Globalization Hits America

By June 28, 2006Studies and Reports

New study out from the National Foundation for American Policy entitled, “Protecting Our Prosperity: Ensuring Both National Security and the Benefits of Foreign Investment in the United States.” It tracks with much of the information provided by OFII over the year and then some. Among its findings:

— Ninety-eight percent of foreign direct investment in the U.S. is from private sector firms, not foreign governments;

— The United States remains the world’s largest source and recipient of foreign investment in the world. Foreign companies invested $814 billion in the United States;

— In 2004, majority-owned U.S. affiliates of foreign companies employed 5.2 million U.S. workers in 2004 and paid compensation totaling $318 billion annually;

— The average salary for those workers is a healthy $60,000–34 percent more than compensation at all U.S. firms. Roughly 40 percent of these jobs are in manufacturing;

— Foreign-owned U.S. operations accounted for 21 percent of total U.S. exports ($150.8 billion).

Hard to count all the misconceptions that this study debunks. It also lists the states that benefit most from foreign investment, and the number of jobs created. Some eye-opening stuff there as well. Somebody ought to send it to Lou Dobbs.

In any event, here’s a link to the full study. It lands as Congress prepares to discuss efforts to reform the Committee of Foreign Investment in the US (CFIUS) process. Might just be that — Dubai ports hysteria aside — it’s working just fine.