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What influences a company to engage in foreign direct investment in the U.S?


What influences a company to engage in foreign direct investment in the U.S?

The same thing that motivates any investor: a decent rate of return for a desired level of risk.

The US repsents the largest economy in the world, with a stable, business/contract-friendly legal system.

We have an educated work force, and offer pretty good long-term returns for relatively low risk. High risk countries with histories of debt default, political instability, etc. aren't places that many companies would think about when investing money. Current events in Venezuala or Zimbabwe are a good example of high-risk places. The government is forcing many companies to sell their assets at a large loss to the government.

Companies balance MANY factors in thinking about such investments, and I have listed but a few.

Below offers a window on such rankings, but is by far not the only resource. Use the following terms to read more on country specific risk: "country risk analysis" or "country risk ratings", or similar.

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