Along with trade in goods and services, foreign direct investment (FDI) (investments in
manufacturing facilities, businesses, and real estate) and portfolio investments (investments in
government securities, corporate stocks and bonds, and bank deposits) between residents of the
United States and Japan also define the economic relationship. The value of portfolio and direct
investments between the United States and Japan exceeds the value of trade in goods and
services. In addition, investments, particularly FDI (Table 4), signify a long-term financial
commitment on the part of the investor.