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"The most authoritative analysis of . . . economic objections to foreign direct investment.
The Economist
"Persuasive and dispassionate."
Hobart Rowen, The Washington Post
"The authors successfully debunk the myths circulated by the critics of foreign investment. Their research is careful, their writing clear, and their analysis incisive."
Susan Liebeler, The Wall Street Journal.
This study moves us a giant step closer to understanding the economic and national security consequences of foreigners' direct investments in the United States. The economic analysis is solidly based in fact and theory, and the analysis of the security implications is dispassionate and realistic . . . a much needed contribution to the national debate."
Raymond Vernon, Professor of International Affairs Emeritus, Harvard University
The share of the U.S. economy controlled by foreign firms has tripled since the mid-1970s. Graham and Krugman here provide the first comprehensive analysis of this phenomenon. Their exhaustive analysis concludes that foreign-owned firms do not pay lower wages or shift good jobs and R & D away from the U.S. However, foreign-owned firms and especially Japanese firms have a marked tendency to import much more than their American counterparts. In addition, the upsurge of foreign investment raises new issues for U.S. national security. This completely revised second edition includes updated statistics on the recent level of FDI and analyzes new legislation that would further address foreign investment in the United States.
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