Performance of U.S. FDI in Different World Regions

This study analyzes the risk-return performance of U.S. firms that emphasize investments in developing regions versus others that invest in their home market or other developed countries. The test results indicate that U.S. firms active in the Asia-Pacific region are likely to perform better than U.S. firms active in other world regions in both profitability and risk. This implies that Asia and the Pacific provide greater opportunities for U.S. firms to achieve a better risk-return performance when their ownership advantages are well integrated into a conducive environment