Why Foreign Multinationals Invest in the United States

Sametz, Arnold W.; Bagkman, Jules
March 1974
Challenge (05775132);Mar/Apr74, Vol. 17 Issue 1, p43
This article discusses opportunities for international investors that exists in the United States. The American multinational corporations began the overseas investment game with mass home markets and large-scale technology. It was the size of the European market that changed and thus stimulated direct investments in Europe by foreign multinationals in the United States. The major objective of the investors so far has not been to sustain the parent company's role in the United States, but to strengthen their capacity to compete with the U.S. in the world and in the enlarged European markets. It is the size of the U.S. market rather than the barriers around it that has simulated foreign direct investment. The goals of the foreign multinational corporations have resulted in operational characteristics that are different from those of American multinationals abroad. The U.S. markets are attractive to foreign companies because of the sharp decline in American stock markets resulting in greatly reduced prices of many American companies. Moreover, the depreciation of the dollar has lead to an increased size in bargaining in the markets.


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