Part of CFR's Renewing America initiative, this roundtable series brings high-level attention to homegrown challenges to U.S. national security. Meetings in this series are led by individual CFR fellows and examine how policies at home will directly influence the economic and military strength of the United States and its ability to act in the world.

Part of CFR's Renewing America initiative and made possible by the generosity of the Bernard and Irene Schwartz Foundation, this roundtable series brings high-level attention to issues that affect the competitiveness of the U.S. economy. Meetings have addressed issues such as reform of the U.S. corporate tax system, the effectiveness of the WTO dispute settlement process, and the U.S. approach to inward and outbound foreign investment.

Made possible by the generosity of the Bernard and Irene Schwartz Foundation, this roundtable series examines the impact of post-9/11 measures on U.S. economic competitiveness and diplomatic relations, and considers possible government responses to address these problems.

In this Council Special Report, David M. Marchick and Matthew J. Slaughter discuss the scope, nature, causes, and consequences of rising restrictions to inward foreign direct investment (FDI) around the world. Just as with trade, calls to restrict investment are growing louder in many countries, with potentially significant adverse political and economic consequences. The authors examine trends in a number of countries, documenting moves toward restricting investment through both legislation and regulation. They also analyze the reasons behind these trends, such as increased concern over investment from "nontraditional" sources, both private and sovereign wealth funds.

Recognizing the weight governments place on national security concerns, the authors lay out clear principles for host countries to follow in regulating foreign investment. The authors recommend actions to be taken by international organizations as well to help foster sound policies in these host countries. The result is a compelling analysis and a strong case for governments everywhere to take steps to maintain openness to investment.