U.S. National Security and Foreign Direct Investment

by Edward M. Graham, David M. Marchick

Although a vital part of the US economy, foreign direct investment (FDI) in the United States periodically raises public and congressional alarms―as witnessed during Dubai Ports World's recent bid to acquire US port operations and Chinese firm CNOOC's attempt to buy US energy firm Unocal. Drawing fire from Congress are the Exon-Florio provisions of US law, which enable the president to block a foreign acquisition that threatens national security. This important new book finds that many proposed reforms risk harming the US economy without enhancing national security. The authors propose ways to strengthen the current interagency review of deals, including an improved process for reporting to Congress.

218 pages, Paperback

First published May 1, 2006

Reviews

[Frank Kelly · Rating 5 out of 5]

To understand foreign direct investment (FDI) coming into the US and various US policies regulating FDI, this is a must-read. Graham and Marchick -- especially Marchick who has been a leading practioner of guiding incoming cross-border M&A deals in the US for a decade or more -- wrote this book several years ago. Excellent primer and guide -- especially in understanding the Committee on Foreign Investment in the US (CFIUS).