The preliminary estimates of these flows were published in Bach, "U.S. International Transactions," 50, 57, and 62-67. Revised estimates will be published in the July SURVEY.

(5.) The number of new U.S. companies 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.

(6.) Copies of the full report (BE-13) and the partial report (BE-13, Supplement C) are on BEA's Web site at <www.bea.doc.gov/bea/surveys.htm>.

(7.) 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 not the number of partial reports because the latter number may fluctuate significantly from year to year.