Hows did America having a sizeable trade deficit lead to InBev buying AB? I understand the weak dollar aspect of the equation, but the trade deficit I don't.
I was about to post an agreement, but then I’m not so sure that was what I should do.
We are pumping trillions of dollars outside our nation. Some of that is offest by foreign dollars coming back via trade. A massive sum does not return.
Instead folks (corporations) outside the U.S. hold dollars and have to do something with them. Investing back in the United States is one way of doing that.
Is this an instance of that? It may be. Some of this organization’s products are sold in the U.S. Undoubtedly some of the funding that makes this purchase possible, is supplied by U.S. consumers.
Some folks look at foreign purchases of our corporations as a good thing. I think a case can be made for that. I also find it somewhat distrubing to watch some of our top corporations held by foreign concerns.
Does it matter if the name Budweiser disappears? Perhaps not. If the jobs are lost, and I do think that will happen over time, it may matter. I notice the loss in other sectors don’t seem very important to folks these days though.
Some years back, U.S. corporations set up businesses over the border in Mexico. For a few years, it was a real boon down there. And then the U.S. corporations discovered China. They acted in their best interests. Adios.
What happens when foreign corporations decide to act in their best interest? What happens when they close down our plants? While I can’t see that happening in the short term, I’m not at all convinved a time won’t come when it will be advantagous to do that.
What then? Is foreign owned healthy? I remain unconvinced.