Frequently Asked Questions

Q: Why do foreign companies choose to locate in the United States?

A: Foreign investors invest in the United States because we have an open and welcoming investment climate. The United States has experienced the fastest acceleration of productivity growth among major industrialized countries, enjoys an unparalleled higher education system, benefits from world-class infrastructure, and has the strongest intellectual property rights protections globally. Among others, these factors put the U.S. economy in a position to innovate and quickly take advantage of the rapid advancement in information technology and other new technologies. We believe that international investors in the United States enjoy the best risk-adjusted return on investment globally.

Q: Is the United States becoming more closed to foreign investment?

A: No. President Obama has been clear with regard to U.S. openness to investment, particularly during this period of global economic upheaval. The activities of Invest in America support this long-standing commitment, as the primary U.S. Government mechanism to coordinate inward investment promotion.

Q: Is there a connection between foreign direct investment (FDI) and exports?

A: FDI and trade are very closely related. In fact, many foreign firms with operations in the United States have invested to service our domestic market, but also to use our nation as an export platform. As of 2007, over 19 percent, or nearly $228 billion of all U.S. exports were generated by U.S. subsidiaries of foreign firms. Not only does FDI augment the amount of American exports, it also increases employment. FDI has a multiplier effect of creating additional jobs beyond the workers employed directly by the foreign company. FDI increases exports, creates employment and helps grow the American economy.

Q: Where should I invest in the U.S?

A: With more than 9 million square kilometers of land, this is a valid question! There are countless cities and towns across the United States that are waiting to do business with you. The Governor-designated liaisons to Invest in America on our contact list are ready to answer specific questions with regard to site selection and other aspects of establishing an investment in the United States.

Q: As a foreign investor, will my company be treated differently than American companies?

A: No. Both domestic and foreign owned companies are treated equally in the United States and must follow the same laws, rules, and procedures for acquiring or administering an investment. Foreign investors benefit from an open, transparent, and nondiscriminatory investment climate. In the United States, foreign investors will find free transferability of capital and profits, advanced physical and financial infrastructure, and nondiscriminatory legal recourse in the event of an investment-related dispute. Additionally, there is no mandatory screening body to review and approve foreign investments in the United States. Unlike other countries, there are no regulations of "minimum investments required" or other stipulations in the United States.

Q: What is the process for starting an investment in the U.S?

A: Most likely the process will differ depending on the location and type of your investment. You can find general guidelines in any of the Investment Guides under the “Useful Links” category in our toolbar. The guidelines include the statutes outlining the incorporation process and how to obtain appropriate permits, licenses and registration. If you have any additional questions, please do not hesitate to contact Invest in America at info@investamerica.gov.