Accession Number : ADA320938

Title :   Foreign Direct Investment: Assessment of Commerce's Annual Report and Data Improvement Efforts.

Corporate Author : GENERAL ACCOUNTING OFFICE WASHINGTON DC NATIONAL SECURITY AND INTERNATIONAL A FFAIRS DIV

PDF Url : ADA320938

Report Date : MAR 1992

Pagination or Media Count : 67

Abstract : To assist public debate on foreign investment issues by improving existing government information, Congress enacted the Foreign Direct Investment and International Financial Data Improvements Act of 1990 (P.L. 101-533). This act requires the Secretary of Commerce to prepare an annual report addressing the history, scope, trends, market concentrations, and effects on the U.S. economy of foreign direct investment. Commerce issued the first such report on September 20,1991. The act also allows statistical data to be shared among federal agencies in order to improve analysis of the effects of foreign direct investment on the U.S. economy. The act directs GAO to (1) analyze Commerce's annual report on foreign direct investment and make recommendations for changes in the report due the following year and (2) review government efforts to improve the quality of foreign direct investment data, including the status and process for reconciliation of data exchanged among certain federal agencies. Foreign direct investment is one component of overall foreign investment and is defined as foreign investment representing 10 percent or more of a firm's equity. Other components of foreign investment include investments in bonds and Treasury securities. As foreign direct investment in the United States has increased over the past decade, so have concerns regarding the effects of that investment on the U.S. economy. Questions have arisen particularly concerning foreign investment in critical high technology industries that affect the economic as well as the national security interests of the United States. The Commerce report examines, among other issues, factors driving foreign direct investment and patterns and trends in foreign investment in the United States.

Descriptors :   *UNITED STATES, *FOREIGN TECHNOLOGY, *INVESTMENTS, *IMPACT, ELECTRONICS, INDUSTRIES, NATIONAL SECURITY, FOREIGN, BANKING, CHEMICALS, STATISTICAL DATA, REPORTS, INTERNATIONAL, FINANCE.

Subject Categories : Economics and Cost Analysis

Distribution Statement : APPROVED FOR PUBLIC RELEASE