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Cash Flows and Foreign Direct Investment

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We are working on a Finance case concerning Foreign Direct Investment. We have a company that is moving their operation to India. I can figure out a dozen plus reasons why this is a very good move for the company. What I cannot think of, is why would the U.S. government bless this move? How does the U.S. government benefit from this as far as actual dollars (cash flows)? What are the different ways in which the company's cash flows from joint venture can be remitted to USA?

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The solution discusses what are the different ways in which the company's cash flows from joint venture can be remitted to USA.

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The U.S. government will also be blessed with this move because the company's earnings will finally be repatriated to the domestic country of the company, ie, USA. The national income of the country will surely get a boost. The cash flows will finally flow into the country from abroad as the company will like to bring back the ...

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