The first part of this article (MR, February 1992) dealt with the recent rapid growth of foreign direct investment, seen against the background of a marked slowdown in global economic growth. Evidence was presented to illustrate three noteworthy new features of the upsurge in border-erossing capital movements. First, German and japanese capitalists entered the arena to become large and competitive exporters of capital, ending U.S. predominance. Second, although capital continued to be invested in third-world countries, an increasing proportion went from industrializing countries to each other. Finally, more and more foreign direct investment is being devoted to service industries, above all to finance, rather than to the more traditional fields of manufacturing and extraction of primary products.
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