rate of return on capital Doug Henwood <dhenwood at panix.com>
>From: Doug Henwood <dhenwood at panix.com>
>>
>> The only thing wrong with this quasi-syllogism is that the marginal
>> return in the developed nation is >0%, which is why about 2/3 of FDI
>> goes to developed countries (and the remainder is concentrated in
>> only about 10 "developing" countries). So while capitalism may
>> destroy the human species, this isn't sufficient proof.
>
^^^^^^^^^
CB: Another couple of questions on this. 2/3 of U.S. FDI goes to developed countries. Presumably the enormous amount of investment/capital that is exported to the U.S. from other developed countries comes to the U.S. because it has reached zero or low return in those other countries. Why is it the the U.S. direct investment in those other developed countries is able to make more profit than the capital that those countries send away to the U.S. ? Why is the direct investment from the other developed countries in the U.S. able to make more profit in the U.S. than the capital that the U.S. invests in other countries ( because it no longer makes enough profit in the U.S. ) ?