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Foreign Direct Investment in the United States

Foreign Direct Investment in the United States

Benefits, Suspicions, and Risks with Special Attention to FDI from China

by Edward Graham and Paul Krugman
Paperback
Publication Date: 01/01/1995

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The share of the US economy controlled by foreign firms has tripled since the mid-1970s. The authors find that foreign firms appear to invest in the United States mainly to exploit their individual advantages in management and technology - the same reasons why American firms invest abroad - rather than because the United States is now running large deficits and has become a large debtor nation. Foreign-owned firms do not pay lower wages or shift good jobs and research and development away from the United States. Foreign-owned firms and especially Japanese firms do, however, have a marked tendency to import more of their production inputs. The authors warn that the President's new legislative authority to screen FDI on national security grounds could easily be abused, but endorse using this authority to ensure access to critical technologies or production processes including a requirement on some foreign firms to invest in the United States. They propose new international rules to minimize governmental interference and harmonize policies toward multinational firms.
ISBN:
9780881322040
9780881322040
Category:
Investment & securities
Format:
Paperback
Publication Date:
01-01-1995
Language:
English
Publisher:
Peterson Institute for International Economics
Country of origin:
United States
Edition:
3rd Edition
Dimensions (mm):
22.9x15.5x1.3mm
Weight:
0.32kg
Paul Krugman

Paul Robin Krugman is an American economist who is Distinguished Professor of Economics at the Graduate Center of the City University of New York, and a columnist for The New York Times.

In 2008, Krugman was awarded the Nobel Memorial Prize in Economic Sciences for his contributions to New Trade Theory and New Economic Geography. The Prize Committee cited Krugman's work explaining the patterns of international trade and the geographic distribution of economic activity, by examining the effects of economies of scale and of consumer preferences for diverse goods and services. Krugman was previously a professor of economics at MIT, and later at Princeton University. He retired from Princeton in June 2015, and holds the title of professor emeritus there.

He also holds the title of Centenary Professor at the London School of Economics. Krugman was President of the Eastern Economic Association in 2010,[8] and is among the most influential economists in the world. He is known in academia for his work on international economics (including trade theory and international finance), economic geography, liquidity traps, and currency crises.

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