Monday, April 3, 2006

A Popularity Contest

I always viewed Foreign Direct Investment (FDI) as a popularity contest of countries' economies. Not too unlike high school.

FDI is investment from foreign countries into yours. This is a good thing as the more of it you have the better your economy does. Foreign firms (and governments) want to set up shop in your country to produce goods or sell their goods/services there. This provides employment and boosts GDP.

Typically countries that have lower taxes, low regulation, open markets, and other such fascist imperialistic capitalistic abonimations will attract FDI, just as a high school girl that has big boobs, a tight body and a pretty face will attract the boys.

Thus when we compare FDI INFLOWS and OUTFLOWS as a percent of GDP for various countries, you get a really good idea as to who the most popular girls in high school are.


Alas it seems Ireland and Luxembourg are the most popular girls who receive all the attention, but return very little of it. And if you look for those cute girls next door you'll note Poland, the Czech and the Slovak Republics are also quite popular...I always loved girls in high school with a flat tax.

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