The future direction of U.S. Foreign direct investment: the attactiveness of East Asia

The opportunity for foreign direct investment in East Asia has never looked more appealing than it does for the next decade. The increasing openness of the mainland Chinese consumer market to foreign imports is attractive to U.S. firms. Hong Kong welcomes foreign investors with a pro-business environment and a skilled work force. Taiwan and Japan are becoming more open to foreign investment from the West; Singapore and Malaysia represent regions which need foreign investors to keep their economies robust. These opportunities are, however, not without substantial financial, political, and other risks. The failure rate in China is quite high; non-tariff trade barriers preclude many products from competing with local companies.