A Question for All International Companies: Is it Important to Have a U.S. Presence Now?

Mar 8, 2022

By Steven D. Handler, CPA, CMC, GGMA – Partner

  • 2021 and 2022 have presented us with many challenges, including:
  • Covid 19 has taken its toll on the world and certainly on the U.S. with tragic deaths, illnesses, financial devastation, deficit spending, and political divisions.
  • Russia has started a war with Ukraine resulting in horrible tragedies, enormous worldwide economic repercussions, and widespread fears for the world’s future.
  • Inflation is running rampant.
  • The U.S. stock market is going in the wrong direction.
  • Global warming is getting worse.
  • Tensions with China are escalating.

Despite all that, foreign direct investment (FDI) was up significantly. According to the United Nations Conference on Trade and Development (UNCTAD) FDI in the United States, the largest host economy, increased by 114% to $323 billion in 2021. The outlook for global FDI in 2022 remains positive, according to the report.

Select USA is a U.S. Department of Commerce group established to promote and facilitate business investment into the United States. Select USA cites numerous reasons why it is a good idea to operate in the U.S. Reasons include:

World’s Largest Market – The U.S. offers the largest consumer market on earth with Gross Domestic Product (GDP) of $20 trillion and 325 million people.

Nexus of Innovation – The U.S. is a recognized leader in research and development (R&D), and registers more international patents than any other country.

Ease of Doing Business – The U.S. is consistently ranked among the best internationally for its overall competitiveness and ease of doing business.

Workforce Talent – The U.S. workforce is diverse, skilled, innovative, and mobile – and U.S. workers are among the most productive in the world.

Abundant Resources – As the third-largest nation by geography, the U.S. is home to vast and varied landscapes with abundant natural resources.

Access to Capital – The U.S. hosts the most developed, liquid, flexible, and efficient financial markets in the world.

In addition to the reasons cited by Select USA, stability, infrastructure, and a robust economy are important to FDI decisions.
Companies conduct U.S. business through means other than physically locating here, such as through agents, over the internet, or with joint venture partners; however, having a direct presence is preferable. U.S. businesses and consumers prefer buying from U.S. based companies. Companies that locate here gain a better understanding of how to conduct business successfully in the U.S.

If your company has an interest in expanding into the U.S., please contact Steven D. Handler, CPA, CMC, CGMA – Partner in Charge of International Services, at [email protected] or 847-213-2107 to discuss how we can help.