Question

Do you think foreign corporations should be allowed to invest in the U.S. without any restrictions?  Who gains when foreign corporations invest in the US?

Answer 1

Yes, I think that foreign corporations should be allowed to invest in the U.S. without any restrictions. This is because when foreign corporations are allowed to invest and operate and do business in the U.S. without unwarranted restrictions then these corporate entities will be able to create new job opportunities in the country. The business of foreign corporations will produce more goods and services and hence this will add to the economy of the country as well. In the long term this will have a trickle-down effect and GDP per capita will increase and standard of living of people in USA will also increase.

When foreign corporations invest in USA then all direct and indirect stakeholders will stand to gain. The level of capital creation will receive a boost and the economy will be bolstered on an overall basis. For example suppose that a Japanese automobile company invests in USA and starts its factories to manufacture its cars. It then opens sales outlets to sell these cars. Investment in factories will boost the capital sector industry in USA as the new factory will require tools, machineries, equipment etc. People will be hired at the factory and at the showrooms. Capital will start turning around faster and hence the economic cycle in USA will receive additional pace and momentum. This will benefit everyone in the long term.