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Are U.S. companies’ rates of return on their overseas investments abnormally high?

April 26, 2017abnormally high investments overseas rates Return

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Are U.S. companies’ rates of return on their overseas investments abnormally high?

1 Answer

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No. Over the last several decades the rate of return on U.S. direct investment abroad has averaged only about 1 percentage point more than the rate of return for all non-financial corporations in the United States. The somewhat higher return on U.S. direct investment abroad partly reflects the higher risks associated with overseas investments.