They generate benefits that go beyond their own businesses -- in technical jargon, they generate "spill-overs" for the rest of the economy. But, what evidence do we have that these spill-overs really exist?
By removing the Scrooge-like obstacles embedded in the tax code, exiled cash could be fueling our sputtering American economy instead of creating jobs and investments in China or Vietnam by American multinational corporations.
Before FIRPTA became law, the U.S. had no way to tax foreigners on these profits. Now, FIRPTA requires withholding from a foreigner's rental income as well as withholding from a foreigner's gains (or losses) upon disposal of U.S. real estate.
The new law gives the Honduran government the right to offer national territory and the resources within it as collateral to obtain credit, which the government can use to help pay off its debt -- estimated at $3 billion internally and US$4 billion externally.
Governor Jerry Brown is just back from his first major trip abroad during this incarnation as California's governor. It coincided with the annual state Democratic convention, but that didn't give him pause as he had bigger fish to fry in China.
As analysts and investors look carefully at the result of recent Israeli elections , they should not get distracted by endless discussions about Middle East politics and military draft. They may want to hone on the government's annual returns. The devil is in the details.
The government deserves credit for having stopped these attacks before they could be carried out, but the impression that is left is that terrorism will remain an influence in the Indonesian landscape for some time to come. So what does all this mean for foreign investors?
What do foreigners' favorite metros have in common? Two things: nice winters and big price declines during the housing bust. Foreigners want sunshine and bargains. The relationship between price declines and foreign share is especially strong.
The world of investment in emerging markets is fast moving and quite often ignores the sensitivities and constrains of the existing governments. More attention should be given to this process so we are all better informed.
Various policy objectives have motivated the creation -- and exponential expansion -- of SEZs around the world. However, such successes have not been universal or without controversy in the past, nor are they guaranteed in the future.