Foreign Investment in the U.S. INTRODUCTION This research examines

THE EXTENT AND NATURE OF FOREIGN INVESTMENT IN THE UNITED STATES

The great hue and cry with respect to foreign investment in the US emphasizes foreign acquisition of American business enterprises (Levine, 1989; Gilder, 1990). In actual fact, however, foreign investment in American financial instruments dwarfs that in business enterprise and real property (Herr, 1989; Standard & Poor's, 1990). In 1988, the last full year for which data are readily available, foreign investment in American business enterprise totalled $65.0 billion, while that in the capital markets soared to $293.9 billionfourandone halftimes foreign investment in American business enterprises (Herr, 1989; Standard & Poor's, 1990).

A comparison of foreign investment in American business enterprises, with that in American capital markets for the 19841988 time period is presented in Table 1, which may be found on the following page. As the data presented in the

table indicate, foreign investment growth in the financial markets has been both larger and more predictable than that in business enterprise.

Comparison of Foreign Investment in American Business

Enterprise with Foreign Investment in American Financial Markets1984

. . .
Foreign Investment in US the Private Sector Financial Market, As a Proportion of Market Value (%) =============================================================== Year Bonds Stocks Total     1971 7.2 4.2 4.6 1972 9.0 4.5 5.1 1973 10.5 4.6 5.5 1974 4.2 4.7 4.6 1975 3.2 5.2 4.6 1976 3.0 5.0 4.4 1977 2.3 4.9 4.0 1978 2.5 5.1 4.2 1979 2.2 5.0 4.1 1980 1.9 5.2 4.2 1981 1.8 5.7 4.4
. . .

Some common words found in the essay are:
Homa Jaffee, Standard Poor's, Total Total, Stocks Average, Western Europe, Stocks Total, Saudi Arabian, Capital Markets, Business Week, Business Enterprise, foreign investment, stock prices, crude oil, oil prices, crude oil prices, money supply, private sector, standard poor's, capital markets, supply growth, total foreign, money supply growth, foreign investment american, equity stock prices, total foreign investment,
Approximate Word count = 3352
Approximate Pages = 13 (250 words per page)