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Foreign Direct Investment in the United States. Transactions

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Digitized for FRASER<br />

Federal Reserve Bank of St.Louis<br />

-33-<br />

MODE OF INVESTMENT TRANSACTIONS<br />

<strong>Foreign</strong> direct <strong>in</strong>vestment transactions can be classified <strong>in</strong>to various modes<br />

relat<strong>in</strong>g to type and characteristics. For <strong>the</strong> purpose of <strong>the</strong> OTIA transaction<br />

monitor<strong>in</strong>g program, <strong>the</strong> modes of <strong>in</strong>vestment used are <strong>the</strong> follow<strong>in</strong>g:<br />

o Acquisitions/mergers<br />

o Equity <strong>in</strong>creases<br />

o Jo<strong>in</strong>t ventures<br />

o New plants<br />

o Plant expansions<br />

o Real estate<br />

o All o<strong>the</strong>rs<br />

Appendix D def<strong>in</strong>es <strong>the</strong>se and o<strong>the</strong>r terms used <strong>in</strong> this report.<br />

In 1990, acquisitions/mergers, new plant activity, and jo<strong>in</strong>t ventures were <strong>the</strong><br />

lead<strong>in</strong>g forms of <strong>in</strong>vestment activity <strong>in</strong> terms of <strong>the</strong> number of transactions.<br />

Acquisitions/mergers accounted for 486 of <strong>the</strong> transactions identified, new<br />

plant activity for 91 transactions, and jo<strong>in</strong>t ventures for 78 transactions.<br />

Toge<strong>the</strong>r <strong>the</strong>se three modes accounted for 655 transactions, 64 percent of <strong>the</strong><br />

total <strong>in</strong>vestment transactions identified.<br />

Table VI shows <strong>the</strong> modes of <strong>in</strong>vestment by pr<strong>in</strong>cipal source country.

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