WEST EUROPEAN DIRECT INVESTMENT IN THE US

Research suggests that the small‐ and medium‐sized Western European firms interested in direct investment in the United States are reluctant to co‐operate with state governments in formulating investment decisions. Research findings in the Upper Mid‐west indicate that the primary motivation of these firms to invest in the Upper Mid‐west is to shelter capital. The amount of importance the individual state governments place on reverse direct investment politicises the entire process of solicitation of potential direct investors. As a result, the small‐ and medium‐sized Western European firms tend to seek direct investment assistance from professional private sources.