4 ms·
> why wouldn't companies leave for another country? Solved by limiting the profit that can be transferred out to foreign companies/parent companies. If a mark
by PrimeMcFly 4y ago
> why wouldn't companies leave for another country?
Solved by limiting the profit that can be transferred out to foreign companies/parent companies.
If a market is too big, as long as money can still be made even with a cap, a company won't leave - or if they do a competitor will spring up to take its place.
- refurb 4y agoSo capital controls? Like China? That has a ton of associated problems.
- PrimeMcFly 4y agoI mean, I'm not sure China is the role model for how to do anything like that really. Doesn't mean the idea is without merit though.
- refurb 4y agoIt kind of does because you can see the problems with capital controls in China. Foreign investment drops off because, hey, who is going to invest if they can take their money back out? It's also going to limit foreign investment outside the country. It also screws with exchange rates and interest rates because of the Interest Rate parity law: https://en.wikipedia.org/wiki/Interest_rate_parity https://en.wikipedia.org/wiki/Interest_rate_parity
- snapcaster 4y agoYou seem to be implicitly assuming that "foreign investment" == good. This is sometimes (or even often true) but it's not like it's without tradeoffs
- refurb 4y agoHow is foreign investment bad?