![]() ![]() (Similarly, 14 percent of foreign assets owned by the United States were official, and 86 percent were private.) ![]() Measured by market values, the net foreign investment position of the United States remained positive until 1987, and reached minus $360.6 billion in 1990, about 40 percent smaller than the number computed on an historic cost basis.Īt the end of 1990, about 16 percent of foreign assets in the United States were owned by foreign governments, while 84 percent were privately owned. Commerce Department switched to market valuation in its June 1991 report. The proper measure of any investment is its current market value, not its historic cost. These data, however, are based on historic cost, the cost at the time the investment was made. assets abroad minus foreign assets in the United States went negative in 1985 for the first time since 1914. holdings of foreign assets rose, foreign holdings of U.S. The deficits were financed by net capital inflows-foreign investment in the United States less U.S. exports of goods and services-totaled over $900 billion. #During the era of 18oos inoted states foreign investment plus#current account deficits-the amount by which imports of goods and services plus foreign aid exceeded U.S. investment abroad, considering the motivations for foreign investment, and computing the negligible potential for foreign control.įoreign Investment in the United States-How Much? Of What? By Whom?īetween 19 U.S. investment and research? Fortunately, these concerns can be dispelled by reviewing the extent of foreign investment in the U.S. capital stock, reduce job quality, or distort U.S. Still, long-run scenarios of foreign ownership trouble many critics: What payment will foreigners exact for our use of their capital? Will sustained inflows of foreign capital give foreigners control of the U.S. ![]() residents are better off than they would be without foreign capital. In the short run, foreign capital invested in the United States raises U.S. ![]()
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