[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"detail-sidebar-cat-0-en-105":3,"doc-seo-324700-105":59,"doc-detail-324700-en":130},{"code":4,"msg":5,"data":6},0,"success",[7,13,18,23,28,33,38,43,48,51,55],{"id":8,"doc_module":4,"doc_module_name":9,"category_name":10,"show_sort_weight":11,"slug":12},1,"Document","Story & Novel",90,"story-novel",{"id":14,"doc_module":4,"doc_module_name":9,"category_name":15,"show_sort_weight":16,"slug":17},2,"Literature",80,"literature",{"id":19,"doc_module":4,"doc_module_name":9,"category_name":20,"show_sort_weight":21,"slug":22},4,"Exam",70,"exam",{"id":24,"doc_module":4,"doc_module_name":9,"category_name":25,"show_sort_weight":26,"slug":27},5,"Comic",60,"comic",{"id":29,"doc_module":4,"doc_module_name":9,"category_name":30,"show_sort_weight":31,"slug":32},6,"Technology",50,"technology",{"id":34,"doc_module":4,"doc_module_name":9,"category_name":35,"show_sort_weight":36,"slug":37},7,"Healthcare",40,"healthcare",{"id":39,"doc_module":4,"doc_module_name":9,"category_name":40,"show_sort_weight":41,"slug":42},8,"Research & Report",30,"research-report",{"id":44,"doc_module":4,"doc_module_name":9,"category_name":45,"show_sort_weight":46,"slug":47},9,"Religion & Spirituality",20,"religion-spirituality",{"id":46,"doc_module":4,"doc_module_name":9,"category_name":49,"show_sort_weight":46,"slug":50},"World Cup","world-cup",{"id":52,"doc_module":4,"doc_module_name":9,"category_name":53,"show_sort_weight":52,"slug":54},10,"Lifestyle","lifestyle",{"id":56,"doc_module":4,"doc_module_name":9,"category_name":57,"show_sort_weight":24,"slug":58},19,"General","general",{"code":4,"msg":60,"data":61},"ok",{"site_id":62,"language":63,"slug":64,"title":65,"keywords":66,"description":67,"schema_data":68,"social_meta":123,"head_meta":125,"extra_data":127,"updated_unix":129},105,"en","three-common-misperceptions-about-foreign-direct-investment","Three Common Misperceptions About Foreign Direct Investment","","Three Common Misperceptions About Foreign Direct Investment examines how increasing foreign investment in Ohio and the United States reflects broader national trends. It argues that popular concerns about US economic independence, the assumed link between foreign direct investment and the current-account deficit, and the belief that Japan is the main source of inflows are based on misperceptions. By reviewing implications, causes, and sources, it shows that IDI is not inevitable from current-account deficits and explores factors that sustain and amplify direct investment.",{"@graph":69,"@context":122},[70,84,105],{"@type":71,"itemListElement":72},"BreadcrumbList",[73,77,79,82],{"item":74,"name":75,"@type":76,"position":8},"https://docshare.wps.com","Home","ListItem",{"item":78,"name":9,"@type":76,"position":14},"https://docshare.wps.com/document/",{"item":80,"name":40,"@type":76,"position":81},"https://docshare.wps.com/document/research-report/",3,{"item":83,"name":65,"@type":76,"position":19},"https://docshare.wps.com/document/three-common-misperceptions-about-foreign-direct-investment/324700/",{"url":83,"name":65,"@type":85,"image":86,"author":91,"headline":65,"publisher":94,"fileFormat":97,"inLanguage":63,"description":67,"dateModified":98,"datePublished":99,"encodingFormat":97,"isAccessibleForFree":100,"interactionStatistic":101},"DigitalDocument",{"url":87,"@type":88,"width":89,"height":90},"https://docshare.wps.com/thumbnails/three-common-misperceptions-about-foreign-direct-investment/324700.png","ImageObject",300,407,{"name":92,"@type":93},"Asher","Person",{"url":74,"name":95,"@type":96},"DocShare","Organization","application/pdf","2026-10-23","2026-09-21",true,{"@type":102,"interactionType":103,"userInteractionCount":34},"InteractionCounter",{"@type":104},"ViewAction",{"@type":106,"mainEntity":107},"FAQPage",[108,114,118],{"name":109,"@type":110,"acceptedAnswer":111},"What are the three common misperceptions addressed in the commentary?","Question",{"text":112,"@type":113},"The commentary focuses on misconceptions about the implications, causes, and sources of foreign direct investment in America, including worries about US economic independence and the supposed relationship to the current-account deficit.","Answer",{"name":115,"@type":110,"acceptedAnswer":116},"Does the current-account deficit directly explain the volume or changes in foreign direct investment?",{"text":117,"@type":113},"No. The analysis argues that measurement errors and other capital flows make it possible for any amount of IDI to be compatible with any current-account balance, and the chart shows no clear relationship.",{"name":119,"@type":110,"acceptedAnswer":120},"What factors help explain the sustained inflow and growth of direct investment in the United States?",{"text":121,"@type":113},"The text highlights incentives such as a large and growing market, stable economy, free-enterprise and private property rights, military security, strong capital markets, ability to repatriate capital and earnings, and supplies of skilled labor and raw materials.","https://schema.org",{"og:url":83,"og:type":124,"og:title":65,"og:site_name":95,"og:description":67},"article",{"robots":126,"canonical":83},"index,follow",{"doc_id":128,"site_id":62},324700,1790464516,{"code":4,"msg":5,"data":131},{"doc_id":128,"user_id":132,"nickname":92,"user_avatar":133,"doc_module":4,"category_id":39,"category_name":40,"doc_title":65,"doc_description":67,"doc_content":134,"file_id":135,"file_url":136,"file_type":137,"file_size":138,"view_count":34,"is_deleted":4,"is_public":8,"is_downloadable":8,"audit_status":8,"page_count":24,"language":139,"language_code":63,"site_id":62,"html_lang":63,"table_of_contents":140,"faqs":141,"seo_title":142,"seo_description":67,"update_tm":143,"read_time":144,"preview_page_count":4},687197207639,"https://ap-avatar.wpscdn.com/davatar_a8503ba1806abce46bf441b54a3ca4cd","by Gerald H.Anderson  \nInthe last few years,Ohioans aveseen foreign investors acquire orincrease their equity interest in suchwell-known Ohio firms as Sohio,Libby-Owens-Ford,Hanna MiningCompany,White Consolidated Indus-tries,General Motors'TerexDivision,and many others.At thesame time,foreign firms have estab-lished entirely new subsidiaries inOhio,the best known of which isHonda of America Manufacturing,which produces both motorcyclesand automobiles.  \nThis increasing foreign presence inOhio is part of a national trend ofaccelerating foreign investment inAmerica.While many Americans havewelcomed the infusion of foreigncapital and entrepreneurship,somehave worried about its implicationsfor US.economic independence.Others have argued that,whether welike it or not,the increased foreignpresence is an inevitable result oflarge U.S.current-account deficits.And some have assumed that becauseJapan is the nation with the largestcurrent-account surplus,it must alsobe the source of most of the investment inflow into the United States.  \nPopular beliefs about the threat toU.S.economic independence,the associa-tion between foreign direct invest-ment and the current-account deficit,and the importance of Japanese direct  \n# Three Common MisperceptionsAbout Foreign Direct Investment\n\ninvestment are all based on misper-ceptions.By discussing the implica-tions,causes,and sources of foreigndirect investment in America,thisEconomic Commentary attempts todispel these three misperceptions.  \n■ Reasons for Foreign DirectInvestment in the United StatesSince 1982,the United States hasincurred large annual deficits in itscurrent-account balance,the inevita-ble counterpart of which has beenlarge net capita inflows.Althoughobservers often suggest that the largecurrent-account deficits make largeflows of foreign,or inward,directinvestment(IDI)inevitable,theannual volumes of IDI in these yearshave been only loosely related to thecurrent-account balance.²  \nThe net capital inflow into the UnitedStates is the sum of several inflowsand outflows.It equals IDI,plusinward private portfolio investmentless outward direct investment,lessoutward private porfolio investment,plus or minus the inflow or outflowof government capital.3  \nIn theory,the sum of these flows(thenet capital inflow)should be exactlyequal to the size of the current-account deficit.In practice,however,the measurement errors have beenquite large,and the statistical discrep-ancy between the two annual sumsfrequently has exceeded $20 billion  \nJuly 15,1988  \nThe increasing purchase of U.S.assets by foreigners in recent yearshas been blamed on the current-account deficit,has been attributedto the Japanese,and has causedalarm about lossof U.S.economicindependence.These three commonviews are based on misperceptionsabout the causes,sources,and implications of foreign direct investment.  \nBecause o the measurement errorsand because of the number of othercapital flows in the equation,anyamount of IDI can be compatiblewith any current-account balance  \nIn the last quarter century,there hasbeen a positive amount of IDI inevery year,even though the currentaccount has been in deficit in only 10of those years(see chart 1).Chart 1does not suggest any obvious relation-ship between the size of the current-account balance and IDI.In fact,care-ful examination of the chart revealsthat the changes in the two series havethe same sign almost as often as thechanges have opposite signs,thus fail-ing to support the idea that changesin the size of the current-account bal-ance cause changes in the size of IDI.  \n## CHART 1 DIRECT INVESTMENT VS.CURRENT-ACCOUNT BALANCE\n\nSOL RCEU'S.Deparment of Commerce,Bureau of Economic Analysis.  \n## CHART 2 DIRECT INVESTMENT POSITIONS\n\nSOURCE U'S.Deparnent of Cammerce,Bureau of Economic Analysis.  \nThis cursory analysis suggests that thecurrent-account balance does notprovide a simple and completeexplanation of IDI,and shows thatIDI is not an inevitable result of thelarge US.current-accou","cbCaiiKi9hfiYVGS","https://ap.wps.com/l/cbCaiiKi9hfiYVGS","pdf",1174806,"English","# Reasons for Foreign Direct Investment in the United States\n## Chart 1 Direct Investment vs. Current-Account Balance\n## Chart 2 Direct Investment Positions","[{\"question\":\"What are the three common misperceptions addressed in the commentary?\",\"answer\":\"The commentary focuses on misconceptions about the implications, causes, and sources of foreign direct investment in America, including worries about US economic independence and the supposed relationship to the current-account deficit.\"},{\"question\":\"Does the current-account deficit directly explain the volume or changes in foreign direct investment?\",\"answer\":\"No. The analysis argues that measurement errors and other capital flows make it possible for any amount of IDI to be compatible with any current-account balance, and the chart shows no clear relationship.\"},{\"question\":\"What factors help explain the sustained inflow and growth of direct investment in the United States?\",\"answer\":\"The text highlights incentives such as a large and growing market, stable economy, free-enterprise and private property rights, military security, strong capital markets, ability to repatriate capital and earnings, and supplies of skilled labor and raw materials.\"}]","Three Common Misperceptions About Foreign Direct Investment | PDF",1789968642,13]