How Foreign Direct Investment (FDI) impacts the work of a lobbyist

As an advocate for international companies in the United States, the Global Business Alliance (GBA) promotes and defends an open economy that encourages foreign companies to invest in America. Founded in 1990, the GBA was established to address specific barriers international companies faced regarding tax and trade policies at all levels of government. The organization focuses on advocacy, investment, and trade promotion. It serves as a key link between multinational corporations and the U.S. government, leveraging research and data-driven approaches. A noteworthy report was released in September 2024: Strategic Trust – Insights to Elevate Your Influence in a Policy Climate.

The report highlights a growing skepticism about globalization and Foreign Direct Investment (FDI) in the United States, driven largely by concerns over China. Its insights, based on research among policymakers, politicians, and the public, include:

• Skepticism and misconceptions about globalization and FDI: The American public increasingly perceives globalization as a threat. In 2024, only 50% of Americans view FDI positively, while 76% consider foreign companies a potential national security risk. China’s role in FDI is often overestimated; in reality, it accounts for less than 1%.
• Information influences perception: Transparent communication about the economic benefits of international companies can improve public opinion. Examples include highlighting investments in local communities, job creation, and innovation.
• Credibility and messenger matter: Using credible messengers, such as academic institutions, entrepreneurs, or other influencers, can help build trust among policymakers and the public.
• Key themes for policymakers: Both Republican and Democratic policymakers respond positively to core messages focusing on jobs, (re)investments in the U.S., and strengthening local communities.

What does this mean for the approach of lobbyists representing foreign companies in the United States?

1. Emphasize economic contributions: Highlight how a company (re)invests in the U.S. economy, creates jobs, and contributes to innovation and local development. Use concrete data, facts, and figures.
2. Address misconceptions proactively: Counter misconceptions about foreign influence by emphasizing transparency and regulatory compliance. Demonstrating that your company originates from an allied or friendly country can also help build trust.
3. Leverage credible partners: Collaborate with academic institutions or local influencers to communicate the efforts of your company or sector. This enhances credibility and reduces mistrust among policymakers and voters.
4. Show local engagement: Organize events and joint projects with local communities to demonstrate commitment. Give the company a local presence and invest sustainably in networks and visibility. A “hit & run” approach will not work.
5. Communicate strategically to political parties:
   • For Republicans: Focus on job creation, reinvestment, and U.S.-based production, emphasizing national economic benefits.
   • For Democrats: Highlight investments in R&D, employee benefits, and collaboration with labor unions.
6. Reframe trade issues: Position trade-related topics as opportunities to “strengthen the resilience of U.S. supply chains” rather than managing them as traditional free trade agreements or countering potential import tariffs.

For more information, visit: https://globalbusinessalliance.biz/about/