In which region has the US accumulated significant FDI investment abroad?

The correct answer is Canada and Mexico because the United States has a long-standing economic relationship with its North American neighbors, which is demonstrated by substantial Foreign Direct Investment (FDI) between these countries. The proximity and integrated economies foster collaboration, making Canada and Mexico prime destinations for U.S. investment. The establishment of agreements such as the USMCA (United States-Mexico-Canada Agreement), which replaced NAFTA, has further encouraged investment flows by providing a stable and predictable environment for American businesses.

Investments in Canada and Mexico cover various sectors, including manufacturing, technology, and services, allowing U.S. companies to benefit from lower production costs and access to the North American market. This regional integration is much stronger compared to other regions like Asia, Africa, or the Middle East, where U.S. investments may not have reached the same levels of accumulation or may be influenced by different geopolitical factors that complicate direct foreign investments.