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76 Percent of U.S. CEOs See Greater Inbound Foreign Investment in the Next Year
added: 2008-08-14

In a Grant Thornton LLP national survey of 250 U.S. chief executive officers, three-quarters (76%) of respondents anticipate that foreign companies will invest more in U.S. businesses over the next year. Two out of five respondents think that the money will come from the Asia/Pacific Rim region, while one out of three think the money will come from the Middle East.

At the other end of the spectrum, almost half (46%) of the respondents anticipate the U.S. companies will invest less in foreign businesses over the next year; and the majority of the respondents (61%) believe that U.S. companies will invest the most in the Asia/Pacific Rim region.

Half of the respondents believe that the biggest benefit of foreign businesses investing in U.S. businesses is that it will help stimulate the U.S. economy. The areas that most concerned respondents about foreign business investments in the U.S. were: loss of managerial control (45%); dollar or currency volatility (44%); political risks (39%) and compliance with U.S. accounting practices (36%).

Do you anticipate foreign companies to invest more, less or about the same in U.S. businesses over the next year?

Substantially more 26%
Somewhat more 50%
About the same 16%
Somewhat less 8%
Substantially less 0%

Which regions of the world do you think will invest the most in U.S. businesses over the next year? (Select only one)

Asia/Pacific Rim 40%
Middle East 34%
Western Europe 21%
Eastern Europe 3%
South America 2%
Other 1%
Central America 0%

Do you anticipate U.S. companies to invest more, less or about the same in foreign business over the next year?

Substantially more 5%
Somewhat more 21%
About the same 30%
Somewhat less 40%
Substantially less 6%

Which regions of the world will U.S. companies invest the most in over the next year? (Select only one)

Asia/Pacific Rim 61%
South America 10%
Middle East 10%
Western Europe 7%
Eastern Europe 7%
Central America 5%
Other 2%

Which of the following do you perceive to be the greatest benefit of foreign businesses investing in U.S. businesses? (Check only one)

Helps stimulate the U.S. economy 50%
Helps create new jobs in the U.S. 15%
Helps U.S. businesses export more products/services 15%
Helps brings in new research, technology and skills to the U.S. 14%
Other 5%

On a scale of 1 to 7, where 1 is “no concern” and 7 is “great concern”, how much of a concern are the following aspects of foreign investment in U.S. businesses? (% based on top 2 rated choices (7 & 6))

Loss of managerial control (loss of management and operational control within a business) 45%
Dollar or currency volatility 44%
Political risks (foreign companies’ influence over U.S. policies) 39%
Compliance with U.S. accounting practices 36%


Source: Business Wire

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