Timely new book on foreign investment and national security

The Institute for International Economics (IIE) is offering a timely new book on the national security implications of foreign investment: US National Security and Foreign Direct Investment .

by Edward M. Graham and David M. Marchick 

May 2006 • 220 pp. ISBN paper 0-88132-391-8 • $17.95

This book is being offered at a special 25 percent prepublication discount. Please note that books will not ship until May 10.

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 seucrity. 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.

Contents

Preface

Executive Summary

Acknowledgments

1. Introduction

2. The Exon-Florio Amendment

3. The Economic Effects of Foreign Investment in the United States

4. National Security Issues Related to Investments from China

5. Politicization of the CFIUS Process

6. Policy Recommendations: Improving the Implementation of Exon-Florio

References

Index