Abstract
Given the large size and rapid growth of foreign direct investment in the United States, this subject is a central concern of U.S. firms and U.S. government policymakers. This study explores the factors that contribute to the explanation of FDI in the United States by country of origin of investment. Evidence from the past twelve years shows that the main significant positive influences are home country's exports to the United States and home country market size. Significant negative influences include the home country's imports from the United States, the cultural and geographic distances of the home country from the United States, and the exchange rate (fx/$).
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*Robert Grosse is Chairman of the World Business Department at Thunderbird. His research interests include foreign direct investment and the theory of the multinational enterprise as well as international business in Latin America.
**Len J. Trevino (Ph.D., Indiana University) is Assistant Professor of Management in the School of Business at the University of Miami. His research interests include the theory of the multinational enterprise, foreign direct investment in the United States, and strategic and organizational structure, specifically relating to environmental uncertainty.
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Grosse, R., Trevino, L. Foreign Direct Investment in the United States: An Analysis by Country of Origin. J Int Bus Stud 27, 139–155 (1996). https://doi.org/10.1057/palgrave.jibs.8490129
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DOI: https://doi.org/10.1057/palgrave.jibs.8490129