Foreign direct investment is really not “foreign” at all

Foreign Direct Investment.

When you hear the term investment, you may picture your local financial advisor, or the quarterly report for your retirement nest egg. Those types of investments are not what we’re talking about here. Foreign Direct Investment (FDI) is an economic term used to describe when companies from abroad (“international companies”) build facilities, purchase equipment, hire workers and create products and services in the United States. Many of those products and services will be sold to U.S. consumers, while others will be exported to markets around the world. In fact, there is a good chance that you and your family depend on the products and services that this foreign direct investment provides. The products made in America thanks to global investment are in just about every room of your home and may be parked in your driveway.

Creating Job Opportunities.

When international companies decide to set up operations in the United States, they pack along much more than the capital required to build a facility. Often, they “import” world-class workforce training programs and industry-leading best practices that help to spur productivity at U.S. companies. They also create value for U.S. shareholders and retirement plans. Here are just a few ways international companies support America’s workforce:

Growing America’s Economy.

International companies also broaden America’s economy and make it more resilient. After all, when an international company invests in the United States, its home country now has a stake in America’s success, which is good for our economy and U.S. foreign policy. Here are some other ways international companies grow America’s economy:

Supporting Small Businesses.

International companies help regional economies grow by sourcing much of their supply chain from U.S. small businesses. For every U.S. job at an international company, three more are supported in the U.S. economy.

Strengthening U.S. Communities.

International companies pay a disproportionate amount of U.S. taxes and often become committed partners of the communities in which they sustainably operate: