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Treasury Secretary nominee Henry M. Paulson Jr. testifies during his confirmation hearing on Capitol Hill June 27, 2006 in Washington, DC. - 


MARK AUSTIN THOMAS: Treasury Secretary Henry Paulson has a competitive instinct. He used to run Goldman Sachs, now he wants the U.S. to compete harder for the world's money. Jill Barshay reports.

JILL BARSHAY: The United States still receives more foreign investment than any other country in the world, but it doesn't draw the money like it used to back in 2000.

Todd Malan runs the Organization for International Investment, and he's been working closely with the Treasury Department on how to attract foreign companies — a tough sell when respected, international firms like Dubai Ports have been rebuffed.

TODD MALAN: CEOs are people too. And if they think that the environment in the United States is not welcome to foreign investment, then they may go elsewhere. They've got choices.

So what's Paulson going to do about it?

He's expected to outline a bunch of ideas this week, such as changing U.S. accounting rules, banking regulations, the legal system, auditing standards and the stock markets.

It's an agenda that not only foreign companies are sure to like, but American ones too.

In Los Angeles, I'm Jill Barshay for Marketplace.