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Foreign direct investment contributes to the current account deficit of the recipient and the surplus of the originator.

This is why the only solution to the current account imbalance is transfers.

If you are not convinced, try it on someone who has not been entirely debauched by economics. — Piero Sraffa

by Migeru (migeru at eurotrib dot com) on Tue Aug 28th, 2012 at 04:54:23 PM EST
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