Excessive foreign investment in the economy

(Ref. 306)
Problem Components
Policy issue area: Economics
Policy issue: Development
Description: An increasing and growing portion of United States manufacturing, real estate, land and other assets are owned and/or controlled by foreign countries.
Symptoms: Foreign investments in the U.S. have grown from $264 billion in 1976 to $2 trillion in 1990; gradual loss of American economic and political independence.
Causes: Huge trade deficits; extended slide of the dollar's value; the growing national debt.
Cost of problem: -
Solution Components
Resources: Federal and state/local governments.
Goal: Control the flow of foreign investments in accordance with national objectives and purposes.
Program area: Economic development
Program-remedy: 1. A policy of systematic disclosure and collection of information about the amount, location and extent of foreign investments
2. Monitoring, and preventing if necessary, foreign investments in areas where national security could be impacted
3. Prohibit hostile takeovers and greenmail by foreign investors
4. Requiring equalization of rules and regulations for investments by American companies in foreign countries.
Program-prevent: 1. Federal government coordination of state efforts to attract foreign investment
2. National industrial policy to build own competitive enterprises.
Cost of program: -
Beneficiaries: Business and industry involved in international trade.

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