Analysis of American foreign investment

With the acceleration of global economic integration, a new wave of transnational investment is emerging. Actively encouraging domestic enterprises to carry out transnational investment and vigorously introducing foreign capital are becoming an important part of national economic development strategies. Different countries are making active use of both international and domestic markets and resources for development. China has made positive achievements in attracting foreign direct investment, but its level of foreign investment is far from that of developed countries. As a large developing country, how to make active and effective use of ofdi to promote the sustainable development of economy is a major issue that the theoretical circle and practical departments must discuss seriously. With the continuous development of the “One Belt And One Road” strategy, actively expanding the scale of China’s foreign direct investment and guiding more enterprises to “go out” has become an urgent matter for economic development. However, while expanding the scale of outbound investment, we should also pay attention to the “quality” and “efficiency” of fdi.

So what does the United States do when it comes to foreign investment?

Developed countries are pursuing profit maximization and weaving global market network in ofdi. The United States is the largest foreign investor in the world. By the end of 2001, the total foreign investment of the United States reached $1623.1 billion. The United States has a long history and mature experience in foreign investment. Foreign direct investment has created a large number of large multinational companies. They make full use of foreign resources and markets to drive the development of the us economy and become a strong growth point in the us economy. Therefore, from the current domestic and international environment, the study of the United States through the face. To analyze the reality of China, to make a strategic decision to promote our country’s foreign direct investment, and to develop our country’s foreign direct investment has a real meaning to it. This paper makes a specific analysis of the us foreign investment data (from the us bureau of statistics), and the analysis is as follows:

A simple analysis of U.S. outbound investment data

1. Trade surpluses across continents

As the world’s largest economy, the United States has branches all over the world. Figure 1 shows the United States in the state to open branch of trade surplus, and can be very intuitive to see from the picture: across continents have opened a subsidiary of the United States, mainly in Europe and Addenda received huge trade surplus, the total accounted for 75.8%, for the least amount of trade surplus for the Middle East and Africa, the total accounted for only 0.89%. Since Europe has the highest trade surplus, the analysis is made on the trade surplus of European countries.

图1 The trade surpluses of the states

Europe’s trade surpluses

As is known to all, the European economy has always been among the best in all continents. For its own development, the United States has set up many branches in European countries. Figure 2 shows the country names of the United States with branches in European countries. The larger the country name, the greater the trade surplus in the country. It can be seen from the figure that the size of the Netherlands, Ireland, United Kingdom, Luxembourg and Switzerland is significantly larger than that of other countries. It can be seen that these five countries have the largest trade surplus. Therefore, the total assets of these five countries and the total assets of the United states in various industries in which they invest are analyzed.

图2 Europe’s trade surpluses

Total assets of the top five countries in the trade surplus

Figure 3 shows the total assets of the five countries with the largest trade surplus of the United States in Europe. It can be seen from the figure that the total investment and trade surplus of the United Kingdom is the largest, and the difference of 2752282 is far behind the Netherlands which ranks the second place. Therefore, Britain is truly the largest economic country in Europe.

图3  Total assets of the top five countries in the trade surplus

The countries in the top five trade surplus have total assets in all sectors

Figure 4 shows the total assets of the five countries with the largest trade surplus of the United States with its subsidiaries in Europe. As can be seen from the figure, Ireland, Luxembourg, united Kingdom and Switzerland have the highest total assets in the manufacturing industry, so the advantageous industries of these five countries are manufacturing, while the mining assets of the five countries are the lowest, so the inferior industries are mining.

图4 The countries in the top five trade surplus have total assets in all sectors

Total assets of various industries

Figure 5 shows the distribution of total assets in various sectors of the us foreign investment. It can be seen from the figure that there are 7 major industries in the us in foreign countries, including Finance and insurance, Information, Manufacturing, Mining, Professional, scientific, and technical services, Retail trade and Wholesale trade. Among them, Finance and insurance has the largest total assets, and the balance of 5,947,980 is far behind mining, which is in second place. Therefore, Finance and insurance industry is the main industry for foreign investment in the United States.

图5 Total assets of various industries

The total assets of each industry in each country

The total assets of various industries in various countries are still analyzed through Finance and insurance, Information, Manufacturing, Mining, Professional, scientific, and technical services, Retail trade and Wholesale trade. Figure 6 shows the total assets of the branches invested in these seven industries in different countries. From the book, we can see that the six industries with the best development of Finance insurance, Information, Manufacturing, Professional, scientific, and technical services, Retail trade and Wholesale trade are all European Union, while the country with the best development of Mining industry is Australia. As a result, the United States has invested heavily in the European Union.

图6 Total assets of each industry in each country

Conclusion

The problem of outward investment affects the development of domestic enterprises and domestic economy. China’s outward investment also has more or less problems to be solved. As the largest foreign investment country in the world, there are many places for us to learn. From the analysis of the data of American foreign investment, the following are the main points:

(1) as Europe’s economy is relatively developed and produces the largest trade surplus, China can refer to increasing investment in Europe.

(2) in Europe, the five countries of the Netherlands, Ireland, United Kingdom, Luxembourg and Switzerland rank among the top in terms of economic benefits.

(3) in the industry of foreign investment in the United States, the investment intensity and total income of Finance and insurance industry are the highest, so China can pay more attention to this industry.

(4) six of the seven major industries that the United States invests abroad have the highest total assets in the European Union, so the European Union’s economy is relatively developed. China can refer to increasing its investment in the European Union.

If a country wants to develop stronger and not be left behind, it must be brave enough to catch up with the trend of The Times, actively carry out cooperation and exchanges with foreign countries, let more domestic products be exported, and thus promote domestic economic development.

 

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