Buy Local?

In June 2010, foreign investors (individuals, corporations, and governments) owned $9.7 trillion in U.S. long-term securities. Their holdings accounted for 19.3 percent of all U.S. long-term securities and included:

$3.3 trillion in U.S. Treasuries
$1.1 trillion in U.S. gov. agency debt (i.e Fannie Mae)
$2.8 trillion in publically traded U.S. stocks/mutual funds
$2.5 trillion in U.S. corporate debt

China was the largest foreign holder of U.S. Treasuries ($1.1 trillion). The United Kingdom was the largest foreign owner of U.S. equities ($324 billion) and long term corporate debt ($369 billion).

Foreign individuals and companies also invest directly in individual U.S. businesses (Foreign Direct Investment). The U.S. Department of Commerce explains that a Foreign Direct Investment (FDI) occurs when a foreign investor acquires at least 10 percent of the voting stock of a business located in the U.S.

QUESTION: In 2010, Foreign Direct Investment (FDI) in the U.S. totaled $228 billion. What country ranked #1 in FDI in U.S. companies in 2010?

A. Switzerland
B. Japan
C. Germany
D. China
E. United Kingdom


A. Switzerland

In 2010, Switzerland ranked #1 in Foreign Direct Investment (FDI) in the U.S. with $41 billion of the total $288 billion invested directly in U.S. businesses.

FDI in the U.S. by other countries include: United Kingdom ($37 billion), Japan ($21 billion), Germany ($20 billion), and China ($1 billion).