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Tazeem Pasha SelectUSA U.S. Department of Commerce Washington, DC Foreign Direct Investment in the United States 1 SelectUSA.gov

Tazeem Pasha SelectUSA U.S. Department of Commerce Washington, DC Foreign Direct Investment in the United States 1SelectUSA.gov

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Swedish FDI Source: UNCTAD 3SelectUSA.gov

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Page 1: Tazeem Pasha SelectUSA U.S. Department of Commerce Washington, DC Foreign Direct Investment in the United States 1SelectUSA.gov

Tazeem PashaSelectUSA

U.S. Department of CommerceWashington, DC

Foreign Direct Investment in the

United States

1SelectUSA.gov

Page 2: Tazeem Pasha SelectUSA U.S. Department of Commerce Washington, DC Foreign Direct Investment in the United States 1SelectUSA.gov

Swedish FDI into the United States

2SelectUSA.gov

Page 3: Tazeem Pasha SelectUSA U.S. Department of Commerce Washington, DC Foreign Direct Investment in the United States 1SelectUSA.gov

Swedish FDI

Source: UNCTAD 3SelectUSA.gov

Page 4: Tazeem Pasha SelectUSA U.S. Department of Commerce Washington, DC Foreign Direct Investment in the United States 1SelectUSA.gov

FDI and the U.S. Economy

Top 10 FDI Positions in the United States, 2009

2%|$48.4b

11% | $251.2b

12% | $271.9b

24% | $557.9b 11% | $259.6.1b 9% | $119b

5% | $119b 4% | $88.4b 2% | $47.5b 2% | $45.4b

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Page 5: Tazeem Pasha SelectUSA U.S. Department of Commerce Washington, DC Foreign Direct Investment in the United States 1SelectUSA.gov

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Top 10 FDI Growth Countries in the United States, 2009

41% | $2.6b

45% | $34.2b

51% | $47.5b

43% | $11.6b31% | $2.4b

35% | $5.5b

34% | $2.3b

63% | $24b

Note: Numbers denote 5 year compound annual growth rate and total investment position in United States

38% | $45.4b28% | $3.8b

FDI and the U.S. Economy

SelectUSA.gov

Page 6: Tazeem Pasha SelectUSA U.S. Department of Commerce Washington, DC Foreign Direct Investment in the United States 1SelectUSA.gov

FDI and the U.S. Economy

Source: Department of Commerce, Bureau of Economic Analysis

Industry breakdown of total U.S. FDI stock ($2.3 trillion)

6SelectUSA.gov

Page 7: Tazeem Pasha SelectUSA U.S. Department of Commerce Washington, DC Foreign Direct Investment in the United States 1SelectUSA.gov

FDI Positions by StockAverage Annual Growth Rate of

FDI Positions by Stock

0%

10%

20%

30%

40%

50%

60%

United Kingdom

27%

Netherlands 14%

Germany 13%

France 11%

Switzerland11%

Luxembourg8%

Sweden3%

Ireland2%

Spain3%

Belgium2%

Italy1%Other

5%

SelectUSA.gov

U.S. FDI TrendsEuropean Direct Investment the United States

Source: Department of Commerce, Bureau of Economic Analysis – FDI by Ultimate Beneficiary Owner

Total:$1.4 Trillion

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Page 8: Tazeem Pasha SelectUSA U.S. Department of Commerce Washington, DC Foreign Direct Investment in the United States 1SelectUSA.gov

FDI and the U.S. Economy

5.3 million

$49 billion

$85 billion

$228 billion

$449 billion

25 percent

18 percent

Workers Employed by U.S. Affiliates of Foreign Firms in the U.S. in 2009

Amount U.S. Affiliates of Foreign Firms spent on R&D in the U.S. in 2009

Amount U.S. Affiliates of Foreign Firms Reinvested into the U.S. Economy in 2010

Size of FDI Flows into the U.S. in 2010

Amount of Wages Paid to Employees of U.S. Affiliates of Foreign Firms in 2009

U.S. Affiliates of Foreign Firms Pay on Average 25 percent Higher Wages and Salaries than U.S. Establishments

U.S. Affiliates of Foreign Firms Generate 18 percent of all U.S. Exports as of 2008

8SelectUSA.govSource: Bureau of Economic Analysis, 2009

Page 9: Tazeem Pasha SelectUSA U.S. Department of Commerce Washington, DC Foreign Direct Investment in the United States 1SelectUSA.gov

Source: U.S. Bureau of Economic Analysis , 2009

FDI – Sweden to U.S.

172 thousand Workers employed by U.S. affiliates of Swedish firms

$57 billion Asset value of U.S. affiliates of Swedish firms

$8 billion Annual wages paid to employees of U.S. affiliates of Swedish firms

$4.15 billion Exports by U.S. Affiliates of Swedish firms in the U.S.

$508 million R&D spending by U.S. Affiliates of Swedish Firms

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Page 10: Tazeem Pasha SelectUSA U.S. Department of Commerce Washington, DC Foreign Direct Investment in the United States 1SelectUSA.gov

Recent Announcements:

Source: fDi Markets

September 2011 - Atlas Copco opened its 13th US store in Pompano Beach, Florida. It will support the large customer base already in southern Florida and will respond to the many aftermarket requests for Atlas Copco parts and services from the Miami area. The location will take advantage of the strong road construction market in the area.

June 2011 – Single use surgical products supplier Molnlycke has broken ground on a 7340 sq m research and production plant in Brunswick, Maine. The new facility is expected to create more than 100 jobs and will be complete in June 2012. The Midcoast Regional Development Authority is borrowing $13m to help build the plant, whilst Molnlycke will invest $12m in equipment to stock the laboratories and manufacturing lines.

July 2011 – Home appliances manufacturer Electrolux is set to expand its plant in Anderson County, South Carolina, creating 12 to 14 engineering jobs by 2016. The company plans to invest $48m in its facility, which will enable it to enhance its products and manufacturing operations in the refrigeration sector.

Swedish FDI into the U.S.

10SelectUSA.gov

Page 11: Tazeem Pasha SelectUSA U.S. Department of Commerce Washington, DC Foreign Direct Investment in the United States 1SelectUSA.gov

The U.S. Business Climate

World Economic Forum’s 2010-2011 Global Competitiveness rankingsFrance: #15 Germany: #5 UK: #12

AT Kearney’s 2010 FDI Confidence IndexFrance: # 13 Germany: #5 UK: #10#

2#4

#1

IESE Business School’s 2009-2010 Venture Capital and Private Equity IndexFrance: #14 Germany: #10 UK: #2

World Economic Forum’s 2010-2011 Global Competitiveness rankings on InnovationFrance: #19 Germany: #8 UK: #14 #

1

11SelectUSA.gov

Page 12: Tazeem Pasha SelectUSA U.S. Department of Commerce Washington, DC Foreign Direct Investment in the United States 1SelectUSA.gov

• Strategic Market & FTAs Population of U.S. and FTAs is 610 million; U.S. 42% of Global Consumer Goods Market 1

• Center for Global Innovation and Entrepreneurship U.S. Responsible for 36% of Total World R&D Expenditures (EU-27 accounted for 24%); Average 558,000 new businesses created per month in 2009 2

• Strong Intellectual Property Right Protections 50.1%of the Patents Granted in 2009 by the U.S. Patent Office Originated from a Foreign Country 3

• A Leader in Higher Education 15 of the top 20 universities in the World (Europe has 4 of the top 20)4

• Productive Workforce U.S. labor productivity grew 2.3% in 2009 (France: -1%, Germany: -2.3%, UK: -2.5%) 5

• Open to People, Cultures, and Ideas1. Office of the U.S. Trade Representative; Central Intelligence Agency – The World Factbook; and Credit Suisse survey; 2 National Science Foundation Science and Engineering Indicators 2010; Kauffman Index of Entrepreneurial Activity 1996-2009; 3. U.S. Patent and Trademark Office; 4. The Times Higher Education Report 2010-2011 (U.K.); 5. OECD Labor Productivity Statistics

The United States: A Great Return on Investment

12SelectUSA.gov

Page 13: Tazeem Pasha SelectUSA U.S. Department of Commerce Washington, DC Foreign Direct Investment in the United States 1SelectUSA.gov

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Strategic Market & FTAs

SelectUSA.gov

Page 14: Tazeem Pasha SelectUSA U.S. Department of Commerce Washington, DC Foreign Direct Investment in the United States 1SelectUSA.gov

About SelectUSA

SelectUSA.gov

1. The Administration’s policy on business investment

2. The establishment and functions of the SelectUSA initiative

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SelectUSA was created by the Executive Order of the President of the United States in June 2011.

The Executive Order outlines:

Page 15: Tazeem Pasha SelectUSA U.S. Department of Commerce Washington, DC Foreign Direct Investment in the United States 1SelectUSA.gov

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My Administration is committed to ensuring that the United States continues to be the most attractive place for businesses to locate, invest, grow, and create jobs. We encourage and support business investment from sources both at home and abroad.

- President Barack Obama, June 20, 2011

Source: The White House Press Office, “Statement by the President on United States Commitment to Open Investment Policy” www.WhiteHouse.gov

Page 16: Tazeem Pasha SelectUSA U.S. Department of Commerce Washington, DC Foreign Direct Investment in the United States 1SelectUSA.gov

Thank you

Tazeem PashaSelectUSAU.S. Department of CommerceWashington, DC Tel: 202-482-0648Email: [email protected]

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