It s clear that the economy doesn t function the same way it did one hundred years ago. Today we are all interdependent and we rely on foreign investors for their money as much as they rely on us as a stable place to put their money. The world s economy has become so intertwined that in a way each nation is at the mercy of its trading partners. The scary answer is yes, but it s not as bad as it sounds. Refer to my prior remarks, in that the world s economy is interdependent, and we can hurt them as much as they can hurt us.
Protectionists fail to realize just how intertwined the world s economies have become.
The deep-rooted interdependence is not merely political, but technological as well. No one can stop the Internet, fax machines, and cyber-money from being a means of trade between nations as well. So, exactly what are some of the benefits of foreign direct investment in the United States. If you haven t figured it out already, foreign direct investment is a positive indicator of the stability of our economy, and free movement of international capital benefits all nations and increases interdependence of international economies. The answer is simple, free trade is good for everyone.