The document discusses the implications and positive and negative aspects of foreign direct investment in the United States. The objective is to determine whether a restrictive U.S. policy as it relates to foreign direct investment in the United States is desirable. It is presented in five chapters. Chapter I defines foreign direct investment (FDI) and outlines the issues related to it. Chapter II analyzes the factors affecting FDIs and examines the costs and benefits to the host countries. Chapter III presents a statistical portrait and evaluation of the FDI position in the United States, which support the conclusion that foreign direct investment has been beneficial to this country. Chapter IV contains a case study of the FDI position in the banking industry, outlining economic and political controversies. Chapter V explores the reasons behind the drive to restrict FDIs and summarizes the conclusions, including that the expansion of FDIs is just one aspect of the increasing internationalization of economic activity, that since 1972 the economic universe is no longer seen as expanding and a retreat from liberalism into a contractionist environment has resulted, and that there is no evidence to show FDIs as posing a serious threat to the United States. It recommends that the United States should continue to try to harmonize national policies on this issue, and that the United Nations and other international bodies must frame rules acceptable to all concerned. Discussion questions for students and groups are appended. (Author/CK)