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    Strong US dollar vs high taxation: foreign investment in USD

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    A strong dollar is very important; however, the taxation issued raised by the professor is potentially harmful. Why would a foreign investor invest money in the U.S. if every dollar earned is subjected to a high tax rate?

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    1. There is more safety in US investments than in some other countries. Consider nationalization, changes in governments, war, coups, likelihood of natural or economic disaster, to name a few.

    2. Historically, we have a growth economy and one of the highest in the world. With that ...

    Solution Summary

    The solution provides five ideas to support the premise of a preference to invest in the US dollar, and each idea is expressed in a couple of sentences