European trajectory of USА direct investment

Abstract

The present paper focuses on the U.S. direct investment in European countries. To date Europe attracted 60 % of the total volume of US global investment. These ties become more complex, covering a growing number of different fields of activities. The study of this issue implies the analysis of the modern features of outward FDI fl ows and the main directions of their placement in Europe. New technologies have made noticeable changes in the usual investment pattern. A global presence without significant FDI is becoming the most important trend in the international activities of companies. However, 2017 Tax Cuts and Jobs Act which fi rst turned capital outfl ows negative, and hen resolved the tax liability overhang on overseas assets, which have contributed to a jump in cross-border M&A purchases by United States MNEs. Thus, FDI fl ows have received a powerful impetus, including investment growth opportunities in European countries. The top countries receiving US FDI: аre Great Britain (identical US business conditions), Luxembourg and the Netherlands (minimizing tax bills), Ireland (export platform). France and Germany are also joining these countries. The most important directions in the industrial structure of US FDI are the information, the service sector, the chemical industry, including pharmaceuticals. The increased role of intangible assets forces branches of American companies to increase their attention to R&D. Europe remains one of the most competitive regions in the world in terms of scientific and technical potential.