U.S. Foreign Direct Investment in the Western Hemisphere Processed Food Industry

Christine Bolling, Steve Neff, and Charles Handy

Agricultural Economics Report No. (AER760) 68 pp, March 1998

Foreign direct investment (FDI) has become the leading means for U.S. processed food companies to participate in international markets. Affiliates of U.S.-owned food processing companies had $30 billion in sales throughout the Western Hemisphere in 1995, nearly 4 times the level of processed food exports. This report puts U.S. foreign direct investment and trade in processed foods to the region into global perspective, and finds evidence that, in the aggregate for the 1990's, trade and FDI are complementary--not competitive--means of accessing international food markets. Incomes have grown sufficiently in most countries to support growth in affiliate sales and U.S. exports, indicating a strong demand for a wide variety of processed foods.

Keywords: U.S. food processing industry, Western Hemisphere, foreign trade, foreign direct investment

In this report ...

Chapters are in Adobe Acrobat PDF format.

• Frontmatter, 35 Kb
• Part I: U.S. Processed Foods FDI and Trade in Western Hemisphere, 160 Kb
• Part II: Four Country Cases; Canada, 132 Kb
• Mexico, 68 Kb
• Brazil, 48 Kb
• Argentina, 46 Kb
• References, 25 Kb

• Entire Report, 406 Kb

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Updated date: March 1, 1998