American foreign investments

Abstract

The article reexamines on a realistic ground the much debated problem of private American investment abroad. The analysis of the past experience and of the present difficulties and worries - in the international field - leads the author to define the present attitude of American investors in conservative terms. The author affirms that on this basis “it does not appear likely that the near future will witness any substantial outflow of capital from the United States to foreign countries in the form of long-term loans sold to individuals or institutional investors. An outflow of private capital from the United States will be almost exclusively in the form of direct investments”. But “direct investments abroad are also handicapped at present by the uncertain political and economic conditions prevailing in the world”. Given this situation, the author believes that a flow of private capital from the United States to foreign countries during the next years is not likely to be very large.

JEL: F21