11 producers and consumers to be in the same geographic location.If either of these conditions were not met,we coded FDI equal to zero.As with all our FDI measures,FDI Presence varies by both industry and year. Our logic in defining FD/Presence with these two conditions runs as follows.The first condition of positive FDI investment is straightforward.Any inward or outward FDI activity satisfies this.The second condition recognizes that FDI activity is less likely to alter labor- demand elasticities if business activities cannot be outsourced across countries because the consumer and producer must be in the same geographic location. Consider the examples of wholesale trade,retail trade,and personal services (e.g.,haircuts). The large majority of business activities in these industries require the co-location of producers and consumers:e.g.,customers sitting in the barber's chair.The notions of economic insecurity related to FDI that we discussed in Section 2 focus on the substitutability of business activities across countries.In reality,in many industries,FDI does not have this characteristic;indeed, FDI may arise precisely because foreign customers cannot be served at a distance via international trade.Accordingly,FD/Presence identifies not all industries with FDI,but instead only those industries with FDI in which business activities can be outsourced across countries. So for industries such as wholesale trade,retail trade,and personal services we coded FDI Presence as zero regardless of the level of actual FDI. It is theoretically ambiguous if,in addition to the existence of FDI activity,the magnitude also matters.It may be that more FDI activity indicates greater capital mobility,which in turn raises labor-demand elasticities and perceptions of employment risks.Since the dichotomous FDI Presence does not distinguish FDI magnitudes once any FDI is present,we also constructed two continuous measures of FDI exposure that account for magnitudes relative to industry size.11 producers and consumers to be in the same geographic location. If either of these conditions were not met, we coded FDI equal to zero. As with all our FDI measures, FDI Presence varies by both industry and year. Our logic in defining FDI Presence with these two conditions runs as follows. The first condition of positive FDI investment is straightforward. Any inward or outward FDI activity satisfies this. The second condition recognizes that FDI activity is less likely to alter labor￾demand elasticities if business activities cannot be outsourced across countries because the consumer and producer must be in the same geographic location. Consider the examples of wholesale trade, retail trade, and personal services (e.g., haircuts). The large majority of business activities in these industries require the co-location of producers and consumers: e.g., customers sitting in the barber’s chair. The notions of economic insecurity related to FDI that we discussed in Section 2 focus on the substitutability of business activities across countries. In reality, in many industries, FDI does not have this characteristic; indeed, FDI may arise precisely because foreign customers cannot be served at a distance via international trade. Accordingly, FDI Presence identifies not all industries with FDI, but instead only those industries with FDI in which business activities can be outsourced across countries. So for industries such as wholesale trade, retail trade, and personal services we coded FDI Presence as zero regardless of the level of actual FDI. It is theoretically ambiguous if, in addition to the existence of FDI activity, the magnitude also matters. It may be that more FDI activity indicates greater capital mobility, which in turn raises labor-demand elasticities and perceptions of employment risks. Since the dichotomous FDI Presence does not distinguish FDI magnitudes once any FDI is present, we also constructed two continuous measures of FDI exposure that account for magnitudes relative to industry size