Look at the massive increase in foreign direct investment during the last two decades. Despite two large dips during financial crises, foreign investment is here to stay.

1. Foreign Direct Investment on a Global Scale
The chart shows the volume of Foreign Direct Investment relative to GDP for the entire world
economy from 1970 to 2011. The globalization of international investment clearly took off
during the 1990’s, coincidental with the economic transformation of the communist countries
and the opening of China. The technological boom in the U.S. was also a significant draw for
investors. The peak was reached during the dot com boom around year 2000 and was repeated
in the run-up to the current crisis. Interestingly, global investment did not decline to very low
levels and started a rebound almost immediately.
Learn more about Foreign Direct Investment at www.theglobaleconomy.com.