You may be confusing where profits can be made and who makes them vs. where capital is deployed. http://mjperry.blogspot.com/2010/10/trade-deficit-capital-infl

You may be confusing where profits can be made and who makes them vs. where capital is deployed. http://mjperry.blogspot.com/2010/10/trade-deficit-capital-inflow-bop-0.html http://mjperry.blogspot.com/2010/10/trade-deficit-capital-in... http://topforeignstocks.com/2009/06/13/the-top-net-capital-importers-and-exporters-of-capital-in-2008/ http://topforeignstocks.com/2009/06/13/the-top-net-capital-i... It has to do with the balance of payments. US entities do invest and make profits overseas. However, investments into the US (including loans to the US Treasury, for example) happen in larger amounts than investments from the US into other countries. Regardless of where profits are made or who made them, people prefer to put their money in the US.