FEATURE/Europe is favorite U.S. direct investment destination, according to Deloitte & Touche LLP survey.WILTON, Conn.--(BUSINESS WIRE FEATURES)--April 17, 1996--The Pacific Rim Pacific Rim, term used to describe the nations bordering the Pacific Ocean and the island countries situated in it. In the post–World War II era, the Pacific Rim has become an increasingly important and interconnected economic region. may get the publicity but Europe is getting the lion's share of U.S. investment dollars. That's the core conclusion of a recent Deloitte & Touche survey that found American direct investment in Europe was 200% greater than in Asia and 150% greater than in Latin America Latin America, the Spanish-speaking, Portuguese-speaking, and French-speaking countries (except Canada) of North America, South America, Central America, and the West Indies. . In fact, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. the U.S. Department of Commerce, "An investment in Europe is mandatory for any firm that regards itself as a global business." The Department values total U.S. investment in Europe at $200 billion. This figure represents 40% of total U.S. foreign direct investment (FDI FDI See: Foreign direct investment ). Deloitte & Touche's survey report, "The Drive Toward Investing in Europe," found that 80% of respondents favor investment in the form of joint ventures and strategic alliances -- i.e., flexible and cooperative ventures. "This flexibility represents a shift away from more traditional structures, such as mergers and acquisitions, that provide total investment control," says Thomas J. Schiro, Deloitte & Touche's associate national director, international. "As investors become more familiar with Europe's markets and business culture, they become more confident in pursuing cooperative arrangements to achieve geographic expansion at reduced risk." Although Deloitte & Touche anticipates that U.S. foreign investment will remain centered in the UK for at least the next five years, the Years, The the seven decades of Eleanor Pargiter’s life. [Br. Lit.: Benét, 1109] See : Time survey indicates that American companies are increasingly eager to explore the investment opportunities in France, Germany and Spain, among others. France, which accounts for $23 billion of total U.S. investment in Europe, received particularly high marks from respondents, mainly because of its central location, high-quality workforce and relatively stable political environment. Germany, which boasts more than $35 billion of total investment, is attractive because of its modernized mod·ern·ize v. mo·dern·ized, mo·dern·iz·ing, mo·dern·iz·es v.tr. To make modern in appearance, style, or character; update. v.intr. To accept or adopt modern ways, ideas, or style. infrastructure, while investor interest in Spain is on the rise thanks to the country's reputation for inexpensive labor and a stable economic structure. "In terms of key location criteria, the availability of employees, telecommunications infrastructure and proximity to ground transportation have increased in importance, while proximity to customers, language, and tax and financial benefits have become less important," Schiro says. "This change in emphasis reflects growing U.S. interest in establishing lasting European operations." "The Drive Toward Investing in Europe" indicates that U.S. companies are not unaware of or indifferent to the obstacles to investing in Europe. Concerned about governmental and labor interference, America's institutional investors Institutional Investor A non-bank person or organization that trades securities in large enough share quantities or dollar amounts that they qualify for preferential treatment and lower commissions. see the primary source of their frustration in Europe's rapidly changing legislative environment. Other key survey results include: - Fifty-five percent of respondents expect an increase in European sales levels over the next five years, most significantly in the services and retail/consumer products industries. Corresponding with sales increases, the most significant increase in European investment is also anticipated in the services industry. - Traditionally, respondents view investment in Europe as a two-step process. First, they establish sales offices and headquarters in European countries. Then, if operations are successful, companies invest in manufacturing/assembly facilities. Over the course of the next five years, however, companies will become less cautious and more willing to make larger, more permanent investments right away. For "The Drive Toward Investing in Europe," Deloitte & Touche surveyed Fortune 1000 companies from the manufacturing, services, high technology, communications, and retail and consumer goods consumer goods Any tangible commodity purchased by households to satisfy their wants and needs. Consumer goods may be durable or nondurable. Durable goods (e.g., autos, furniture, and appliances) have a significant life span, often defined as three years or more, and industries. Company size, in terms of number of employees, ranged from fewer than 1,000 to more than 100,000. Deloitte & Touche LLP LLP - Lower Layer Protocol provides accounting and auditing, tax and management consulting Noun 1. management consulting - a service industry that provides advice to those in charge of running a business service industry - an industry that provides services rather than tangible objects services through over 16,000 people in more than 100 cities. Deloitte & Touche is part of Deloitte Touche Tohmatsu Deloitte & Touche (also referred to as Deloitte Touche Tohmatsu, and branded as Deloitte.) is the second largest professional services firm in the world, and one of the Big Four auditors, along with PricewaterhouseCoopers, Ernst & Young and KPMG. International, a global leader in professional services (job) professional services - A department of a supplier providing consultancy and programming manpower for the supplier's products. with 59,000 people in offices in more than 125 countries. Additional copies of "The Drive Toward Investing in Europe" are available by calling Vincent King of Deloitte & Touche at 203/761-3346. CONTACT: Deloitte & Touche LLP Laura Maxwell, 203/761-3522 or Bliss, Gouverneur & Associates Clarence George, 212/840-1661 |
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