U.S. National Security and Foreign Direct Investment

U.S. National Security and Foreign Direct Investment book cover

U.S. National Security and Foreign Direct Investment

Author(s): Edward Graham (Author), David Marchick (Author)

  • Publisher: Peterson Institute for International Economics
  • Publication Date: 15 May 2006
  • Edition: Illustrated
  • Language: English
  • Print length: 224 pages
  • ISBN-10: 0881323918
  • ISBN-13: 9780881323917

Book Description

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.

Editorial Reviews

Review

[A] very important and comprehensive assessment of a critical issue in a post-September 11 world. Protecting national security and maintaining an open investment regime are twin imperatives for the United States.–Brent Scowcroft, national security adviser to Presidents Gerald Ford and George H. W. Bush

An insightful analysis of the complex and often emotional issues of foreign ownership of US assets and the national security issues associated with foreign ownership.–Lawrence Summers, former secretary of the treasury

Foreign investment and takeovers attract much heat and little light. This book redresses that balance admirably, offering a serious factual analysis of national security concerns and FDI in the United States. I strongly recommend it.–Bill Emmott, immediate past editor-in-chief, The Economist

About the Author

Edward M. Graham (1944-2007) was a senior fellow at the Peterson Institute from 1990 to 2007. He also taught concurrently as adjunct professor at Columbia University in New York. Previously he was an economist at the US Treasury and taught full-time in the business schools of several US universities (MIT, University of North Carolina Chapel Hill, Duke University, among others).

David M. Marchick serves as Managing Director and Global Head of External Affairs and serves as a Member of the firm’s Management Committee. Prior to joining Carlyle, Marchick was a partner and Vice-Chair of the international practice group at Covington & Burling. He is an expert on foreign investment and national security issues. Marchick serves as the Chairman of the Board of the Robert Toigo Foundation, an organization committed to enhance diversity in the financial services industry, and is a Member of the Committee on Conscience of the U.S. Holocaust Memorial Museum.

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