rate of return on capital

pms laflame at aaahawk.com
Thu Apr 18 12:58:30 PDT 2002


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. ) ?

Paula: Yeah?



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