Suchergebnisse

During the 1980s both foreign investment in the United States and the debate about its effects on the U.S. economy increased in volume. Proponents of foreign investment assert that it boosts the productive capacity of the U.S. economy, reduces interest rates, and brings with it new technology and management practices. Some Americans seek to restrict foreign investment in the United States, arguing that such investment has deleterious consequences for the domestic economy or national security. The economic and national security arguments offered in support of administrative restriction of foreign investment are flawed. Some are based on misapplications of the principles of economics or misperceptions concerning the behavior of foreign firms. Others ignore the remedies available to the U.S. government should it feel that national security is threatened by the behavior of foreign investors.

DURING THE 1980'S BOTH FOREIGN INVESTMENT IN THE UNITED STATES AND THE DEBATE ABOUT ITS EFFECTS ON THE U.S. ECONOMY INCREASED IN VOLUME. PROPONENTS OF FOREIGN INVESTMENT ASSERT THAT IT BOOSTS THE PRODUCTIVE CAPACITY OF THE AMERICAN ECONOMY, REDUCES INTEREST RATES, AND BRINGS NEW TECHNOLOGY AND MANAGEMENT PRACTICES. ON THE OTHER HAND, SOME AMERICANS SEEK TO RESTRICT FOREIGN INVESTMENT IN THE UNITED STATES, ARGUING THAT SUCH INVESTMENT HAS DELETERIOUS CONSEQUENCES FOR THE DOMESTIC ECONOMY OR NATIONAL SECURITY. BUT THE ECONOMIC AND NATIONAL SECURITY ARGUMENTS SUPPORTING ADMINISTRATIVE RESTRICTION OF FOREIGN INVESTMENT ARE FLAWED. SOME ARE BASED ON MISAPPLICATIONS OF THE PRINCIPLES OF ECONOMICS OR MISPERCEPTIONS CONCERNING THE BEHAVIOR OF FOREIGN FIRMS. OTHERS IGNORE THE REMEDIES AVAILABLE TO THE U.S. GOVERNMENT IF IT SHOULD FEEL THAT NATIONAL SECURITY IS THREATENED BY THE BEHAVIOR OF FOREIGN INVESTORS.

Extent of the investment and how it affects the US; 13 articles.

In the early 1990s, Chile imposed a tax on short-term inflows of foreign capital to control its current-account deficit by reducing the real exchange rate of the peso. The tax reduced capital inflows & increased the maturity of the foreign capital that entered that country, but the preponderance of the evidence is that the impost did not affect the real exchange rate of the peso. Moreover, the tax imposed considerable costs on the Chilean economy. After the 1997-98 financial crisis, some economists & politicians advocated such a tax to effect or preserve macroeconomic stability in developing countries. Aside from "second-best" arguments, imposing such a tax for that purpose can be justified only as a temporary measure to enable countries facing economic or financial crisis to reform & introduce prudential regulation & adequate supervision of their financial systems, but history shows that reforms dissipate as economic & financial conditions improve. 3 Tables, 27 References. [Copyright 2002 Sage Publications, Inc.]

Discusses movement and control in the international monetary system, including currency boards, monetary unions, the euro, international financial architecture and standards, risk reduction, and globalization; some focus on emerging market and transition economies in Asia and Europe, and developing countries; 15 articles.