ABSTRACT

FOREIGN investment by multinational corporations (MNCs) is an important element of the world economy. The world's stock of foreign direct investment (FDI) was measured at almost $600 billion as of the end of 1984. 1 Subsequent growth probably pushed that figure to about $750 billion by the end of 1987. The United States is by far the largest country of origin for FDI, followed by the United Kingdom, Germany, the Netherlands, and Japan (see Table 8–1). Distribution of the World Stock of Foreign Direct Investment, by Country of Origin (percentage). https://www.niso.org/standards/z39-96/ns/oasis-exchange/table">

Country

1960

1973

1984

United States

47.1%

48.0%

40.0%

United Kingdom

18.3

13.0

13.3

Germany

1.2

5.6

7.8

Netherlands

10.3

7.5

7.1

Japan

0.7

4.9

6.4

France

6.1

4.2

5.4

Canada

3.7

3.7

5.3

Switzerland

3.4

3.4

4.3

All developing countries

1.0

2.9

3.1

Total billions of dollars

$67.7

$211.1

$595.7

Source: U.S. Department of Commerce, International Trade Administration, “Direct Investment Update: Trends in International Direct Investment” December 1986.