As global trade grows and increases in complexity, trade-based money laundering has become the weakest link in anti-money laundering initiatives. Banks and government officials are strengthening international collaboration to crack down on criminals who hide and launder their dirty money in global trade transactions.
Cambridge is a major hub in Massachusetts’ life sciences ecosystem. What makes up the DNA of vibrant biopharma and medical device industries? Trade associations, overseas governments and investors, and U.S. government agencies at the federal, state, and local levels are all part of the prescription for economic growth.
Chinese investments in the United States plunged while U.S. investments in China flatlined. See what’s driving these trends on the US-China FDI Project website.
The BUILD Act enjoyed bipartisan support in the Congress because it represents to many in the development policy community a smarter, more modern way to advance development objectives. The new development financing agency it creates will also provide an alternative to China’s aggressive financing of infrastructure projects in developing markets.
At the same time the United States is considering cutting funding for diplomacy and development by 30 percent, China doubled its diplomacy budget over the last five years, proposing to increase its foreign affairs budget by 15 percent in 2018 alone.
The attractiveness of the U.S. market for FDI reflects the size and strength of the U.S. economy as well as the longstanding U.S. commitment to open markets and the rule of law. The vast majority of FDI occurs on a regular basis in every U.S. state across sectors including manufacturing, financial, and information technologies. But there are cases when foreign investment might carry security implications.
The U.S. Constitution guarantees that no person may be “deprived of life, liberty, or property, without due process of law; nor shall private property be taken for public use, without just compensation.” But what we take for granted in the United States isn’t always the case when doing business abroad.
Foreign direct investment (FDI) is usually measured in the millions, billions, and trillions. In this Cambodian shoe factory, the value to workers and their community can be measured every 374.41 seconds.
The operations of majority-owned U.S. affiliates added $869.1 billion to the U.S. economy in 2014 and employed 6.4 million American workers. They are heavy traders as well, accounting for an astounding 26 percent of total U.S. exports of goods in 2013, and 30.3 percent of imports of goods.
Public debate over whether to continue to operate the U.S. Export-Import Bank has less to do with how its run than who it’s run for. The companies using its services range from the titans of industry including Boeing, GE, and Caterpillar, to small firms across the United States that literally set up shop on Main Street.