5 reasons why the United States is a top investment destination
Updated: Jan 2
There is no shortage of reasons why business investors choose the United States – from the business-friendly environment and quality of life considerations to specific technology, supply chain, infrastructure and workforce factors. The nation’s diversity and openness are what truly allow businesses from all countries and industries to find their place in the market – and thrive. Source: Trade.gov (USA)
Discover why the United States is the top investment destination.
1. World's Largest Market
The United States offers the largest consumer market on earth with a GDP of $20 trillion and 325 million people. Household spending is the highest in the world, accounting for nearly a third of global household consumption. At the same time, free trade agreements with 20 other countries provide enhanced access to hundreds of millions of additional consumers – and the United States continues to work with companies to increase opportunities for U.S. exporters.
Opportunities in the U.S. Market
The U.S. consumer market is the most robust on the planet. In 2017, families purchased more than $13.3 trillion in goods and services, or more than a quarter of the entire world’s household consumption. According to the latest statistics, real (inflation adjusted) median household annual income in the United States exceeds $61,000.
The United States is a world leader in consumer goods market research, product innovation, manufacturing, and branding and marketing, and offers a highly skilled workforce. This lucrative open market is a powerful growth engine for companies of all sizes.
2. Ease of Doing Business
The United States is consistently ranked among the best internationally for its overall competitiveness and ease of doing business. Backed by a regulatory environment that is particularly conducive to starting and operating a business, U.S. business culture encourages free enterprise and competition. As a stable democracy with a transparent and predictable legal system, all companies – regardless of national origin – compete on an even playing field.
Foreign direct investment has been central to the U.S. economy since the nation’s founding. In 1983, President Ronald Reagan issued the “Statement on International Investment Policy,” which stated that international investment that “responds to market forces” is “a vital and necessary ingredient in a stable, growing world economy.” Every president since has followed suit in committing to openness. This means that foreign investors receive non-discriminatory treatment in almost all sectors, and compete on an even playing field in the United States.
3. Talented and Diverse Workforce
The U.S. workforce is diverse, skilled, innovative, and mobile – and U.S. workers are among the most productive in the world. In fact, U.S. workforce output per hour is more than 30 percent above the OECD member country average. Looking to the future, the United States has prioritized collaborative mechanisms with public and private-sector organizations to ensure that the workforce is able to meet the needs of a 21st-century economy.
4. Variety of Landscapes
As the third-largest nation by geography, the United States is home to vast and varied landscapes with abundant natural resources. These diverse regions are connected by an expansive infrastructure network and services that help companies efficiently produce and move their products.
The United States offers independent, stable, and low-cost energy sources and is home to some of the largest supplies of petroleum, natural gas, and coal in the world. A diverse array of climates and geographies offer prime opportunities to harness renewable sources of energy, from wind to biodiesel. Coupled with increased energy efficiency, this diverse supply of energy not only contributes to U.S. GDP - it is leading to lower greenhouse gas emissions.
5. Wide Range of Funding Sources
The United States hosts the most developed, liquid, flexible, and efficient financial markets in the world. Access to capital is an important reason businesses choose to invest in the U.S. market, where a wide range of funding sources – from banks and investment firms to venture capitalists and angel investors – enable business innovation and expansion.