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As the EU has become larger, there have been a number of reports produced in recent years that have highlighted the importance of adopting the right approach to supporting exports and inward investment. In particular, as the EU has become significantly larger and a number of low wage countries particularly in Eastern Europe have joined the EU. A recent publication by the New Economics Foundation stated that there is a strong relationship between internationalisation and productivity improvements.

Exporters, subjected to the pressures of international competition, tend as a result to be the most innovative and most productive firms. Evidence for Wales has tended to confirm this relationship, with research showing a strong, positive correlation between exporting and increased output. The New Economics Foundation suggested that as global foreign direct investment (FDI) is shifting rapidly away from the developed world and into emerging markets, developed world should not attempt to compete on a cost basis in a shrinking FDI market. It needs a novel 21st century approach instead.

<> on March 23, 2015 in National Harbor, Maryland.

Obama: America is one of the easiest places in the world to do business. It has an open, transparent and unbiased legal system; strong protection of intellectual property rights. A nationwide network of business-friendly incentives and regulations.

The relative importance of these changes highlighted the importance of adopting the right approach to supporting new innovation, exports and inward investment over time and across countries, rule for calculating antidumping margins and produce the overall degree of international financial integration of a given country.

I was delighted to attend virtually and participate in this years SelectUSA investment Summit 2015, which just concluded in Washington, Housed in the Department of Commerce, Select USA serves as a single point of contact to ensure investors get the answers and assistance they need across the federal government.

Established by President Obama in 2011, Select USA promotes and facilitates business investment by working with companies that want to establish U.S. operations and by partnering with U.S. economic development organizations to attract them. The Select USA Investment Summit is the premier venue for international investors of all sizes to find the right place, with the people, resources, and market they need to be successful.

President Obama, Secretary Kerry, Secretary of Commerce Penny Pritzer, and other officials attendied the event highlighting in various ways, reasons for supporting inward investment are clear cut.

The highlight for all was the arrival of President Barack Obama, who addressed the Summit shortly after lunch. His remarks highlighted the dynamism of the U.S. economy. For example, $2.35 trillion of goods and services were exported from the United States in 2014, and the United States remains at the top of the global FDI table, based on sound economic fundamentals.

In 2013 alone, companies like Novartis, Michelin, and Samsung spent a whopping $53 billion on American research and development. That same year, companies like Honda and L’Oréal, exported $360 billion worth of goods from the United States.

As the President noted, America is one of the easiest places in the world to do business. It has an open, transparent and unbiased legal system; strong protection of intellectual property rights; a highly educated and productive workforce; a nationwide network of business-friendly incentives and regulations that simplify site selection and investment decisions; and the deepest pool of investment capital and the most reliable and transparent banking systems in the world.

The economic impact of this foreign investment goes beyond the direct jobs. International companies help drive American innovation, connect American communities with the world, and bring new techniques to improve productivity. In 2013 alone, companies like Novartis, Michelin, and Samsung spent a whopping $53 billion on American research and development. That same year, companies like Honda and L’Oréal, exported $360 billion worth of goods from the United States.

All of this direct economic activity generates additional motion in the local and national economy. For example, these companies rely on other companies within their supply chain. The employees of these companies all earn income, which they can in turn spend at restaurants or on other goods for their families. Employees are trained with new skills, which benefit them for the rest of their lives as they move on to future jobs.

America´s greatest export is the creativity and innovation of the American people. When foreign companies invest in the U.S., they also create jobs and innovation, and they generate profits and exports for their home countries. Not only that, they bring back technology, management expertise, cultural understanding, innovative products, and access to new markets to their countries. They can also increase prosperity, as well as economic and political stability for nations and workers alike.

As President Obama put it, “America is the safest, strongest and smartest place for you to invest than we’ve been in a very long time.” it’s easy to see the economic imperative of the global opportunity.

Investment in research and development (R&D) has made the United States a world leader in technology, innovation, and economic growth across sectors. In a competitive market, business successes come in all sizes. President Obama tell us (here) the vital importance of trade and benefits of trade on Small Businesses. The Obama administration is also hoping to conclude a trade deal, called the Trans Pacific Partnership (TTP).

USA is the world largest recipient of foreign investment, which reached 92,000 million dollars in 2014, according to official data preliminary. The initiative SelectUSA was born in 2011 and since then, according to the White House, and has helped to attract more than 20,000 million dollars in investment and has created thousands of jobs in the USA.

FDI plays a role in supporting jobs in the state. Majority-owned, U.S. affiliates of foreign firms employ approximately 38,600 workers in New Hampshire. Since 2003 New Hampshire has been an important destination for FDI projects.

According to The World Economic Forum the U.S. is finally showing signs of strength, but the global economy…that’s another issue entirely. Why? Because roughly half of all U.S. companies get some of their revenue from outside the country. A slowing global economy could translate into slowing global sales and will negatively impact revenue and earnings growth of American companies, pushing equity prices lower with fears of a stock market correction in the U.S.

However, sustained economic growth in an economy is likely to encourage FDI, while recession will deter it. The U.S. economy is forecast to grow by 3.1% in 2015. And it is excellent news for a country that gets 70% of its GDP from consumer spending. This may be why the U.S. economy is forecast to grow by 3.1% in 2015. That would represent the strongest annual GDP growth since 2005, when the economy grew 3.3%.

With stable inflation an increase in interest rates that reflects a robust improvement in the U.S. economy is likely to bring positive effects. And, U.S. practice has survived numerous appeals, under the WTO antidumping agreement. Naturally, those countries more directly linked to the United States are better positioned to benefit from such improvement. In assessing the actual strength of the labor market and the broader economy, we must bear in mind that these very welcome improvements have been achieved in the context of extraordinary monetary accommodation.

Changes in monetary conditions in an investor or recipient country can also affect investment decisions. Tighter policy will tend to inhibit investment, while looser policy will encourage it. However, fears of inflation might act as a check against FDI if monetary expansion is seen as reckless. As noted in recent speech by Chair Janet L. Yellen At the “The New Normal Monetary Policy,” the current stance of monetary policy is clearly providing considerable economic stimulus,.. But we need to keep in mind the well-established fact that the full effects of monetary policy are felt only after long lags. This means that policymakers cannot wait until they have achieved their objectives to begin adjusting policy.

Responding to changes:

The global economy has grown incredibly fast since 1950, with global GDP expanding six-fold and average per capita income nearly tripling. A larger workforce and increased productivity spurred this growth (McKinsey report.)  However, the global workforce is expected to grow more slowly over the coming years, and peak in size around 2050. The world economic roles of America must be reconciled with the growth of Europe and Asia and, there must be fundamental reform of the international trade and monetary system.

If strong economic growth is to be achieved, in both the United States and globally, policy makers need to stimulate consumer demand, productivity must increase strongly to drive growth. There are ground to be positive about the global economic outlook, but the U.S. alone cann’t solve problem of weak global demand.

The twentieth century was not only the American Century but the Human Capital Century. America will not dominate the 21st century by making cheaper computer chips but instead by constantly reimagining how computers and other new technologies interact with human beings. The technologists argue, that technical training STEM (science, technology, engineering and math) is the new path forward—which also allows some foreign students to work in the U.S. – It is the only way, we are told, to ensure that Americans survive in an age defined by technology and shaped by global competition.

At issue, FDI is a way of compensating for the lack of domestic investment, and can help ‘kick-start’ the process of economic development. Governments support for international trade development was significantly established International Business support and promote exports and the attraction of foreign direct investment (FDI) Select USA Summit reaffirms the United States´ongoing and unwavering comitment to an open, welcoming investment climate.

Not only for the jobs and other economic benefits it brings – for both the soruce and recipient countries, but also for the political ties such partnership can help to build — history has proved that nothing does better in the long run. Both TTIP and TTP are renewed efforts to reduce world trade barriers leading the effort to strengthen the rules governing global trade and investment and to power Europe and Japan.

It is fair to say that a stong and vibrant business climate can only remain sustainable through innovation, strong intellectual property rights protections, a transparent legal system and a stable regulatory environment.