39.2 243.1
1987 40.3 267.3
1988 65.0 293.9
[sources: Herr, 1989; Standard & Poor's 1990]
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Foreign Investment in Business Enterprise
The greatest concentration of foreign investment in Ameri can business enterprise is in manufacturing, which accounted for approximately 48.6 percent of such investment in 1988 (Herr, 1989). The single manufacturing sector attracting the greatest level of foreign investment was machinery, which accounted for 21.8 percent of foreign investment in manufactur ing, and 10.6 percent of all foreign investment in American business enterprise (Herr, 1989). Outside of the manufacturing sector, retail trade held the greatest interest for foreign 3investors, accounting for 12.3 percent of total foreign invest ment in American business enterprise greater than that in machinery manufacturing (Herr, 1989).
With respect to the source of foreign investment in Ameri can business enterprise, the United Kingdom, Japan, and Canada are the big three (Herr, 1989). The United Kingdom accounted for 33.1 percent of total foreign investment in American busi ness enterprise, which Japan accounted for 21.8 percent, and Canada accounted for 16.0 percent (Herr, 1989; Hawkins, and Holstein, 1989; "Surging Investment," 1989).
Foreign Investment in Capital Markets
For purposes of this research, the private sector capital markets was defined as (1) corporate and other bonds, other than US Treasury securities, and (2) corporate equity stocks. Data pertaining to foreign investment generally in the US pri vate sector capital market are presented in Table 2, which may be found on the following page.
As the data indicate, total investment increas...