INTRODUCTION
Foreign direct investment (FDI) plays an extraordinary and growing role in the global business and represents an integral part of the US economy. The inward FDI constitutes important factor contributing to output growth and employment
DOI: 10.4018∕978-1-4666-6268-1.ch006 in the US economy.
The United States continues to be the leading destination for foreign direct investment (FDI) and the leading investor in other economies. Kearney’s index ranks World inward FDI and reveals FDI flows and the factors that drive corporate decisions to invest abroad. The major finding in A.T. Kearney’s 2010 FDI report.
indicates that China and United States are the most attractive FDI locations in the world and have achieved unprecedented levels of investor confidence. The United States remains a strong FDI magnet in the World economy. Recently, China, India, and Brazil made the top spots of Kearney’s FDI Confidence Index (Ries & Swenson, 1999)
Foreign companies and their US subsidiaries generate enormous economic benefits for the American economy and bring billions of investment dollars into the United States, create thousands ofin- sourced Americanjobs, and highlight the importance of the US market for foreign companies. The state development agencies have an established framework of financial incentives to influence the final business location decision. Typical state inducements may include: low- interest loans, reduced income, sales, or property tax liability and grants for training or infrastructure improvement (Location USA, 2013).