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The share of US output held by foreign-controlled firms tripled during the 1980s, but the growth of foreign direct investment in the United States fell sharply after 1990. Graham and Krugman provided the first analysis of the growth of this investment, and its economic and national security implications, in the first and second editions. The third, extensively revised edition analyzes the post-1990 downturn in FDI, updates all statistics, provides new analysis based on statistical series not previously available, and assesses recent legislative proposals to restrict FDI.