Final answer:
Due to the COVID-19 pandemic between 2019 and 2020, Foreign Direct Investment (FDI) decreased significantly. Unemployment rates spiked, consumer spending dropped, and economic uncertainty led to a decline in business investment levels.
Step-by-step explanation:
Between 2019 and 2020, due to COVID-19, Foreign Direct Investment (FDI) decreased significantly. The pandemic led to a dramatic upsurge in unemployment, including in the United States, where the unemployment rate soared from 4.4% to 14.8% between March and April of 2020. This was largely due to shutdowns in various sectors, such as restaurants, tourism, and travel, which significantly cut down on spending. As a result, businesses were forced to shutter or go online, and investment levels declined due to economic pessimism and uncertainty. The federal government responded with fiscal measures like small business loans, expanded unemployment insurance, and stimulus checks to revive the economy. However, given the lingering effects of the pandemic and new health concerns because of emerging variants, FDI decreased significantly as confidence in the U.S. economy faltered and financial capital supply was affected. Investors began viewing U.S. financial assets as more risky, impacting the overall investment climate.