Question

Identify the top five recipient countries of FDI from the US.

Identify the top 10 MNEs headquartered in the US that have made outbound FDI elsewhere.

Why do these countries attract FDI from the US?

Explain using the resource and the institution based views.

Answer 1

Top five recipient countries of FDI from the USA are as follows:

1. Netherlands
2. The United Kingdom
3. Luxemburg
4. Ireland
5. Canada

Top ten MNEs headquartered in the USA

• Apple
• AT & T
• Berkshire Hathaway
• CVS Health
• ExxonMobil
• Ford
• General Motors
• McKesson
• UnitedHealth Group
• Walmart

These countries attract FDI from the US because

• The USA has a large market having plenty of opportunities to gain a steady profitability
• These countries choose US portfolio investment to attain a highly developed liquid amount
• The USA has a large financial market which promotes the investors to grow
• The USA has a strong corporate governance structure. This has enabled business organizations to maintain an ethical environment and retain its brand value.
• The USA is highly technologically developed which is a great opportunity for these countries to gain a high return on investment
• English is a common language in the USA which has reduced communication gaps or these countries.

Aims and objectives of these countries are to gain high return against each of their investment. Moreover, the open market opportunity in the USA has enabled these countries to invest more. Thus, this entire investment process is based on managing profitability and assuring a capital return.