RE: US foreign investment

["Davies, Daniel" <daniel.davies@xxxxxxxxxxxx>]

Just to suggest that although the numbers are "nearly exactly the same",
these are returns on capital we're looking at, so they need about two more
decimal places.  To put it another way, although they're practically the
same, there is all the difference in the world between an investment which
earns 4.6% return and an investment which earns 7.5% return if you are
funding your investment with borrowed money at 6%.  In one case, you're
making a decent profit; in the other, you're slowly going out of business.

dd

>If there is any meaningful economic interpretation that can be gleaned from
>all this, I have no idea what it is. Just take a look at:
>http://www.marxmail.org/foreign_investment.htm and compare Nicaragua to
>Norway.

>Nicaragua:
 >(A) Number of Affiliates -- 8
 >(B) Total Assets -- 147
 >(C) Sales -- 260
 >(D) Net Income -- 11
 >(E) Employee Compensation -- 14
 >(D) divided by (B) -- 0.07
 >(E) divided by (B) -- 0.10

> Norway:
 >(A) Number of Affiliates -- 182
 >(B) Total Assets -- 19092
 >(C) Sales -- 12836
 >(D) Net Income -- 882
 >(E) Employee Compensation -- 1855
 >(D) divided by (B) -- 0.05
 >(E) divided by (B) -- 0.10




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