ABSTRACT
In 1990, US investment abroad totalled 421.5 billion dollars (compared with 215.4 billion in 1980). About 40 per cent was in manufacturing, 14 per cent in petroleum (oil) and over 23 per cent in finance. Table 9.5 (p. 227) shows the distribution by major regions of the world. The distribution differs markedly from the distribution of foreign trade. In spite of the growing US interest in East Asia, almost half of all US investment abroad was in Western Europe, where the share actually increased between 1980 and 1990. As membership of the EU increases and as the economy grows, bringing greater integration and cohesion, it has become increasingly important for both the USA and Japan to manufacture within the customs union in order to be able to reach the home market of the EU. Canada and Latin America together receive another third of US overseas investment, but Canada’s share has actually declined, whereas there have been increases in several other major regions of the world.
