In the 1990s and the first decade of the 2000s, investors from the Asian economi
ID: 1164755 • Letter: I
Question
In the 1990s and the first decade of the 2000s, investors from the Asian economies of Japan and China made significant direct and portfolio investments in the United States. At the time, many Americans were unhappy that this investment was occurring. True or False: It was better for the United States not to receive this foreign investment because it shrunk the capital stock. True False True or False: It would have been better for Americans to have made this investment because then they would have received the returns on the investment themselves. O True FalseExplanation / Answer
1 False -
It is so because it was better for the United States to receive this foreign investment because It makes U.S. capital stock larger not shrunk it, which increases economic growth.
So the statement is false.
2. True :
It would have been better for the U.S. to have made this investment because then they would have received ALL the returns on the investment instead they went to Japan and China.
So the statement is true.