I tend to be on the side that is maligned as "protectionist" and I have always wondered why foreigners invest here while our guys say that they cannot do business here and are forced offshore; maybe this study explains it where even I can understand.
I am a proud "protectionist" and I have had my fill of contumely this year --
So don't waste band width just to call me names.
(I got a five years worth of hate for posting an opinion that people should not loose their pythons in the wilds -- even the "cute" little bull pythons. The bull python lovers went nuts that I was suggesting that their pets were as dangerous as a loaded gun.)
The study says "On a historical cost basis, or book value basis, the Department of Commerce estimates that by the end of 2009, U.S. firms had accumulated $3.5 trillion worth of direct investment abroad, compared with the $2.3 trillion foreign investors had spent to acquire or establish businesses in the United States, when direct investment is measured at historical cost."
Acquire businesses? Ya mean like Japan did 20 years ago buying just about everything -- and losing same.
Establish business -- now that's the ticket. That's what I am asking about. Maybe the study will explain how those managers can operate a successful business despite the government hindrance. Maybe not.
from the part, Why Firms Invest Abroad
". . . the bulk of foreign direct investment takes place between highly developed countries where rates of return are very similar."
No surprise that developed countries by far trade with each other and that's exactly what free trade is about. I don't think that anyone argues that point.
It's Red China that's the problem for me.
On my quick scan I did not see why invest in an developing country that steals your intellectual property and demands such things as you take on a "partner" who will own at least 51 percent of your venture. I believe that is some of the conditions for being allowed access to the cheap labor.. regardless
I saw nothing about the profit of putting FDI into a country openly boasting of building a military to take on the U.S. of A.