Foreign Direct Investment in the United States.

Howenstine, Ned G. ; Troia, Rosaria

New Investment in 1999

OUTLAYS by foreign direct investors to acquire or establish businesses in the United States increased 31 percent to a record $282.9 billion in 1999 after tripling to $215.3 billion in 1998 (table 1 and chart 1).(1) Large investments in telecommunications, communications equipment manufacturing, and insurance tilted the industry composition of the foreign investments in 1999 toward some of the more rapidly growing and more technologically advanced segments of the U.S. economy. The increases in both 1998 and 1999 part?/reflected sharp increases in investments by British investors, whose outlays in both years (as in most recent years) were larger than those of any other country.

[Chart 1 OMITTED]

Table 1.--Investment Outlays by Type of Investment and Investor, 1992-99

[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 directinvestors 4,058 6,720 13,628 11,927
 U.S. affiliates 11,275 19,509 31,999 45,268

 1996 1997 1998(r) 1999(p)

Total outlays 79,929 69,708 215,256 282,946

By type of investment:
 U.S. businesses acquired 68,733 60,733 182,357 276,489
 U.S. businesses established 11,196 8,974 32,899 6,457
By type of investor:
 Foreign directinvestors 32,230 13,899 120,828 128,569
 U.S. affiliates 47,699 55,809 94,428 154,377

(p) Preliminary.

(r) Revised.

Outlays in both 1999 and 1998 were much higher than those in earlier years, when they never exceeded $80.0 billion. The exceptionally high outlays in the last 2 years reflect a worldwide boom in merger and acquisition activity, the continuing strength of the U.S. economy, and the increasing number and size of large investments.(2) In both years, investments of $2 billion or more accounted for about 70 percent of total outlays (table 2). In contrast, in the previous 6 years, large investments had never accounted for more than 30 percent of total outlays.

Table 2.--Distribution of Investment Outlays by Size, 1992-99

[Percent]

 1992 1993 1994 1995

Total outlays 100 100 100 100
 $5 billion or more 0 0 0 (D)
 $2 billion - $4.9 billion 0 (D) 27 18
 $100 million - $1.9 billion 42 51 51 48
 Less than $100 million 58 (D) 22 (D)

 1996 1997 1998(r) 1999(p)

Total outlays 100 100 100 100
 $5 billion or more 0 0 55 53
 $2 billion - $4.9 billion 29 12 11 16
 $100 million - $1.9 billion 55 67 27 26
 Less than $100 million 16 21 7 5

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

(p) Preliminary.

(r) Revised.

Several of the largest investments in 1999 were the acquisitions of companies in communications-related industries, where deregulation and rapid technological change have spurred growth and provided incentives for business combinations. In 1999, foreign firms acquired several major U.S. companies that were involved in a range of activities, including telecommunications services, Internet-based information services, and manufacturing of fiber optic, Internet, and other communications equipment.

Foreign investors also acquired a number of large U.S. insurance companies, reflecting the recent pattern of mergers and consolidations among large finance and insurance companies. The largest acquisitions were of life insurance companies.

In 1999, as in 1998, several of the largest acquisitions 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.

Overall, outlays to acquire existing U.S. companies rather than to establish new U.S. companies accounted for $276.5 billion, or 98 percent of total outlays in 1999, well above the 82-percent average for the preceding 5 years (table 1). Over half of the outlays were made by existing U.S. affiliates ($154.3 billion) rather than by foreign direct investors themselves ($128.6 billion); however, some of the outlays by existing affiliates were financed with funds provided to them by their foreign parents (outlays by source of funding is discussed later in the article).

By industry, outlays increased sharply in information, particularly in telecommunications, in finance (except depository institutions) and insurance, and in depository institutions (table 3A). Outlays decreased sharply in manufacturing, primarily because total outlays for 1998 included exceptionally large investments in petroleum and coal products manufacturing and in motor vehicle manufacturing. Within manufacturing, outlays in 1999 were substantial in computers and electronic products, particularly in semiconductors and other electronic components and in communications equipment.

Table 3A.--Investment Outlays by NAICS-Based Industry of U.S. Business Enterprise, 1998-99

[Millions of dollars]

 1998(r) 1999(p)

All industries 215,256 282,946

Manufacturing 149,243 74,195
 Food 1,286 869
 Beverages and tobacco products 442 1,501
 Petroleum and coal products 67,658 (D)
 Chemicals 3,627 5,425
 Plastics and rubber products 1,434 3,682
 Nonmetallic mineral products 900 2,233
 Primary metals 2,454 1,751
 Fabricated metal products 532 1,196
 Machinery 5,220 14,900
 Computers and electronic products 17,861 32,376
 Electrical equipment, appliances, and
 components 136 4,415
 Transportation equipment 37,177 2,736
 Other 10,516 (D)
Wholesale trade 3,321 1,030
Retail trade 1,153 4,564
Information 13,399 93,475
 Publishing industries 9,856 (D)
 Motion pictures and sound recording
 industries 36 3
 Broadcasting and telecommunications 2,841 80,073
 Information services and data
 processing services 667 (D)
Depository institutions 1,563 11,845
Finance, (except depository institutions)
 and insurance 21,057 47,023
Real estate and rental and leasing 6,299 5,689
Professional, scientific, and technical
 services 4,289 11,355
Other industries 14,932 33,771

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

(p) Preliminary.

(r) Revised.

NAICS North American Industry Classification System

The 1998 and 1999 estimates by industry reflect two changes in industry classification. First, the estimates are based on classifications derived from the new North American Industry Classification System (NAICS); the estimates for the preceding years are based on classifications derived from the Standard Industrial Classification (SIC) system. Second, petroleum is no longer treated as a separate major industry; instead, the various petroleum-related activities are distributed among the major NAICS industry groups to which they belong. (For more information, see the box "New Industry Classifications" on page 59.)

To help assess the impact of these changes, estimates for 1998 are presented on both the new basis (table 3A) and the old basis (table 3B). The share of total outlays accounted for by manufacturing in 1998 is much larger in table 3A than in table 3B because petroleum and coal products manufacturing is classified in manufacturing in table 3A but in the special industry group "petroleum" in table 3B. Because investment in petroleum and coal product manufacturing was insignificant in 1999, the change in the treatment of petroleum-related activities has virtually no effect on the total for manufacturing for that year.

Table 3B.--Investment Outlays by SIC-Based Industry of U.S. Business Enterprise, 1992-98

[Millions of dollars]

 1992 1993 1994 1995

All industries 15,333 26,229 45,626 57,195

Petrol 463 882 469 1,520
Manulacturing 6,014 11,090 21,218 26,643
 Food and kindred products 404 1,294 4,567 3,802
 Chemicals and allied products 1,644 5,035 6,905 12,511
 Primary and fabricated metals 1,187 1,297 1,485 547
 Machinery 1,002 1,778 1,867 4,489
 Other manufacturing 1,778 1,686 6,393 5,293
Wholesale trade 698 837 2,156 1,168
Retail trade 256 1,495 1,542 2,838
Depository institutions 529 958 2,026 2,301
Finance, except depository
 institutions 797 1,599 2,195 7,837
Insurance 291 1,105 450 654
Real state 2,161 1,883 2,647 2,996
Services 2,023 4,162 7,163 5,881
Other industries 2,101 2,218 5,760 5,359

 1996 1997 1998(r)

All industries 79,929 69,708 215,256

Petrol 1,059 762 (D)
Manulacturing 27,835 19,603 89,739
 Food and kindred products 1,145 1,949 1,728
 Chemicals and allied products 3,961 4,539 3,604
 Primary and fabricated metals 3,222 1,327 2,978
 Machinery 4,355 4,788 21,495
 Other manufacturing 15,151 7,000 59,934
Wholesale trade 4,746 2,612 3,266
Retail trade 2,988 435 1,938
Depository institutions 1,944 3,547 1,563
Finance, except depository
 institutions 8,676 7,019 16,607
Insurance 4,688 8,526 4,709
Real state 4,175 4,119 6,144
Services 15,292 12,187 10,099
Other industries 8,528 10,898 (D)

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

(r) Revised.

SIC Standard Industrial Classification

By country of ultimate beneficial owner (UBO), investors in Europe--mainly the United Kingdom and France--accounted for most of the increase in outlays in 1999; European investors accounted for more that 70 percent of total outlays in both 1998 and 1999 (table 4). Outlays by British investors were much higher than those of any other country in both years and by themselves accounted for nearly 40 percent of total outlays (chart 2). Outlays by investors in "Latin America and Other Western Hemisphere"--mainly Bermuda--and in "Asia and Pacific--mainly Japan--also increased in 1999, but these areas accounted for only 12 percent and 4 percent, respectively, of total outlays? Outlays by Japanese investors increased to $8.0 billion in 1999 from $4.8 billion in 1998, but they remained well below the 1990 peak of $19.9 billion.

[Chart 2 OMITTED]

Table 4.--Investment Outlays by Country of Ultimate Beneficial Owner, 1992-99(1)

[Millions of dollars]

 1992 1993 1994 1995

All countries 15,333 26,229 45,626 57,195

Canada 1,351 3,797 4,128 8,029
Europe 8,344 16,845 31,920 38,195
 France 406 1,249 1,404 1,129
 Germany 1,964 2,841 3,328 13,117
 Netherlands 1,331 2,074 1,537 1,061
 Switzerland 1,259 804 5,044 7,533
 United Kingdom 2,255 8,238 17,261 9,094
 Other Europe 1,129 1,639 3,346 6,261
Latin America and Other
 Western
 Hemisphere 1,438 874 1,352 1,550
 South and Central America 1,152 527 (D) 1,283
 Other Western Hemisphere 286 347 (D) 267
Africa (D) (D) (D) (D)
Middle East 238 1,308 (D) 447
Asia and Pacific 3,716 3,004 5,263 8,688
 Australia 164 129 1,522 2,270
 Japan 2,921 2,065 2,715 3,602
 Other Asia and Pacific 631 810 1,026 2,816
United States(2) (D) (D) 201 (D)

 1996 1997 1998(r) 1999(p)

All countries 79,929 69,708 215,256 282,946

Canada 9,700 11,755 22,635 11,388
Europe 49,427 44,014 170,173 205,150
 France 6,021 2,578 14,493 24,579
 Germany 12,858 6,464 39,873 24,393
 Netherlands 6,476 10,244 19,009 26,896
 Switzerland 4,910 6,745 4,525 7,119
 United Kingdom 14,757 11,834 84,995 110,115
 Other Europe 4,405 6,149 7,278 12,048
Latin America and Other
 Western
 Hemisphere 1,790 924 11,354 34,013
 South and Central America (D) 166 920 1,377
 Other Western Hemisphere (D) 758 10,433 32,636
Africa (D) (D) 212 (D)
Middle East (D) 847 2,810 546
Asia and Pacific 12,751 11,786 7,329 11,502
 Australia 2,222 7,600 (D) (D)
 Japan 8,813 2,326 4,862 8,048
 Other Asia and Pacific 1,716 1,860 (D) (D)
United States(2) (D) (D) 743 (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 increased to $226.9 billion in 1999 from $159.4 billion in 1998. 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: In 1999, they contributed to the sharp overall increase in FDIUS capital inflows.(4) Outlays financed by existing U.S. affiliates with funds from U.S. sources or from foreign sources other than the foreign parent increased slightly, to $56.0 billion from $55.6 billion in 1998.

U.S. businesses that were newly acquired or established by foreign investors in 1999 had total assets of $454.4 billion, compared with $274.3 billion for those acquired or established in 1998 (table 5). They employed 648,000 people, up from 625,000. The largest shares of employment were accounted for by businesses in manufacturing (particularly computers and electronic products) and "other industries" (particularly transportation and warehousing; administration, support, and waste management; and accommodation and food services).

Table 5.--Selected Operating Data of U.S. Business Enterprises Acquired or Established, by NAICS-Based Industry of U.S. Business Enterprise, 1998-99

 1998(r)

 Millions of dollars

 Total Sales Net
 assets income

 All industries 274,349 164,904 4,623

Manufacturing 133,693 120,184 3,605
Wholesale trade 4,445 7,731 180
Retail trade 1,355 2,443 66
Information 15,599 6,398 -473
Depository institutions 11,382 1,035 69
Finance (except depository
 institutions) and insurance 72,579 8,005 971
Real estate and rental and
 leasing 14,289 1,596 375
Professional, scientific, and
 technical services 6,389 3,467 -385
Other industries 14,618 14,044 215

 1998(r)

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

 All industries 624.6 134,953

Manufacturing 288.0 78,013
Wholesale trade 12.2 172
Retail trade 14.4 64
Information 30.7 122
Depository institutions H 43
Finance (except depository
 institutions) and insurance 14.1 263
Real estate and rental and
 leasing H 7,789
Professional, scientific, and
 technical services 31.3 317
Other industries 225.7 46,166

 1999(p)

 Millions of dollars

 Total Sales Net
 assets income

 All industries 454,394 130,610 2,573

Manufacturing 70,342 41,718 299
Wholesale trade 1,660 4,039 -23
Retail trade 5,317 14,150 20
Information 39,674 11,857 89
Depository institutions 119,832 10,877 20
Finance (except depository
 institutions) and insurance 166,239 15,480 1,975
Real estate and rental and
 leasing 7,056 1,411 124
Professional, scientific, and
 technical services 5,360 5,078 -313
Other industries 38,915 26,000 381

 1999(p)

 Number
 of
 Thousand hectares
 of of land
 employees owned(1)

 All industries 647.8 249,567

Manufacturing 211.1 84,889
Wholesale trade 11.6 (D)
Retail trade 91.5 (D)
Information 49.1 47
Depository institutions 12.6 (D)
Finance (except depository
 institutions) and insurance 30.2 1,044
Real estate and rental and
 leasing 6.0 3,456
Professional, scientific, and
 technical services 35.8 (D)
Other industries 199.9 158,030

(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 1998 and 1999 were 333,469 and 616,680 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.

NAICS North American Industry Classification System

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 the 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 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. (See the box "Data on Foreign Direct Investment in the United States" for references to other BEA data with broader coverage.)

Beginning in 1998, 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.(6) 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--that are acquired or established by foreigners are required to file partial reports, which are much shorter than full reports.(7)

To provide the most comprehensive aggregate values for all the partial reports it receives, BEA estimates the items that are only on the full report and adds the estimated and reported data for the partial reports to the data for 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 1998, the total assets of U.S. businesses that filed partial reports were $405.1 million, less than 0.2 percent of the $274.3 billion of total assets for all investments.

Although the values for partial reports are negligible, their numbers are significant. For example, BEA received 1,222 partial reports in 1998, compared with 927 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 1998 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 927 full reports filed in 1998, 572 were for investments to acquire U.S. businesses, and 355 were for investments to establish new U.S. businesses. For 1999, BEA estimates that 825 businesses will have filed full reports by the time the revised estimates are published next year.(8)

The number of full reports by size of outlay is shown in the table below. As is usually the case for the preliminary estimates, reports covering virtually all of the largest investments have already been filed for 1999. Accordingly, among the four size classes shown, the numbers shown for 1999 for the three largest classes represent the number of reports actually received; the number shown for investments of less than $100 million includes an estimate for 1999 of the number of late reports that will be received before the revised estimates are published.

 1998 1999

 Total 927 825

$5 billion or more 6 9
$2 billion--$4.9 billion 8 15
$100 million--$1.9 billion 154 159
Less than $100 million 759 642

The number of new investments for 1998 and 1999 is not comparable with the number of new investments for 1980-97, because the asset criterion for filing full reports was raised from $1 million 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 do 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 and 1999.

Tables 6 and 7 follow.

Table 6.--Investment Outlays by Type of Investment and Investor, by NAICS-Based Industry of U.S. Business Enterprise 1998-99

[Millions of dollars]

 1998(r)

 Total

 All industries 215,256

Manufacturing 149,243

 Food 1,286
 Beverages and tobacco 442
 Textiles, apparel, and
 leather products 594
 Wood products (D)
 Paper 3,572
 Printing and related
 support activities 1,022
 Petroleum and coal products 67,658

 Chemicals 3,627
 Basic chemicals 673
 Resins and synthetic rubber,
 fibers and filaments (D)
 Pharmaceuticals and medicines 1,489
 Soap, cleaning compounds,
 and toilet preparations (D)
 Other 829

 Plastics and rubber products 1,434
 Nonmetallic mineral products 900
 Primary and fabricated metals 2,986
 Primary metals 2,454
 Fabricated metal products 532

 Machinery 5,220
 Agriculture, construction,
 and mining machinery (D)
 Industrial machinery (D)
 Other (D)

 Computers and electronic products 17,861
 Computer and peripheral equipment (D)
 Communications equipment 5,238
 Audio and video equipment 5
 Semiconductors and other
 electronic components 1,848
 Navigational, measuring,
 and other instruments 1,775
 Magnetic and optical media (D)

 Electrical equipment, appliances,
 and components 136
 Transportation equipment 37,177
 Motor vehicles, bodies
 and trailers, and parts 36,695
 Other 482
 Furniture and related products (D)
 Miscellaneous manufacturing 5,246

Wholesale trade 3,321
 Motor vehicles and motor
 vehicle parts and supplies 7
 Professional and commercial
 equipment and supplies 168
 Electrical goods 0
 Other durable goods 531
 Petroleum and petroleum products 55
 Other nondurable goods 2,559

Retail trade 1,153
 Food and beverage stores (D)
 Other (D)

Information 13,399
 Publishing industries 9,856
 Motion pictures and sound
 recording industries 36
 Broadcasting and telecommunications 2,841
 Broadcasting, cable networks,
 and program distribution (D)
 Telecommunications (D)
 Information services and data
 processing services 667

Depository Institutions 1,563

Finance, (except depository
Institutions) and Insurance 21,057
 Finance, except depository
 institutions 16,348
 insurance carriers and
 related activities 4,709

Real estate and rental and leasing 6,299
 Real estate 6,144
 Rental and leasing (except
 real estate) 155

Professional, scientific, and
 technical services 4,289
 Architectural, engineering,
 and related services 104
 Computer systems design and
 related services 2,217
 Management, scientific, and
 technical consulting 15
 Other 1,953

Other industries 14,932
 Agriculture, forestry,
 fishing, and hunting (D)
 Mining 906
 Utilities 4,372
 Construction 475
 Transportation and warehousing (D)
 Management of nonbank companies
 and enterprises (D)
 Administration, support,
 and waste management 3,939
 Health care and soda] assistance (D)
 Accommodation and food services 904
 Accommodation 119
 Food services and drinking places 785
 Miscellaneous services 1,395

 1998(r)

 By type of investment

 U.S. business U.S. business
 acquired established

 All industries 182,357 32,899

Manufacturing 136,005 13,237

 Food 1,199 87
 Beverages and tobacco (D) (D)
 Textiles, apparel, and
 leather products 594 0
 Wood products (D) 5
 Paper (D) (D)
 Printing and related
 support activities (D) (D)
 Petroleum and coal products (D) (D)

 Chemicals 3,472 154
 Basic chemicals (D) (D)
 Resins and synthetic rubber,
 fibers and filaments (D) 0
 Pharmaceuticals and medicines (D) (D)
 Soap, cleaning compounds,
 and toilet preparations (D) (*)
 Other 828 1

 Plastics and rubber products 1,426 8
 Nonmetallic mineral products (D) (D)
 Primary and fabricated metals (D) (D)
 Primary metals (D) (D)
 Fabricated metal products 524 8

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

 Computers and electronic products (D) (D)
 Computer and peripheral equipment (D) (D)
 Communications equipment 5,238 0
 Audio and video equipment 1 4
 Semiconductors and other
 electronic components 1,847 1
 Navigational, measuring,
 and other instruments (D) (D)
 Magnetic and optical media (D) 0

 Electrical equipment, appliances,
 and components (D) (D)
 Transportation equipment 37,080 96
 Motor vehicles, bodies
 and trailers, and parts 36,600 95
 Other 480 1
 Furniture and related products (D) 2
 Miscellaneous manufacturing 5,245 (*)

Wholesale trade 2,577 744
 Motor vehicles and motor
 vehicle parts and supplies 7 (*)
 Professional and commercial
 equipment and supplies (D) (D)
 Electrical goods 0 0
 Other durable goods 471 61
 Petroleum and petroleum products (D) (D)
 Other nondurable goods 1,895 665

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

Information (D) (D)
 Publishing industries 9,854 1
 Motion pictures and sound
 recording industries 36 (*)
 Broadcasting and telecommunications 2,837 4
 Broadcasting, cable networks,
 and program distribution (D) 0
 Telecommunications (D) 4
 Information services and data
 processing services (D) (D)

Depository Institutions (D) (D)

Finance, (except depository
Institutions) and Insurance 7,667 13,390
 Finance, except depository
 institutions (D) (D)
 insurance carriers and
 related activities (D) (D)

Real estate and rental and leasing 1,790 4,509
 Real estate (D) (D)
 Rental and leasing (except
 real estate) (D) (D)

Professional, scientific, and
 technical services 4,240 50
 Architectural, engineering,
 and related services 104 0
 Computer systems design and
 related services 2,214 3
 Management, scientific, and
 technical consulting (D) (D)
 Other (D) (D)

Other industries 14,225 707
 Agriculture, forestry,
 fishing, and hunting (D) 8
 Mining 906 (*)
 Utilities (D) (D)
 Construction (D) (D)
 Transportation and warehousing (D) (D)
 Management of nonbank companies
 and enterprises (D) (D)
 Administration, support,
 and waste management 3,920 19
 Health care and soda] assistance (D) (*)
 Accommodation and food services 849 55
 Accommodation 65 55
 Food services and drinking places 785 0
 Miscellaneous services 1,360 35

 1998(r)

 By type of investor

 Foreign direct U.S.
 investors affiliates

 All industries 120,828 94,428

Manufacturing 109,880 39,363

 Food 75 1,211
 Beverages and tobacco (D) (D)
 Textiles, apparel, and
 leather products (D) (D)
 Wood products (*) (D)
 Paper 168 3,404
 Printing and related
 support activities (D) (D)
 Petroleum and coal products (D) (D)

 Chemicals 1,406 2,220
 Basic chemicals (D) (D)
 Resins and synthetic rubber,
 fibers and filaments (D) (D)
 Pharmaceuticals and medicines (D) (D)
 Soap, cleaning compounds,
 and toilet preparations (D) (D)
 Other 5 823

 Plastics and rubber products 19 1,415
 Nonmetallic mineral products 4 896
 Primary and fabricated metals 130 2,856
 Primary metals 16 2,437
 Fabricated metal products 113 419

 Machinery 317 4,903
 Agriculture, construction,
 and mining machinery (D) (D)
 Industrial machinery (D) (D)
 Other (D) (D)

 Computers and electronic products (D) (D)
 Computer and peripheral equipment (D) 226
 Communications equipment (D) (D)
 Audio and video equipment 4 1
 Semiconductors and other
 electronic components 90 1,759
 Navigational, measuring,
 and other instruments (D) (D)
 Magnetic and optical media 1 (D)

 Electrical equipment, appliances,
 and components (D) (D)
 Transportation equipment 33,606 3,570
 Motor vehicles, bodies
 and trailers, and parts (D) (D)
 Other (D) (D)
 Furniture and related products 2 (D)
 Miscellaneous manufacturing (D) (D)

Wholesale trade (D) (D)
 Motor vehicles and motor
 vehicle parts and supplies (*) 7
 Professional and commercial
 equipment and supplies (D) (D)
 Electrical goods 0 0
 Other durable goods 35 497
 Petroleum and petroleum products (D) (D)
 Other nondurable goods 634 1,925

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

Information 3,194 10,205
 Publishing industries 782 9,074
 Motion pictures and sound
 recording industries 9 27
 Broadcasting and telecommunications (D) (D)
 Broadcasting, cable networks,
 and program distribution 0 (D)
 Telecommunications (D) (D)
 Information services and data
 processing services (D) (D)

Depository Institutions (D) (D)

Finance, (except depository
Institutions) and Insurance 1,417 19,640
 Finance, except depository
 institutions 1,368 14,979
 insurance carriers and
 related activities 48 4,661

Real estate and rental and leasing 1,515 4,784
 Real estate (D) (D)
 Rental and leasing (except
 real estate) (D) (D)

Professional, scientific, and
 technical services 1,027 3,263
 Architectural, engineering,
 and related services (D) (D)
 Computer systems design and
 related services (D) (D)
 Management, scientific, and
 technical consulting 5 10
 Other 724 1,229

Other industries 1,460 13,472
 Agriculture, forestry,
 fishing, and hunting (D) 10
 Mining (D) (D)
 Utilities 20 4,352
 Construction 4 471
 Transportation and warehousing 99 (D)
 Management of nonbank companies
 and enterprises (D) (D)
 Administration, support,
 and waste management 37 3,902
 Health care and soda] assistance (D) (*)
 Accommodation and food services (D) (D)
 Accommodation 2 117
 Food services and drinking places (D) (D)
 Miscellaneous services (D) (D)

 1999(p)

 Total

 All industries 282,946

Manufacturing 74,195

 Food 869
 Beverages and tobacco 1,501
 Textiles, apparel, and
 leather products (D)
 Wood products (D)
 Paper 188
 Printing and related
 support activities 1,773
 Petroleum and coal products (D)

 Chemicals 5,425
 Basic chemicals (D)
 Resins and synthetic rubber,
 fibers and filaments (D)
 Pharmaceuticals and medicines 85
 Soap, cleaning compounds,
 and toilet preparations (D)
 Other 731

 Plastics and rubber products 3,682
 Nonmetallic mineral products 2,233
 Primary and fabricated metals 2,948
 Primary metals 1,751
 Fabricated metal products 1,196

 Machinery 14,900
 Agriculture, construction,
 and mining machinery (D)
 Industrial machinery (D)
 Other 9,894

 Computers and electronic products 32,376
 Computer and peripheral equipment 258
 Communications equipment 7,944
 Audio and video equipment (D)
 Semiconductors and other
 electronic components 22,032
 Navigational, measuring,
 and other instruments 2,005
 Magnetic and optical media (D)

 Electrical equipment, appliances,
 and components 4,415
 Transportation equipment 2,736
 Motor vehicles, bodies
 and trailers, and parts 2,322
 Other 414
 Furniture and related products 0
 Miscellaneous manufacturing 889

Wholesale trade 1,030
 Motor vehicles and motor
 vehicle parts and supplies 0
 Professional and commercial
 equipment and supplies 304
 Electrical goods (D)
 Other durable goods (D)
 Petroleum and petroleum products 0
 Other nondurable goods 415

Retail trade 4,564
 Food and beverage stores 0
 Other 4,564

Information 93,475
 Publishing industries (D)
 Motion pictures and sound
 recording industries 3
 Broadcasting and telecommunications 80,073
 Broadcasting, cable networks,
 and program distribution 3,586
 Telecommunications 76,487
 Information services and data
 processing services (D)

Depository Institutions 11,845

Finance, (except depository
Institutions) and Insurance 47,023
 Finance, except depository
 institutions 4,129
 insurance carriers and
 related activities 42,894

Real estate and rental and leasing 5,689
 Real estate (D)
 Rental and leasing (except
 real estate) (D)

Professional, scientific, and
 technical services 11,355
 Architectural, engineering,
 and related services (D)
 Computer systems design and
 related services 8,896
 Management, scientific, and
 technical consulting (D)
 Other 682

Other industries 33,771
 Agriculture, forestry,
 fishing, and hunting 103
 Mining 2,344
 Utilities 15,937
 Construction 1,955
 Transportation and warehousing 6,140
 Management of nonbank companies
 and enterprises (D)
 Administration, support,
 and waste management 2,053
 Health care and soda] assistance (D)
 Accommodation and food services 2,636
 Accommodation 1,309
 Food services and drinking places 1,327
 Miscellaneous services 258

 1999(p)

 By type of investment

 U.S. business U.S. business
 acquired established

 All industries 276,489 6,457

Manufacturing 73,794 401

 Food (D) (D)
 Beverages and tobacco 1,501 (*)
 Textiles, apparel, and
 leather products (D) 8
 Wood products (D) 0
 Paper 188 0
 Printing and related
 support activities 1,773 0
 Petroleum and coal products (D) 0

 Chemicals (D) (D)
 Basic chemicals (D) 0
 Resins and synthetic rubber,
 fibers and filaments 0 (D)
 Pharmaceuticals and medicines 85 0
 Soap, cleaning compounds,
 and toilet preparations 0 (D)
 Other 731 0

 Plastics and rubber products (D) (D)
 Nonmetallic mineral products 2,233 0
 Primary and fabricated metals 2,944 4
 Primary metals 1,747 4
 Fabricated metal products 1,196 0

 Machinery 14,900 0
 Agriculture, construction,
 and mining machinery (D) 0
 Industrial machinery (D) 0
 Other 9,894 0

 Computers and electronic products 32,376 0
 Computer and peripheral equipment 258 0
 Communications equipment 7,944 0
 Audio and video equipment (D) 0
 Semiconductors and other
 electronic components 22,032 0
 Navigational, measuring,
 and other instruments 2,005 0
 Magnetic and optical media (D) 0

 Electrical equipment, appliances,
 and components 4,415 0
 Transportation equipment (D) (D)
 Motor vehicles, bodies
 and trailers, and parts (D) (D)
 Other 414 (*)
 Furniture and related products 0 0
 Miscellaneous manufacturing 889 0

Wholesale trade (D) (D)
 Motor vehicles and motor
 vehicle parts and supplies 0 0
 Professional and commercial
 equipment and supplies 304 0
 Electrical goods (D) 0
 Other durable goods (D) (D)
 Petroleum and petroleum products 0 0
 Other nondurable goods 414 2

Retail trade 4,564 0
 Food and beverage stores 0 0
 Other 4,564 0

Information 93,168 306
 Publishing industries (D) 0
 Motion pictures and sound
 recording industries 0 3
 Broadcasting and telecommunications (D) (D)
 Broadcasting, cable networks,
 and program distribution 3,586 0
 Telecommunications (D) (D)
 Information services and data
 processing services (D) (D)

Depository Institutions (D) (D)

Finance, (except depository
Institutions) and Insurance 46,017 1,006
 Finance, except depository
 institutions 3,123 1,006
 insurance carriers and

 related activities 42,894 0

Real estate and rental and leasing 1,344 4,345
 Real estate (D) 4,345
 Rental and leasing (except
 real estate) (D) 0

Professional, scientific, and
 technical services 11,282 73
 Architectural, engineering,
 and related services (D) 0
 Computer systems design and
 related services (D) (D)
 Management, scientific, and
 technical consulting (D) 0
 Other (D) (D)

Other industries 33,464 307
 Agriculture, forestry,
 fishing, and hunting 101 1
 Mining (D) (D)
 Utilities (D) (D)
 Construction 1,955 (*)
 Transportation and warehousing 6,140 0
 Management of nonbank companies
 and enterprises (D) (D)
 Administration, support,
 and waste management (D) (D)
 Health care and soda] assistance (D) 0
 Accommodation and food services 2,636 0
 Accommodation 1,309 0
 Food services and drinking places 1,327 0
 Miscellaneous services 258 0

 1999(p)

 By type of investor

 Foreign direct U.S.
 investors affiliates

 All industries 128,569 154,377

Manufacturing 15,065 59,130

 Food 0 869
 Beverages and tobacco (D) (D)
 Textiles, apparel, and
 leather products (D) (D)
 Wood products 0 (D)
 Paper (*) 188
 Printing and related
 support activities (D) (D)
 Petroleum and coal products 0 (D)

 Chemicals 470 4,955
 Basic chemicals 0 (D)
 Resins and synthetic rubber,
 fibers and filaments 0 (D)
 Pharmaceuticals and medicines (D) (D)
 Soap, cleaning compounds,
 and toilet preparations 0 (D)
 Other (D) (D)

 Plastics and rubber products (D) (D)
 Nonmetallic mineral products (D) (D)
 Primary and fabricated metals (D) (D)
 Primary metals (D) (D)
 Fabricated metal products (D) (D)

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

 Computers and electronic products 4,792 27,584
 Computer and peripheral equipment 3 255
 Communications equipment (D) (D)
 Audio and video equipment 0 (D)
 Semiconductors and other
 electronic components (D) (D)
 Navigational, measuring,
 and other instruments 1,277 728
 Magnetic and optical media (D) (D)

 Electrical equipment, appliances,
 and components 2 4,413
 Transportation equipment (D) (D)
 Motor vehicles, bodies
 and trailers, and parts (D) (D)
 Other 0 414
 Furniture and related products 0 0
 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 (D) (D)
 Other durable goods (D) (D)
 Petroleum and petroleum products 0 0
 Other nondurable goods 0 415

Retail trade 114 4,450
 Food and beverage stores 0 0
 Other 114 4,450

Information 79,133 14,342
 Publishing industries (D) 8,711
 Motion pictures and sound
 recording industries 0 3
 Broadcasting and telecommunications (D) (D)
 Broadcasting, cable networks,
 and program distribution (D) (D)
 Telecommunications (D) (D)
 Information services and data
 processing services (D) (D)

Depository Institutions (D) (D)

Finance, (except depository
Institutions) and Insurance 7,227 39,796
 Finance, except depository
 institutions 2,329 1,799
 insurance carriers and
 related activities 4,898 37,996

Real estate and rental and leasing 1,072 4,617
 Real estate (D) (D)
 Rental and leasing (except
 real estate) (D) (D)

Professional, scientific, and
 technical services 4,338 7,018
 Architectural, engineering,
 and related services (D) 21
 Computer systems design and
 related services 2,689 6,207
 Management, scientific, and
 technical consulting 0 (D)
 Other (D) (D)

Other industries 21,474 12,296
 Agriculture, forestry,
 fishing, and hunting (D) (D)
 Mining (D) (D)
 Utilities (D) (D)
 Construction (D) (D)
 Transportation and warehousing 2,778 3,362
 Management of nonbank companies
 and enterprises (D) (*)
 Administration, support,
 and waste management (D) (D)
 Health care and soda] assistance 0 (D)
 Accommodation and food services (D) (D)
 Accommodation 0 1,309
 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

NAICS North American Industry Classification System

Table 7.1--Investment Outlays, Country of Ultimate Beneficial Owner by NAICS-Based Industry of U.S. Business Enterprise, 1998

[Millions of dollars]

 All
 industries Manufacturing

 Total Of which

 Food

 (1) (2) (3)

 All countries 215,256 149,243 1,286

Canada 22,635 12,053 (D)

Europe 170,173 126,078 525
 Austria 19 7 0
 Belgium 255 81 0
 Denmark 49 (D) 0
 Finland (D) (D) 0
 France 14,493 10,207 1

 Germany 39,873 36,732 (D)
 Ireland 4,268 3,770 0
 Italy 391 128 (D)
 Liechtenstein (D) 0 0
 Luxembourg (D) (*) 0
 Netherlands 19,009 10,879 (*)

 Norway 832 1 0
 Spain (D) (*) 0
 Sweden 506 189 0
 Switzerland 4,525 1,298 (D)
 United Kingdom 84,995 62,614 (D)
 Other 7 6 3

Latin America and
Other Western Hemisphere 11,354 7,774 (D)

 South and Central America 920 730 (D)
 Brazil 1 0 0
 Mexico 739 (D) (D)
 Panama 3 (*) 0
 Venezuela (D) (D) (*)
 Other (D) (*) 0

 Other Western Hemisphere 10,433 7,044 (*)
 Bahamas (*) 0 0
 Bermuda 5,996 (D) 0
 Netherlands Antilles (D) (D) (*)
 United Kingdom Islands,
 Caribbean 1,836 (D) 0
 Other (D) 0 0

Africa 212 11 0
 South Africa 212 11 0
 Other 1 (*) 0

Middle East 2,810 (D) 0
 Israel (D) (D) 0
 Kuwait (*) 0 0
 Lebanon (D) (D) 0
 Saudi Arabia (D) (D) 0
 United Arab Emirates (D) 0 0
 Other 31 (D) 0

Asia and Pacific 7,329 1,120 36
 Australia (D) 35 0
 China 4 1 0
 Hong Kong (D) 7 0
 Indonesia 0 0 0
 Japan 4,862 908 (D)
 Korea, Republic of (D) (*) (*)
 Malaysia (D) 0 0
 New Zealand (D) 0 0
 Philippines (*) 0 0
 Singapore 357 (D) 0
 Taiwan 160 (D) (D)
 Other (*) (*) 0

United States(1) 743 (D) 0

Addenda:
 European Union (15)(2) 164,796 124,775 371
 OPEC(3) (D) (D) (*)

 Manufacturing

 Of which

 Chemicals Primary Machinery
 and
 fabricated
 metals

 (4) (5) (6)

 All countries 3,627 2,986 5,220

Canada 13 (D) (D)

Europe 3,268 1,858 3,013
 Austria 1 4 (*)
 Belgium 0 0 (D)
 Denmark 0 0 0
 Finland (*) 0 0
 France (D) (D) (D)

 Germany 449 (D) (D)
 Ireland (D) (*) 0
 Italy (*) (D) (*)
 Liechtenstein 0 0 0
 Luxembourg 0 0 0
 Netherlands 3 (*) (D)

 Norway 0 0 0
 Spain (*) 0 (*)
 Sweden 0 (D) 5
 Switzerland (*) (D) (D)
 United Kingdom 1,349 1,713 (D)
 Other (*) 0 (*)

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

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

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

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

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

Asia and Pacific 323 46 (D)
 Australia 0 (D) 0
 China (*) (*) (*)
 Hong Kong 0 0 0
 Indonesia 0 0 0
 Japan 323 (D) (D)
 Korea, Republic of (*) (*) 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) (D) 0 0

Addenda:
 European Union (15)(2) 3,268 1,813 2,959
 OPEC(3) (D) (*) 0

 Manufacturing

 Of which

 Computer Electrical Transp-
 and equipment, ortation
 electronics appliances, equip-
 products and ment
 components

 (7) (8) (9)

 All countries 17,861 136 37,177

Canada (D) (D) 6

Europe 8,545 125 37,070
 Austria (*) 0 (*)
 Belgium (D) 0 0
 Denmark (D) 0 0
 Finland 0 0 0
 France 6,528 (D) (D)

 Germany 82 (D) 33,982
 Ireland 0 0 0
 Italy 8 0 (D)
 Liechtenstein 0 0 0
 Luxembourg 0 0 (*)
 Netherlands (D) 0 (D)

 Norway 1 0 0
 Spain (*) 0 0
 Sweden (D) 0 (D)
 Switzerland 1 0 0
 United Kingdom 1,038 (D) 979
 Other 0 0 0

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

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

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

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

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

Asia and Pacific 202 (D) 100
 Australia (*) 0 0
 China 0 0 (*)
 Hong Kong (D) 0 0
 Indonesia 0 0 98
 Japan 36 (D) 0
 Korea, Republic of 0 0 0
 Malaysia 0 0 0
 New Zealand 0 0 0
 Philippines 0 0 0
 Singapore (D) 0 0
 Taiwan (D) 0 1
 Other 0 0 0

United States(1) 5 0 0

Addenda:
 European Union (15)(2) 8,543 125 37,070
 OPEC(3) 0 0 0

 Wholesale Retail Infor-
 trade trade mation

 (10) (11) (12)

 All countries 3,321 1,153 13,399

Canada (D) 7 1,583

Europe 1,337 1,102 10,625
 Austria 1 0 2
 Belgium (D) 0 (D)
 Denmark (D) 0 0
 Finland 3 0 (D)
 France (*) (D) (D)

 Germany 101 (D) (D)
 Ireland (D) 0 0
 Italy (*) 0 0
 Liechtenstein 0 0 0
 Luxembourg 0 0 0
 Netherlands 67 0 (D)

 Norway (D) 0 (D)
 Spain (D) 0 0
 Sweden (D) (D) 0
 Switzerland 12 0 (D)
 United Kingdom 340 1 7,881
 Other (*) 0 0

Latin America and
Other Western Hemisphere (D) 7 5

 South and Central America (D) 7 0
 Brazil 0 0 0
 Mexico (*) 7 0
 Panama 0 0 0
 Venezuela 0 0 0
 Other (D) 0 0

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

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

Middle East 4 (D) (D)
 Israel (*) (D) (D)
 Kuwait 0 0 0
 Lebanon 0 0 0
 Saudi Arabia 0 0 0
 United Arab Emirates 0 0 0
 Other 4 4 0

Asia and Pacific (D) (D) 552
 Australia (*) 0 0
 China 2 0 (*)
 Hong Kong 0 0 (D)
 Indonesia 0 0 0
 Japan 630 (D) 178
 Korea, Republic of 0 0 0
 Malaysia 0 0 0
 New Zealand (D) 0 0
 Philippines 0 0 0
 Singapore 1 0 (D)
 Taiwan (*) 0 0
 Other (*) 0 0

United States(1) 1 0 (D)

Addenda:
 European Union (15)(2) 932 1,102 10,553
 OPEC(3) 0 0 0

 Depository Finance Real
 insti- (except estate
 tutions depository and
 institu- rental
 tions) and
 and leasing
 insurance

 (13) (14) (15)

 All countries 1,563 21,057 6,299

Canada 21 1,297 (D)

Europe (D) 14,936 3,087
 Austria 0 2 0
 Belgium 0 (*) 0
 Denmark 0 0 0
 Finland 0 (*) 0
 France (D) (D) 19

 Germany 0 164 1,320
 Ireland (*) (*) (*)
 Italy 0 (*) (D)
 Liechtenstein 0 1 (D)
 Luxembourg 0 0 (*)
 Netherlands 0 1,578 (D)

 Norway 0 (*) (D)
 Spain (D) 0 (*)
 Sweden 0 2 (D)
 Switzerland 0 (D) 20
 United Kingdom (D) (D) 157
 Other 0 0 0

Latin America and
Other Western Hemisphere (D) (D) 391

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

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

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

Middle East 3 (*) 308
 Israel 3 (*) (D)
 Kuwait 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) 3,750 (D)
 Australia 0 (D) 1
 China 0 0 1
 Hong Kong 0 0 7
 Indonesia 0 0 0
 Japan 0 (D) 243
 Korea, Republic of 0 (*) (D)
 Malaysia 0 0 (D)
 New Zealand 0 0 0
 Philippines 0 0 (*)
 Singapore 0 0 (D)
 Taiwan (D) (*) 2
 Other 0 (*) (*)

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

Addenda:
 European Union (15)(2) 1,454 12,012 2,950
 OPEC(3) (D) (*) (D)

 Professional
 scientific,
 and
 technical Other
 services industries

 (16) (17)

 All countries 4,289 14,932

Canada 84 5,498

Europe (D) 7,458
 Austria 4 2
 Belgium (*) (D)
 Denmark 0 (*)
 Finland 0 (*)
 France 107 1,545

 Germany (D) 147
 Ireland (D) (D)
 Italy (D) (*)
 Liechtenstein 0 0
 Luxembourg 0 (D)
 Netherlands (D) (D)

 Norway (D) 94
 Spain 0 (*)
 Sweden (D) (D)
 Switzerland 186 45
 United Kingdom 2,734 1,358
 Other 0 0

Latin America and
Other Western Hemisphere 3 (D)

 South and Central America 3 (D)
 Brazil 1 0
 Mexico 0 (D)
 Panama 2 (*)
 Venezuela 0 0
 Other (*) (D)

 Other Western Hemisphere (*) 1,168
 Bahamas 0 (*)
 Bermuda (*) (D)
 Netherlands Antilles 0 2
 United Kingdom Islands,
 Caribbean (*) (D)
 Other (*) (D)

Africa 0 0
 South Africa 0 0
 Other 0 0

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

Asia and Pacific (D) 638
 Australia 0 (D)
 China 0 (*)
 Hong Kong (*) 2
 Indonesia 0 0
 Japan (D) 314
 Korea, Republic of 0 0
 Malaysia 0 0
 New Zealand 0 0
 Philippines 0 0
 Singapore (D) (*)
 Taiwan 5 (D)
 Other (*) 0

United States(1) 0 (D)

Addenda:
 European Union (15)(2) 3,698 7,319
 OPEC(3) 0 0

(*) Less than $500,000

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

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

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

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

NOTE.--Data for 1998 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.

NAICS North American Industry Classification System

Table 7.2--Investment Outlays, Country of Ultimate Beneficial Owner by NAICS-Based Industry of U.S. Business Enterprise, 1999

[Millions of dollars]

 Manufacturing

 Of Which

 All Total Food
 Industries

 (1) (2) (3)

 All countries 282,946 74,195 869

Canada 11,388 6,257 0

Europe 205,150 48,247 (D)
 Austria (D) (D) 0
 Belgium 855 (D) 0
 Denmark 1,117 (D) (D)
 Finland (D) (D) 0
 France 24,579 18,728 0

 Germany 24,393 5,683 (D)
 Ireland 623 (D) 0
 Italy 6,596 (D) 0
 Liechtenstein 0 0 0
 Luxembourg (D) 0 0
 Netherlands 26,896 1,460 (D)

 Norway (D) 0 0
 Spain 479 (D) 0
 Sweden 1,978 683 0
 Switzerland 7,119 191 (D)
 United Kingdom 110,115 14,812 (D)
 Other 108 5 0

Latin America and Other
Western Hemisphere 34,013 (D) 0
 South and Central America 1,377 (D) 0
 Brazil 0 0 0
 Mexico (D) (D) 0
 Panama 0 0 0
 Venezuela 0 0 0
 Other (D) 0 0

 Other Western Hemisphere 32,636 (D) 0
 Bahamas (D) 0 0
 Bermuda 31,685 (D) 0
 Netherlands Antilles 0 0 0
 United Kingdom Islands,
 Caribbean 927 0 0
 Other (D) (D) 0

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

Middle East 546 (D) 0
 Israel 148 (D) 0
 Kuwait (D) 0 0
 Lebanon 0 0 0
 Saudi Arabia 152 0 0
 United Arab Emirates (D) 0 0
 Other 200 0 0

Asia and Pacific 11,502 1,062 (D)
 Australia (D) 0 0
 China 0 0 0
 Hong Kong 237 0 0
 Indonesia 0 0 0
 Japan 8,048 1,042 (D)
 Korea, Republic of (D) (D) 0
 Malaysia (*) (*) 0
 New Zealand 0 0 0
 Philippines 0 0 0
 Singapore 154 (D) 0
 Taiwan 33 4 0
 Other (D) 0 0

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

Addenda:
 European Union (15)(2) 198,020 48,055 676
 OPEC 199 0 0

 Manufacturing

 Of Which

 Primary
 and
 Chemicals fabricated Machinery
 metals

 (4) (5) (6)

 All countries 5,425 2,948 14,900

Canada (D) (D) (D)

Europe 5,331 1,356 14,859
 Austria 0 0 0
 Belgium 0 0 0
 Denmark 0 0 0
 Finland 0 0 0
 France (D) (D) (D)

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

 Norway 0 0 0
 Spain 0 0 0
 Sweden (D) 0 0
 Switzerland 0 0 (D)
 United Kingdom 487 1,218 900
 Other 5 0 0

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

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

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

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

Asia and Pacific (D) 4 (D)
 Australia 0 0 0
 China 0 0 0
 Hong Kong 0 0 0
 Indonesia 0 0 0
 Japan (D) 4 (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) (D) 0 0

Addenda:
 European Union (15)(2) 5,331 1,356 14,841
 OPEC 0 0 0

 Manufacturing

 Of Which

 Computer Electrical
 and equipment,
 electronic appliances,
 products and
 components

 (7) (8)

 All countries 32,376 4,415

Canada (D) 0

Europe 15,142 (D)
 Austria 0 0
 Belgium (D) 0
 Denmark (D) 0
 Finland (D) 0
 France 3,093 (D)

 Germany 1,098 0
 Ireland 0 0
 Italy 0 0
 Liechtenstein 0 0
 Luxembourg 0 0
 Netherlands (D) 0

 Norway 0 0
 Spain 0 0
 Sweden (D) (D)
 Switzerland 3 (D)
 United Kingdom 8,390 (D)
 Other 0 0

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

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

Africa 0 0
 South Africa 0 0
 Other 0 0

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

Asia and Pacific 597 2
 Australia 0 0
 China 0 0
 Hong Kong 0 0
 Indonesia 0 0
 Japan 595 0
 Korea, Republic of 0 0
 Malaysia 0 0
 New Zealand 0 0
 Philippines 0 0
 Singapore 0 0
 Taiwan 2 2
 Other 0 0

United States(1) 0 0

Addenda:
 European Union (15)(2) 15,139 484
 OPEC 0 0

 Manufacturing

 Of Which

 Transportation Wholesale Retail
 equipment trade trade

 (9) (10) (11)

 All countries 2,736 1,030 4,564

Canada (D) 28 (D)

Europe 1,963 (D) 4,403
 Austria 0 0 0
 Belgium 0 0 0
 Denmark 0 0 0
 Finland 0 0 0
 France (D) 0 (D)

 Germany 0 (D) 4
 Ireland 0 0 0
 Italy 0 0 0
 Liechtenstein 0 0 0
 Luxembourg 0 0 0
 Netherlands 0 264 3,872

 Norway 0 0 0
 Spain 0 (D) 0
 Sweden 0 0 0
 Switzerland 0 (D) 0
 United Kingdom (D) 199 (D)
 Other 0 0 0

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

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

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

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

Asia and Pacific (D) 266 8
 Australia 0 0 0
 China 0 0 0
 Hong Kong 0 (D) 0
 Indonesia 0 0 0
 Japan (D) (D) 5
 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 (D) 3
 Other 0 0 0

United States(1) 0 0 0

Addenda:
 European Union (15)(2) 1,963 612 4,403
 OPEC 0 0 0

 Information Deposition
 institutions

 (12) (13)

 All countries 93,475 11,845

Canada (D) 0

Europe 79,747 (D)
 Austria 0 0
 Belgium 0 0
 Denmark 0 0
 Finland (D) 0
 France 1,000 (D)

 Germany (D) (D)
 Ireland 0 0
 Italy 0 0
 Liechtenstein 0 0
 Luxembourg 0 0
 Netherlands 3,948 0

 Norway 0 0
 Spain 0 (D)
 Sweden 0 0
 Switzerland (D) 0
 United Kingdom 70,044 (D)
 Other 0 0

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

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

Africa 0 0
 South Africa 0 0
 Other 0 0

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

Asia and Pacific 3,857 (D)
 Australia (D) 0
 China 0 0
 Hong Kong 0 0
 Indonesia 0 0
 Japan 844 0
 Korea, Republic of 0 0
 Malaysia 0 0
 New Zealand 0 0
 Philippines 0 0
 Singapore 0 0
 Taiwan 4 (D)
 Other (D) 0

United States(1) 0 0

Addenda:
 European Union (15)(2) 75,179 11,835
 OPEC 0 0

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

 (14) (15)

 All countries 47,023 5,689

Canada (D) 713

Europe 19,383 4,029
 Austria 0 0
 Belgium 0 0
 Denmark 0 0
 Finland (D) 0
 France (D) 0

 Germany (D) 2,827
 Ireland 0 0
 Italy 0 0
 Liechtenstein 0 0
 Luxembourg 0 0
 Netherlands 14,572 301

 Norway 0 0
 Spain 0 0
 Sweden 0 (D)
 Switzerland 0 0
 United Kingdom 3,103 (D)
 Other (D) 0

Latin America and Other
Western Hemisphere 4,963 572
 South and Central America (D) (D)
 Brazil 0 0
 Mexico 0 (D)
 Panama 0 0
 Venezuela 0 0
 Other (D) 0

 Other Western Hemisphere (D) (D)
 Bahamas 0 0
 Bermuda 4,860 0
 Netherlands Antilles 0 0
 United Kingdom Islands,
 Caribbean (D) (D)
 Other 0 0

Africa 0 2
 South Africa 0 2
 Other 0 0

Middle East 0 200
 Israel 0 2
 Kuwait 0 (D)
 Lebanon 0 0
 Saudi Arabia 0 152
 United Arab Emirates 0 (D)
 Other 0 0

Asia and Pacific 597 173
 Australia (*) (D)
 China 0 0
 Hong Kong 0 (D)
 Indonesia 0 0
 Japan 597 117
 Korea, Republic of 0 0
 Malaysia 0 0
 New Zealand 0 0
 Philippines 0 0
 Singapore 0 (D)
 Taiwan 0 2
 Other 0 0

United States(1) (D) 0

Addenda:
 European Union (15)(2) 18,385 4,029
 OPEC 0 0

 Professional,
 scientific, Other Industries
 and
 technical

 (16) (17)

 All countries 11,355 33,771

Canada (D) 1,697

Europe 5,871 30,999
 Austria 0 0
 Belgium (D) (D)
 Denmark 0 (D)
 Finland 0 2
 France (D) 4,231

 Germany 194 5,225
 Ireland 0 (D)
 Italy 0 (D)
 Liechtenstein 0 0
 Luxembourg 0 (D)
 Netherlands 2,473 6

 Norway 0 (D)
 Spain 0 (*)
 Sweden (D) (D)
 Switzerland (D) (D)
 United Kingdom 2,296 17,361
 Other 0 (D)

Latin America and Other
Western Hemisphere 0 781
 South and Central America 0 0
 Brazil 0 0
 Mexico 0 0
 Panama 0 0
 Venezuela 0 0
 Other 0 0

 Other Western Hemisphere 0 781
 Bahamas 0 (D)
 Bermuda 0 495
 Netherlands Antilles 0 0
 United Kingdom Islands,
 Caribbean 0 (D)
 Other 0 0

Africa 0 0
 South Africa 0 0
 Other 0 0

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

Asia and Pacific (D) (D)
 Australia 0 (D)
 China 0 0
 Hong Kong 0 (D)
 Indonesia 0 0
 Japan (D) 136
 Korea, Republic of 0 (*)
 Malaysia 0 0
 New Zealand 0 0
 Philippines 0 0
 Singapore (D) 0
 Taiwan 0 0
 Other 0 0

United States(1) 0 (*)

Addenda:
 European Union (15)(2) 5,436 30,085
 OPEC 0 0

(*) Less than $500,000.

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

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

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

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

NOTE.--Data for 1999 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.

NAICS North American Industry Classification System

The data presented in this article were drawn from BEA's survey of new foreign direct investment in the United States. The survey was conducted under the supervision of Dorrett E. Williams, with contributions by Constance T. Deve, Erik A. Kasari, Edward I. Kozerka, Ronald L. McNeil, and Inez M. Malson. Karen E. Poffel programmed the tables.

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 "Foreign Direct Investment in the United States: Preliminary Results From the 1997 Benchmark Survey" in the August 1999 SURVEY; that article includes a detailed description of the three types of FDIUS data. The balance-of-payments and direct-investment-position data were published in "The International Investment Position of the United States at Yearend 1998" and "Direct Investment Positions for 1998: Country and Industry Detail" in the July 1999 issue; "Foreign Direct Investment in the United States: Detail for Historical Cost Position and Related Capital and Income Flows, 1998" in the September 1999 issue; and "U.S. International Transactions, Fourth Quarter and Year 1999," in the April 2000 issue.

New Industry Classifications

The 1998 and 1999 estimates of new foreign direct investments in the United States by industry reflect two changes in industry classification. First, the estimates are based on new classifications derived from the 1997 North American Industry Classification System (NAICS). The estimates for preceding years are based on classifications derived from the 1987 Standard Industrial Classification (SIC) system.(1) Second, petroleum is no longer treated as a separate major industry; instead, businesses engaged in the various petroleum-related activities are distributed among the NAICS industry groups or sectors that reflect their primary activity.

The NAICS is the new industry classification system of the United States, Canada, and Mexico; in the United States, it supplants the 1987 SIC. Among other improvements, NAICS better reflects new and emerging industries, industries involved in the production of advanced technologies, and the growth and diversification of services industries. The new NAICS-based classifications were first used to collect data on direct investment in the United States in the 1997 benchmark survey of foreign direct investment in the United States.(2)

The various petroleum subindustries are no longer grouped in the major industry group "petroleum." Instead, beginning with the 1998 estimates, these subindustries are spread among the NAICS industry groups; for example, oil and gas extraction is now included in mining, petroleum refining and integrated petroleum extraction and refining are in manufacturing, and gasoline stations are in retail trade. For earlier years, petroleum is shown as a separate major industry group because petroleum-related activities accounted for a major portion of all direct investment activity; however, their relative importance has declined significantly in recent years. Accordingly, the industry presentation of the direct investment data has been changed to bring it into conformity with that used for most other data on the U.S. economy.

(1.) office of Management and Budget, North American Industry Classification System: United States, 1997 (Lanham, MD: Bernan Press, 1998) and Office of Management of Budget, Standard Industrial Classification Manual, 1987 (Washington, DC: U.S. Government Printing Office, 1987). See also <www.ntis.gov/product/naics.htm>.

(2.) For additional information, see the box "New Industry Classifications" in William J. Zeile, "Foreign Direct Investment in the United States: Preliminary Results From the 1997 Benchmark Survey" SURVEY 79 (August 1999): 24, and the Guide to Industry and Foreign Trade Classifications for International Surveys at <www.bea.doc.gov/bea/surveys/be799.pdf>.

Data Availability

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 1998 and on investment outlays and selected operating data for the newly acquired or established businesses for 1998 and 1999 will be available as compressed text files on BENs Web site at <www.bea.doc.gov>. (Detailed estimates for 1980-91 and 1992-97 are currently available at this site.) The availability of the 1998 and 1999 estimates will be announced on the inside back cover of the SURVEY OF CURRENT BUSINESS and on the "What's New?" page in the Catalog of Products at the site.

The detailed estimates for 1998 and 1999 will also be available on diskette. Diskettes containing the detailed estimates for 1980-91 and 1992-97 are currently available; to order call the BEA Order Desk at 1-800-704-0415 (outside the United States, call 202-606-9666) and specify product number IDN-0235 for the 1992-97 estimates and product number IDN-0078 for the 1980-91 estimates.

(1.) The 1999 estimates are preliminary. The 1998 estimate of total outlays has been revised up 7 percent from the preliminary estimate that was published in Mahnaz Fahim-Nader, "Foreign Direct Investment in the United States: New Investment in 1998," SURVEY OF CURRENT BUSINESS 79 (June 1999): 16-23. For information on the coverage of the estimates, see the "Technical Note."

(2.) Estimates of total worldwide and U.S. merger and acquisition activity were reported by Thompson Financial Securities Data in a news release on January 5, 2000.

In addition to new investment in the United States, the effects of the worldwide boom in merger and acquisition activity was evident in strong growth in U.S. direct investment abroad in both 1998 and 1999; see Christopher L. Bach, "U.S. International Transactions, Fourth Quarter and Year 1999," SURVEY 80 (April 2000): 146-192.

(3.) In the table, Bermuda is included in "Other Western Hemisphere." For some investments, a Bermuda UBO is, in turn, owned by residents of other countries, but because the ownership is highly dispersed and because no single person owns more than 50 percent of it, the designation of the country of UBO remains with Bermuda (see the definition of ultimate beneficial owner in the box "Key Terms").

(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 1999, capital inflows increased $89.1 billion, to $282.5 billion. Of the components of total direct investment capital inflows--equity capital, reinvested earnings, and intercompany debt--changes in equity capital inflows tend to most closely reflect the changes in new foreign investment; in 1999, equity capital inflows increased $61.6 billion, to $215.8 billion. Because some of the largest investments in 1999 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 inflows were published in Bach, "U.S. International Transactions," 174, 181, and 186-191. Revised estimates will be published in the July issue of the 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 to be "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.) Prior to 1998, full reports were required of U.S. businesses that had total assets of more than $1 million or that owned 200 or more acres of U.S. land.

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

(8.) Each year, after the preliminary estimates are published, BEA continues to receive survey reports. 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 collected in 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 this number may fluctuate significantly from year to year.