U.S. food companies access foreign markets through direct investment.

摘要

This paper examines foreign direct investment (FDI) as a cost-effective way (compared to exports) for US food processing firms to reach foreign markets. The paper shows that: trade agreements spur foreign investment; most output of US multinationalfood processing firms remains in the host country; and foreign firms also invest in the US food industry. It is suggested that whether FDI complements or competes with exports depends on the country and the product.