Investment: Marks for the Market

While years of balance of payments deficits have weakened the dollar and forced the U.S. to curb the outflow of its money to foreign countries, the rising strength of the Deutsche mark has impelled West Germany to take an opposite course. To offset their embarrassingly big trade surplus ($4.2 billion last year), the Germans have started exporting large quantities of investment capital to the rest of the world. Last year that flow of money reached $900 million, and this year it is expected to grow even further, to $1.5 billion. Reinforcing the...

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