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    U.S. net direct investment position

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    Explain the underlying basis for foreign direct investment, and discuss several factors that may contribute to it. What factors have likely contributed to the current U.S. net direct investment position?

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    First, foreign direct investment, in its classic definition, is the investment of a foreign entity, usually corporations, in physical assets such as factories and machineries in another country. In contrast, Investments by foreign entities in financial assets such as equity and debt securities in another country is foreign ...

    Solution Summary

    U.S. net direct investment position is justified.