> It's my impression that both FDI and portfolio investment have been
> concentrated in a few areas, not spread out throughout the world. And isn't
> that concentration one of the causes of bubbles and subsequent crises?
Absolutely correct. FDI and portfolio investment are concentrated in just a few countries, primarily SE Asia, China, Mexico, etc. And those unregulated capital inflows play hell with local development planning and create speculative bubbles in property, real estate and stock markets, as they did in... you guessed it... Mexico, China, and SE Asia. Receiving the largesse of Wall Street is almost as dicey as not receiving any largesse at all.
-- Dennis