But there’s a problem: US companies operating abroad don’t, in fact, seem to earn especially high rates of return. Why then doesn’t the United States seem to be paying a price for all its borrowing? Because, according to the official data, foreign companies operating in the United States are remarkably unprofitable, earning an average return of only 2.2 percent a year. There’s something wrong with this picture. As Daniel Gros of the Center for European Policy Studies puts it, it’s hard to believe that foreigners would continue investing in the United States “if they were really being constantly taken to the cleaners.”
For complete IIPM article click here
Source:- IIPM Editorial, 2006
For complete IIPM article click here
Source:- IIPM Editorial, 2006
