News Scrapbook 1986-1988

Rancho Bernardo, CA (San Diego Co.) Rancho Bernardo Journal (Cir. W. 2,500)

Oceanside, CA (San Diego Co.} Blade Tribune (Cir. D. 29,089) (Cir. S. 30,498) MH

12 1987

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1 + Economist dispells 'U. s&e{~er

Gary Hyvonen

. for s le' myth

? ' England states with their "strong, powerful unions" have attracted on- ly six percent of foreign non-bank jobs. Some unfriendly nations such as Libya and the Soviet Union, have in- vestments in the United States, but the amount they own is relatively small. One example of Libyan in• vestments is its multi-million dollar diplomatic mission building in New York City. "A square foot in down Manhattan averages $350," Dimon remarked. "Assuming an investor could even find property to buy in Tokyo, the price is $4,000 a square foot. "Although American land values seem high to us, compared to some other nations, they are bargains." Citing figures compiled by Solomon Brothers, Dimon said foreign purchase of American real estate has quadrupled since 1980. Foreigners buying developed real estate are not as much of a concern as those buying farmland," Dimon said. "Some states now limit the amount of farmland foreign in- vestors can purchase." Despite some fears of a foreign in- vestor takeover, many American communities are competing against each other to attract these invest- ment dollars. Spartanburg, S.C., has more foreign investment per capita than any other town was on the brink of economic doom. Now it has an unemployment rate which is one point lower than the national average. California has approximately 10 percent of all foreign investment in the United States, and some experts predict by the turn of the century, the state will have one quarter of all foreign investments in America. The state also receives 25 percent of all Japanese investments made in the country. "Foreign investment in the United States is an important issue,'' Dimon said. "Perhaps it is time for the Unites States to increase its monitoring of international capital. "Our government limits fortigr direct investments in areas ff' . ting national security, but h~ 1 rule requiring universal re~ tion. It may be time to consider it."

Foreign investments in the United States total more than $1 trillion, warring many Americans "the coun- try is up for sale." Denise Dimon, assistant professor at the Uniyersity of San Diego and a specialist m mternational economic development, discussed this con- troversial topic at the sixth session of Gr~at Decisions '87. The eight- week co· rse is sponsored by The Continuing Education Center at Rancho Bernardo and The American Association of University Women. · "The issue of foreign investment is as old as the country,'' said Dimon, who has conducted numerous research projects on im- ports and exports. "Back in 1791, Alexander Hamilton told America's founding fathers that every farthing of foreign capital is a precious ac- quisition." Today, not all Americans are as enthusiastic about foreign in- vestments that now represent about 10 percent of the United States economy, she said. "The Commerce Department defines a foreign direct investment as ownership of 10 percent or more in a company's total equity," Dimon said. "This figure was chosen because the Commerce Department believes that a 10 percent ownership in a company gives its investors some means of control." The degree of foreign investment varies among America's industries. A decade ago foreigners owned about one percent of the cement in- dustry in the Unites States. Today foreigners own about 40 percent of it. Foreign investors include West Germans, British, Canadians, Dutch, Japanese, and Arabs. "Some Americans are surprised to learn that some very old American companies are now classified as foreign direct in- vestments,'' Dimon said. "But foreign investment is a two-way street-for.eign investors like America because it is a safe haven for investors and the United States government uses tlieir money to heir- finance the government deficit." y eign investment makes the

Toreros' emotional journey continu~ in NCAA tourney O~~~ollercoaster ride it's been for Hank Egan and hiµ!SD cagP.rs . And it'll probably all come to an end with today's NCAA first-round g me against Auburn. On paper, the Toreros (25-4) don't belong on the same floor with the Tigers (17-12), whose record is ignificantly inferior but whose schedule was decidedly superior. Still, Egan and the Toreros journeyed Wednesday morning to Indianapolis quite willingly. This, after all, is their reward for a grand sea on, one that produced 24 victories and the WCAC regular-season title in a landslide. It doesn't seem to matter that it'll probably be a hort ti ip. Even if the Toreros stun Auburn in their , 1d est Regional opener, they'll find thems •lves face-to-face Saturday with Indiana, a team many fortune-tellers are picking to win the whole thing. A USO-Indiana scrimmage would have one in- teresting sidcnote· It was on the recommendation of Hoosiers coach Bobby Knight that Egan got the USD job in 1984 But even 1f Egan doesn't get a chance to match wits with night, the trip to Indy will be fulfilling. Thi i a reward that the Toreros were beginn n to • unk would be denied them after last Fri- d y's one-point lo s to Pepperdine in the WCAC Tournament. Last weekend, Egan, the Toreros' personable coach, was walking the streets of San Francisco, knowmg it could be the end of the season, feeling it was the end of the world. He took in the sights, but wasn't really enjoying himself. The knot in his stomach told him his club would not get the at-large berth for which it was wishing. Finally, Egan came upon a human juke box, quite an attraction along the San Francisco pier . •'A human Juke box - I thought about that as an alternative," Egan admitted the other day. But come Sunday afternoon, Egan heard some news that was clearly music to his ears. USD was awarded a spot in the NCAA Tournament. At first, Egan didn't hear anything about it. The announcements were expected at 2:30, but by 2:45 the phone in his room had remained dead silent. ·•1 figured nobody had the courage to call and tell us we didn't make it,'· he said. Then the phone wouldn't stop ringing. Everybody was calling to tell him the Toreros were in. And a sky-high Egan, whose emotions had toured the spectrum over this past week, flew back to San Diego, going through the trouble of taking a plane only because the ticket was al- ready paid for. Once home, the congratulations continued to pour in and so did some help. Egan said some fans called offering to lend cassettes of an Auburn game they had taped off television during the season. The better to prepare for the Tigers, who are puzzling bunch. They field a talented lineup but finished only 9-9 in the Southeastern Con- ference and have lost 12 of their last 22 games. The Tigers, wever, can rebound, they can ,,,,. See Hyvonen, pa e 28

GREAT DECISIONS '87 -Denise Dimon, a specialist in economics and assis- tant professor at the University of San Diego, discussed foreign investments in the United States. Foreign investments amount to more than one trillion dollars. (Staff photo by Beth Weiner)

government deficits "less painful" for credit markets to absorb. Solomon Brothers estimate that foreign investors are buying 30 per- cent of the new government issues this year. They bought about five percent of new government issues in 1950. "There are two main types of foreign investments," Dimon said. "One is called a portfolio investment and the other is a foreign direct in- vestment. Portfolio investments are short- term and are made by governments and individuals for an immediate return. Types of portfolio in- vestments are corporate bonds, government securities, bank deposits, and the purchase of stock in one or more companies (but not a controlling share). A foreign direct investment is usually made by a corporation and is long-term. It includes ownership of an asset such as a factory or land. This type of investment in the United

States totals more than $167 billion. "The growth in portfolio in- vestments has been much faster than in foreign direct investments," Dimon said. "In 1984, approximately 86 percent of all foreign investments were in portfolios." Nations investing in dollars have a personal interest in a strong United States economy, according to Dimon. Foreign investment has also created jobs, and approximately 2.5 million people in the United States are employed by foreign firms. British firms are among the largest employers. States with high foreign in- vestments include Texas because of its oil, New York because of its real estate, and California and Massachusetts because of their "high-tech" industries. The Southeast has attracted many factories. Dimon estimates about 25 percent of foreign jobs are found in their region because of the South's low union membership. The New

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El Cajon, CA (San Diego Col Daily Californian (Cir. D 100,271)

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ToI:ros play opener against Auburn today The Dally Callfom1an staff report tournament after wmmng the regular- 18-10 that year had d"ff' lty t t· season title takes a school-record 24-5 mark . • 1 icu pene ra mg a

The l!niversity of San Diego basketball team mll Ihmre ,ts secon~ NCAA Tournament appearance m four years today when the Toreros take on Auburn University of the Southeastern Conference in an opening r

into the po;tseason affair. Auburn, led by All-SEC first-team forward Jeff Moore (17.2 points, 9.3 rebounds per game), finished fifth in its conference. The Tigers are 17-12 USD's first-ever NCAA Tournament appearance was unsuccessful in 1984 . The Mike Whitmarsh-Anthony Reuss-led Toreros succumbed in the first round of the East Regionals, bowing to Ivy League- champion Princeton University 65-56 in Philadelphia. The Toreros, who finished overall.

Pm_iceton defense that ranked No. l in the _Whitmarsh, a product of Monte Vista High and G.-ossmont College, was a fifth- round draft choice of the Portland Trai_lB!azer~ in 1984. Reuss, a graduate of Chnstian High, played f~ur sea_sons at USD. The USO-Auburn survi".'or will advance to the ~econd ro!!nd of the ~1dwest Regionals against the wmner of tomght'~ first-round game b_e~een top-seeded Indiana (24-4) nation.

Y6 Hyvonen (From page 2~.S- S core (80.2 average), and {hey should dispatch U 'lJ with ease. ot that Auburn coach Sonny Smith will agree. S nny has been downplaying his team's chances a 1 week. although that's not something with which Egan will agree. "We've had some contact with the Alabama prt•ss and I'll tell you there's a lot more of them than are of you," Egan told a small group of San Diego writers. "The difference is what we can a( complish with you in 10 minutes, it takes 30 rn nutes with them because they talk so slow. And everything starts with 'Sonny says .. .' Everytime 011 hear 'Sonny says,' you better duck because "umcthing is coming.''

Sonny says things like his team could look past USD because "my team could overlook its own birth date." And that "the Auburn Tigers have a 6-7 center who can't jump. We're in real trouble." He doesn't mention that Jeff Moore, the center, was first-team All-SEC and is built, in Egan's "Auburn pounds the boards and like to run. We're going to have to send five guys to the boards, I'm convinced of that. And they play sev- eral different defenses. I think they try to make you lose your poise trying to figure out what they're doing." Whether or not USD loses its poise, it will lose , the game. But, as Egan can varify, that's a whole lot better than not getting to play the game at all. Maybe even better than becoming a human juke box. words, like Charles Barkley. "Sonny's a fox,'' Egan said.

and Fairfield (15-15).

El Cajon, CA (San Diego Co) Daily Californian (Cir. D 100,271)

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,,, Roberts helps T eros batter Point Loma 12-1 Lakeside's A ts was right in the middle of things Wednesday.a . on as the University of San Diego carved up crosstown nval Pomt Loma Nazarene College 12-1 in a non- conference baseball game at USD. The one-time El Capitan High student had three hits, scored two runs and drove in two more for

Vista, CA (San Diego Co.) Morning Press (Cir. D. 7,676) (Cir. S. 7,967)

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SE_game to be brOlflE9JJSt here KVSD radio in Vista ~~ will broadcast the University of San Diego's opening game in the NCAA Division I basketball tour- nament against Auburn today. . .~ The broadcast is slated for 4 p.m. from the Hoosier Dome lJl In- dianapolis. Tipoff is slated for approximately 4:07. Steve Miles and Ronnie Wald will be the announcers.